The United Arab Emirates going through a tough time during the global pandemic in 2020, is all geared up for new evolvement and encouraging young talent to migrate to UAE for jobs. A new decree has been issued to regulate labor relations in the private sector which will be effective from 2nd February 2022. Below is the new amendments under Federal Law No. 33 of 2021 to safeguard employee’s interest in the private sector:
- According to the new law, Companies cannot terminate an employee during the probation period. However, in the event Company would like to terminate an employee during the probation period then it shall serve 14 days’ written notice to the employee.
- Employers cannot extend six month probation period. Henceforth, the maximum tenure of probation shall not exceed six months.
- Employees who intend to change jobs during the probation period shall serve one (1) month notice to the Employer. In the event, an employee would like to leave the country during the probation period then they shall serve 14 days’ written notice to the Employer.
- An employee can choose to complete its 40 hours within three (3) days instead of a week at the discretion of the employer.
- Article 27 of Federal Decree 33 of 2021 will introduce a minimum wage for employees of the private sector
- Employees in the private sector will be entitled to one day paid off weekly which shall be applicable at Company’s discretion
- After completion of two (2) years with the same employer, an employee is entitled to 10 days study leave if the employee has enrolled itself in the UAE
- Maternity leave can be extended from 60 days – 45 days with full wage followed by 15 days half paid subject to terms and conditions
- Employees can avail of paternity leave for 5 days from the birth of a child to six months any time subject to terms and conditions
- An employer can hire an employee over 15 years of age with a 3-year contract
The abovementioned new amendments are yet to be enforced as statutory obligations. The aforementioned, states its encouragement towards Foreign Direct Investment and ex-pats to explore more opportunities in different commercial sectors in the United Arab Emirates.
