Wednesday, January 3, 2024

New laws will come into effect in the United Arab Emirates starting from Jan 2024

 The United Arab Emirates (UAE) is known for its progressive approach to governance and its commitment to creating a safe and prosperous society. In line with this vision, a series of new laws will come into effect from January 2024, aimed at further enhancing the country's legal framework and ensuring the well-being of its residents.

One one-time plastic ban starts in 2024

UAE has indeed started a ban on some single-use plastics in 2024, but it's important to remember that the ban is phased and doesn't encompass all types of single-use plastics yet.

United Arab Emirates (UAE) has implemented a phased ban on single-use plastic products that began in January 2024. However, it's important to note that the ban is not nationwide and doesn't encompass all single-use plastics at once.

Here's a breakdown of the ban: Current Stage (January 2024):

Banned: Single-use plastic bags, regardless of material.

Exceptions: Bags made from recycled materials, bags used for exporting goods, and some other specific circumstances.

Upcoming Stages:

June 2024: Ban includes non-plastic single-use bags and other items like single-use tableware and containers.

January 2025: Additional single-use plastic items like stirrers, table covers, cups, and styrofoam containers will be prohibited.

January 2026: The ban expands to include even more single-use plastic products like plates, food containers, beverage cups with lids, and more.

It's worth noting that some individual Emirates within the UAE might have additional regulations or specific timelines within their jurisdictions.

 Employment and Labor:

Amendments to the Federal Labour Law: Changes streamline dispute resolution processes and strengthen MoHRE's authority.

 Starting from January 1, 2024, the United Arab Emirates (UAE) will introduce a new mechanism for resolving labor disputes in the private sector 1. The new legislation, Federal Decree-Law No. 20 of 2023, will replace Article 54 of the UAE’s Labor Law – Federal Decree-Law No. 33 of 2021 1. Under the new law, the Ministry of Human Resources and Emiratisation (MOHRE) will issue the final executive decisions on labor disputes with claims of less than Dh50,000 for companies and workers in the private sector 1. The new process aims to save customers’ time and effort, streamline procedures and expedite the process for claimants to collect their legal entitlements 1.

 Emiratization in the U.A.E- new changes in 2024: All taxable persons in the UAE are required to register for corporate tax, as per Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses

There are two major changes to Emiratization in the UAE for 2024:

1. Expansion to smaller companies:

Companies with 20 to 49 employees must now hire at least one UAE national in 2024 and another one by 2025.

This applies to 14 sectors including real estate, education, construction, and healthcare.

Failure to comply will result in fines of AED 96,000 in 2024 and AED 108,000 in 2025.

This is a significant expansion from the previous requirement, which only applied to companies with 50 or more employees.

2. Continued growth for larger companies: Companies with 50 or more employees still need to achieve a 2% Emiratization growth in skilled jobs by the end of 2024.

This means increasing the number of Emirati employees in skilled positions by 1% every six months.

Here are some additional details to keep in mind: The new rules are part of the UAE's "We the UAE 2031" strategy, which aims to increase Emirati participation in the workforce and diversify the economy. The Ministry of Human Resources and Emiratization (MoHRE) is responsible for enforcing the new rules. Companies can use the Nafis program to find qualified Emirati candidates.

Qualifying Free Zone Persons (QFZPs) operating in approved Free Zones with specific conditions enjoy a 0% corporate tax rate. However, maintaining QFZP status involves specific requirements that not all companies in Free Zones meet.

Registration: Even if exempt from paying the tax, the Federal Tax Authority (FTA) strongly recommends registering for corporate tax. This facilitates future compliance if your circumstances change or exemptions are modified.

There are several resources available to help companies comply with the new rules, including MoHRE's website and the Dubai Chamber of Commerce and Industry.

 To promote gender equality and protect women's rights, the UAE will also be introducing new laws to combat gender-based discrimination and harassment. These laws will provide greater protection for women in the workplace and ensure equal opportunities for career advancement. Additionally, measures will be put in place to address domestic violence and provide support for victims.

 Furthermore, the new laws will focus on enhancing cybersecurity and protecting personal data. With the increasing reliance on digital technology, it is crucial to safeguard individuals' privacy and prevent cybercrimes. The UAE will be implementing stricter regulations to ensure the secure handling of personal information and to combat online fraud and identity theft.

 New Public Holidays: Additional official holidays are announced for specific occasions.

 One of the key changes is the introduction of stricter penalties for traffic violations. To reduce road accidents and promote safer driving habits, fines for speeding, reckless driving, and other traffic offenses will be significantly increased. Additionally, new regulations will be implemented to crack down on drunk driving, with stricter penalties for those found driving under the influence of alcohol or drugs.

 Another important change relates to the protection of the environment. Recognizing the urgent need to address climate change and promote sustainability, the UAE will be implementing new laws to reduce carbon emissions and encourage the use of renewable energy sources. These measures will include stricter regulations for industries and businesses to limit their environmental impact, as well as incentives for individuals and organizations to adopt greener practices.

 In conclusion, the new laws set to come into effect from January 2024 in the UAE reflect the country's commitment to progress and the well-being of its residents. These laws address a range of important issues, including road safety, environmental protection, gender equality, and cybersecurity. By implementing these measures, the UAE aims to create a safer, more sustainable, and inclusive society for all its residents.

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