UAE Labour Law
The UAE Labour Law is a very comprehensive document that regulates all aspects of employment in the UAE. While the UAE Labour Law does not specify a minimum wage, it does say that salaries should be sufficient to meet the basic needs of an employee. According to article 63 of the UAE Labour Law, the minimum wage is decided by the Cabinet. However, the minimum wage is not set in stone and employers have a window of up to 12 months to adjust their practices.
According to the UAE Ministry of Human Resources, UAE companies will be classified into three categories depending on how closely they follow the UAE labour law and how well their employees are protected. A company that has less than 5% skilled workers or does not have a 50:50 nationality ratio is classified as Category 2C. This category is a violation of the UAE Labour Law as it fails to promote cultural diversity in the labour market.
The UAE Labour Law was updated in May 2010 and comes into effect on February 2, 2022. It amends the Federal Law No. 8 of 1980 and aims to enhance regulations for different work categories and provide better protection for employees. It also introduces greater flexibility to the workplace and encourages employers to hire foreign workers. The UAE Labour Law provides a framework for employers and employees to work together in the UAE. So, if you’re a business owner looking for employees, don’t hesitate to follow it.
UAE Labour Law – What Does it Mean for Employers and Employees?
There are also many other changes to the UAE labour law that have made it easier for employees to take advantage of. Employees are now required to give at least 14 days notice before leaving their employment. If they return to the UAE for employment within a year, their previous employer will have to pay compensation for recruitment costs. However, the change does not affect those who have a lengthy period of service. A change in the UAE labour law is a good step forward for employees in the UAE.
The new UAE labour law also mandates that employers keep their employment records for two years. The change in UAE labour law has substantial implications for both employers and employees. Employers should prepare strategies to implement the new changes in the future. The new UAE labour law is set to take effect on 1 February 2023. So, if you’re a business owner looking for new ways to attract and retain employees, the new law is for you.
In the UAE, employees can also file a case against their employer for violating the labour law. The law also outlines the procedure for disputes and how the Ministry of Human Resources and Emiratisation (MOHRE) can intervene in the matter. The MOHRE will take action if it sees fit and ensures payment of employee entitlements. The UAE Cabinet has established a collective labor dispute committee. Once a dispute is referred to the committee, it becomes binding on both parties.
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