Your Guide to the Updated 2024 UAE Labour Law
Amendments to the labour law in the UAE in 2024 aim to modernize and enhance different aspects of employment in order to better align with global standards and the constantly-evolving workforce needs. Changes involve flexible working arrangements, salary continuation during disputes, and more.
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In this Pacific Prime Dubai blog post, we will be discussing the updated 2024 UAE labour law, so that you know the rights of both employers and employees under the amended law, and are better prepared to comply with it..
Overview: The 2024 Updated UAE Labour Law
The UAE labor law is established in the Federal Law N.O.8, which governs the UAE’s labour relations. The law governs both employers and employees, featuring regulations for private sector employers regarding wages, employee contracts, and how disputes between employers and employees are handled.
The recent amendment to the UAE labor law aims to create a more balanced, fairer working environment, and encourage employers to embrace a competitive and flexible labor market that supports economic growth while simultaneously protecting workers’ rights.
Amendments to the UAE Labour Law in 2024
Some of the amendments made to the UAE labour law in hopes of creating a better work environment affect salary continuation during disputes, probation period notice, flexible working arrangements, and more.
Below are the notable amendments made to the UAE Labour Law in 2024.
Salary Continuation During Disputes
The Ministry of Human Resources and Emiratisation (MOHRE) implemented salary continuation during employment disputes to give employees more power. Employers will need to continue paying their employees for up to two months while disputes are being resolved.
This amendment will help employees achieve financial stability during dispute resolutions and reinforce the commitment to equal treatment at work. Should the parties involved in the dispute fail to settle within 14 days, the MOHRE can refer the dispute to a competent court.
Probation Period Notice
Another notable amendment to the UAE labour law is the probation period notice guidelines. The notice period can be three to six months and will remain unchanged in 2024.
However, employers must now provide at a minimum a 14-day notice period before terminating an employee on probation. Similarly, employees must also provide a 14-day notice should they decide to leave the UAE during their probation.
If an employee wishes to join another company while on probation, they must provide a one-month notice. If the employee leaves for another company during the one-month notice, the original employer can claim recruitment costs from the new employer.
Part-Time and Flexible Working Arrangements
The 2024 amendments to the UAE labour law make new work models possible. Employers can now hire employees for temporary, flexible, remote, and job-sharing positions. These changes allow employees to negotiate work hours and fulfill all job roles with the same entitlements.
Claim Value Limits for Labour Disputes
The labour law amendment also revises the claim value limits for labour disputes, streamlining the dispute resolution process by categorizing the disputes based on their monetary value.
For instance, if the dispute claim doesn’t exceed AED 50,000, the MOHRE will make the binding decisions. On the contrary, if the dispute claim exceeds AED 50,000, the MOHRE can continue acting as a mediator and refer the matter to a competent court if a settlement cannot be reached.
Maternity Leave
Originally, female employees were entitled to only 45 days of maternity leave. With the 2024 amendments to the UAE labour law, female employees can now enjoy up to 60 days of maternity leave, allowing more time for childcare and recoveryuntil they are ready to resume work once again.
Business Compliance Requirements
Businesses must comply with the updated salary provisions, probation notice requirements, flexible working arrangements, and maternity leave provisions regardless of the size of their employees. As such, employers must update employment contracts, HR policies, and administrative procedures.
Failure to comply with the updated UAE labour law can result in the following fines:
- Furnishing false information for expat employee recruitment: AED 20,000-100,000
- Illegal employment or recruiting employees without having any work to provide: AED 50,000-200,000
- Any violation of the UAE Labour Law: AED 5,000-1,000,000
Conclusion
With the updated UAE labour law, employees can enjoy a more balanced, fairer work environment. Notable amendments include continued salary provision even in the midst of employment disputes, probation period notice, flexible working arrangements, claim value limits, and extended maternity leave.
It is crucial for employers to review the terms and conditions of employment contracts thoroughly and strictly comply with the updated labour laws to avoid serious fines and further consequences.
As an experienced international health insurance broker and employee benefits specialist, Pacific Prime Dubai has not only helped both expats and local citizens find health insurance plans that match their budget and healthcare needs, but also helped employers with efficient employee benefits solutions.
Whether you’re an expat or local citizen in Dubai needing health insurance or an employer looking to make the most out of an employee benefits program, our team of specialists will be more than happy to help you out with impartial advice at no additional cost.
If you have any further questions, please get in touch with us and get a free quote here.
He graduated with a Bachelor’s Degree in Communication Arts, Media & Communication major (concentration: Creative Content) from Mahidol University International College (MUIC). During the compulsory major elective period in the summer of 2021 and voluntarily during the summer of 2022, he also interned as a video and photo editor at Mbrella Films.
He has experience working as an English Content Writer at a real estate buying/renting/selling platform in Thonglor. There, he crafted company blog posts on a multitude of topics. Topics include market trends, legal issues and disputes in property businesses, financial guides, expat guides, home insurance, home decoration and maintenance, and weekly real estate news quick-recaps. Occasionally, as part of the blog-writing process, he would also translate existing Thai blogs to English.
In his free time, Guy enjoys doing scriptwriting and storytelling for comic strips, watching movies, and listening to music (particularly film scores).
- Effective January 1st: The UAE’s New Health Insurance Scheme for Private Sector and Domestic Employees - 19th December 2024
- A Guide to the Labor Market in Dubai for Expats - 26th September 2024
- Your Guide to the Updated 2024 UAE Labour Law - 11th July 2024
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