Changes in Employment Law: Federal Law No. 8 of 1980 vs. Federal Decree Law No. 33 of 2021
The new Federal Decree Law No. 33 of 2021 has introduced several significant changes to the previous Federal Law No. 8 of 1980. The following table outlines key differences between the two laws:
| Position under Federal Law No. 8 of 1980 (i.e., previous law) |
Position under Federal Decree Law No. 33 of 2021 (i.e., the law) |
Contract:
- Two forms of contract existed:
- Unlimited term contracts - These contracts continue to be in full force and effect unless and until terminated;
- Fixed term contracts - These contracts terminate at the end of the agreed term, unless renewed by the parties.
|
Contract:
- Only one form of contract is now provided: Fixed term contracts, abolishing unlimited term contracts.
- Employment contracts must be concluded for a specific term not exceeding three years.
- It is permissible, by mutual agreement, to extend or renew the contract for another similar term or for a shorter term, for once or more.
- If the contract is neither renewed nor extended, but the parties continue to operate as though the contract is still in effect, it is deemed as renewed on the same terms and conditions as the most recent version.
- Employers must convert existing unlimited term contracts into fixed term contracts within one year from the Effective Date (i.e., by February 1, 2023).
|
Probation Period:
- Probation may be up to a maximum of six months.
- Employment can be terminated by the employer without notice or end of service remuneration during the probationary period.
|
Probation Period:
- The maximum probation period remains six months, but now includes a minimum notice period of 14 days for employers wishing to terminate an employee during probation.
- The law now allows termination by the employee during the probation period.
- If an employee resigns to join another employer in the UAE, they must provide a minimum of one month's notice, and the new employer must compensate the current employer for recruitment costs (unless otherwise agreed).
- If an employee leaves the UAE, they must provide 14 days' notice. However, if the employee returns to the UAE for employment within three months, the new employer must compensate the previous employer for recruitment costs (unless otherwise agreed).
|
Maternity Leave:
- A working woman was entitled to maternity leave with full pay for 45 days including time before and after delivery, provided her continuous period of service was not less than a year. If she had not completed this period, maternity leave was with half pay.
- Additionally, a working woman could discontinue work without pay for up to 100 consecutive or intermittent days if such absence was due to illness preventing her from resuming work.
|
Maternity Leave:
- Maternity leave has been increased to 60 calendar days. The first 45 days are fully paid, and the remaining 15 days are at half pay.
- Maternity pay is not reduced if the employee has not completed one full year of employment at the time of maternity leave.
- Maternity leave applies in cases of miscarriage after six months of carrying, stillbirths, or the death of an infant after birth.
- An additional 30 calendar days of maternity leave (with full pay) is available for employees who give birth to a disabled or sick child requiring a "constant companion," which can be extended for an additional 30 days (unpaid).
|
March 28, 2022
