The new law is part of the UAE government\’s efforts to create a competitive work environment
UAE President H. H Sheikh Khalifa bin Zayed Al Nahyan issued a new order to protect employee s\’ rights and introduce a new leave policy to control employment relations in the private sector, including part-time and temporary jobs.
The Federal Decree. 33 of 2021, the Act that regulates employment relations will come into effect in the private sector from 2022 February 2, It is considered as most important amendment of this kind since the UAE Labour Act came into effect.
Human Resources, Emiratization Minister Dr Abdul Rahman Al Awar. says this New law comes with the aim of technical development and after the special situations in the work sector after the Covid outbreak. Dr Abdul Rahman Al Awarsaid in the press conference.
Major provisions/stipulations under the new decree-law:
Prohibition of all forms of coercion at the workplace
Article 74 of the decree-law stipulates that the employer may not use any means that would force the worker or threaten him or her with any penalty or force him or her to work for the employer or force him or her to provide a service against his or her will.
Prohibition of sexual harassment
The new decree-law prohibits sexual harassment, bullying or any form of verbal, physical or psychological violence against a worker by the employer, his or her superiors at work or colleagues.
Prohibition of discrimination and prejudice
The law prohibits all forms of discriminations based on race, colour, sex, religion, national origin, social origin or disability among persons that would weaken possibilities of equal opportunity, prejudice equal access to or continuation of employment and enjoyment of rights.
Equal pay for men and women
The amendments stressed that while not violating the prescribed rights of working women stipulated in this decree, all provisions governing the employment of workers without discrimination shall apply to women, with emphasis on granting women the same wage as men if they are doing the same work or work of equal value, which will be determined by a decision of the Council of Ministers.
Enhancing ease of business and labour market flexibility
Among the most prominent amendments in the new law is the introduction of new types of work to allow employers to meet their labour requirements and benefit from their energies and productivity at the lowest operational cost through part-time work, temporary work and flexible work, as well as allow employers to employ workers whose work contracts have expired, but who are still in the country, through easy and flexible procedures.
Defining part-time, temporary and flexible work
Part-time work allows work for an employer for a specified number of hours or days. Temporary work is work whose implementation requires a specified period of time or is focused on work that ends with completion of a specified job. Flexible work is work for which working hours or work days change according to the volume of work and economic and operational variables of the employer.
The executive regulation of the law will specify the conditions and control of work patterns and the obligations arising from each worker and employer, depending upon the type of employment — including what is related to end-of-service gratuity and as required by the interest of the two parties to the work contract.
Payment of wages in any currency
The law grants companies the flexibility to pay wages in UAE dirhams or in any other currency, according to the agreement between the two parties in the work contract.
Non-disclosure and noncompetitive clause
The decree-law also permits the employer to prohibit the worker from competing with the employer or participate in any competing project in the same sector, if the work entrusted to the worker allows him or her to know the employer’s clients or access his or her trade secrets — provided that the condition is specified in terms of time, place and type of work to the extent necessary to protect legitimate business interests and the period of noncompetition shall not exceed two years from the date of contract expiry.
Fixed-term contracts and Unlimited contracts defined
The decree-law specifies fixed-term contract (Limited) as one not exceeding three years, and it is permissible, by agreement between the two parties, to extend or renew this contract for a similar or lesser duration once or more.
The provisions of the decree-law shall apply to employment contracts of indefinite duration concluded in accordance with Federal Law No (8) of 1980.
The law also states that Unlimited employment contracts are to be converted into fixed-term employment contracts, in accordance with the conditions, controls and procedures contained in this decree by law, within one year of the effective date of the existing contract and may be extended by the Council of Ministers for further periods as required in public interest.
Worker welfare at the core
The new decree-law has the idea of worker welfare and wellbeing at its core. In keeping with that, a host of measures have been provided to ensure a safe and healthy work environment to all employees in the private sector.
Here is a look at what the new decree-law guarantees towards this objective:
Rest days, paternity leaves and more
All private sector workers are entitled to a paid, weekly rest day, with the possibility of increasing the weekly rest day at the discretion of the establishment, in addition to providing vacations for the workers, including mourning leave ranging from three-five days, according to the degree of the employee’s relationship with the deceased. In addition, paternity leave of five days to be granted to private sector workers. Any other leave to be decided by the Council of Ministers.
The law also assigns the employer the responsibility to bear the fees and cost of recruitment and not to collect the same from the worker either directly or indirectly.
No withholding of documents, employee’s ease of movement
The law stipulates the prohibition of withholding of official documents, such as passports, belonging to the workers and forcing him or her to leave the country at the end of an employment contract. This has been done to allow the worker to move to another establishment in the labour market. The worker shall also have the right to obtain his or her wages on the due date in accordance with the regulations approved by the ministry and according to the conditions and procedures as specified by the Executive Regulations of this decree-law.
The decree-law permits the worker, in the event of termination of the work contract, to move to another employer. Also, probationary period for the worker must not exceed six months.
End-of-service benefits defined
The amendments include a provision, according to which, a worker is entitled to an end-of-service gratuity, in accordance with the legislation regulating pensions and social security in the country.
It also stresses that eligibility of a foreign worker who has worked full-time and who has completed one year or more of continuous service with an establishment, shall be paid end-of-service benefits calculated according to the basic wage, with a wage of 21 days for each of the first five years of service and a wage of 30 days for each subsequent year.
Exemption of workers from paying litigation fees
The decree-law exempts labour cases from judicial fees in all stages of litigation, execution and requests made by workers or their heirs, the value of which does not exceed Dh100,000.
Rights and obligations of the worker
The new law regulates the obligations of the employer, the most prominent of which is the establishment of labour regulations, the obligation to provide adequate housing, as well as train workers and help them develop their skills.
On the other hand, the law also regulates the workers’ obligations based on the terms of the employment contract and in accordance with duties, including performing work during the specified times, adhering to good conduct and ethics, preserving work secrets, seeking to develop job skills, committing not to work for another competing employer, vacating the labour accommodation within one month of expiry of employment contract and other obligations.
A sum-up of all that the new decree-law guarantees and safeguards
- The decree is the biggest update in the law regulating labour relations, ensuring the efficiency of the labour market and enhancing its flexibility and competitiveness through an advanced mechanism.
- Achieving ease of business and investing local and global energies and talents.
- Ensuring the rights of both parties to a work relationship in a balanced manner and providing protection to both.
- Enhancing the competitiveness of Emirati cadres in the labour market and empowering women
- Introducing flexible, temporary and partial work patterns.
ntroducing mourning and parenthood leave. - Specific contracts for a period of three years can be extended or renewed by agreement between both parties.
- Prohibition of discrimination, bullying, verbal, physical and psychological violence against workers
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