Private sector employers in the United Arab Emirates (UAE) should review their policies and procedures following the biggest change to the law governing labour relations in the country since 1980.
Federal Decree – Law No. 33 of 2021 on the regulation of labour relations in the private sector came into force on 2 February 2022. The law is designed to enhance employment rights and boost the competitiveness of the UAE as a place to live and work, helping the region to attract and retain world class talent.
Significant changes have been introduced to family leave entitlements, discrimination laws, termination of employment and ‘non-compete’ clauses in employment contracts. The new law also makes provision for businesses to put in place part-time and flexible working arrangements.
Here, we summarise some of the most significant changes to the legislative framework.
| Employment contracts | Employees could be employed under either permanent or fixed term employment contracts. All employees must sign a registered MoHRE (or relevant free zone) standard contract. Additional company contract containing additional clauses optional. | All employees must be employed on a fixed term employment contract, not exceeding three years in length. Contracts can be renewed, and any renewal is included in total period of service. Transition to fixed term contracts must be completed by 1 February 2023. Requirement for MoHRE/free zone contract remains. However,... |
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