HR Update: NEW UAE FEDERAL LAW AND ITS IMPACTS
The UAE Cabinet approved of the new Federal Law Number 33 of 2021 (New Labour Law) replacing the old Law number 8 of 1980 and coming into effect from February 02, 2022. It is deemed a progressive overhaul of labour relations and will be applicable to all the emirates and its freezones (except for ADGM and DIFC). The Executive Regulations are much awaited in anticipation of the below updates shared.
Areas of impact:
- Employment Contracts – All existing staff contracts will be affected and changes to be mandatorily made before February 01, 2023
- Probation – The new law will have impact on all offers in progress both for employers as well as employees
- Overtime –Changes applied to overtime calculations
- Notice period – Minimum to maximum cap of notice period applies, including new provisions under Article 120
- End of Service Gratuity – Changes in End of Service accruals and payouts will have a huge impact on firms
- Non-compete, Discrimination & Harassment – Companies must define and monitor on how non-compete as well as policies on Discrimination & Harassment apply
- Leaves – The Federal law has come out with new additions to Maternity, Bereavement, and other leaves
The New Employment Law, Article 58 to Article 64 states the penalties that need to be borne by the employer as well as the employee for breach of provisions of the new law, ranging from AED 50,000 to AED 200,000. The violations cover various matters related to employing individuals without work permit, luring expatriates with false information for employment, misuse of work permits, closures of the entity without payment of employees end of service benefits, recruiting an employee and not assigning any work and many more.
At Re/think, we offer a full range of HR consultancy and outsourcing services, guidance on the New Federal Labour Law and its impact on your employment contracts, policies and procedures, hiring, onboarding and exits. We believe the success of your business is largely dependent on the development of the people within.
Who we are
Re/think is a boutique accounting, audit, HR advisory, regulatory compliance and tax advisory firm with offices in Dubai, Abu Dhabi (ADGM) and Bahrain, focused on providing businesses of varying sizes with timely, proactive, and customized business solutions from start-up and early development to the latest stages of any business lifecycle.
Re/think offers a full range of HR consulting and outsourcing services to provide you with best practice policy implementation, guidance on local employment laws and regulations, and expert advice on hiring, retaining, motivating, and managing employees.
For further information and assistance, please write to us at firstname.lastname@example.org
Who will assist you
Manager — HR Services and Talent Acquisition
Director — HR Services and Talent Acquisition