UAE Labour Law 2026: The Definitive Guide to Terminations, Fines, and Gratuity

The UAE employment landscape has undergone its most significant shift in decades. With the full implementation of Federal Decree-Law No. 9 of 2024 and the 2025/2026 amendments to the 2021 Labour Law, both employers and employees must navigate a stricter, more transparent regulatory environment.

1. Termination Without Prior Notice (Article 44)

Under the current law, an employer may terminate an employee summarily (without notice) only under specific grounds of gross misconduct.

The 10 Grounds for Summary Dismissal:

1. False Identity/Forgery: Submitting forged documents or assuming a false identity.
2. Material Loss: Committing an error causing quantifiable financial loss (Employer must notify MoHRE within 7 working days).
3. Safety Violations: Breaching written safety instructions despite being aware of them.
4. Failure of Duties: Failing to perform basic tasks (Requires a written investigation and two (2) written warnings).
5. Disclosure of Secrets: Sharing confidential intellectual property that leads to material loss or personal gain.
6. Public Morals/Substance Abuse: Being intoxicated or committing immoral acts at the workplace.
7. Assault: Physical or verbal assault against colleagues or management.
8. Absence: Being absent without excuse for >20 non-consecutive days or >7 consecutive days in a year.
9. Abuse of Position: Exploiting a professional role for personal profit (2025 Amendment).
10. Unauthorized Employment: Working for another establishment without a legal permit (2025 Amendment).

Note on Suspension (Article 40): An employer may suspend an employee for up to 30 days during an investigation at half-pay. If found innocent, the employee must be reinstated with full back pay.

2. End-of-Service Benefits: The Dual System

As of 2026, the UAE operates two co-existing systems for terminal benefits. Employers can either stick to the traditional model or opt into the new investment-based scheme.

The Traditional Gratuity System

• Eligibility: Minimum 1 year of continuous service.
• Calculation: Based on Basic Salary only.
• 1–5 Years: 21 days' basic salary per year.
• 5+ Years: 30 days' basic salary for each additional year.
• Cap: Total gratuity cannot exceed two years' basic salary.
• Dismissal Rights: Even if terminated under Article 44, the employee retains their right to accrued gratuity.

The New Alternative Savings Scheme

Instead of a lump sum, employers can choose to pay monthly contributions into regulated investment funds (Cabinet Resolution No. 96 of 2023).

How the Savings Scheme differs from Traditional Gratuity:

• Payment Model: Traditional is a lump sum at the end; the Savings Scheme is a fixed monthly payment (5.83% for <5 years service; 8.33% for >5 years).
• Funding: Traditional is "unfunded" (on the company books); the Savings Scheme is "funded" and "ring-fenced" in external accounts, protecting it from company insolvency.
• Growth: Traditional is a static calculation; the Savings Scheme allows the fund to grow through professional investment returns.
• Employee Control: In the Savings Scheme, employees can choose their risk profile (Sharia-compliant, Capital Guaranteed, etc.) and add voluntary top-ups of up to 25% of their salary.
• Portability: The Savings Scheme allows employees to keep their fund invested or move it when changing jobs, rather than receiving a one-time payout.

3. Key Compliance Shifts (2024–2026)

• Dh1 Million Fines: Under Article 60 (Amended), fines for illegal employment, fictitious Emiratization, or closing a business without settling dues now range from Dh100,000 to Dh1,000,000.
• Statute of Limitations: The window to file a labor claim has been extended to two years from the date of termination (Article 54).
• Small Claims Resolution: Disputes valued at Dh50,000 or less are now settled by MoHRE or the Court of First Instance with no further right to appeal, ensuring rapid justice for minor claims.
• 14-Day Settlement: All dues (gratuity, leave salary, etc.) must be paid within 14 calendar days of termination.

Conclusion

The 2026 UAE labour environment prioritises worker protection and employer accountability. Whether you are managing a "Bankable Deal Folder" for a new project or auditing your existing HR records, staying aligned with these amendments is critical to avoiding the new, heavy penalties.

Disclaimer: This article provides a general overview and should not be construed as legal advice. Consult a qualified UAE legal expert for specific cases.

#UAELabourLaw #UAEGratuity #EmploymentLaw2026 #MoHRE #DubaiBusiness #LegalCompliance #HRUAE

 

UAE Labour Law Update: Termination Without Notice and Suspension (2026 Revision)

 

You are fired

This document outlines the provisions related to termination without notice and suspension under Federal Decree-Law No. 33 of 2021 (the "UAE Labour Law"), as significantly amended by Federal Decree-Law No. 9 of 2024 (effective late 2024/early 2025). These changes apply to all private sector establishments in the UAE (excluding DIFC and ADGM).

Termination Without Prior Notice (Article 44)

Article 44 remains the definitive list of "gross misconduct" grounds for summary dismissal. However, recent amendments have introduced stricter procedural burdens and specific new grounds.

1. False Identity/Forgery: Assuming a false identity or submitting forged certificates. #Fraud #Forgery
2. Material Loss/Damage: Committing an error resulting in material losses or deliberate damage. Requirement: The employee must admit to the error, and the employer must notify the Ministry (MOHRE) within seven (7) working days. #MOHRE #Damage
3. Violation of Safety Rules: Violating the establishment's safety measures, provided the rules were documented and known. #WorkplaceSafety #Compliance
4. Failure to Perform Duties: Failing to fulfil contractual duties. Strict Requirement: Termination is only valid after a written investigation and two (2) written warning letters. #WarningLetter
5. Disclosure of Secrets: Disclosing industrial or intellectual property secrets resulting in material loss, loss of opportunity, or personal gain. #IntellectualProperty
6. Public Morals/Substance Abuse: Committing acts against public morals or being under the influence of narcotics/alcohol at work. #WorkplaceEthics
7. Assault: Physical, verbal, or other assault against the employer, manager, or colleagues. #WorkplaceViolence
8. Unauthorised Absence: Absence without justification for more than 20 non-consecutive days in a year, or more than 7 consecutive days. #Attendance
9. Abuse of Position (2025 Update): Exploiting the job role to obtain personal gains, profits, or illegal advantages. #Ethics #AbuseOfPower
10. Unauthorized Employment (2025 Update): Joining another establishment or working for a third party without adhering to MoHRE legal procedures (e.g., without a valid part-time permit). #WorkPermit

⚖️ Comparative Analysis: Key Changes in 2025-2026

1. Retention of Gratuity (The Biggest Shift)

Unlike the pre-2021 law, an employee terminated under Article 44 cannot be deprived of their end-of-service gratuity. This remains a core protection in the current legal framework. #Gratuity

2. Escalated Fines (2024 Amendment)

Under the new Decree-Law No. 9 of 2024, if a dismissal is found to be procedurally flawed or based on "Fake Emiratization" or fraudulent practices, employers face fines ranging from Dh100,000 to Dh1,000,000. #LegalCompliance

3. Extended Statute of Limitations

Claims related to the termination of employment now have a two-year filing window from the date of termination (Article 54). This is an extension from the previous one-year limit, giving parties more time for legal recourse. #LegalRights

4. Finality in Small Claims

Labor disputes valued at Dh50,000 or less are now settled with finality by the Court of First Instance (or MoHRE in specific cases), with no further right to appeal, streamlining the resolution process for most standard terminations. #DisputeResolution

Suspension (Article 40)

Article 40 governs the temporary removal of an employee during a pending investigation.

• Disciplinary Suspension: An employer may suspend an employee for up to 30 days for an internal investigation, during which the employee receives half-pay.
• Criminal Suspension: If the employee is accused of a crime related to work, they are suspended without pay from the date the authorities are notified. If acquitted, they must be reinstated with full back pay for the suspension period. #EmployeeSuspension

Disclaimer:

This document provides a general overview and should not be construed as legal advice. Given the 2024-2026 updates and the steep increase in penalties (up to Dh1M), employers and employees are strongly advised to seek professional legal counsel. #LegalAdvice #UAEBusiness

 

UAE Labour Law Update: Understanding the New Dh1 Million Fines and Compliance Shifts

 The UAE labor landscape has undergone a significant transformation with the issuance of Federal Decree-Law No. 9 of 2024. This decree introduces pivotal amendments to the existing Federal Decree-Law No. 33 of 2021, signaling a "zero-tolerance" approach toward fraudulent labor practices and non-compliance.

For business consultants and legal professionals, these changes require immediate attention—particularly regarding the steep escalation in financial penalties.

1. The Dh1 Million Threshold: Stricter Penalties (Article 60)

The most striking update is the amendment to Article 60, which significantly raises the ceiling for fines. Violations that previously carried more modest penalties now face a range between Dh100,000 and Dh1,000,000.

Key offenses triggering these fines include:

• Illegal Employment: Hiring workers without valid work permits or bringing workers to the UAE and failing to provide an actual job.
• Unsettled Business Closures: Shutting down operations without fulfilling all legal entitlements and worker rights.
• Juvenile Violations: Employing minors (under 15) or breaching the specific safety and hour regulations for juvenile workers.

2. A Crackdown on Fictitious Emiratization

The new decree codifies strict criminal and financial consequences for "Fake Emiratization." Under the amended law, hiring a UAE national in a nominal role without actual work responsibilities is a serious offense.

• The Penalty: Fines between Dh100,000 and Dh1,000,000.
• The Multiplier Effect: Crucially, this fine is applied per worker. If a firm is found to have five fictitious roles, the financial liability could scale to Dh5 million.
• Criminal Oversight: Criminal proceedings for these cases can now only be initiated by the Ministry of Human Resources and Emiratization (MoHRE) or its authorized representative.

3. Streamlined Dispute Resolution (Article 54)

The amendments aim to reduce the backlog in the judicial system by making the Court of First Instance the final authority for specific disputes.

• Decisions regarding claims valued at less than Dh50,000 are now final at this level and cannot be appealed to the Court of Appeal.
• This shift emphasizes efficiency and provides quicker closure for small-to-medium labor claims.

4. Extension of the Statute of Limitations

In a move that offers more protection to employees, the window for filing labor-related lawsuits has been expanded. Under the amended Article 54, claims related to the termination of an employment relationship must now be filed within two years of the termination date (previously one year).

5. Settlement Options: A Path to Compliance

The law now provides a mechanism for employers to resolve disputes before they escalate to a final court judgment. The MoHRE can negotiate a settlement if the employer:

1. Pays 50% of the minimum fine (effectively Dh50,000 per violation).
2. Reimburses all government incentives or financial benefits (such as those from the Nafis program) obtained through fraudulent practices.

Strategic Takeaways for Businesses

The 2024 amendments represent a shift toward a more transparent and competitive labor market. To mitigate risk, firms should:

• Conduct Compliance Audits: Ensure every individual on the payroll has a valid permit and an active job description.
• Review Emiratization Records: Confirm that all UAE nationals are performing genuine, documented tasks.
• Update Termination Procedures: Given the two-year filing window, maintaining impeccable records of final settlements and entitlement waivers is now more critical than ever.

 

Understanding Labour Bans in the UAE: 2026 Employer & Employee Guide

How can an employer impose a labour ban on employees

Under the current legal framework of Federal Decree-Law No. 33 of 2021 (as amended by Decree-Law No. 9 of 2024), an employer cannot simply "impose" a ban at their own discretion. Instead, they must report specific violations to the Ministry of Human Resources and Emiratisation (MoHRE), which then decides whether a ban is warranted.

In the modern UAE labor market, the term "Labour Ban" refers to a formal restriction by MoHRE that prevents a worker from being issued a new work permit for a specific period. While employers can trigger the process, the final authority remains solely with the Ministry.

1. How an Employer Triggers a Labour Ban

An employer can initiate a ban by filing a formal complaint or an "Absconding Report" (Work Abandonment) through MoHRE. The most common triggers include:

• Job Abandonment (Absconding): If an employee is absent for more than seven (7) consecutive days without the employer’s knowledge or ability to contact them.
• Contract Breach During Probation: If an employee terminates their contract during the 6-month probation period without providing the required legal notice (usually 14 days if leaving the UAE, or 30 days if joining another UAE employer).
• Early Termination of Fixed-Term Contracts: Since all UAE contracts are now fixed-term (max 3 years), leaving before the end of the term without a legitimate legal reason or mutual consent can lead to a ban.
• Illegal Employment Practices: Working for a third party without a valid part-time permit or "No Objection Certificate" (NOC).

2. Types and Duration of Bans

• Six-Month Ban: Typically imposed for minor contractual breaches or failing to serve the full notice period.
• One-Year Ban: The standard penalty for proven "Work Abandonment" (Absconding) or terminating a contract illegally during the probation period.
• Permanent Ban: Reserved for serious legal breaches, such as submitting forged documents, criminal activity, or repeated "fake Emiratisation" violations.

3. Critical Exceptions (Who is Exempt?)

Under Cabinet Resolution No. 1 of 2022, certain categories are generally immune to labor bans even if they change jobs:

• Skilled Workers (Levels 1, 2, and 3): Professionals with attested degrees or diplomas (e.g., Doctors, Engineers, Managers, Teachers) are exempt, provided they follow the resignation procedures.
• Golden Visa Holders: Individuals with 10-year residency are exempt from standard labor restrictions.
• Family-Sponsored Residence: Employees on a husband's or father's sponsorship typically do not face labor bans, though their work permit can still be cancelled.
• Same Employer: Re-joining the same company under a new permit does not trigger a ban.
• Labour Court Cases: If an employee has an active, valid court case against an employer for unpaid wages or rights violations, MoHRE may grant a Temporary Work Permit to allow them to work elsewhere.

4. Can a Ban be Contested?

Yes. In the 2026 digital ecosystem, employees have robust rights to challenge a ban:

1. MoHRE Grievance: Once a ban is notified, the employee can submit a grievance through the MoHRE smart app with supporting evidence (e.g., emails, resignation letters).
2. Mediation: MoHRE will investigate the employer's claim. If the employer is found to have filed a "malicious" or "false" absconding report, they can face fines of up to AED 1,000,000.
3. Labour Court: If MoHRE’s decision is disputed, the case can be escalated to the Court of First Instance.

💡 Strategic Advice for 2026

• For Employers: Filing a false report to "trap" an employee is now a high-risk strategy due to the new Dh1 Million penalties for circumventing labor regulations.
• For Employees: Always resign via email or registered post and keep a copy of your Notice Period acknowledgment. This is your primary defense against a ban.

Disclaimer: This article is a general guide. For specific cases, especially those involving the new 2024-2026 penalty tiers, consulting with a UAE legal expert is highly recommended.

#UAELabourLaw #LabourBan #MOHRE #EmploymentRights #DubaiBusiness #LegalExpertUAE #UAEWorkPermit

How to File a Labour Complaint in the UAE: 2026 Guide to the New Dh1 Million Fine Regulations & MoHRE Proces

The UAE employment landscape has undergone a significant transformation. With the full implementation of Federal Decree-Law No. 9 of 2024 amending the 2021 Labour Law, the system is now faster and carries much higher stakes. Whether you are an employer or an employee, navigating these changes correctly is essential to avoid the new, heavy penalties.

1. Filing a Labour Complaint: The Primary Channels

In 2026, the Ministry of Human Resources and Emiratisation (MOHRE) is the mandatory first step for all private-sector disputes.

• MOHRE Digital Platforms: File through the official website or the MOHRE/Tawajud App.
• Service Centres: Visit Tasheel or Tawjeeh centers for guided filing.
• Direct Contact: Call the toll-free number 800 84.

The "Binding Decision" Rule (Claims ≤ AED 50,000)

Under the latest amendments, MOHRE has been granted quasi-judicial powers:

• If your claim is AED 50,000 or less, MOHRE can issue a Final Binding Decision.
• This decision acts as a "Writ of Execution," meaning it can be enforced immediately by court bailiffs without a trial.
• For claims above AED 50,000, if mediation fails within 14 days, the case is referred to the Court of First Instance.

2. When to Involve the Dubai Police

Reporting to the police should be reserved for criminal elements. Standard contract disputes (like unpaid overtime) must go through MoHRE first.

• Physical/Mental Abuse: Threats, violence, or harassment.
• Sexual Harassment: Report to the Anti-Cybercrime Unit if it involves digital communication.
• Document Theft: Serious instances of passport withholding can be reported as a criminal violation.
• How to Report: Call 999 or use the Dubai Police App (e-crime section).

3. Summary Dismissal & Suspension (Articles 44 & 40)

Termination without notice is strictly regulated to prevent unfair dismissal. To be legally valid, an employer must cite one of these 10 grounds:

• Forgery: Using a false identity or fake documents.
• Material Loss: Errors causing quantifiable damage (Notify MoHRE within 7 working days).
• Performance Failure: Requires a written investigation and two (2) warning letters.
• Safety Violations: Breaching documented safety measures.
• Confidentiality: Disclosing secrets leading to material loss or personal gain.
• Assault or Intoxication: Violence or being under the influence at the workplace.
• Unauthorized Absence: Missing >20 non-consecutive days or >7 consecutive days annually.
• Abuse of Position: Exploiting a professional role for personal profit (2025/2026 Amendment).
• Unauthorized Work: Joining another firm without a valid MoHRE permit.

4. End-of-Service: The Dual System

UAE employers now choose between two co-existing systems for gratuity:

• Traditional Gratuity: A lump-sum based on Basic Salary. (21 days/year for 1–5 years; 30 days/year thereafter).
• Alternative Savings Scheme:
• Funding: Employers pay monthly contributions (5.83% or 8.33%) into regulated investment funds.
• Security: Funds are "ring-fenced" externally, protecting them from company insolvency.
• Growth: Employees can choose their risk profile and make voluntary "top-up" contributions.

5. Critical Compliance Checklist for 2026

• Dh1 Million Fines: Penalties for illegal employment or fake Emiratization now range from Dh100,000 to Dh1,000,000.
• Statute of Limitations: You now have two years (extended from one) from the date of termination to file a legal claim.
• 14-Day Rule: All final settlements must be paid within 14 calendar days of the last working day.

Summary of Filing Options

• Claims ≤ AED 50,000: File with MOHRE for a Binding Decision.
• Claims > AED 50,000: MOHRE mediation → Referral to Court of First Instance.
• Criminal Offenses: Report directly to Dubai Police.
• Fraud/Fake Emiratization: Report to MOHRE Compliance for fines up to Dh1 Million.

Disclaimer: This article is for informational purposes. As a Senior Consultant, I recommend seeking professional legal counsel for high-value claims or complex compliance audits.

#UAELabourLaw #MOHRE #LabourComplaint #DubaiBusiness #EmploymentRights2026 #LegalComplianceUAE #UAEGratuity

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. 

The U.A.E Labour Law and new changes in 2022-23

 The UAE Labour Law is a comprehensive set of regulations that govern the employment relationship between employers and employees in the UAE. The law was last amended in February 2022, and the new changes are designed to improve the working conditions for employees and strengthen their rights.

Some of the key changes to the UAE Labour Law in 2022-23 include:

The introduction of fixed-term employment contracts: All employees in the private sector must now be employed on fixed-term contracts of up to three years. This is a significant change, as previously employees could be employed on indefinite contracts.

The abolition of the no-objection certificate (NOC) requirement: Employees who wish to change jobs no longer need to obtain a NOC from their current employer. This makes it easier for employees to move jobs and improve their career prospects.

The introduction of a minimum wage: The UAE government has set a minimum wage of AED 3,000 per month for all employees in the private sector. This is a major step towards improving the living standards of low-income workers.

The strengthening of anti-discrimination provisions: The law now prohibits discrimination in employment on the basis of race, religion, gender, nationality, or disability. This is a positive step towards creating a more inclusive workplace.

The introduction of new maternity and paternity leave benefits: Employees are now entitled to 45 days of paid maternity leave, and 10 days of paid paternity leave. This is a significant improvement on the previous arrangements.

These are just some of the key changes to the UAE Labour Law in 2022-23. The new law is a significant step forward in protecting the rights of employees and improving their working conditions.

If you are an employee in the UAE, it is important to be aware of the new changes to the Labour Law. You can find more information on the Ministry of Human Resources and Emiratisation website.https://eservices.mohre.gov.ae/tasheelweb

The U.A.E Labor Law: Procedure to file a labour Case in the U.A.E

 When an employment relationship breaks down in the private sector, navigating the legal channels quickly and correctly is vital. The UAE’s dispute resolution process is designed to be highly accessible, but it follows a strict statutory hierarchy governed by Federal Decree-Law No. 33 of 2021 (as amended) and Federal Decree-Law No. 20 of 2023.

If you need to initiate a claim against an employer, the process must be executed according to the current legal framework.

Step 1: Verify Your Eligibility & Timelines

Before filing, you must ensure your dispute meets the mandatory threshold requirements set by the Ministry of Human Resources and Emiratisation (MoHRE):

• Valid Work Permit: The claimant must be a private-sector employee holding a MoHRE-issued work permit (Mainland). Note: Free zone jurisdictions like DIFC and ADGM maintain independent judicial authorities.

• The 2-Year Statute of Limitations: You must officially file the complaint within two years from the date the entitlement became due or from the formal termination of the employment relationship.

• Exemptions from Court Fees: Workers are fully exempt from paying initial court fees for labor claims valued under AED 100,000. For claims exceeding this amount, a standard fee (typically 5% of the claim value) applies.

Step 2: Assemble Your Case Evidence

MoHRE and the courts operate on documentary proof. Gather clear digital copies of the following before launching your claim:

1. The official, MoHRE-registered Fixed-Term Employment Contract.

2. Proof of Income: Wage Protection System (WPS) statements, bank transaction records, or signed payslips.

3. Written Correspondence: Termination letters, internal emails, or trackable messaging records (such as WhatsApp) that directly support your claims for unpaid dues, arbitrary dismissal, or contract breaches.

Step 3: File with MoHRE (The Two-Tiered System)

You cannot bypass the Ministry and go straight to court. Under Article 54 of the Labor Law, all individual labor disputes must be submitted to MoHRE first via their online portal, smart app, or by calling 80084.

The value of your claim now dictates the exact path your case will take:

1.MoHRE Conciliation Phase:Within 14 Days.

MoHRE schedules a mandatory mediation session between both parties to reach an amicable, out-of-court settlement. If both sides agree, a legally binding settlement agreement is signed.

2.Tier A: Final MoHRE Executive Judgment:Claims up to AED 50,000.

If mediation fails and your total claim value is AED 50,000 or less (or if an employer breaches a previously signed MoHRE settlement), MoHRE has the power to issue a final, binding decision. This carries the force of a court writ of execution. If either party disagrees, they must appeal directly to the Court of Appeal within 15 working days.

3.Tier B: Referral to the Labor Court:Claims exceeding AED 50,000.

If an amicable settlement cannot be reached and the claim value exceeds AED 50,000, MoHRE will officially close the mediation file and issue a formal Referral Memorandum. This clears the employee to file their lawsuit before the specialized UAE Labor Court.

💡 Key Takeaways for Litigating Parties

• Salary Protection: If a dispute causes your employer to illegally stop paying you, MoHRE has the authority to order the employer to continue paying your regular salary for up to two months while the case is active.

• Language of the Court: While MoHRE interfaces and mediation are accessible in multiple languages (English, Urdu, Hindi, etc.), all formal filings and proceedings before the UAE Labor Court must be conducted strictly in Arabic.

• Whistleblower Protections: The law strictly prohibits retaliatory dismissal. Filing a legitimate complaint with MoHRE cannot be used as a ground for termination, and any such action is treated as arbitrary dismissal.

#UAELaborLaw #MoHRE #LaborDisputes #UAEBusiness

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.