The United Arab Emirates (UAE) government has introduced major legislative changes over the last 18 months. These changes strengthen and modernize the UAE’s overall legal framework to cement its position as a key global player and a leading regional hub. Against this backdrop, Federal Law Number 33 of 2021 regulating labour relations and its implementing regulations (the Employment Law) introduce significant changes to this important aspect of the country’s legislative landscape. The Employment Law came into force on 2 February 2022 and represents the first major change to the UAE’s employment legislation in over 40 years.
The changes are heralded as facilitating greater flexibility and efficiency for businesses and employees alike. The increased employee protections are seen as an important move towards both attracting and retaining talent for the country.
Who is affected?
The Employment Law applies to all UAE private sector business with the exception of those located within the Dubai International Financial Centre and the Abu Dhabi Global Market.
What’s changed?
The Employment Law introduces a variety of different changes with varying impact for employers and their employees. Some of the key changes are:
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