What is new in the UAE labour law?

New UAE labour law 2022- Every single thing you need to know – Updated 2023

Employment is evolving quickly nowadays, and its laws and regulations must do the same. In this sense, the UAE wants to remain in the vanguard of the employment market in the Middle East. To achieve this, they announced new provisions in the UAE labour law in 2022.

According to the new Labour Law in February, new rules around employment types and flexible working were brought and also amending in additional leave types and also addressing discrimination.

1. What is labour law in the UAE?

Employment laws demand different processes in every country. For instance, several such laws declare a resignation letter mandatory to leave a company for another job. But what law establishes employment regulations in the UAE nowadays?

The answer to this question is simple: the UAE labour law in 2022. Indeed, it establishes how to follow labor and employment law in the Emirates. In other words, it defines how companies must hire and dismiss permanent and part-time employees.

Moreover, the UAE new employment law of 2022 also defines features such as mandatory working hours in the Emirates. As a result, employees can use it to claim overtime pay without problems. On the contrary, it may also tell you when you are failing to comply with them every week.

As we stated earlier, employment regulations must evolve as fast as employment itself. In this sense, authorities in the country issued a new labour law in 2022. However, when was this piece of legislation presented to the labor market?

2. Where did the UAE announce the new UAE labour law of 2022?

The moment of an important announcement can define its effectiveness in several areas. For instance, an early discovery of your trade license expiration gives you enough time to renew it in Abu Dhabi. So, does the same happen regarding the new labour law in UAE in 2022?

Undoubtedly, it does matter. Consequently, UAE authorities chose November 15 of 2021 to make public the UAE’s new employment law of 2022. Moreover, they used this day to state that this UAE labor law of 2022 would come into effect in February of 2022.

Moreover, it is worth mentioning that additional changes in this new piece of legislation may appear in the following years. After all, UAE authorities want to keep its employment policies updated. Indeed, it is a way to promote local hiring and the immigration of foreign talent.

In short, February is when the new UAE employment law of 2022 came into effect. Nevertheless, it will be devastating if such a month arrives and you do not know the changes in the UAE labour law in 2022. Fortunately, our following topic will allow you to discover them.

3. The most outstanding changes in the new UAE labour law of 2022

Imagine you begin building a residential project in Dubai with high investment. Indeed, you hire the best workers, and everything looks excellent. Nonetheless, a team member makes you realize you failed to comply with several construction law changes because you did not know them.

Our example proves that you must know the changes in any law to operate your business adequately. Therefore, you cannot enter the employment market in the Emirates without learning about the changes in the UAE new labour laws. Luckily, we are here to help you.

In this sense, we will explain several changes in the new labour law of 2022. Assuredly, we will not include the unlimited contract resignation process in the UAE. However, we will cover features such as the new annual leave provisions in the UAE.

Last, feel free to look for additional changes to the ones we mention here. But, we can guarantee you will be just fine by understanding the following changes in the UAE labour law in 2022:

3.1 Minimum wage

One of the features professionals in several sectors, such as family law firms, are waiting for in the Emirates’ new labour law is the minimum wage. After all, many of them want to know it to calculate if they can cover the cost of living in the UAE.

Unfortunately, the new UAE employment law of 2022 does not state a minimum wage in the Emirates. However, the Ministry of Human Resources and Emiratisation (MoHRE) is working with relevant authorities on this issue. Indeed, their goal is to announce it soon and apply it only to the private sector.

Therefore, we cannot predict how much you can earn as minimum wage in your financial law firm. But you can ensure that the following UAE employment laws will include it. Above all, it will be an amount that guarantees a decent life in Dubai, Abu Dhabi, or another Emirate.

3.2 Annual leave

Unlike the minimum wage, this new piece of employment legislation of 2022 does include the new annual leave rules of 2022. By all odds, it is essential to know them before signing your labour contract UAE. Hence, let us discuss them and leave you informed about the subject.

First, it is worth mentioning that the new labour law in the UAE in 2022 for the private sector has the same two days per month for the first year and 30 days per year from then onwards. However, it allows you to request it during your probation period.

Furthermore, the UAE’s new employment law of 2022 increased the pay that you receive for your annual leave. Indeed, the new annual leave provisions indicate that your leave pay must be your full salary. On the contrary, the UAE new labour law of 2020 included basic salary and housing.

In the end, the new labour law of 2022 indicates that the UAE public holidays are additional to annual leave. Nonetheless, your civil litigation firm will consider them a part of your leave if they fall within it.

3.3 Maternity and paternity leave

The new UAE labour law in 2022 includes good news for parents working in the Emirates. By all odds, you could think that it is the new cyber law in the UAE that will protect their children. However, it has to do with maternity and paternity leave.

Firstly, it is worth mentioning that the new UAE employment law of 2022 changed maternity leave for the better. For instance, it states that your employer cannot dismiss you due to pregnancy. Moreover, it establishes that you can get 45 days at full pay and 15 days at half pay.

On the other hand, the UAE new labour law of 2022 indicates that your employer cannot reduce your pay for maternity leave if your length of employment is less than a year. On the contrary, you get a full salary with your remote work visa in Dubai.

In the end, the new labour law of the United Arab Emirates establishes that new fathers can get paternity leave of five working days with pay. Besides, they can get them as they please during the first six months after childbirth.

3.4 Compassionate leave

Unlike previous employment laws in the Emirates, the new labour law in the UAE in 2022 includes compassionate leave. Indeed, it allows you to request it in the case of bereavement. As a result, you can be with your family in such a difficult time.

In this sense, your general civil law firm can give you three to five days of compassionate leave, depending on the degree of your relative. This UAE new labour law includes this to allow employees time to grief adequately.

3.5 Working hours in the UAE

We arrived at one of the most anticipated parts of the UAE labour law in 2022: the UAE new labour law of 2022 working hours. Indeed, even people interested in an Establishment Card UAE heard about the four-and-a-half day working week rumor.

Unfortunately, the working hours in the UAE are still 48 hours per week, according to the new piece of employment legislation. However, remember that this is the maximum amount of hours your drug offenses division can ask you to work.

In other words, your employer can build a work schedule with less than 48 hours per week and still comply with the UAE new labour law of 2021. Besides, you can get overtime pay if you work over 48 hours a week.

Finally, the UAE’s new employment law working hours include a maximum of 144 hours of work every three weeks. Therefore, it is time that you keep track of your working hours to avoid legal issues with UAE authorities.

3.6 Resignations and final pay

Several residents with a UAE Green Visa wanted to know if the new UAE employment law of 2022 includes changes related to resignations and final pay. Fortunately, such changes are now a reality. Thus, let us discuss how the UAE new employment law of 2022 deals with this feature nowadays.

Regarding resignation, the employees and employers with a new fixed-term contract must give a minimum of two weeks’ notice. On the other hand, this UAE labour law in 2022 is a bit more complicated regarding employees’ resignations from an Islamic Finance firm or elsewhere.

In this sense, you can use a two weeks’ notice to resign from your workplace. However, the UAE new labour law of 2022 states that your new employer must compensate your old employer if you decide to return within three months. Therefore, make sure that your decision is definitive.

The new labor law in the UAE in 2022 will make you face a one-year mandatory ban from a work permit if you abscond from the UAE without notifying your employer. By all odds, we think this is something you will not do any time soon.

3.7 Gratuities

We saved for the end of this topic the new gratuity law in UAE in 2022. Moreover, you will be glad to know that this new piece of employment legislation changed gratuities for the better. Let us study how these changes will not affect your franchise in the UAE.

First, the new employment law states that your gratuity will not be forfeited or reduced if you resign from your contract. As a result, you can get 21 days’ salary for every year of employment and 30 days for service over five years.

Lastly, the new gratuity law in UAE in 2022 removes the gratuity’s forfeit if your dismissal relates to gross misconduct. Assuredly, it is an extensive change in comparison with previous employment laws in the UAE.

4. Where can you find additional information about the UAE labour law in 2022?

Working in a new country can be challenging, especially if you do not know local employment laws and regulations. In this sense, we strongly recommend being up-to-date with the changes in these laws. Therefore, you must learn about the new UAE labour law in 2022.

Assuredly, the new employment laws move quickly. As a result, you can get in trouble for failing to comply with it due to a lack of knowledge. Fortunately, you will find in Connect Legal a perfect assistant to resolve your employment disputes in no time.

Let us help you understand the new employment law in the UAE. You can also contact us to know the basic salary percentage in UAE labour law in 2022. Hence, you can turn on your computer and write an email to [email protected] today.