On 16 November 2021, significant changes were announced to employment law in the UAE with the introduction of the new UAE Labour Law (Federal Decree Law No. 33 of 2021) (New Law), which will come in force on 2 February 2022. The New Law will replace UAE Federal Labour Law (Law No. 8 of 1980) (as amended).
The New Law is the first substantial update to UAE labour laws since the implementation of UAE Federal Labour Law (Law No. 8 of 1980) and applies to all employees and employers in the private sector. There are only two current exceptions to the overarching application of the New Law. The first is in the Dubai International Financial Centre, which is a separate jurisdiction with its own employment legislation and the second exception is the Abu Dhabi Global Market, which also has its own employment legislation.
In a statement surrounding the announcement of the New Law, the UAE Ministry of Human Resources and Emiratisation stated that it “seeks to enhance the elasticity, resilience and sustainability of the labour market nationwide, as well as ensure protection of workers' rights. It places worker welfare and wellbeing at its core, and accordingly, a host of measures have been provided therein to ensure a safe, healthy, and business-conducive environment for all employees in the private sector.”
We summarise some of the significant changes introduced by the New Law as follows.
Fixed-term contracts
One of the most significant amendments introduced by the New Law is the...
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