UAE

New UAE labour law: Up to Dh200,000 fine for employers violating terms

Agreements to be modified just if they profit workers.

Inquiry: My inquiry has to do with the brand-new work regulation that enters into impact from February 2. Are all the adjustments related to our existing agreements? Likewise, what should workers do if the company does not comply with the stipulations? What’s the charge for companies that damage these guidelines and also just how does the ministry implement them?

Feedback: The Federal Regulation No. 8 of 1980 Controling Work Relations in the UAE (the ‘Federal Regulation No. 8 of 1980’) will certainly be reversed and also the stipulations of the Federal Mandate Regulation No. 33 of 2021 on the Law of Labor Relations (the ‘New Work regulation’) apply with impact from February 2, 2022, when it come to work issues in the UAE.

It needs to be kept in mind that the existing employment agreement which are regulated by the stipulations of Federal Regulation No. 8 of 1980 might apply also after the New Work Regulation enters impact. Nonetheless, the company might modify the agreement to adapt to the brand-new stipulations. However the changes might just have such stipulations which are extra beneficial to the workers.

This remains in conformity with Short article 65 (5) of the New Work Regulation, which specifies: “The Company might not evaluate the conditions of legitimate Employment agreement ended with the staff member before the promulgation of this Decree-Law, with the intent to use the stipulations hereof, unless such changes are for the higher great and also advantage of the staff member. The Employment agreement might be upgraded after its expiry according to the stipulations of this Decree-Law.”

Better, the companies might need to transform the limitless duration of employment agreement to restricted ones within one year from the efficient day of the New Work Regulation. This remains in conformity with Short article 68 of the New Work regulation, which specifies: “1. The stipulations of this Mandate Regulation will put on uncertain term Employment agreement ended under the referenced Federal Regulation No. 8 of 1980.

” 2. Companies shall, within one year from the day of access right into pressure of this Decree-Law, readjust their particular placements and also transform uncertain term Employment agreement to guaranteed term Employment agreement, according to the problems, controls and also treatments stated here. Such duration might be prolonged by the Preacher for various other durations, as determined by the public passion.

” 3. Based on paragraph (2) over, the Company might determine the gratuity according to the stipulations of the uncertain term Employment agreement sated in the referenced Federal Regulation No. 8 of 1980.”

The company and also staff member might end the limitless duration of employment agreement which are authorized prior to the efficient day of New Work Regulation by offering specified notification duration as stated in Short article 65 (6) of the New Work Regulation.

Write-up 58 to Short article 64 of the New Work Regulation specifies the charges that require to be birthed by the company in addition to the staff member for violation of stipulations of the brand-new regulation. The companies might need to birth charges varying from Dh50,000 to Dh200,000 for infractions of Short article 60 of the New Work Regulation. The infractions consist of issues pertaining to utilizing a person without job authorization, abuse of job licenses, closures of the entity without settlement of workers end of solution advantages, hiring a worker and also not appointing him any type of job.

In Addition, Write-up 63 of the New Work Regulation, states: “Shall be punished to penalty of no much less than Dh5,000 and also no greater than Dh1 million whoever breaks any one of the stipulations of this Decree-Law and also its Exec Rules and also applying resolutions.”

In case the company does not comply with the stipulations set in the New Work Regulation, the staff member might submit an issue with the Ministry of Human Being Resources & & Emiratisation or pertinent totally free area authority.

Ashish Mehta is the owner and also Taking care of Companion of Ashish Mehta & & Associates. He is certified to practice regulation in Dubai, the UK and also India. Complete information of his company on: www.amalawyers.com. Viewers might e-mail their inquiries to: news@khaleejtimes.com or send them to Legal Sight, Khaleej Times, PO Box 11243, Dubai.

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