The tidbits of gossip around the entire UAE regarding the HR sector have kept them awake ever since the New Labor law has come into action. With the implication of the latest labour law, it’s clear that UAE is striving for an improved approach to Human Resources where employee health and productivity are keystones for leading us to an attractive workplace destination.
The new law invalidates the previous one in its entirety. It’s not exhaustive and appears with surprising benefits in the long term.
Since Article 88 in UAE Labour Law says that an absence of an employer during work hours can be consequential, here’s a rundown of activities they should be monitoring.
Forms of Contract:
Employers are given a deadline until 1st February 2023 to adopt the template form of employment contract that shouldn’t exceed three years. The Ministry of Human Resources and Emiratisation will provide the template forms. In addition, the requirement for a fixed-term contract removes the previous distinction between limited and unlimited duration. Yet, you must remember that one can renew a fixed-term contract multiple times, and it won’t affect the employee’s continuity of employment by any means.
New working Patterns:
The newly imposed labour law identifies part-time, temporary and flexible working. Park-time working allows a candidate to apply for more than two jobs at once, and UAE normalised it years ago. Besides, it protects part-time employees by making it mandatory to work through the agreed hours and be honest about their commitments.
Equality and non-discrimination:
The new law promises rights for female workers to be paid the exact salary as male workers if they tend to work in a similar category. Furthermore, discrimination based on religion, race, gender, and cast is forbidden and illegal. It doesn’t preclude any policies that intentionally promote Emirati participation in the workplace. Accordingly, Emiratization policies will continue to be encouraged.
The employer and employee must provide a two-weeks written notice to terminate an employment contract during the probation period. Suppose an employee opts for another job instantly after ending a contract. In that case, he’s obliged to provide a month’s notice and compensate the employer for the expense of recruiting a replacement.
The new law permits the proceedings of the New National Minimum wage. And we’ve determined that the announcement of this policy will be held at the UAE cabinet. Under recent laws, there are no such rules for minimum wages; instead, there’re guidelines for minimum salary to be eligible to sponsor spouses in the UAE.
The new labour law allows determining the performance of the employees, which commences with a letter of reprimand and can proceed towards dismissal. This way, employers can make deductions from payments and suspend an employee for two weeks. While we can address further evaluations in Implementing Regulations, employers should align the present disciplinary measures with those suggested in the New Law.
Maternity and Paternity leave:
Pregnant ladies are entitled to two months at full pay with a 15-days additional at 50% of the salary. Allowed leave is permitted to mothers who need to attend to the kids instantly to ask for unpaid leaves for a month. The New Law also involves five days of paid parental leave, which applies to both the parents in a fixed six months after the birth of their child.
Notice periods for the resignation of an employment contract are present under the New Law and are no less than a month and no more than 90 days. It might appear a challenge for senior executives in specific industries where the termination period can remain up to 12 months. Employers will probably need to rely on the former practice that the termination must have a reasonable cause; otherwise, it’s deemed randomly.
While you might not consider it an important task, signing up a legal contract with the employees would make a wise decision and can secure the position in the long haul. For that reason, you must consult with some of the top-notch lawyers in Dubai or Sharjah to get done with it professionally.
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