The U.A.E Labour Law -Article 54 Federal Decree-Law 20 of 2023 takes effect on January 1, 2024

 As of today, December 12, 2023, Article 54 of the Labour Law (Federal Decree-Law 20 of 2023) hasn't come into effect yet. The amended provisions only take effect on January 1, 2024. However, I can give you a summary of the key changes it introduces:

 Enhanced powers for the Ministry of Human Resources and Emiratisation (MOHRE):

 Final judgment authority: This empowers MOHRE to issue final judgments in certain cases, reducing the need for court proceedings and potentially speeding up dispute resolution.

Enhanced settlement facilitation: While encouraging amicable settlements remains a critical step, MOHRE now has more authority to intervene and guide parties toward solutions.

MOHRE gains the power to issue final judgments on employment disputes under certain conditions. This applies to cases where the claim value is below AED 50,000 or if parties reject an amicable settlement, regardless of claim value. Previously, all disputes went to court.

MOHRE is still responsible for attempting amicable settlements before issuing a final judgment.

Execution of decisions Final judgment authority: MOHRE decisions can be directly enforced, similar to court judgments, offering faster resolution and streamlined enforcement. It's certainly a significant shift in the landscape of employment dispute resolution in the UAE, with potential benefits for both employers and employees. By streamlining the process and empowering MOHRE, the aim is to create a more efficient and accessible system for resolving workplace issues.

Other key points: The existing provisions on submitting an initial request to MOHRE and pursuing an amicable settlement remain largely unchanged. This change aims to expedite resolutions and reduce the strain on the court system.

Appeal rights to higher courts still exist for dissatisfied parties. It's worth noting that legal interpretations and procedures may evolve, so seeking professional advice from qualified lawyers specializing in UAE labor law is always recommended for specific cases.

 Upcoming  Changes Labour Law UAE in 2024

While the major changes in UAE Labour Law took place in February 2022, there are a few key updates and developments expected in 2024:

 Emiratisation: Quotas for smaller companies: Companies with 20 to 49 employees will be subject to Emiratisation quotas for the first time. They must hire at least one UAE citizen by December 31, 2024, and another by December 31, 2025.

Increased quotas for larger companies: The existing quotas for companies with 50 or more employees will continue to increase, reaching 6% by the end of 2024, 8% in 2025, and 10% in 2026.

Fines for non-compliance: Companies failing to meet their Emiratisation quotas will face fines of AED 96,000 for the year 2024 and AED 108,000 for 2025.

Other potential changes:

Regulations on remote work: The Ministry of Human Resources and Emiratisation (MoHRE) is expected to finalize regulations on remote work in 2024, outlining requirements for employers and employees.

Changes to probation periods: The MoHRE may review and potentially adjust the current probation period of six months for new employees.

Social security contributions: The government may consider adjusting the social security contribution rates for employers and employees.

Important note: These are potential changes and may not be confirmed until official announcements from the MoHRE. It's always advisable to stay updated with the latest news and regulations from reliable sources like the MoHRE website or legal professionals specializing in UAE labor law.