The year 2022 is historic for UAE. It has completed 50 years of its foundation. Another event that makes this year special is the introduction of Federal Decree Law No.33 of 2021 (Law Regarding the Regulation of Employment Relationship) on November 15, 2021 by President Khalifa bin Zayed Al Nahyan, which came into effect on February 2, 2022. (hereinafter referred to as “the law”).

It repealed the previous Federal Law No.8 of 1980 (hereinafter referred to as “previous law”).

Objective of the law:

The law is intended to achieve the following:

• Ensuring the efficiency of the UAE labour market by supporting the attraction and retention of future skills and talents and providing an attractive business environment for employers, with the aim of enabling both parties to contribute to the achievement of the UAE’s national development goals;
• Regulating employment relationships and defining the rights and obligations of the parties to this legal relationship in a balanced manner;
• Enhancing the flexibility and sustainability of the UAE labour market through ensuring the protection of the parties to the employment relationship, its developments and the exceptional circumstances that they may face and would thereby affect such relationship;
• Improving and developing the capabilities and skills of workers in the private sector, in a manner that enhances the efficiency and productivity of the workforce in the UAE labour market; and
• Providing protection to both parties to the employment relationship and enabling them to obtain their rights within the framework hereof

Scope of the law-

The law applies to all employees working in the UAE, whether UAE nationals or expatriates.
However, it does not apply to:

• Employees and workers of the federal government and the local government entities;
• Employees of the armed forces, police and security;
• Domestic workers.

Some of the pertinent provisions of the law are as under-

Promoting Equality and Non-discrimination

Article 4 of the law addresses the issue of inequality and discrimination. It prohibits discrimination on the basis of race, color, sex, religion, national or social origin or disability. Any discrimination which would have the effect of nullifying or impairing equality of opportunity, or prejudicing equal treatment in the employment, the maintenance of a job and the enjoyment of its benefits, is prohibited. Employers are prohibited to discriminate against workers in jobs involving similar tasks. Further, a woman is to be granted a wage equal to the wages of a man if she performs the same work, or an alternative work of equal value. This is a welcome step towards the goal of accomplishing ‘Equal Pay for Equal Work’ in the UAE.

Numerous Work Patterns-

Article 7 of the law provides for the following patterns of work-

• Full time-This means working for one employer for full daily working hours throughout the working days.
• Part time- This means working for one or more employers for a specified number of working hours or days designated for work.
• Temporary work- This means work whose execution requires a specific period, or is based on a certain task and is ended by its completion.
• Flexible work- This means work whose hours or working days change according to the work load, as well as the economic and operational variables of the employer. The worker may work for the employer at variable times according to the work conditions and requirements.
• Any other patterns of work to be specified by the Implementing Regulation.

Abolishment of unlimited employment contracts

Under Article 8 of the law, the employer is mandatorily required to conclude an employment contract with the worker, as per the agreed work pattern. The employment contract is required to be concluded for a specific term not exceeding (3) three years and it is permissible, by agreement of both parties, to extend or renew this contract for another similar term or for a shorter term, for once or more.

Maximum Probationary Period and termination during Probation

Article 9 specifies the maximum probationary period for a worker to be (6) six months from the date of commencement of work. As per this Article, the employer may terminate the service of a worker during this period after notifying the latter of the same in writing fourteen (14) days at least before the date specified for the termination of service. However, if the worker wishes to move during the probationary period, to work for another employer in the State, he shall notify the original employer of the same in writing within not less than one month from the date of his wish to terminate the contract.

Obligation of the employer

Article 13 lists a variety of obligations with which the employer has to comply such as maintaining the workers’ file and records, not withholding the official documents of the worker, providing the worker with proper accommodation licensed by the competent authorities, providing a safe and appropriate work environment, etc.

Prohibition of forced labor, sexual harassment and bullying

Article 14 prohibits all forms of forced labor, sexual harassment and bullying. Article 14 states that the employer shall not use any means that would oblige or force the worker, threaten him with any penalty to work for it, or compel him to undertake work or provide a service against his will. Further, sexual harassment, bullying or any verbal, physical or psychological violence committed against the worker by the employer, his superiors at work, colleagues or the persons who work with him, are prohibited.

Maternity Leave entitlement

Article 30 of the law sets out the provisions relating to maternity leaves. As per Article 30-

• A female worker shall be entitled to a maternity leave of (60) sixty days, as follows:
  • The first (45) forty-five days with full wage; and
  • The following (15) fifteen days with half wage.
• The female worker may, after using the maternity leave, be absent from work without a wage for a period not exceeding continuous or intermittent (45) forty-five days. If this absence is due to her sickness or her child’s sickness resulting from pregnancy or childbirth, which does not allow her to return to her work. The female worker shall be entitled to the maternity leave if the delivery took place (6) six months or more after pregnancy, whether the fetus was born dead or alive and then died.
• If the female worker gives birth to a sick child or a child of determination, whose health condition requires a constant companion, according to a medical report issued by the medical entity, she has the right to a leave of thirty (30) days with full pay starting after the end of the maternity leave and she the right to extend the leave for a period of (30) thirty days without pay.

Introduction of new categories of Leaves

Vide Article 32, the UAE Government has introduced the following types of new paid leaves-

Bereavement Leave-

A bereavement leave of (5) five days, in case of death of the husband or wife and (3) three days in case of death of the mother, father, son, brother, sister, grandson, grandfather or grandmother, starting from the date of death;

Parental Leave-

A parental leave for a period of (5) five working days, for the worker (either the father or mother), who has a newly born child, in order to take care of his child and the worker is entitled to such leave for a continuous or intermittent period, within (6) six months from the date of the child birth;

Study Leave-

The worker may be granted a study leave for a period of (10) ten working days per year for the worker who is enrolled or regularly studying at one of the educational institutions approved in the State, in order to sit for exams, provided that the service term at the employer is not less than two years.