Historic Changes in UAE Employment Law: Federal Decree Law No. 33 of 2021

The year 2022 marks a historic milestone for the UAE as it celebrates 50 years of its foundation. A significant event this year is the introduction of Federal Decree Law No. 33 of 2021, also known as the Law Regarding the Regulation of Employment Relationship, which was enacted by President Khalifa bin Zayed Al Nahyan on November 15, 2021, and came into effect on February 2, 2022.

This new law repealed the previous Federal Law No. 8 of 1980 and introduces several key changes to the employment regulations in the UAE.

Objective of the Law

The law aims to achieve the following:

• Ensure 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, to contribute to the UAE’s national development goals.
• Regulate employment relationships and define the rights and obligations of the parties in a balanced manner.
• Enhance the flexibility and sustainability of the UAE labour market by ensuring protection for the parties to the employment relationship, its developments, and exceptional circumstances that may affect it.
• Improve and develop the capabilities and skills of workers in the private sector to enhance the efficiency and productivity of the workforce.
• Provide protection to both parties in the employment relationship and ensure their rights are obtained within this framework.

Scope of the Law

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

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

Key Provisions of the Law

Promoting Equality and Non-discrimination

Article 4 of the law addresses inequality and discrimination by prohibiting discrimination based on race, color, sex, religion, national or social origin, or disability. It ensures equal pay for equal work and aims to achieve ‘Equal Pay for Equal Work’ in the UAE.

Numerous Work Patterns

Article 7 introduces various work patterns:

• Full Time: Working for one employer for full daily working hours throughout the working days.
• Part Time: Working for one or more employers for a specified number of hours or days.
• Temporary Work: Work that is specific to a period or task and ends upon completion.
• Flexible Work: Work with variable hours or days based on workload and employer needs.
• Other Patterns: As specified by the implementing regulation.

Abolishment of Unlimited Employment Contracts

Article 8 mandates that all employment contracts be for a fixed term not exceeding three years. Contracts can be extended or renewed with mutual agreement. Unlimited term contracts are abolished, and existing contracts must be converted to fixed term contracts by February 1, 2023.

Maximum Probationary Period and Termination During Probation

Article 9 specifies a maximum probation period of six months. Employers must provide at least 14 days’ notice for termination during this period. Employees wishing to move to another employer must notify their current employer at least one month in advance.

Obligation of the Employer

Article 13 outlines various obligations for employers, including maintaining workers’ records, not withholding official documents, providing proper accommodation, and ensuring a safe work environment.

Prohibition of Forced Labor, Sexual Harassment, and Bullying

Article 14 prohibits all forms of forced labor, sexual harassment, and bullying. Employers cannot compel workers to work against their will or engage in any form of verbal, physical, or psychological violence.

Maternity Leave Entitlement

Article 30 provides for maternity leave as follows:

• 60 days of maternity leave: The first 45 days are fully paid, and the remaining 15 days are at half pay.
• Additional leave of up to 45 days without pay if needed due to sickness from pregnancy or childbirth.
• 30 days of full pay for workers who give birth to a sick child requiring a constant companion, with an option to extend the leave for another 30 days without pay.

Introduction of New Categories of Leaves

Article 32 introduces new paid leave categories:

• Bereavement Leave: 5 days for the death of a spouse, and 3 days for the death of close family members.
• Parental Leave: 5 days for either parent to care for a newborn, within six months of birth.
• Study Leave: 10 days per year for employees enrolled in approved educational institutions to sit for exams, provided they have at least two years of service.