President His Highness Sheikh Mohamed bin Zayed Al Nahyan has issued the Federal Decree-Law No. 14 of 2022, amending some articles within the Federal Decree-Law No. 33 of 2021 regarding the Regulation of Labour Relations.
Under the new amendments, employment contracts must cover a defined term, which can be renewed subject to an agreement by both parties to a contractual relationship. The law does not set a cap on that term-period.
The amendment aims to protect both parties in a balanced way by advancing the labor market’s growth and stability, and enhances the UAE’s economic competitiveness.
H.E Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, said: “The UAE government continues to develop regulations and laws that align with what the next 50 years of UAE’s development demand. The laws and regulations support our business environment’s stability and improve its resiliency and attractiveness. The regulations follow the UAE’s advanced developmental model, and its fundamentals and principles that are built on justice, respecting human rights and staying ahead of changes. This guarantees the UAE’s continued progress, stability and pioneering stature.”
H.E. Al Awar added: “The new amendments create an advanced ecosystem of mechanisms that boost the ease of doing business, productivity, and resilience within the labour market, while amplifying its attractiveness to the business owners and talents.”
Federal Decree-Law No. 33 of 2021 regarding the Regulation of Labour Relations presented several work patterns, which allows employers to meet their staffing needs. Moreover, it allows them to leverage their employee’s productivity and capabilities at low operating costs through flexible, temporary, full-time and part-time work. It also provided multiple options for employers to hire workers whose employment contracts have expired through flexible procedures.
