The Replacement of Old with New UAE Labor Law in UAE

Introduction

Over the past few years, the UAE has announced significant changes to the current labor laws. At the beginning of 2022, a historic regulation was introduced concerning employment.

Federal Decree Law

The federal Decree-law of 2021 was updated and the new labor law was passed. It was introduced with the intent to comply with global standards and international best practices. The UAE labor laws were first introduced in 1980 and were replaced after a long time. Labour and employment lawyers are the attorneys with expertise and exposure for UAE Labour Law in United Arab Emirates. Dubai Law Firms are the good source as well for hiring such professional lawyers.

New UAE Labour and Employment Law

The new UAE labor law will be applicable to all the private-sector organizations and enterprises. The UAE government is committed to aligning global standards and practices with UAE labour and employment laws. You can book a legal appointment with our lawyers regards to new UAE Labour Law and previous Labour Law.

Implementations on Private Companies

Therefore, this initiative was taken which is applied to privately established companies with the exception of companies located in DIFC and ADGM. There is a separate set of laws under which they operate for the establishments under the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM).

• Termination is quite a normal phenomenon that takes place all around. Similarly, there is a need for laws and regulations to avoid unlawful termination. According to the law, the changes are made over termination without prior notice. The law outlines the few scenarios under which the employer can suspend the worker without sending the prior notice. Immediate termination is only permissible under the following situations which are discussed below.
• The false identity of the employee will provide a basis for the employer to immediately dismiss the worker without any need for notice.
• If the employee has submitted any fraud or Forged Documents, certificates, or papers with the employer. The intent is to hide the identity and truth. This constitutes a solid ground for a quick suspension.
• Any act of the employee that leads to significant material or financial loss to the employer can result in immediate dismissal.
• Any errors either intentional or unintentional can lead to a base for dismissal. However, in this case, it is essential to inform MOHRE in the UAE. It is important to inform them within 7 working days after the case appears.
• Any violation of workplace laws can lead to termination. Safety measures not properly followed can result in instant suspension whatsoever.
• The failure to perform the duties and responsibilities as per the employment contract can lead to prompt action by the employer which is justified under the new UAE labor laws.

 

In this, it is preferred to dispatch 2 written warnings along with detailed investigations. This provides leverage to the employer for speedy termination.

• In case a worker discloses any confidential information to anyone without consent can lead to immediate dismissal. This may result in a substantial loss for the employer or a personal gain for the worker.

 

• Any discrimination, abuse, or assault in any form is unacceptable. Any physical or verbal abuse or assault is a punishable act as per the law of the UAE.

 

• Absenteeism is a factor that provides leverage to employers to expedite the termination process. In case an employee is absent from work for consecutive 20 days in a year without any prior notice or intimation can lead to fair termination.

 

• Employees may abuse their power or position for personal or professional gains. This is totally not acceptable and thus leads to the rapid dismissal of a worker

 

New Labour Laws

There is a major difference in the new law as compared to the previous UAE labor laws.  The New Labour laws incorporate that a proper procedure must be followed before termination. It further strengthens the employees and workers and protects them from unfair or wrongful dismissal. The reforms were introduced to demonstrate a progressive and modern marketplace around the globe. Furthermore, labor rights are given importance across the globe.

Similarly, the UAE has also taken the initiative to provide equal working opportunities for all along with a favorable work environment. As a result, this will make the UAE more competitive and fair for all. The labour laws were initially introduced to protect the rights of employees, workers, and employers. The changes were also stipulated to improve the rights at the workplace.

Last Note

Additionally, this initiative will streamline the entire work environment. It also promotes a positive working culture within the workplace.

Besides, it also incorporates the changes that require the employer to be vigilant of the situation and differentiate between fair and wrongful termination. With the New laws in place, there is more transparency and clarity now that was absent before.

 

It requires warnings, notices, and investigations before allowing immediate dismissal. The probation period has also changed under the current UAE labor laws.