The United Arab Emirates is known for its cultural mosaic and hub for international business. UAE is accelerated by a dynamic workforce from all corners of the globe. In order to keep up with the changing economic landscape and to enhance worker rights and flexibility, the United Arab Emirates has recently amended a few labor market-related laws, in accordance with the idea of modernization. The ministry has re-framed aspects of international trade practices, introduced schemes for insuring the subscribers during their unemployment, and other such policies to ensure harmony and order in the Business Class and the Working Class.
Well, at some point many of us question why they bring frequent amendments in law, as sometimes it gets difficult to keep up! So, let us understand the same with a simple example – it is 2024 and we as a community on the internet haven’t reached a unanimous opinion about which is the best recipe for Maggi, we are still experimenting, sharing, and discovering new twists on this beloved classic. The thing to emphasize here is the dynamic nature of humans! Law being the guiding mechanism that keeps the train of society on the right track, has to be adaptive and master dynamism. The well-crafted statutes that outline rules and regulations for every country are the reflection of societal situations and human needs. The existence of Law and Judiciary weighs every being equally as a legal person irrespective of their descent, sex, color, origin, or race. Just like we keep on discovering new twists for the recipe of Maggi, similarly, the statutes too require amendments and time.
The concept of dynamism is dominant when we talk about the working class exclusively – from them being exploited back then, to them having their own voices and having ministries and unions to amplify their voice.
The Ministry of Human Resources and Emiratization (MOHRE) in the United Arab Emirates regulates the labor laws objecting to facilitate an appropriate working environment and guaranteeing equal rights to the local and migrant workers in the United Arab Emirates. The Labor laws are designed to regulate the relationship between employers and employees.
The core essence of labor law is outlined in Federal Law No. 8 1990 (United Arab Emirates Labor Law) which is a primary legislation governing the relationship between employer and employee in the United Arab Emirates. It sets out the legal framework for contracts related to employment contracts, working conditions, wages, working hours, leave entitlements, terminations, etc. The law aims to bring a balance between rights and obligations ensuring fair treatment, safety, and welfare in the workplace.
The labor laws have been amended over the years to keep up with the evolving economic conditions and address the needs of the labor market, upholding the pledge of the United Arab Emirates to facilitate an equitable labor environment.
Recent amendments made by MOHRE
Modernizing the labor law, focusing on non-discrimination, flexible working arrangements, protection of Labor, and prohibiting exploitation of workers.
Self-scheduling working hours is the modern-day demand of employees ranging from freelancing, part-time, contractual project-based, hours per week, or hybrid and remote-based working. All of these are legally recognized working methods in the UAE that aims to cater to diverse preferences, promotes work-life balance, increases, and productivity.
The amendments assure a non-discriminatory and unbiased environment. It prevents discrimination on sex, descent, creed, caste, color, national origin, disability, or on any basis for that matter. It mandates equal pay for workers working in the same role and emphasizes gender equality, in terms of payment and employment.
The new amendments have enhanced leave entitlements; parental leaves have been introduced and prioritized granting paid leaves to the mother and father of the newborn babies. Additionally, study leaves have also been legally recognized, reflecting a more compassionate approach to employee welfare and providing an opportunity for growth to employees.
Clear directives have been established for termination, including the stipulation of a notice period and end-of-service benefits. Guidelines related to gratuity and provident funds have also been outlined.
Federal Decree-Law No. 13 of 2022 on Concerning Unemployment Insurance Schemes
A recent case of inadvertent error on the employer’s end of providing incorrect information to MOHRE made the terminated employee deprived of the benefits under ILOE; despite being a sincere subscriber and eligible employee to gain benefits. Later on, the mistake was rectified, and the needful was done.
Federal Decree-Law No. 9 of 2022 Concerning Domestic Workers
Wage Protection System (WPS)
Implications of the Amendments
Employees can file complaints with the Ministry of Human Resources and Emiratization (MOHRE) if their rights are violated, and the disputes can be escalated to Labor courts if the issues are not resolved through mediation. MOHRE, on 26th June 2024 commenced a new feature of filing complaints through video call now come up with a new video call service, through WhatsApp for filing complaints, this initiative takes the UAE government one step closer to its ongoing digital transformation.
Employers are responsible for facilitating a safe working environment that complies with all necessary health and hygiene regulations. Employers are supposed to provide medical health insurance for their employees. The Federal Decree-Law No. 9 of 2022 in its articles outlines in depth about health and safety of workers.
This amendment signifies a robust commitment to enhancing worker rights in the United Arab Emirates. By addressing issues related to discrimination and ensuring fair treatment, the new laws foster a more inclusive and equitable working environment.
The alterations are social aspects are expected to have a positive impact by promoting a more balanced and humane work environment. The objective of amendments in the economic aspect is to increase productivity and job satisfaction, contributing to overall economic growth and stability.
The alterations in relation to Wages Protection System and termination procedures, enhance accountability and compliance. Employers are now more accountable for adhering to Labor laws, workers’ rights are protected and disputes are minimized.
The Minister of Talent Attraction and Retention in the United Arab Emirates has been strengthening its position as the most attractive destination for international talent. In order to gain maximum global traffic on board the UAE government re-worked the visa schemes in April 2022, exceptionally on burgeoning sectors like private equity, venture capital, and artificial intelligence. The distinct strategies relating to equality, flexibility, and worker welfare aligns with global standards, making the UAE a competitive player in the global Labor marketplace.
Unemployment Rate in the UAE
The particular population of the entire who are well-qualified, available for work, and eligible to seek employment, but are currently not working, are the ones referred to as unemployed.
Source – macrotrends.net
Conclusion
The latest amendments brought up in the Labor Laws of the United Arab Emirates represent a consequential step towards a more progressive and equitable labor market. By addressing the evolving needs of the workforce and ensuring sturdy protections, the UAE is poised to create a thriving, inclusive, and dynamic work environment. These changes not only benefit employees but also position the United Arab Emirates as a dominant and prime destination for global talent and business. As these amendments take effect, they promise to reshape the labor landscape, fostering a culture of fairness, flexibility, and mutual respect.
