The UAE President, His Highness Sheikh Khalifa bin Zayed Al Nahyan, issued a new decree to update UAE Labour law 2023 in the private sector including 3 years contract, part-time work, paid leaves, along with new probation period rules while changing jobs.
What is UAE Labour Law 2023?
The Federal Decree Law no. 33 of 2023, regulating labour relations, will be effective in the private sectors from Wednesday, February 2, 2023, having below key changes.
· 3 Years Contract
· Part-time work and Temporary work
· Passport Holding
· Probation period
· Paid leaves
· Changing Jobs
· Job for teenagers
· Working hours
· Overtime
· Employees Protection against bullying
· Maternity Rules
· Women rights
· 1 Year Work Ban
3-Years Contract Rules:
Everyone knows that before we had 2 types of contracts, limited, and unlimited employment contracts and the calculation of end-of-service gratuity benefits, leaving job and other entitlements differed.
But the new law defines 1 type of contract, namely a limited or fixed-term contract for 3 years, (which may not exceed three years) and is renewable for a similar or lesser period upon the agreement of both employee and employer.
The contract type complexity has now been removed and made all the entitlements the same, irrespective of what type of contract you hold, and whether you have resigned or terminated.
Probation Period Rules:
The new UAE labour law 2023 states that the probation periods may not be longer than 6 months, and employers (companies) are required to give a minimum of 14 day notice (in written form) if they wish someone to leave their employment before the date specified for ending their employment contract.
As all of us are aware that previously the employer could terminate during probation at any time with no written notice, and for any reason. Now the new article is a lot beefier which no longer allows for immediate termination.
The notice period from employee (staff) to employer (company) is also updated and is now depends on the reason, why the employee is leaving job?
· Switching Job inside UAE:
If the employee wanted to change his/her job for a new company (employer) inside UAE, the employee (worker) must give 1 month written notice to employer (company). It can be done through email, paper print or even on whatsapp to company management or HR.
· Switching Job and Leaving UAE:
If the employee wants to switch the job for the purpose if he/she leaves UAE, only 14 days written notice is enough.
Though, if the same person returns to the UAE and obtains a new work permit within 3 months from departure date, and goes to work with another company, the new company (employer) must pay the previous employer (compensation equal to worker salary), unless there is a written agreement between both parties stating otherwise.
· 1 Year Ban:
If an employee leaves the country without abiding by the above-mentioned regulations (notice period), he/she will not be given a work permit to work in the UAE for next 1 year starting from the date of departure.
Under the new legislation, employers (company) may not force workers to leave the country after completing the employment contract or the termination of a work contract. Instead, workers will be allowed to look or move to another employer.
Paid Leave Rules:
Several paid leaves being amended and approved. As per the article, employees are entitled for 1 day paid off every week. Employees can also get mourning leaves that range between 3-5 days depending on the degree of kinship of the deceased.
· Maternity Leave
Maternity leave in the private sector can now be extend to 60 days: 45 days with full salary, followed by 15 days on half salary. New mothers are eligible to receive additional 45 days without pay leave once they finish their initial maternity leave period. They will have to provide supportive documents to apply additional sick leave.
New mothers of infants with special needs are entitled to a 30-days paid leave after the completion of their initial maternity leave period, renewable for another 30 days with no salary.
Working Hours and Over Time Rules:
As per new labor law 2023, it is now prohibited for employees to work over 5 consecutive hours without at least 1-hour break. It means, if your duty starts at 09:00 am you should take 1 hour rest at 02:00 pm.
Under the new law, no more than 2 hours of overtime are allowed in 1 day for workers.
If the nature of the job requires more than 2 hours overtime, employees must receive an overtime salary equivalent to regular hour pay with a 25% increase.
For example, if your 1-hour normal wage is 10 AED, upon working for more than 2 hours extra, your company must pay you 12.5 per hour.
Should the nature of the job required employees to work overtime between 10:00 pm and 04:00 am, they are entitled to overtime salary equivalent to regular hour pay with a 50% increase.
Please note that people who works on shift base system are exempted from above rules.
If the worker is asked to work on a day off, he/she must receive a 1-day leave or an overtime wage equivalent to the regular day pay with a 50% increase.
New Weekend Rules 2023:
The working week will start on Monday to Friday afternoon. The working hours for Federal employees are set to be 07:30 am to 03:30 pm with 8.5 working hours each day.
The Key Points of New Weekend are:
- The new weekend system to apply in Federal Government authorities and companies.
- Normal working hours are from 07:30 am to 03:30 pm.
- Friday working hours are from 07:30 am to 12:00 pm (4.5 hours duty)
- Possibility of flexible working hours on Friday.
- Possibility of work-from-home on Friday.
- Friday prayers to be held after 01:15 pm.
- Starting from January 1, 2023.
Jobs for Teenagers:
As per new law, teenagers at the age of 18 are allowed to work under below terms:
- Employers cannot recruit minors less than 15 years of age.
- Teenagers are not allowed to work more than 6 hours a day.
- 1 hour break is must for 6 hours work.
- Teenagers will be allowed to work only after providing written consent of a guardian.
- Teenagers are not allowed to work on shifts from 07:00 pm – 07:00 am.
- Risky jobs cannot be done by teenagers.
Part time work rules:
One of the key changes is the introduction of new forms of work under the law that includes part-time work, temporary work, and flexible work.
The new labour law allows you to have a part-time job at another establishment in addition to your main job. According to the part-time contract system, you are allowed to have a 2nd job without your primary employer’s approval after receiving a temporary work permit from #MOHRE. pic.twitter.com/IO0U0tX8x1
— MOHRE_UAE وزارة الموارد البشرية والتوطين (@MOHRE_UAE) January 5, 2023
The new law allows a person to work for more than one employer for a specific number of hours or days. To know more about how to get part time work permit from MOHRE, read this guide.
No changes for Public Sector and Domestic Staff:
The new labour law 2023 (Federal Decree-Law No 33 of 2023) brings flexibility to the law that allow relaxation to both employee and employer. The important point to be noted that the above part time or temporary work rules do not apply to employees in the public sectors and domestic workers.
Other UAE Labour Law 2023 important key points are:
- The new rules offer more protection to employees against harassment, and it prohibits discrimination based on race, colour, gender, nationality, religion, or disability.
- Employers cannot withhold employees' documents, including passports.
- Employers cannot charge workers recruitment fees.
- Employees will no longer pay legal fees when filing labour cases against employers (company, boss, HR) for compensation less than Dh100,000.
- In the case of worker death, company must pay the gratuity benefits and any outstanding amount to the family of the deceased within 10 days with the cost of repatriating the body.
- Employees are also given 1 month from the end of the contract to vacate accommodation paid for by the company.
UAE Labour Law 2023 PDF:
Download Link
Title One: Definitions and General Provisions
Title Two: Employment of Workers and Youth and Women Labour
Title Three: Employment Contracts, Record and Wages
Title Four: Working Hours and Leaves
Title Five: Safety, Protection Health and Social Care of Workers
Title Six: Disciplinary Rules
Title Eight: Compensations for Occupational Injuries and Disease
Title Nine: Collect Labour Disputes
Title Eleven: Sanctions
Title 12: Final Provisions
Domestic Labour Law:
Domestic workers law contain 41 articles also known as domestic helper law no 10 for the year 2017 covered many useful things such as contract terms, gratuity for domestic workers, annual leaves, medical or sick leave, working hours, rest, resignation, termination along with many other important rules.
Scope of Application of the Law:
Recruitment Agencies:
Employment Contract:
Work Regulations:
Yearly Leaves:
Inspection:
Dispute Resolution:
Contract Termination:
End of Service Compensation (Gratuity):
Penalties:
Final Provision:
We suggest everyone to read and download the copy of above listed articles, the new articles of UAE Labour Law 2023 pdf is available on this page and will be updated time by time, save it with you, it will definitely help in-case of any dispute between company and worker.
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