Introduction - 2021 Reforms
In Q4 2021, as part of its 50th Year Anniversary, the UAE announced some of the broadest changes to its legal landscape in many years. It also introduced major practical changes, not least announcing the change of the working week for the public sector from Sunday-Thursday to Monday-Friday – a move that we expect the private sector will follow. In this series of articles, we summarise some of the key changes introduced in the Q4 2021 reforms.
A table listing out the key new or updated laws can be downloaded here.
This article discusses Federal Decree Law No. 33 of 2021 on Regulation of Labour Relations (the “New Labour Law”).
The New Labour Law replaces the Federal Law No. 8 of 1980 on Employment Relationships (the “Old Labour Law”). The New Labour Law introduces some significant changes to the employment law regime in the UAE including with regards to unlimited term contracts, leave entitlements, end of service gratuity, restrictive covenants and notice provisions. However, despite the New Labour Law being the first material overhaul of the labour law regime in the UAE over the last 40 years, the substantive changes made are, in our opinion, actually quite modest.
The New Labour Law comes into effect on 2 February 2022 (the “Effective Date”) and repeals and replaces the Old Labour Law in its entirety. The New Labour Law applies to all entities established in the UAE in the private sector (which includes entities owned "in conjunction with the...
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