New labour law comes into force for UAE private sector

The UAE is continuing to advance its laws and procedures to facilitate business and enhance the competitiveness and productivity of the national labour market.

The new law represents progress in the efforts to improve the national labour market's sustainability.

Recent statistics issued by the Ministry of Human Resources and Emiratisation revealed the number of registered private sector workers totalled 4,903,612 at the end of 2021, with the 30 to 34 age group being the most employed, followed by the 35-39 and 25-29 age groups.

The number of private sector facilities registered with the ministry at the end of 2021, excluding companies in free zones, amounted to 373,966, an increase of 22,999 compared to 2020.

According to statistics, the construction sector leads in terms of the number of workers, amounting to 1,301,359, followed by the trade sector.

The new law’s amendments stipulate employers may not use any means of force against workers or use threats of penalty to make them work against their will. The law also prohibits sexual harassment, bullying or any verbal, physical or psychological violence against workers by their superiors or colleagues and any type of discrimination based on race, colour, sex, religion, nationality or disability.

The amendments aim to ensure women’s equality and prohibit any discrimination against them, ensuring women should receive the same wage as men for the same work or for a job of equal value.

Moreover, the law introduces new work models to meet employers’ needs for workers and reduce costs, including full-time, part-time, temporary and flexible work models.

The new law further stipulates that the term of fixed employment contracts must not exceed three years, which could be extended or renewed for similar or shorter periods any number of times.

The law stipulates workers are entitled to one paid leave day every week, with the possibility of additional weekly leave days upon the company’s own discretion, and introduces a five-day or a three-day paid bereavement leave, in addition to the five-day parental leave.

The law’s amendments include an article stipulating citizen workers are entitled to an end-of-service compensation upon the end of their service, in line with legislation regulating pensions and social security in force in the country.

The law regulates the duties of employers, such as providing adequate housing, means of prevention, and capacity and skills development training.

Moreover, the law also regulates the duties and responsibilities of employees, such as respecting working hours, maintaining good ethics and behaviour, and seeking to improve their professional skills.

WAM