Tag: labor lawyers in Dubai

New UAE Labor Law 2022

Posted by Al Reyami on June 15, 2022

Changes In The UAE Labor Law | The New Labour Law In The UAE 2022 As Stated By The Ministry Of Human Resources & Emiratisation

Federal Decree-Law No. 33 of 2021 governing the regulation of labor relations that took effect on Wednesday, February 2, 2022, on all establishments, employers, and workers in the private sector across the country has replaced Federal Law No. 8 of 1980. This new Law aims to improve employment practices in the UAE so that it meets worldwide standards for employees.
According to Dr. Abdul Rahman Al Awar, Minister of Human Resources and Emiratisation, the new law helps establish the UAE labor market’s position as one of the vital global labor markets in the region. The new law would provide versatility, and attract more skilled individuals while ensuring the rights of both employers and employees are well understood and protected.

The following are some of the most significant changes that the new Law will bring about.

Flexible Working Arrangements

Introduced with the new Law are alternative flexible employment arrangements.

Temporary work is suitable when the length of the employment duration is limited by time or a project goal. This appears to be a comparable situation to what fixed-term contracts give under current law.
Flexible work is stated as work hours and/or days that vary based on the workload and other operational factors.
Part-time employment is clearly established as when an individual works for one or more employers for a specific number of hours or days, and part-time employees will be entitled to pro-rated vacation leave.
A rather new work arrangement is Remote work, where all or part of the work is done outside the workplace rather than being physically present, whether part-time or full-time
And finally, Job-sharing work, where tasks are divided among several workers to complete previously agreed responsibilities. Equal distribution of salary is payable to each of them. Part-time workers are treated according to part-time job standards.

Furthermore, while there are no explicit requirements for remote / home-based working arrangements, it permits an employee to work remotely (from inside or outside the country) with the employer’s consent. This is a positive step that responds to the working environment in the wake of the COVID-19 pandemic.

Changes In Employment Contracts

Unlimited employment contracts must now be transformed into fixed-term employment contracts within one year of the Decree’s effective date, with a three-year maximum time. By mutual agreement, the contract may be extended or renewed for additional shorter or longer periods after the initial term has expired. When determining the employee’s continuous service period, the new period or periods are regarded as extensions of the previous period and would be added to the employee’s continuous service duration – for end of service gratuity purposes or otherwise.

The New Law automatically applies to employees who are currently on unlimited contracts. Employers must transition existing unlimited-term contracts to fixed-term contracts within one year of the Effective Date, which is February 2023.

Under an unlimited contract, either party may end the contract for valid reason and should provide notice.

If the employee has been with the company for:

Less than 5 years – 30 days notice
More than 5 years – 60 days notice
More than 10 years – 90 days notice

The New Law mandates that the employment contract include the employer’s name and address, as well as the employee’s name, nationality, date of birth, and any other information essential to establish the employee’s identification and credentials. The contract should also include the employee’s job title, start date, location, hours of work, days off, and, if appropriate, the probationary period. The contract should also include the duration, agreed compensation, including allowances, and other compensation in case of injury, duration of yearly leave to which the employee is entitled, period of warning, contract termination process, and any other data defined by the MOHRE as necessary to manage the parties’ relations.

Work Permits

The Ministry of Human Resources and Emiratisation approved 12 categories of work permits as of February 2022, allowing companies registered with the ministry to employ workers who fulfilled the requirements of the permits. Among these permits is a permit to bring in a worker from outside the country, a permit to relocate a non-national worker to and from a business that is duly registered with the ministry, and a permit for individuals staying with family,

A temporary work permit, which is granted to a registered business intending to recruit a worker from abroad to complete a temporary work or a specific project within a fixed period, and a project work permit, which is granted to a registered business intending to recruit a worker from abroad to complete a temporary work or a specific project with a fixed period, are also included.

The part-time work permit authorizes registered businesses to hire a worker on a part-time basis, with reduced working hours or days than full-time employees. The individual can work for other employers as well once a part-time work permit has been issued. The work permit for minors also enables an individual who has reached the ages of 15 – 18 to work in a registered business under the guidance of the regulations and its executive directives.

A student work permit covering training and employment has also been confirmed. This type of permit allows registered businesses to train or employ a student in the country who has reached the age of 15, subject to certain requirements that ensure appropriate training and working conditions. A work permit for citizens/children from Gulf Cooperation Council countries allows Emirati and GCC individuals to work in registered businesses in the country.

For golden residency visa holders, a work permit will be issued upon the request of a registered business. Companies can also get a national work permit for trainees if they intend to train a citizen according to a known technical or scientific qualification.

Persons who seek to operate based on their own residency, most usually in the case of foreign individuals, will be granted a self-employment permit. This permit does not need sponsorship from a specific company or employer in the UAE, nor does it require the individual to have an employment contract under which he or she will receive an income directly from providing services for a certain period of time. This permit allows the individual to execute tasks or services to an individual or a company, in which case the individual is not employed by that person or business. Consult employment lawyers in UAE to find out more details.

Employee’s Entitled Leave

Under the new legislation, bereavement leave is specified as five (5) days in the case of the husband or wife’s death, and three (3) days in the case of the mother, father, child, brother, sister, grandchildren, grandpa, or grandmother’s death.
Employees (parents) who have a child to care for are entitled to five (5) working days of parental leave.

According to the legislation, an employee who is associated with or regularly studies at a state-approved educational institution is entitled to study leave for a period of ten (10) working days each year to take tests, provided that the person has worked for the company for at least two years.

In addition, the national employee will be allowed full-time leave to undertake national duty with pay in conformity with the country’s regulations. Proof of service from the appropriate authorities is necessary in order to be eligible for the leave mentioned in this Article.

The Ministry of Human Resources and Emiratization established conditions, controls, and procedures for the issuance, renewal, and cancellation of work permits, as well as the transfer of workers from one establishment to another, so that employers can meet their labor needs and reap the benefits of their capacity and productivity at the lowest possible cost, particularly in the case of new work models. Feel free to consult employment lawyers for more information about this if you feel there is a violation against this policy.

End Of Service Gratuity

Because no agreements have been formed for workers who have turned in their resignation notice, resigning employees who have served for at least one year are entitled to a full end-of-service gratuity calculation payout.

Also, there are no particular laws covering alternative pension plans, and it’s uncertain if MOHRE will recognize them, especially if a contract already exists.

After the contract expires, all end-of-service benefits must be paid within 14 days. Businesses who fail to comply might face fines ranging from AED 5,000 to AED 1,000,000, with the amount increasing depending on the number of employees affected. However, if this time limit has elapsed, employee(s) are not entitled for compensation.

Onshore and inside the free zones, all UAE businesses (excluding DIFC and ADGM) are to revise their employee contracts. After a review to ensure conformity with the New Law, new employment contracts and other rules would be necessary.

If you require assistance in implementing these guidelines in accordance with the new Law, please do not hesitate to contact us. Our labor and employment lawyers in Dubai are glad to help you.

Compensation for Occupational Injury

Posted by administrator on November 22, 2020

Employees Compensation for Occupational Injury | Dubai Labor Lawyers UAE

Federal Law No. 8 of 1980, UAE Labor law outlines employee’s right of compensation if they suffer injury at work. Under this law, more so with the assistance of a capable labor lawyer, employers are liable for workplace injuries sustained by employees.

Workplace injuries are defined broadly to include any accident sustained by the employee during their work or as a result of performing their work.

In addition to employees’ rights under the Federal Law No. 8 of 1980, employees can also bring claim against the employer under Federal Law No. 5 of 1987 (UAE Civil Code). However, under the Civil Code, the employee must prove the fault or negligence on the part of the employer in order to claim successfully.

UAE law guarantees safety of employee during work and therefore impose upon employers to ensure safety working environment to its employees. Employers are mandated by law to provide and have suitable health and safety guidelines in place, including policies and proper incident report protocol in order to promptly address and comply with the mandate of the Labor Law.

Below is the summary of the procedure and corresponding guarantees provided under the Labor law:

In the event of injury sustained during employment, report must be immediately made by employees to the police and Labor Department or local office who has jurisdiction in the area where the injury took place. Investigation will be carried out thereafter.
Copy of Investigation report will be sent by the police to the Labor Department and another to the employer.
In cases of labor accidents, the employer shall be liable to pay for the treatment of the employee which includes hospitalization, medical test and medicines prescribed including rehabilitation.
If the injury resulted and prevented the employee from performing his work, the employer shall pay him an allowance equivalent to full wage during the entire period of treatment or for a period of six month, whichever is shorter. If the medication requires more that six months or until the employee fully recovers, the allowance shall be reduced by half until the employee fully recovers, declared disabled or dies, whichever occurs first.

+ Article (147)

Any dispute arises in regard to employee’s fitness for work or degree of disability shall be governed and shall be referred to the Ministry of Health through competent Labor Department. Medical Board will be formed to determine the matter related to the injury or treatment. Assistance of the expert may be sought, and the decision of the Committee shall be final and will submitted to the Labor Department for execution.
In the event the occupational injury resulted to death of the employee, the person who at the time of death of the employee used to be entirely or mainly supported by the income of the descend shall be entitled to compensation equal to basic wage of the employee for 24 months, provided that the amount of compensation is not less than AED 18,000 or more than AED 35,000. Calculated as per the guidelines set forth under the Labor Law.
Should the injury results to partial disability or permanent disability of the employee, compensation shall be calculated set forth under the Labor Law.

In summary, determination of the issues relating to the occupational injury shall be determined in accordance with the level or type of injury and the proportion of disability sustained by the employee. Contact our labor lawyers in Dubai for legal assistance.

Rightful Employment Termination Due To Covid-19 Pandemic Effect

Posted by administrator on May 11, 2020

Termination Due To Covid-19 Pandemic Effect

The spread of the Coronavirus has widely traversed the world wherein it has unveiled the vulnerability of the global economy. This effect has agitating for the businesses as they were vastly affected by the pandemic. During these unprecedented and ambiguous times, the U.A.E. government gets its under way in imposing measures to suppress the outbreak. Thus, the business sectors are determined to respond by preserving its workforce and organization by rightful termination due to COVID thereby they do not face insolvency.

In reference to the Judicial law of the United Arab Emirate herein stipulated as Section 2 of the U.A.E. Labor Law Federal Law No. (8) OF 1980 wherefore it confers sick leave entitlements and rights for employees, whereby when the same completed his or her probation period and has spent more than three months in continuous service for an employer he or she is entitled to a sick leave. Also, Article 83 of Section 2 of the U.A.E. Labor Law Federal Law No. (8) Of 1980 affirms that the duration of leave should not exceed 90 days of either consecutive or non-consecutive for every year of service. However in respect to Article 82 of Section 2 of the U.A.E. Labor Law Federal Law No. (8) Of 1980, as amended, the employee must notify the employer about his sickness within two days upon taking a sick leave. The employer has the right to put the employee under a medical examination in order to verify the illness, and the authenticity of the employee’s leave.

Rightful Employment Termination – Business Owners and Management in Dubai UAE Labour & Employment Law

The Dubai Health Authority has set its policy wherein employees in the private and public sectors are mandated to get a Sick Leave Certificate which will help to avert employers from workday losses. Thus, an employer may not dismiss or serve its employees termination whilst on sick leave. The same applies to the current pervasive situation we are faced with as the COVID 19 cases rapidly increase in numbers. If an employer breaches the contract with the employee without notifying them, the employee then has the right to file a complaint before the Ministry of Labor in the event whereof the employee and employer are unable to reach an amicable solution. An employee can claim compensation from the employer. If the employee uses all of his 90 days’ sick leave and was not able to report to work afterwards, the employer may terminate his services. In such a case, the employee shall be entitled to the end of service gratuity in accordance with the provisions of the U.A.E. Labor Law.

The U.A.E. Labor Law protects the rights of every employee, employer and the businesses in the United Arab Emirates. A person who lives and works in the U.A.E. has wide options to seek help if faced with employment-related matters as there is a comprehensive law, judiciary initiatives, public prosecutor, courts, lawyers, law firms, etc. We strongly recommend consulting experienced labor lawyers in Dubai such as Al Reyami Advocates & Muhyealdeen International Legal Consultants or any other legal consultant of choice for taking any legal action, other than this knowledge.