Monday, July 3, 2023

The U.A.E Labor Law: What You Need to Know in 2023

 The UAE Labor Law was last updated in February 2022, and it introduced a number of new changes for both employers and employees. Some of the key changes include:

  • The introduction of fixed-term employment contracts: Under the new law, all employees in the private sector must be employed on fixed-term contracts, with a maximum duration of three years. This change was made in order to provide greater flexibility for both employers and employees, and to make it easier for employers to terminate contracts without having to pay severance.
  • An increase in the mandatory Emiratization quota: The new law also increases the mandatory Emiratization quota for private sector companies. From January 1, 2023, at least 2% of a company's workforce must be UAE nationals. This quota will increase by 2% each year, until it reaches 10% in 2026.
  • New provisions on harassment and bullying: The new law also includes new provisions on harassment and bullying in the workplace. These provisions make it clear that employers have a duty to protect their employees from harassment and bullying, and they also set out the steps that employers must take if they become aware of such incidents.
  • Changes to the leave and holiday entitlements: The new law also makes some changes to the leave and holiday entitlements of employees. For example, the maximum amount of annual leave that an employee can take has been increased from 30 to 35 days. These are just some of the key changes to the UAE Labour Law in 2023. If you are an employer or an employee in the UAE, it is important to familiarize yourself with these changes in order to ensure that you are complying with the law.In addition to the above, here are some other things you need to know about the UAE Labour Law in 2023:
  • The minimum wage: The minimum wage in the UAE is AED 3,000 per month for employees aged 18 and over. This applies to all employees in the private sector, regardless of their nationality or the type of work they do.
  • Overtime: Employees are entitled to overtime pay if they work more than eight hours per day or 48 hours per week. The overtime rate is 1.5 times the employee's regular hourly rate.
  • Termination of employment: An employer can terminate an employee's contract for a number of reasons, including redundancy, misconduct, or poor performance. However, the employer must give the employee written notice of termination, and the amount of notice required will depend on the employee's length of service.
  • End of service gratuity: When an employee's contract ends, they are entitled to an end of service gratuity. The amount of gratuity is calculated based on the employee's salary and length of service.
  • If you have any questions about the UAE Labour Law, you can contact the Ministry of Human Resources and Emiratisation (MoHRE). You can also find more information on the MoHRE website.

  

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