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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