New Amendment and modifications to the Labor Law

In an amendment to new labor laws that went into effect in February, the UAE government has published a new regulation abolishing a three-year restriction on the period of fixed-term employment contracts in the private sector. The new modifications enhance the labor market’s productivity, resilience, and convenience of doing business.

The legislation will no longer impose a limit on the duration of employment contracts; instead, employment contracts will be required to cover a time frame under the proposed modifications. However as long as both parties accept the terms, the contract renewals will be permitted accordingly. This change intends to secure and protect all parties, promote the expansion of the labor market.

According to the Federal Decree-Law No. 33 of 2021, all indefinite contracts have to be converted into fixed-term contracts with the option of renewal.
Employment contracts must have a specific time that is agreed upon by an employer and employee, according to the updated legislation, which was formed by Federal Decree-Law No. 14 of 2022.

Employment relations in the private sector are governed by the modified law. The flexibility of working hours for employees that was implemented in February completely changed the working environment in the private sector. The action will open the door for companies and employees to settle on longer-term contractual agreements, adding to the stability. However, employees in the public sector and domestic workers are exempt from the rules.

This makes things simpler for businesses to hire individuals for part-time work and permit job sharing. Employers can now provide those who are 15 years old and older paid part-time job as well as useful work experience.

If you’re interested in learning more about the new rules or how they can help you, our firm, Mouannes International Service, is willing to assist you.

For more information, please get in touch with us.
Tel: 04 381 2021

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