INSITE - UAE - Aug 2024
- sukhwinder21
- Sep 4, 2024
- 5 min read
Updated: Nov 5, 2024
THE RECENT AMENDMENTS TO THE UAE LABOUR LAW
Summary: On 29 July 2024, the United Arab Emirates (UAE) government announced amendments to the country's Labour Law. These changes, outlined in Federal Decree-Law No. 9 of 2024, will take effect on August 31, 2024.
The UAE labour law plays a crucial role in regulating the relationship between employers and employees, aiming to balance their rights and ensure a safe and healthy working environment.
Due to the rapid economic and social developments in the UAE, there has been a growing need to update these laws to address new challenges and align with international best practices. The recent amendments to the Labour Law are designed to protect employee rights, improve working conditions, and introduce necessary flexibility to the labour market, in line with the country's evolving economy.
In Detail: The UAE Government has issued a Federal Decree-Law No. 9 of 2024 amending certain provisions of the Federal Decree-Law No. 33 of 2021, introducing significant changes to better define the rights and obligations of employers and employees.
Below are the changes made to the Federal Decree-Law No. 33 of 2021.
The amendments include the replacement of Article 54 (Individual Labour Disputes) and Article 60 (Penalties)
Previously, under Article 60, anyone who commits the following offenses was punished with a fine between AED 50,000 and AED 200,000:
Employing a worker who is not authorized to work for them.
Hiring or employing a worker but leaving them without work.
Misusing work permits for purposes other than those intended.
Closing a business or suspending its operations without settling workers' rights as required by law.
Illegally employing a juvenile.
The guardian or custodian agreeing to the illegal employment of a juvenile.
Now, according to the amendments under Federal Decree-Law No. 9 of 2024, there has been a significant rise in fines for violations, ranging between AED 100,000 and AED 1 million on employers who hire workers without proper permits, fail to provide jobs to workers they bring into the country, misuse work permits, or close their business without settling workers' rights. The same fines apply for illegally employing minors or allowing minors to work unlawfully by their guardians.
The new decree also introduces criminal penalties for fictitious recruitment, including fictitious emiratisation. Employers found guilty of faking the hiring of employees to bypass labor laws provisions will face fines between AED 100,000 and AED 1 million, with the penalty increasing based on the number of workers involved.
The new decree also states that criminal cases for fake employment, including fraudulent emiratisation, can only be started by the Minister of Human Resources and emiratisation or their representative. It also allows the Ministry to settle these cases before a court decision if the employer pays at least 50% of the minimum fine and returns any financial incentives to the government received through fake employees.
Further, there has been a change to Article 54 of the Federal Decree-Law No. 33 of 2021, The amendments specify that if a labor dispute arises and there is disagreement with a decision made by the Ministry of Human Resources and emiratisation, the case should be taken to the Court of First Instance instead of the Court of Appeal. This applies to all cases except for those disputes that have been adjusted or reserved for the issuance of a judgment. Additionally, the court will dismiss any claims filed more than two years after the employment relationship ended, as per the law.
Conclusion: The UAE is rapidly growing as a global hub for businesses. The 2024 amendments to the UAE labour law reflect the country's efforts to modernize its policies, enhance worker protections, offer more flexible working arrangements, and create a fair work environment that benefits both employers and employees.
These updates show the UAE’s commitment to maintaining a dynamic labour market, ensuring businesses can adapt to legal changes and benefit from a well-regulated and transparent work environment. This also reinforces the UAE's position as an attractive destination for skilled professionals and businesses looking for a stable and fair labour market.
UAE Amends Domestic Workers Law
Summary: The UAE Government has enacted a Federal Decree-Law No. (8) of 2024 to amend certain provisions of the Federal Decree-Law No. 9 of 2022 Concerning Domestic Workers and its subsequent amendments. These changes are designed to enhance the protection of rights for all parties in employment relationships and to streamline and expedite the resolution of disputes.
In Detail: The UAE Government has issued a new Federal Decree-Law modifying the Federal Decree-Law on Domestic Workers. These changes aim to improve workers' rights and streamline dispute resolution.
Key changes include:
Disputes related to domestic workers will now be handled by the Court of First Instance instead of the Court of Appeal. Pending cases will be transferred to the Court of First Instance without fees, starting from the effective date of the new Law. It is to be noted that this does not apply to cases that are already judged or in the process of being judged.
Disputes that cannot be resolved amicably between employers, domestic workers, or recruitment companies must be referred to the Ministry of Human Resources and Emiratisation (MOHRE).
The Ministry will attempt to settle disputes amicably based on the Law’s Executive Regulations and decisions. If no settlement is reached within the specified time, the Ministry will refer the case to the Court of First Instance with a summary of the dispute and recommendations.
The Ministry can resolve disputes involving amounts up to AED 50,000 or cases where one party has not complied with a prior settlement decision, regardless of the amount. The Ministry’s decision will be treated as an enforcement order.
Parties can challenge the Ministry’s decision by filing a lawsuit with the Court of First Instance within 15 working days of being notified. The Court’s decision will be final, and filing the lawsuit will suspend the enforcement of the Ministry’s decision.
Conclusion: The recent Federal Decree-Law in the UAE reforms the handling of domestic worker disputes by shifting jurisdiction to the Court of First Instance and empowering the Ministry of Human Resources and Emiratisation to mediate and resolve issues. The changes are designed to enhance worker protections and streamline the dispute resolution process, with clear procedures for handling unresolved disputes and challenging decisions.
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