Discover the Latest Updates on UAE Labour Regulations
Did you know that recent changes in UAE labour laws now allow job changes during the probation period? The UAE government has introduced comprehensive reforms aimed at enhancing existing employment contracts, fostering a more conducive environment for both employers and employees and laying the groundwork for progressive future agreements.
As a country with a substantial expatriate population, the UAE continuously welcomes individuals from around the globe to live, work, and study within its emirates. The revised labour laws serve to effectively manage relations between private-sector entities and employees, thereby bolstering the nation’s competitive edge and positioning it as an ideal destination for top-tier talent.
Key Highlights of the New UAE Labour Laws
- Enhanced Fixed-Term Contracts Employers now have the flexibility to offer fixed-term contracts of up to three years, with provisions for adjustments based on mutual agreement between employers and employees. Transition to fixed-term contracts before February 2023 is mandated, ensuring mutual benefit.
- Probationary Period Policies While the probationary period remains unchanged, new regulations govern job terminations and transitions during this period. Employers are required to provide fourteen days’ notice before terminating an employee, while employees must give one month’s notice before resigning to join another employer within the UAE or relocating internationally.
- Flexible Work Arrangements The updated labour laws promote flexibility in working hours, empowering both employers and employees to tailor schedules to better suit business needs. Amendments to overtime regulations and the removal of the previous Friday resting rule aim to enhance workplace adaptability.
- Multi-Currency Salary Payments Employers now have the option to pay salaries in any currency, although specific implementation details, including the utilization of the Wages Protection System (WPS), are yet to be disclosed.
- Annual Leave Guidelines Employees are required to utilize their annual leave within the calendar year or as outlined in their employment contracts. Employers must compensate employees for any unused leave upon contract termination based on their basic salary.
- Expanded Maternity and Compassionate Leave The new laws grant maternity leave of sixty days, with additional provisions for special circumstances such as disability or loss of a child. Compassionate leave entitlements include five days of paid leave for the loss of a spouse and three days for the loss of parents or siblings. Additionally, employees studying at UAE-approved institutions for at least two years are eligible for ten working days of study leave annually.
- Revisions to Gratuity Entitlements Service gratuity entitlements have been adjusted, with employees no longer required to complete a full year of service to qualify upon resignation.
- Protection Against Discrimination Employers are prohibited from terminating employees based on pregnancy, maternity leave, or discriminatory grounds such as race, gender, religion, or disability. Equal pay measures ensure parity between male and female employees in similar roles.