INSITE - UAE - 21 August 2023

UAE GOVERNMENT HAS PROVIDED CLARIFICATION ON NEW EMPLOYMENT LAW CONTRACTS, WHICH ALSO ADDRESSES WORRIES ABOUT UNFAIR JOB TERMINATION

The UAE Ministry of Human Resources and Emiratisation (MOHRE) has explained the rules for fixed-term contracts for workers. According to the new United Arab Emirates (UAE) labor law, private-sector employers need to change unlimited contracts to fixed-term ones. The Ministry says that the law doesn't set a specific length for these contracts. Employers and workers can discuss and agree on the duration that works best for them.

Another important update from the Ministry deals with unfair and random job dismissals. The new rules clearly state that firing a worker will be seen as unfair or random if it happens because the worker reported a serious issue to the Ministry or took legal action against the employer, and the claim is proven true.

The MOHRE has clarified the rules about fixed-term contracts between employers and workers. Under the new labour law, private-sector employers need to change unlimited contracts to fixed-term ones. The Ministry allows flexibility in deciding the contract duration through negotiations.

Companies have until December 31, 2023, to make this change. When a work permit expires, employers can renew it based on the type of permit, and they don't need to print a new contract if the existing one is valid and unchanged.

The updated labour law defines 12 types of work permits for citizens and expatriates in private-sector businesses. It also outlines nine scenarios for terminating employment contracts. These scenarios include mutual agreement, contract completion without renewal, termination at the request of either party, and circumstances like death, disability, or imprisonment of a worker.

To address concerns about unfair dismissals, the Ministry has set clear rules. Firing a worker is seen as unjust if it's in response to the worker's valid complaint or a lawsuit proven true. In such cases, employers must compensate the worker fairly based on the work, damage, and service length. The compensation can't exceed three months' salary based on the last pay received.

Key Links:

https://u.ae/en/information-and-services/jobs/employment-laws-and-regulations-in-the-private-sector#:~:text=the%20private%20sector-,Federal%20Decree%20Law%20No.,employers%20in%20the%20private%20sector.

https://u.ae/en/information-and-services/jobs/employment-contracts-duration-and-models-in-the-private-sector

https://u.ae/en/information-and-services/jobs/work-permits

UAE RELEASES EXECUTIVE REGULATIONS FOR CONSUMER PROTECTION LAW

Summary: Consumer protection is vital for a healthy economy, making sure people and businesses have fair and clear dealings. The United Arab Emirates (UAE) has taken an important stride in enhancing consumer rights by unveiling the long-awaited Executive Regulations for Consumer Protection Law No. (15) of 2020. On July 14, 2023, the UAE released the anticipated Executive Regulations for Consumer Protection Law No. (15) of 2020. These rules will take effect by October 14, 2023, giving clarity to the rules and limits set by the Consumer Protection Law.

In Detail: The UAE has achieved an important step in strengthening consumer rights and ensuring fair business practices by issuing the Executive Regulations for Consumer Protection Law. These regulations cover various aspects like labelling, invoicing, used goods, competition, after-sale services, harmful clauses, and e-commerce. This showcases the UAE's dedication to creating a consumer-friendly market.

Key points from the new Regulations:

(1) Labeling and Invoicing Requirements: The Regulations outline the mandatory information that product packaging or displays must contain, as well as the format for presenting this information. The Regulations also establish strict guidelines for issuing invoices to consumers, ensuring that essential details are included.

(2) Standards for Used, Refurbished, and Damaged Goods: Sellers of such products are required to adhere to specific criteria set by the Regulations to maintain quality and transparency.

(3) Addressing Competition and Inflation: The Regulations tackle anti-competitive practices and outline measures that authorities can take during periods of abnormal price increases. These measures include the ability to set prices and impose export controls.

(4) After-Sale Services and Spare Parts Availability: While the Regulations do not specify minimum guarantee periods, the Ministry has the authority to establish such terms. Additionally, provisions require the availability of spare parts for repairs in certain situations.

(5) Prohibition of "Harmful" Contractual Terms: The Regulations define contractual terms that could negatively impact consumers, prohibiting unfair clauses that undermine consumer rights.

(6) Regulations for UAE-based e-commerce Providers: Specific obligations are imposed on e-commerce businesses operating within the UAE. These include mandatory disclosures of information for goods and services offered through online platforms.

Conclusion: Overall, the Consumer Protection Law and its Regulations have a wide reach, impacting both B2C and B2B transactions. Businesses in the UAE must understand and adapt to these requirements, as the definition of “Consumer” encompasses individuals and legal entities.