The government updated UAE’s labour laws to offer revised regulations that benefit both the employees and the employers. The Federal Decree-Law No 33 of 2021 on the Regulation of Labour Relations made modifications in several components of the employer and employee relationship in the private sector.
Pre-determined contract duration
One of the most significant modifications in the UAE labour laws is the obligation for employers to update the employment contracts to provide a fixed term contract agreement to employees. According to the regulations, organisations must ensure that all employees are bound by fixed-term contracts, the predetermined duration of which should not exceed three years. However, employers have the right to make the contracts shorter than the three-year duration.
Additionally, the new labour laws do not restrict employers into entering into a number of fixed-term contracts. Although, organisations are required to modify all their contracts and shift all employees to fixed-term agreements by February 2023.
Modifications in probationary period policy
The UAE’s new labour laws have not impacted the duration of the probationary period. All employees are still required to undergo a six-month probation before becoming a permanent member of the organisation. However, the updated regulation has made some modifications in regards to the employees notice period.
Essentially, employers are now required to serve employees with a 14-day written notice intention to terminate an employee’s contract during the probationary period. However, if the employee decides to resign, they would be required to serve a one-month notice period, provided they intend to join a new firm in the UAE. In the case the employee plans to leave UAE, they would have to serve a 14-day notice period.
Adjustment to rest day policy
The previous labour laws obligated organisations to observe rest days on Fridays. However, the policy has been lifted under the new labour laws. Now, firms are empowered to decide the rest days on any day of the week, provided that all parties agree to the selected day. UAE’s new labour laws have had a drastic impact on organisation’s operations. Businesses need to update their policies to abide by the new regulations. If your company requires legal assistance, or if you want to learn more about the new labour law, you can reach out to our legal experts at Al Ramsay Advocates. You can call us for free consultation and adjust your employment policy to certify its compliance with the Federal Decree-Law No 33 of 2021.
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