New UAE Labour Law : Working hours , Annual leave and Gratuity

If you work in the UAE we’ve got some good news for you: the new uae labour law has changed. From now on, employers can officially have part-time jobs. They have also the possibility to sign off flexible work contracts with more than one employer. This is groundbreaking because it is the first time in 40 years since this legislation has been renewed.

The Federal Decree-Law N° 33 of 2021 is set to replace the Federal Labor Law N°8 of 1980. It will become effective from February 2022. In this article, you’ll learn everything you need to know about this revolutionary change in UAE legislation.

1. What do you need to know about the new Labor Law?

2. Scope and application

3. Equality and no-discrimination

4. Part-time and flexible jobs

5. Different types of work contracts

6. Employment termination during the probation period

7. Employer Obligations

8. Employee Obligations

9. Wages and salary

10. Severance payments

11. Sick leave

12. Other paid leaves

13. Reasons to terminate an employment contract

14. How can you find the perfect part-time job for you with The Talent Point?

1. What do you need to know about the new Labor Law?

Minister of Human Resources and Emiratisation announced this new labor law. It is part of an effort to protect the rights of the workers. As well as to enhance the job market conditions in the country. Especially now that the UAE is one of the fastest-growing countries in the world. The pandemic performed a key role in this initiative because of the rise of remote-working.

Let’s take a look at the specifics of this law:

2. Scope and application

The new UAE labour law will apply to employers and employees within the private sector in the UAE with the exception of the federal and local government sectors. It will also become effective in the free zones that don’t have their own legislation on labor. 

What’s more interesting is that this law will not apply in Abu Dhabi or the Dubai International Financial Centre because they have its own labor law. President His Highness Sheikh Khalifa bin Zayed Al Nahyan issued this Decree-Law and it will take effect from February 2022. 

3. Equality and no-discrimination

Discrimination will not take place under the new legislation. Article 4 prohibits any kind of discrimination based on race, gender, religion, or ethnicity. Also, women will have the same rights and wages as men if they’re doing the same work. Eliminating the notorious gender pay gap that is present in many western countries.

Additionally, it is not allowed the employment of people under the age of fifteen years old. Minors above fifteen can work if they have permission from their parents or legal guardians. Also, they can’t work for more than six hours daily.

4. Part-time and flexible jobs

Part-time jobs under the new UAE labour law has been a subject of debate because it was not part of the previous labor-law regime. Even though it is a highly popular modality around the world, especially among students. Well, now a part-time job allows somebody to accept to work for one or more employers.

It is now allowed to have a temporary job without long-period work contracts. This type of work ends when a certain task is performed or completed. It is similar to freelancing jobs and it is highly accepted in western countries. 

Finally, we have flexible working. This implies the working hours can change (increase or decrease) depending on the workflow and economic resources of the employer.

5. Different types of work contracts 

This Decree-Law represents a big shift because, with the previous law, employers and employees could engage in unlimited-term work contracts. Which were very common in the UAE. From now on, employment contracts will be only for a limited term. Not exceeding the three years of duration. 

Extensions of the contract will be established with the agreement of both parties. Therefore, those who have unlimited employment contracts shall agree with new contracts to be in compliance with the new labor law.

There is a deadline until February 1st in which employers should make all the necessary changes in employment contracts. Including the replacement of those with unlimited term contracts to fixed-term contracts. 

6. Employment termination during the probation period

With the previous labor law, the employer was able to terminate the employment contract during the probation period without notice. But now, under the new UAE labour law, the employers have a period of 14 days in which they must give written notification to the employee. This is to notify the termination of the employment contract. This is necessary because it protects the rights of the workers by avoiding unfair situations.

The employees also have new obligations in this regard. Under the new UAE labour law, they have to give written notice with at least one-month anticipation. This applies if they intend to terminate the employment contract while the probation period is running. In this situation, the new employer is liable to compensate the former employer for recruitment costs.

Furthermore, if the employee wishes to terminate the employment contract and leave the country during the probation period, he/she must give written notice with 14 days of anticipation. If the employee returns to the UAE and gets hired by another employer, this new employer is liable to compensate the former employer for recruitment costs.

7. Employer Obligations

The new labor law comes with several obligations for both employers and employees. Let’s start reviewing the obligations for employers. It starts with the responsibility of maintaining the records and files of employees, for a minimum time of 2 years after they leave the company. On the other hand, the employer cannot hold any of the official documents of their employees. This is to prevent any attempt to force them to leave the country. 

Additionally, the employer has the obligation to provide all the conditions for his employees and the employment relationship to improve and make them feel safe, that includes medical insurance o repatriation costs if that’s the case. Needless to say, the employer cannot force their employee to work by coercion or under threat.

If the employee dies, the employer must deliver the end-of-service benefits to his/her family within a period of 10 days from the day of the death. In order to do this, the employee has had to provide the employer with a document that specifies the authorized person who will receive the benefits.

8. Employee Obligations

To begin with, the first obligation the employee has is that he/she must perform the tasks of the job specified in the work contract. And he/she must perform his/her work without using another person or any third party. This is a general rule that is applicable to most labor legislation around the world. Also, the employee can’t work for another employer for the duration of the contract, unless agreed otherwise.

Additionally, the employee is obligated to comply with the code of work ethics and good conduct, this includes the preservation of all of the equipment and tools to work properly. The employee also commits himself/herself to return back all of the assets that were assigned to him/her at the beginning. In case of any property damage, the employee is obligated to financially compensate it.

In regards to working hours, it has been reduced to 8 hours daily or 48 hours per week, if both parties agree to night time hours, it will start from 10 pm to 4 am. After the last working day, the employee must leave the facilities or office within 30 days after the actual last day, unless otherwise agreed by both parties. 

9. Wages and salary

The employer is obligated to pay a salary to their employees in a determined way, time and amount. One of the reasons to resign without notice it’s if the employer is holding the payment, or deducting it. 

However, the labor legislation sets out that the employer can deduct the salary of the employee for one of the following cases:

  • If the employee has damaged tools or equipment from the office property of the employer, whether to be by accident or intentionally. 
  • Court decisions can dictate even a quarter of the salary.
  • Loans from the employer to the employee.

In any case, the deductions to the salary of the employee can’t exceed 50% of the employee’s salary.

10. Severance payments

If an employee completes at least 1 year of service at the company, he/she is automatically entitled to receive severance pay at the end of their service. According to the law, this will be calculated over their basic salary. This way, the employee should receive severance pay as it follows:

  • 21 working days of salary for the first 5 years of work.
  • 30 working days of salary for each additional worked year.

The new UAE labour law establishes that there is a limit over severance pay which should not exceed the 2 years of salary, no matter the case. 

Additionally, if the employee resigns and decides to terminate the work contract, he/she will receive the full amount of the severance pay. This is something new that offers the new law because, with the previous legislation, the employee could only receive one-third of the severance pay for their services.

11. Sick leave

According to the law, when an employee has finished 6 months of full service, it is free to choose up to 90 days as recovery time if he/she gets sick. If so, the employee must provide the employer with medical reports. It depends on the employee whether to select the 90 days altogether or separately. 

12. Other paid leaves

In the case of maternity, the employee can receive up to 45 days of salary. If needed, he/she can benefit from another 45 days but this time it will be unpaid. 

If the employee suffers a personal loss such as the death of a relative, he/she is eligible for a mourning leave and it will be paid. It is as follows:

  • 5 days of paid mourning leave if the spouse dies
  • 3 days of paid mourning leave for the death of sons, siblings, parents, grandparents, or grandsons. 

But this is not the only type of paid leave. If the employee is studying in a determined educational institution and he/she has been working for 2 years in the company, it is entitled to receive 10-working days of study leave, which is completely paid by the employer.

13. Reasons to terminate an employment contract according new uae Labour law

The new UAE labour law sets out a series of valid reasons to put the employment contract to an end. This will proceed with one of the following cases:

  • A written agreement of both parties.
  • The original term has expired.
  • Death of the employer or the employee.
  • The bankruptcy of the employer.

However, there is also a set of reasons in which the employer can dismiss the employee without notice, these are the main ones:

  • Violation of internal policies about health and safety inside the facilities of the company.
  • Incompetence or bad quality of work even after two written warnings.
  • Divulgation of secret projects of the company.
  • Reckless actions would cause substantial financial losses for the employer.
  • Physical or psychological violence against the person of the employer or colleagues. 

 14. How can you find the perfect part-time job for you with The Talent Point?

Are you looking for a part-time job that suits your needs? You are in the right place. In The Talent Point, we are one of the best marketplace platforms, a place where the talent meets the right opportunity. 

Our worksite has all the tools you need to filter your search and find an excellent part-time job or full-time job according to your availability. Register, upload your resume, fill in your profile and get ready because thousands of possible employers are looking for the perfect candidate.

Once you have spotted a work offer that suits your needs, apply online and wait for the employer to contact you. Our platform will send you notifications on every communication. The Talent Point is gaining popularity in the Gulf region with hundreds of thousands of searches every day.

Would you like to contact The Talent Point for more information? You can call at +97143316688 or send an email to contact@thetalentpoint.com, and you’ll talk to one of their representatives that will gladly answer all of your questions.

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