The United Arab Emirates (UAE) has a new set of labor laws governing private-sector employment relations. On February 2, 2022, Federal Decree Law No. 33 of 2021 took effect, repealing and replacing Federal Law No. 8 of 1980, as amended, in its entirety.
The labor law changes are fairly substantial and necessitate amendments to existing employment contracts, as well as modifications to policies and procedures concerning future agreements with new employees. Employers have until February 2023 to implement the new labor law changes. The UAE government is planning to issue executive regulations to provide further instruction on the new laws.
In addition to the labor law changes, the UAE government has changed to a Monday–Friday work schedule (with a half-day on Fridays) for all government employees. While not required in the private sector, many private sector companies are planning to implement a Monday–Friday schedule to comport with the new government schedule.
The following is an overview of key changes to the UAE’s labor laws.
This is the most substantive change and requires employers to amend current employment agreements (to the extent that they are not already fixed term). Employers must place all employees on fixed-term employment contracts with a maximum term of three years. Contract terms may be shorter if agreed upon. There is no maximum number of fixed-term contracts that employers may enter into successively.
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