Question: My question is about the new employment law that goes into effect from February 2. Are all the changes applied to our existing contracts? Also, what should employees do if the firm does not follow the provisions? What’s the penalty for firms that break these rules and how does the ministry enforce them?
Response: The Federal Law No. 8 of 1980 Regulating Employment Relations in the UAE (the ‘Federal Law No. 8 of 1980’) will be repealed and the provisions of the Federal Decree Law No. 33 of 2021 on the Regulation of Labor Relations (the ‘New Employment law’) are applicable with effect from February 2, 2022, with regards to employment matters in the UAE.
It should be noted that the existing employment contracts which are governed by the provisions of Federal Law No. 8 of 1980 may be applicable even after the New Employment Law comes into effect. However, the employer may amend the contract to adjust to the new provisions. But the amendments may only have such provisions which are more advantageous to the employees.
This is in accordance with Article 65 (5) of the New Employment Law, which states: "The Employer may not review the terms and conditions of valid Employment Contract concluded with the employee prior to the promulgation of this Decree-Law, with the intent to apply the provisions hereof, unless such amendments are for the greater good and benefit of the employee. The Employment Contract may be updated...
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