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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