UAE Labor Law Federal Decree Law No. 33 of 2021 Article

UAE Labor Law Federal Decree Law No. 33 of 2021 Article

Federal Decree Law No. 33 of 2021 Regarding the Regulation of Employment Relationship and its amendments, known as the ‘Labor Law’, governs the labor rights of employees in the private sector. It applies to all employees working in the UAE, whether UAE nationals or expatriates. However, there are certain categories of employees who are exempt from the law and may have to follow another set of regulations. Learn about employment laws and regulations in the private sector.

The Labor Law came into effect on February 2, 2022 and encompasses ten noteworthy provisions:

1. Part-Time and Flexible Working Hours: The Labor Law introduces a spectrum of adaptable employment options, including part-time work, temporary engagements for project-based tasks, flexible work arrangements with varying hours and days, and job-sharing (awaiting further clarification by The Ministry of Human Resources & Emiratisation (“MOHRE”).

2. Fixed-Term Contracts Only: The Labor Law abolishes unlimited term contracts, allowing exclusively fixed-term contracts, with a maximum duration of three years. Employers must transition existing employees from unlimited term contracts to fixed-term contracts by February 2, 2023.

3. Probation Period Notice: While retaining a maximum probation period of six months, the Labor Law mandates a 14-day notice period for either party wishing to terminate employment during probation. When an employee joins another UAE-based employer, a 30-day notice is obligatory. Employers can also seek reimbursement of recruitment expenses from the new employer.

4. Working Days and Hours: The Labor Law eliminates the compulsory Friday rest day and mandates that employers provide at least one rest day per week, which can be any day. Maximum working hours remain at eight hours per day or 48 hours per week (in a six-day workweek), with a two-hour overtime limit. Nevertheless, the Executive Regulations offer potential exemptions, limiting weekly working hours to a maximum of 56.

5. Annual Leave: The Labor Law imposes an obligation on employees to utilize their annual leave in the year it accrues and prohibits the carryover of unused days into the subsequent year without employer consent. Unused days are forfeited without compensation, and payouts only occur in specific circumstances or for leave days accrued in the year of employment termination, based on basic salary.

6. Additional Leave: The Labor Law broadens and introduces fresh leave entitlements, encompassing an extended maternity leave (60 days, with 45 days at full pay and 15 days at half pay), compassionate leave, parental leave for both parents, and study leave for eligible employees.

7. Discrimination and Equal Pay: The Labor Law furnishes protection against workplace discrimination on various grounds and prescribes equal pay for men and women engaged in equivalent roles. Although maternity and pregnancy are not explicitly listed as protected characteristics, employers cannot terminate employees due to pregnancy or maternity leave.

8. Termination of Employment: The Labor Law allows the termination of fixed-term contracts with notice during the term for valid reasons. Termination for reasons other than performance or conduct is now permissible, encompassing redundancy due to financial constraints.