UAE Labour Law 2024: 3 Key Changes Every Worker Should Know

The UAE has introduced significant amendments to its labour law, which took effect on August 31, 2024. These changes aim to strengthen labour regulations and enhance the rights of workers in the private sector. Below, we outline the key updates you need to be aware of.

Key Changes to UAE Labour Law

The recent changes stem from Federal Decree-Law No. 9 of 2024, which was issued on July 29 and is effective as of today. Here are the key points every private sector worker in the UAE should know.

1. Extended Statute of Limitations for Labour Claims

One of the major changes under the new amendments is the extension of the statute of limitations for filing labour claims. Previously, claims had to be filed within one year from the date the right was entitled.

However, the updated Article 54 of the UAE Federal Decree-Law No. 33 of 2021, modified by Federal Decree-Law No. 9 of 2024, now allows both employers and employees to file claims within two years from the termination of the employment relationship.

This extension provides additional time for both parties to evaluate their situation before pursuing legal action. Legal experts highlight that this change offers more flexibility and protection to both sides involved in employment disputes.

2. New Legal Process for Labour Cases Under Dh50,000

From August 31, 2024, labour cases with claims up to Dh50,000 will see a shift in the appeal process. The Ministry of Human Resources and Emiratisation (MOHRE) remains responsible for handling these cases, and their decisions are immediately enforceable. However, a significant change is in the appeal process.

Previously, MOHRE’s decisions could be appealed through the Court of Appeal. Under the new rules, any challenges to MOHRE’s decisions must now be filed directly with the Court of First Instance.

This court will set a hearing within three working days and must issue a judgment within 30 working days. The judgment of the Court of First Instance is final and cannot be appealed further.

Any pending cases that were previously filed with the Court of Appeal before August 31, will now be transferred to the Court of First Instance at no additional cost.

Key Points for Labour Claims Under Dh50,000:

• MOHRE issues a decision.
• Any challenges must be filed with the Court of First Instance within 15 days of receiving the judgment notification.
• The court sets a hearing within three working days.
• The court must issue a judgment within 30 working days.
• The judgment is final with no further appeals allowed.

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3. Increased Fines for Labour Violations

The amendments have also introduced stricter penalties for violations of labour laws. The authorities have significantly increased the range of fines, setting penalties between Dh100,000 and Dh1 million. Previously, fines ranged from Dh50,000 to Dh200,000 for offences such as hiring workers without permits, misusing work permits, and closing businesses without settling worker rights.

The new provisions specifically target fictitious hiring practices, where employers falsely hire workers to manipulate labour market regulations. The law now imposes fines of up to Dh1 million for such violations.

Additionally, the government may require employers who benefit from violations to return any financial incentives received. Authorities will multiply these penalties by the number of workers involved in the fictitious employment.

Violations With Increased Penalties

• Employing a worker without the proper permit.
• Recruiting workers and leaving them without assigned work.
• Using work permits for unauthorized purposes.
• Closing businesses without settling the rights of workers.
• Employing juveniles in violation of labour laws.

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Stricter Regulations on Fictitious Hiring

The updated law takes a strong stance against fictitious hiring, where employers circumvent regulations to gain benefits improperly. In such cases, the courts will require employers to return any financial incentives obtained from government entities and will increase penalties based on the number of workers falsely hired.

Final Words

These amendments reflect the UAE’s commitment to creating a fair and regulated labour market that safeguards the rights of workers while imposing stringent penalties on violators. Both employers and employees in the UAE’s private sector should familiarize themselves with these changes to ensure compliance and protect their rights.

(Source and Inputs from Gulf News)