The Federal Decree Law no. 33 of 2021 concerning the regulation of labour relations (the “New UAE Labour Law”) will take effect on February 2, 2022. It is the most significant amendment of its kind since the existing labour law was first established in 1980. The New UAE Labour Law aims to enhance regulations for different work categories (e.g. temporary and part-time work), provide greater protection for employees and introduce more flexibility into the workplace.

The UAE Ministry of Human Resources and Emiratisation (“MOHRE”) states that the New UAE Labour Law is in response to the rapidly changing workplace environment amid technological advancements in a Covid-19 world. Currently, the MOHRE is working on executive regulations that will oversee the implementation of the New Labour Law.

What will the New UAE Labour Law do?

The key amendments to the New UAE Labour Law include the introduction of:

• A 3-year contract. This is a limited/fixed-term contract, which may not exceed three years, and is renewable for the same period or less upon agreement of both parties. Unlimited contracts pursuant to the existing labour law (i.e. Federal Law No. (8) of 1980) still apply but must be converted from unlimited to limited contracts within one year of enforcement of the New UAE Labour Law. Therefore, updated employment contracts will need to be drafted by companies in the private sector and entered into by 1 February 2023.
• Non-compete. It will be mandatory for the employer,...

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