- September 21, 2022
- Posted by: SHMA Consulting
- Category: Uncategorized
Industry News: UAE Labor Laws
The UAE Labor Law is the regulating framework that governs employment relations in the United Arab Emirates. The law was first enacted in 1980 and has since been amended several times, most recently in 2018. The latest amendments to the law are set to come into effect in 2022.
The primary purpose of the UAE Labor Law is to protect the rights of workers and ensure that they are treated fairly by their employers. The law sets out the legal rights and responsibilities of both employees and employers, as well as specifies the minimum standards that must be met concerning wages, working hours, health and safety, and other aspects of employment.
The effect of the latest amendments to the UAE Labor Law in 2022 will have several significant impacts on both employees and employers in the country. Some of the key changes that will be introduced include:
- Employee salaries will become tax-exempt;
- Employees will be entitled to paid annual leave;
- Maternity leave will be increased from 45 days to 90 days;
- Parental leave will be introduced for fathers
Under the law, employees are entitled to a number of benefits, including paid annual leave, sick leave, and maternity leave. They are also entitled to health insurance and end-of-service gratuity payments.
In addition to these employee rights, the UAE labor law includes many provisions designed to protect employers’ interests. For example, the law prohibits employees from engaging in work stoppages or strikes. It also requires employees to give notice before quitting their jobs.
The most notable change is the introduction of a minimum wage for all workers, regardless of nationality. This will be set at 1,000 dirhams (approx. US $272) per month or 12,000 dirhams (approx. US $3,264) per year.
Other changes include increased penalties for companies that fail to comply with labor laws and greater protections for workers against sexual harassment and discrimination. The new laws are part of the UAE’s commitment to reform its labor market and improve working conditions for all workers in the country.
The UAE Labor Law applies to all workers in the country, regardless of their nationality or immigration status. However, there are some exceptions for certain categories of workers such as domestic workers, agricultural workers, and those employed by certain government agencies.