Important Changes in the U.A.E Labour Law-2024,Updates You Need to Know!

 Here are some key updates to the U.A.E labor law in 2024, along with existing laws:

New:
Unemployment Insurance Scheme: This scheme, launched in January 2024, provides financial support to eligible employees who lose their jobs.

MOHRE dispute resolution: For disputes under AED 50,000, MOHRE can now act as a judge and issue final, enforceable decisions.

Expanded Emiratisation: Companies with 20-49 employees in specific sectors must hire at least one Emirati national by December 2024.

Increased maternity leave: Maternity leave is now 60 days, with 45 days at full pay and 15 days at half pay.

Existing:

Working hours: The maximum working hours are 8 hours per day/48 hours per week. Overtime is limited to 2 hours per day and 12 hours per week.

Rest days: Friday is no longer mandatory, but employees must receive at least one rest day per week.

Notice periods: Employees must give 30 days' notice of termination, and employers can seek repayment of recruitment costs from the new employer.

Leave entitlements: These include annual leave, sick leave, compassionate leave, and parental leave.

Contract types: Fixed-term and unlimited contracts are allowed.

Non-competition agreements: These are allowed for senior positions and must be reasonable in duration and scope.

U.A.E Unemployment Insurance Scheme with federal law sections:

The U.A.E. Unemployment Insurance Scheme is governed by Federal Decree-Law No. 13 of 2022 Concerning Unemployment Insurance Scheme. Here are some key sections of the law:

 Scope & Application: 

·       Article 2: Applies to all employees (except certain categories like investors, and domestic workers) in both private and federal sectors.

·       Article 3: Exemptions can be made by the UAE Cabinet.

Contributions & Benefits:

·       Article 5: Contribution rates are 0.5% and 1% of the basic salary for employees earning less and more than AED 16,000 respectively.

·       Article 6: Employers contribute the same amount as employees.

·       Article 8: Maximum unemployment benefit is 60% of basic salary, capped at AED 10,000 or AED 20,000 depending on the contribution category.

·       Article 9: Benefit duration is 3 months per claim, with a maximum of 12 months during employment in the U.A.E.

Eligibility:

·       Article 10: Must be enrolled for at least 12 months prior to unemployment.

·       Article 11: Must not be terminated for disciplinary reasons.

·       Article 12: Must be actively seeking employment and register with relevant authorities.

Claims & Disputes:

Article 15: Claims are submitted to the insurance service provider.

Article 16: Disputes are resolved by the Ministry of Human Resources and Emiratisation (MOHRE).

Article 17: Appeals can be made to the competent judicial authorities.

Additional Resources:

MOHRE Dispute Resolution in the U.A.E.: Details

The Ministry of Human Resources and Emiratisation (MOHRE) offers multiple avenues for resolving labor disputes in the U.A.E., depending on the nature and value of the claim. Here's a breakdown: 

1.      Amicable Settlement: 

1.      This is the preferred approach, where MOHRE acts as a mediator to facilitate an agreement between the employer and employee. It's free and often the quickest method. 

2.      Individual Labour Complaints: 

3.      For claims under AED 50,000, MOHRE can act as a judge and issue final, enforceable decisions. This process is faster and cheaper than going to court. 

4.      Labour Courts:   For claims exceeding AED 50,000 or if an amicable settlement isn't reached, the dispute proceeds to the labor courts. This is a formal judicial process with legal fees and longer timelines. 

     4. Collective Labour Disputes:    When 100 or more employees have a common grievance against their employer, they can file a collective complaint with MOHRE. The ministry attempts mediation, and if unsuccessful, refers the case to a specialized conciliation committee. 

Key Points:

Filing: Complaints can be submitted online, via the MOHRE app, or in person at service centers.

Representation: Legal representation is not mandatory but recommended for complex cases.

Time Limits: There are deadlines for filing complaints, typically within one year of the violation.

Fees: Some procedures involve minor administrative fees. 

Expanded Emiratisation in the U.A.E.: Details

The U.A.E. government has expanded its "Emiratisation" program to increase the number of Emirati citizens employed in the private sector.

Here are the key details:

Who is affected? 

Private companies with 20-49 employees: These companies were previously exempt, but now they must hire at least one Emirati citizen by December 2024 and two by December 2025.

Companies already subject to Emiratisation: Companies with 50 or more employees still need to meet their existing targets, which typically involve a 2% annual increase in Emirati employees.

Which sectors are targeted? 

The expanded Emiratisation applies to specific economic activities across 14 sectors, including: 

1. Healthcare
2. Education
3. Information technology
4. Retail
5. Tourism and hospitality
6. Banking and Finance
7. Transportation and logistics
8. Engineering
9. Construction
10. Media and entertainment

What are the consequences of non-compliance? 

Companies that do not meet their Emiratisation targets will face financial contributions: 

AED 96,000 for failing to hire one Emirati citizen in 2024.

AED 108,000 for failing to hire two Emirati citizens in 2025.

What are the incentives for compliance? 

The government offers incentives to companies that exceed their Emiratisation targets, such as: 

• Reduced business fees
• Priority government contracting opportunities
• Public recognition

 Increased Maternity Leave in the U.A.E.:

The U.A.E. has implemented several changes over the past few years to increase maternity leave for female employees, offering one of the more generous packages in the region. Here's a breakdown: 

Current Maternity Leave:

Total duration: 60 days

Paid leave:

45 days at full pay (100% salary)

15 days at half pay (50% salary)

Additional Options:

Early Leave Up to 30 days before the expected delivery date, with a doctor's certificate.

Leave for Complications: Up to 45 days of unpaid leave for pregnancy-related illnesses, with a doctor's certificate.

Leave for Sick Baby: Up to 60 days of fully paid leave, and an additional 60 days of unpaid leave, if the baby is born sick or with a disability.

Nursing Breaks: Two hours of reduced working hours daily for one year after returning to work to breastfeed.

Emirate-Specific Variations:

Dubai: 90 days of leave, with 60 days at full pay and 30 days unpaid.

Sharjah: 120 days of leave, with 90 days paid and 30 days unpaid.

Key Points: 

Employees must have been employed for at least one year to be eligible for full paid leave.

Leave days can be consecutive or intermittent.

Employers are not allowed to terminate pregnant women or those on maternity leave.

Good conduct Certificate must for workers Change jobs in the UAE

Good conduct Certificate in the UAE

Security checks are now covering all new work permits, including workers switching jobs in the UAE, official sources told. According to a source, it is now mandatory for workers planning to change jobs in the UAE to produce a certificate of good conduct, regardless of the length of their service.

From June 1, the good conduct certificate will be mandatory for all domestic workers, revoking the exemption currently in force for Filipino and Indonesian workers, according to the source.

“Expatriate workers planning to switch jobs will now have to produce certificates of good conduct from the local police,” an official source told. The source said now candidates applying for their first job in the UAE and those planning to change jobs will have to produce certificates of good conduct.

“For candidates applying for their first job in the UAE, the security screening of job candidates means that they will have to produce good conduct certificates from their home countries, or the country, or countries, of their residence for work, or study, for the past five years, while those who wish to change jobs can obtain the good conduct certificate from local police,” the source said.

Security Vetting:  The source affirmed the security vetting is a mean of judging a job candidate’s past mistakes, character, and fitness, and to identify potential hiring risks for safety and security reasons and to ensure the safety and security of the employees as well as their public and private employers.

If the applicant for a first job in the UAE has lived and worked in more than one country in the past five years, a certificate of good conduct from each country must be produced.

The source said residents born and lived in the UAE until they apply for a job will now also be required to present a good conduct certificate, which they can obtain from the local police.

The source said, for now, workers who apply for renewal of work permit are not required to produce a certificate of good conduct.

However, the source said, those born and lived in the UAE for a while but left for home or another country before applying for a job, must produce a good conduct certificate from their home country or the country of their residence for work, or study, for the past five years.

The good conduct certificates must be certified by the UAE’s missions abroad or attested at customer happiness centres of the Ministry of Foreign Affairs and International Cooperation.

The security screening is only mandatory for job candidates but not for their dependents or family members.

The certificate is not required for tourists, students and people who come to the UAE on medical or mission visas, issued for the purpose of temporary work in the country for three months and can be renewed for a similar period.

The good conduct certificate will be produced on applying for a job visa, issued by residency departments to foreigners who wish to work for a company in the UAE upon the approval of the Ministry of Human Resources and Emiratisation.

The visa allows the holders to enter the UAE once and is valid for two months from the date of issue. When the employee has entered the country on the basis of the job visa, the sponsoring company will arrange to complete the formalities of medical and stamping his residence within 60 days.

U.A.E Residence visa never cancelled automatically

A common question asked by most of the employees in U.A.E, the residence visa expire on the date mentioned in the visa require cancellation. It is very important to keep in mind that a residence visa can expire and become invalid in time, but never automatically cancelled.

 All visas should be properly cancelled even if someone is leaving the UAE or able to stay on a tourist visa. They will face problems when attempting to re-enter the country on a visit visa. If visa not properly cancelled it is  not possible to obtain a new residence visa . 

If an employer or sponsor has not dealt with this, an individual can go to any main office of the Immigration Department in the relevant emirate, or the one where the visa was issued, with a passport to request cancellation. The charges should amount to no more than Dh250 including typing fees. The Emirates ID card must be handed over when the visa is cancelled as part of the process, as the identity card is linked to the visa.