Insights January , 2022

New UAE Labour Law Coming Into Effect

The UAE Ministry of Human Resources & Emiratisation (“MOHRE”) has just announced the introduction of the Federal Decree Law No. 33 of 2021 (“New Labour Law”), which will come into effect from 2 February 2022. The New Labour Law replaces the Federal Law No. 8 of 1980 (“The Old Labour Law”) in its entirety.

The New Labour Law addresses major changes in labour relations and the work environment in line with international best practices. It also addresses flexible work arrangements, work permits, end of service gratuities, and workplace injuries. There is also new text on the scope of non-compete clauses.

Further, in the New Labour Law, it is now possible to include custom clauses in the standard MOHRE template contracts, which was not allowed previously. Standard items in the template that are required to be included within an employment contract include working hours, rest days, agreed remuneration, benefits and allowances, annual leave entitlement, and termination procedures of contract.

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The information presented is intended for general information only and is not meant to be a substitute for professional advice or to be used for decision-making.

Professional advice relies on an assessment and understanding of the specific situation for each person and, therefore, the application of changing laws and regulations in the UAE, will vary widely from case to case.

The information contained herein is based on facts available from sources we believe to be credible at the time of publication and is subject to change.