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President Sheikh Mohammed issued a directive to remove the three-year cap on the duration of fixed-term employment contracts in the private sector when updating the new labour law Effective February.
Comprehensive changes in labor legislation First announced in November It is stipulated that the work contract shall not exceed this period.
According to Federal Decree No. 33 of 2021, ordered by the late Sheikh Khalifa, any indefinite contracts will be changed to term agreements that can be renewed.
According to the amended legislation (made by Federal Decree No. 14 of 2022), employment contracts must cover a clear period agreed upon by employer and employee, but “the law does not impose a cap on this period”.
“The UAE government continues to develop regulations and laws that are in line with the UAE’s development needs over the next 50 years,” said Abdulrahman Al Awar, Minister of Human Resources and Emirate.
“The laws and regulations support the stability of our business environment and make it more resilient and attractive.
“These regulations follow the UAE’s advanced development model and its foundations and principles built on justice, respect for human rights and staying ahead of change. This ensures the UAE’s continued progress, stability and pioneering position.”
“The new amendments create an advanced ecosystem of mechanisms that increase the ease of doing business, productivity and resilience of the labor market, while expanding the appeal to business owners and talent.”
Increase job security
The move will pave the way for businesses and workers to agree on long-term contractual arrangements, providing further stability.
The revised law governs employment relationships in the private sector.
This includes employees of Free Zone and Mainland companies, but not Dubai international financial center and Abu Dhabi Global Market.
These rules do not apply to public sector employees and domestic workers.
“The amendments are designed to protect both parties in a balanced manner; [it] Promote the growth and stability of the labour market and enhance the economic competitiveness of the UAE,” said the Ministry of Human Resources and Emiratisation.
Labour rules introduced in February overhauled the working environment in the private sector, allowing employees to work more flexibly and reducing corporate red tape.
The changes affect 4.9 million employees as legislation approved in late 2021 replaces a law first drafted in 1980.
Further rules proposed earlier this year aim to make it easier Companies hire people for part-time jobs and allow job shares.
Employers can now offer paid part-time jobs to people aged 15 and over, along with valuable work experience.
UAE Labour Law – Image
Updated: October 7, 2022 10:38 AM
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