Expected New U.A.E Law updates in 2024

 The United Arab Emirates (UAE) has always been at the forefront of progress and development. With its visionary leadership and commitment to innovation, the country has consistently strived to create a conducive environment for its citizens and residents. In line with this, the UAE is expected to introduce new law updates in 2024 that will further enhance the legal framework and promote social and economic growth.

 Emiratisation Expansion:

The UAE government is committed to increasing the number of Emiratis in the workforce. In 2023, the government announced that private companies with between 20 and 49 employees would be required to hire at least one Emirati by 2024 and another by 2025. This is likely to be a major focus of legislation in 2024, as the government seeks to ensure that companies are complying with the new requirements. This means that these companies will be required to hire at least one Emirati national by the end of 2024 and another by the end of 2025. Companies that fail to meet these quotas will face fines.

Key benefits of the Emiratisation program expansion:

• Increased employment opportunities for Emiratis: The program will help to create more job opportunities for Emiratis, which will help to reduce unemployment and boost the economy.
• A more diverse and skilled workforce: The program will help to create a more diverse and skilled workforce, which will make the UAE economy more competitive.
• Reduced reliance on foreign workers: The program will help to reduce the UAE's reliance on foreign workers, which will make the economy more sustainable.
• A stronger sense of national identity: The program will help to create a stronger sense of national identity by promoting Emiratisation and cultural awareness.

Potential challenges of the Emiratisation program expansion:

• Additional costs for businesses: The program will require businesses to incur additional costs, such as training and recruitment costs.
• Administrative burdens for businesses: The program will increase the administrative burden on businesses, as they will need to track and manage Emirati employees.
• Skills shortages: There may be a shortage of qualified Emirati candidates for some positions.
• Cultural differences: There may be cultural differences between Emiratis and expatriates, which could lead to challenges in the workplace.

 End of Service Gratuity (ESG) Alternative: The MoHRE is considering introducing an alternative ESG scheme that would allow employers to provide their employees with a more flexible retirement savings option. This could involve contributions to a defined contribution pension plan or other financial instruments.

The United Arab Emirates (UAE) has expanded its unemployment insurance scheme to include employees working in free zones and semi-government bodies. The scheme was previously only mandatory for employees in the private sector and the federal government.

 Under the expanded scheme, employees who lose their jobs will be eligible to receive up to three months of unemployment benefits at 60% of their basic salary. To be eligible for benefits, employees must have contributed to the scheme for at least 12 consecutive months and must not have been dismissed for disciplinary reasons. The scheme is expected to benefit around 7 million employees.

 The expansion of the unemployment insurance scheme is a positive step forward for the UAE government. It will provide a safety net for workers who lose their jobs and help to reduce the financial burden of unemployment. It is also a sign of the government's commitment to social protection and its efforts to create a more inclusive economy.

 Here are some of the key benefits of the expanded unemployment insurance scheme:

•   Provides a safety net for workers who lose their jobs: The scheme will help to ensure that workers have a financial cushion to fall back on if they lose their jobs. This will help to reduce the financial stress and anxiety associated with unemployment.
•      Reduces the financial burden of unemployment: The scheme will help to reduce the financial burden of unemployment on individuals, families, and the government. This will free up resources that can be used to support other social programs and initiatives.
•  Promotes social protection: The scheme is a sign of the government's commitment to social protection. It shows that the government is concerned about the well-being of its citizens and is taking steps to ensure that they have access to essential social services.
•  Creates a more inclusive economy: The scheme will help to create a more inclusive economy by providing support to workers who lose their jobs. This will help to ensure that everyone has the opportunity to participate in the economy and contribute to society.

Unemployment Insurance Scheme Expansion: Free zone employers will be able to register their employees under the UAE's Unemployment Insurance Scheme. This scheme provides financial support to employees who lose their jobs through no fault of their own.

Here are some of the key benefits of the expanded unemployment insurance scheme:

• Provides a safety net for workers who lose their jobs: The scheme will help to ensure that workers have a financial cushion to fall back on if they lose their jobs. This will help to reduce the financial stress and anxiety associated with unemployment.
• Reduces the financial burden of unemployment: The scheme will help to reduce the financial burden of unemployment on individuals, families, and the government. This will free up resources that can be used to support other social programs and initiatives.
• Promotes social protection: The scheme is a sign of the government's commitment to social protection. It shows that the government is concerned about the well-being of its citizens and is taking steps to ensure that they have access to essential social services.
• Creates a more inclusive economy: The scheme will help to create a more inclusive economy by providing support to workers who lose their jobs. This will help to ensure that everyone has the opportunity to participate in the economy and contribute to society.

  Payment of Employment Entitlements in Case of Death: The MoHRE is considering amending the law to ensure that the end-of-service gratuity and other employment entitlements are paid promptly to the deceased employee's beneficiaries in the event of their death.

In the unfortunate event of an employee's death in the UAE, there are specific procedures and regulations in place to ensure that the deceased's employment entitlements are paid to their rightful beneficiaries. These entitlements may include:

 ·       End-of-service gratuity (EOSG): The EOSG is a lump sum payment that is due to an employee upon completion of their employment contract. If an employee dies while still employed, their EOSG will be calculated based on their last salary and years of service.

 ·       Salaries and wages: Any unpaid salaries or wages that the employee was entitled to at the time of their death must be paid to their beneficiaries.

 ·       Overtime pay: If the employee was entitled to overtime pay, this must also be paid to their beneficiaries.

 ·       Vacation pay: Any accrued vacation pay that the employee was entitled to must be paid to their beneficiaries.

 ·       Repatriation costs: If the employee was not a UAE national, the cost of repatriating their body to their home country will be borne by their employer.

 ·       Life insurance: If the employee had life insurance coverage through their employer, the death benefit will be paid to their designated beneficiaries.

 ·       Workers' compensation: If the employee's death was caused by a work-related accident or occupational disease, their beneficiaries may be entitled to workers' compensation benefits.

 Payment Procedures

 ·       Notification of death: The employer must be notified of the employee's death as soon as possible.

 ·       Death certificate: The employer must obtain a copy of the deceased employee's death certificate.

 ·  Beneficiary identification: The employer must identify the deceased employee's beneficiaries, who are typically their next of kin.

 ·    Calculation of entitlements: The employer must calculate the deceased employee's employment entitlements, including EOSG, unpaid wages, overtime pay, vacation pay, and repatriation costs.

 ·       Payment to beneficiaries: The employer must pay the deceased employee's employment entitlements to their beneficiaries within a specified timeframe.

 Additional Considerations

 ·       Probate: If the deceased employee had a will, the beneficiaries may need to obtain a probate order from the court to access their entitlements.

 ·       Legal assistance: If the beneficiaries have any questions or concerns regarding the payment of their entitlements, they may seek legal assistance from an experienced labor lawyer.

 DIFC Employment Law Changes: The Dubai International Financial Centre (DIFC) has announced proposed amendments to its Employment Law. The proposed amendments are designed to enhance the protection of employees' rights and to make it easier for businesses to operate in the DIFC.

 Key proposed amendments include:

 ·       A requirement for employers to provide employees with a written contract of employment. This is a significant change from the current law, which only requires employers to provide employees with a statement of employment particulars.

•        An extension of maternity leave from 45 working days to 65 working days. This is in line with the maternity leave provisions in the UAE Labor Law.
• ·       A new requirement for employers to make "top-up" payments into a Qualifying Scheme on behalf of eligible GCC national employees. This is to ensure that GCC national employees receive the same level of end-of-service benefits as expatriate employees.
• ·       A new provision allowing employees to bring claims against their employers during their employment rather than only post-termination. This is a significant change that is likely to make it easier for employees to enforce their rights.

The proposed amendments are still in the consultation phase, and the DIFC is accepting feedback from the public until 29 September 2023. The amendments are expected to come into force in 2024.

 Here are some of the potential impacts of the proposed amendments:

 ·       Businesses will need to review their employment contracts to ensure that they comply with the new requirements.

       Businesses will need to implement new systems to track and pay top-up contributions into Qualifying Schemes.

·       Employees will have more protection of their rights, including the right to bring claims against their employers during their employment.

·       The DIFC will become an even more attractive place to do business, due to its strong legal framework and its commitment to protecting employees' rights.

Data Protection Law: The UAE is currently developing a new data protection law, which is expected to be enacted in 2024. The new law will set out how businesses can collect, use, and store personal data.

 ·       Artificial Intelligence (AI) Regulation: The UAE government is developing a regulatory framework for AI, and we could see new laws in this area in 2024. 

·       Fintech Regulation: The UAE is a major fintech hub, and we could see new laws in this area in 2024 to support the growth of the industry. 

·       Sustainability Laws: The UAE is committed to sustainability, and we could see new laws in this area in 2024 to promote sustainable practices.

 These are just some of the expected new UAE law updates in 2024. It is important to note that these are just proposals, and the final details of any changes have not yet been finalized. However, they provide an indication of the UAE government's commitment to continuous improvement and ensuring a fair and business-friendly legal environment.