UAE Labour Law 2024: Latest Amendments and What They Mean for Employees and Employers
The UAE Labour Law (Federal Decree-Law No. 33 of 2021) continues to evolve, introducing new amendments to enhance employee protections, regulate employer obligations, and improve workplace rights. The 2024 labour law updates focus on contract structures, employee benefits, workplace discrimination, and end-of-service compensation. Understanding these changes is crucial for both employees and businesses to ensure compliance and avoid legal disputes. Seeking guidance from legal consultants in Dubai helps individuals and companies navigate the latest regulations effectively.
Key Amendments in the UAE Labour Law
2024
1. Mandatory Fixed-Term Employment
Contracts
The UAE now requires all employment
contracts to be fixed-term with a maximum duration of three years,
which can be renewed.
- Impact on Employees:
- No more unlimited contracts, increasing job security
through contract renewals.
- More transparency in contract terms and termination
conditions.
- Impact on Employers:
- Employers must ensure all contracts are updated to comply
with the law.
- Contract renewal policies must be
established to retain employees.
2. Increased Penalties for Unpaid
Salaries
Employers must pay salaries on time
through the Wage Protection System (WPS).
- New Penalties:
- Late salary payments beyond 15 days will result in fines and business restrictions.
- Employees can file salary complaints with MOHRE for
unpaid wages.
3. Expansion of Remote and Hybrid Work
Policies
The UAE government is supporting
flexible work arrangements, encouraging:
- Remote work contracts with clear
job expectations.
- Legal recognition of hybrid work models in private sector contracts.
- Stronger employee rights regarding
work-from-home policies.
4. Stronger Protections Against
Workplace Discrimination and Harassment
Employers must ensure equal pay and
opportunities for all workers, regardless of:
- Gender, nationality, or disability.
- Religious or ethnic background.
Employee Rights Strengthened Under the
2024 Law
1. Overtime Pay and Work Hours
Adjustments
- Overtime must be compensated at:
- 125% of the hourly wage for
regular overtime.
- 150% for overtime during night shifts (10 PM - 4 AM).
- Employers cannot force employees to work more than the legal
limit of 48 hours per week.
2. End-of-Service Gratuity Changes
- Gratuity now applies to all types of workers, including part-time
employees.
- Employees must receive gratuity payments within 14 days of
termination.
3. Stronger Job Security for Pregnant
Employees
- Employers cannot dismiss pregnant employees without valid reasons.
- Maternity leave extended to 60 days
(45 days fully paid, 15 days half-paid).
- Paternity leave of 5 days must be
granted for new fathers.
Employer Responsibilities Under the 2024
Labour Law
1. Contract Compliance and Documentation
- All employment contracts must be aligned with the new
regulations.
- Businesses failing to comply with contract changes may face legal
fines.
2. Workplace Safety and Health
Requirements
- Employers must provide a safe and hazard-free environment
for all workers.
- New penalties introduced for violations of occupational
health and safety regulations.
How Legal Consultants in Dubai Assist
with Labour Law Compliance
- Reviewing employment contracts for
compliance with new rules.
- Filing complaints for unpaid salaries, wrongful termination, or
workplace discrimination.
- Assisting businesses in adapting HR policies to align with 2024 labour law updates.
Staying
informed about labour law amendments ensures that employees are
protected, and businesses avoid legal disputes in the UAE.
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