The United Arab Emirates has issued a new labour law, which makes changes to employment-related issues such as leave, termination, overtime, and employment contracts, among others. This LawFlash includes a summary of these changes.
Beginning 2 January 2022, the entirety of the United Arab Emirates’ existing labour law (Federal Law No. 8 of 1980) and any subordinate regulation will be repealed and replaced with the new Federal Decree-Law No. 33 of 2021 (the Labour Law Decree).
Private sector employers should take note of the contents of this new legislative regime as it will (among several amendments) require immediate changes to the calculation of end of service gratuity payments for expat workers and will require over the next 12 months all employment contracts to revert to fixed-term contracts (not exceeding three years). For employees based in the Dubai International Financial Centre and the Abu Dhabi Global Markets, the regulations governing employment contracts remain unchanged. Although the legislation has been issued, there are—of yet—no published implementing regulations regarding additional measures for the implementation of the Labour Law Decree; however, a summary of the key amendments is set out as follows:
| Federal Decree Law No. (33) of 2021 | ||
| Additional Leave | Article 32 | Bereavement - five days; parental leave - five days (each parent) |
| Annual Leave | Article 29 | 30 calendar days |
| Arbitrary Dismissal | Article 47 | Where an employer has... |
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