New Labor Law in UAE Offers Greater Protections to Workers

By Sara Imam

The United Arab Emirates (“UAE”) published its new Federal Labor Law No. 33 of 2021, which repeals Federal Labor Law No. 8 of 1980.[1] The new labor law came into effect in February of 2022 and introduced extensive legal reforms pertaining to the regulation of labor relations in the private sector. The regulations come as a response to the changing workplace amid the Covid-19 pandemic.[2] The key changes from the previous labor law are plentiful, including changes to part-time work and temporary work structures, passport holding issues, probationary periods for employment, overtime hours, paid leaves, maternity rules, rights for women, and discrimination prevention.[3]

The first of several key changes introduced in the new labor law is the requirement to have employment contracts with fixed terms.[4] This presents a shift from the position under the previous labor law, where it was possible for parties to enter into unlimited term employment contracts.[5] Further, the new law outlines that the term of fixed employment contracts cannot exceed three years.[6] These terms can be renewed or extended by agreement or continued performance.[7] 

Another key change is contract termination. Under the previous labor law, employment could only be terminated without notice, for reasons outlined in Articles 88 and 120. With notice, for what is deemed to be a valid reason, by mutual agreement, or in the case of fixed term contracts, upon the expiration of the agreed upon term.[8] Under the new labor law, fixed term contracts can be terminated with notice during the course of the contract for a legitimate purpose. [9] The legitimate reason is not defined under the new law, and it will be up to the labor courts to interpret legitimate reasons for a dismissal.[10]

The new labor law also requires employers to provide women with an equal pay for the same job performed by men.[11] The previous labor law included protections for discrimination should an employee be fired due to a pregnancy or maternity leave.[12] The new additions to the previous labor law reaffirms that all provisions regulating employment apply without discrimination to women in the workforce.[13] The new labor law also extends maternity leave in the private sector to sixty days, including fifteen days at half wage.[14] New mothers to infants with special needs are also entitled to a thirty-day paid leave after the initial maternity leave, which will be renewable for another thirty days without pay. [15] Furthermore, Article 14 of the new labor law prohibits sexual harassment, bullying, or the use of verbal, physical, or emotional violence against employees by the employer, superiors, or colleagues.[16]

The anti-harassment provisions come after media attention on employees in Dubai suing their employers for abusive language and name-calling. An article published by the Khaleeji Times details how many of the cases involved instances where employers in the private sector used words like “silly” or “stupid,” which is a criminal offense in the UAE.[17] Under the previous labor law, employees can file a civil case against their employer for causing psychological damages, so long as they can provide sufficient evidence in court.[18]

Haytham Alieh, a partner and head of the litigation team at DWF Middle East, LLP, told the Khaleeji Times that, “[i]t's very common now. There are many cases of employees filing cases against their bosses for verbal abuse, even for words like 'silly.’” He continued,

[l]ast year, we had a client whose boss had verbally harassed her, so she filed a criminal case against him. That employer was banned from travelling and was referred to the criminal court. He was fined Dh50,000 for using words like “silly” and “stupid.” She had immediately sent an e-mail to human resources when it happened, they replied and enquired. And this was presented as proof in the court.[19]

Previously, laws that protected employees from abuse included Article 121 of the UAE Labour Law, which states that “an employee may leave the service without notice if the employer – or the employer’s legal representative – has committed an act of assault against him or her.” [20] Now, employees have greater protections under the new labor law. An employer is prohibited from coercing or threatening an employee to undertake work or provide services against their will.[21] At this time, there are no specific penalties allocated to bullying or sexual harassment, but an employer may be liable for fines ranging between AED 5,000 and AED 1,000,000 for breaches of the law.[22]

This new labor law signals the UAE’s first major overhaul of labor laws in forty years. The new regulations set procedures and safeguards that will guarantee workers welfare and wellbeing, which we can expect to foster a healthy business environment going forward.

[1] U.A.E. Labour Law, Federal Law No. 33 of 2022.

[2] UAE: New labour laws to go into effect in February 2022, Khaleeji TImes (Nov. 15, 2021).

[3] Id.

[4] Id.

[5] U.A.E Labour Law, Federal Law No. 8 of 1980, Ch. 3 art. 39.

[6] Supra, note 1.

[7] New UAW Labour Law, Nat’l L. Rev. Vol. XII 16 (Nov. 29, 2021).

[8] Supra, note 5, at art. 88, 120.

[9] Supra, note 1.

[10] New UAE Labour Law coming into force on 2 February 2022, Al Tamimi & Co. (Nov. 18, 2021).

[11] Supra, note 1.

[12] Supra, note 5.

[13] Supra, note 1.

[14] Id.

[15] Id.

[16] Id.

[17] Sarwat Nasir, UAE expats suing rude bosses for thousands in damages, Khaleeji Times (July 10, 2019).

[18] Supra, note 5.

[19] Supra, note 17.

[20] Supra, note 5, at art. 121.

[21] Supra, note 1.

[22] Id.