Thursday, June 1, 2023

Important changes in the U.A.E Labour law in 2023

The UAE Labour Law was amended in February 2022, introducing a number of changes to the employment landscape in the country. Some of the key changes in the law for you to consider
  The introduction of fixed-term contracts: All employees in the private sector are now required to be employed on fixed-term contracts, with a maximum duration of three years. This change was made in an effort to increase flexibility for employers and to reduce the number of cases of unfair dismissal.
  The removal of the no-objection certificate (NOC) requirement: Under the old law, employees were required to obtain a NOC from their employer before they could leave their job. This requirement has now been removed, making it easier for employees to switch jobs.
  The introduction of a new grievance procedure: Employees are now entitled to raise a grievance with their employer if they believe that they have been treated unfairly. The new grievance procedure is designed to be more accessible and transparent than the previous system.
  The increase in the minimum wage: The minimum wage for employees in the private sector has been increased from AED 3,000 to AED 4,000 per month. This change was made in an effort to improve the lives of low-income workers.

These are just some of the key changes that have been introduced to the UAE Labour Law in 2022. If you are an employee or employer in the UAE, it is important to familiarize yourself with these changes so that you can ensure that you are compliant with the law.

In addition to the above, the UAE government has also introduced a number of other changes to the labor market in recent months, including:

  The introduction of a four-and-a-half day working week: The UAE government has announced that the working week in the public sector will be reduced from 5 to 4.5 days, starting from January 1, 2023. This change is expected to be extended to the private sector in the near future.

 The introduction of a compulsory unemployment insurance scheme: The UAE government has also announced the introduction of a compulsory unemployment insurance scheme, which will come into effect on January 1, 2023. This scheme will provide financial support to employees who lose their jobs.

These changes are part of a broader effort by the UAE government to improve the working conditions and opportunities for its citizens and residents.

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