A slew of labor reforms is slated to immensely transform the work systems in the UAE’s private sector.
This, as the Ministry of Human Resources and Emiratization on Monday announced Federal Decree Law no.47 of 2021 that aims to unify the working systems in the public and private sectors. This new law upholds Federal Decree Law no. 33 of 2022, and most of these measures will come into force starting February 2, 2022.
These labor reforms include similar leaves and end-of-service benefits in both sectors.
Meanwhile, the most immediate labor reform that employees are looking forward to is the new workweek, with Saturdays and Sundays declared as the new official weekends in the public sector. On Fridays, public employees will only have a half-day work. However, private companies are expected to follow the same workweek in January next year.
Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, highlighted that the measure to unify the work systems in the UAE not only addresses the rapid changes brought about by COVID-19, but also futureproofs the country’s next steps to ensure that it remains as one of the most competitive, flexible and preferred places to work in as it embarks on its journey for the next five decades.
“It enhances the flexibility and sustainability of the labour market nationwide, by guaranteeing the protection of the work relationship, its developments and the exceptional circumstances it may face,” said Dr. Al Awar when Federal Decree Law no. 33 was passed.
Contract standardization
Starting February 2, 2022, the UAE will shift all of the unlimited contracts into fixed year terms that should not exceed three years – which is extendable to a similar or lesser contract upon the agreement of the employee and employer.
Apart from full time job contracts, the decree will now allow employers to hire on a part-time, temporary or flexible basis. Part-timers will be allowed to work for multiple employers under a specified schedule or number of hours or days.
Temporary work will be project-based as outlined in their respective contracts. Meanwhile, flexible employment means that the worker can do the job across different time zones as required by their employer. Contracts must now specify the hours, days or duties required across all of the aforementioned employment opportunities.
“The law comes in response to the rapidly-changing workplace amid technological advancements and the outbreak of Covid-19. It will apply to different work categories including full-time, part-time, temporary and flexy work among other categories. The executive regulations of the law, which the ministry is currently working on, lay out the responsibilities of both parties in each category,” said Al Awar.
In addition, the UAE also plans to introduce new work models including self-employment as well as the shared-job model where the employer could choose to hire two employees to split the work and pay them evenly depending on their agreement.
In terms of payments, the UAE now allows employers to pay in UAE dirhams or even in any other currency, according to the agreement between the two parties in the work contract.
Increased gratuity
One of the main changes that overseas Filipinos in the UAE are excited about is the updates on gratuity. Many OFWs who have been working for several years used to only get a fraction of their basic pay which was 7 days per year of service for the first year, 14 days for two to three years, and 21 days for three to five years.
Federal Decree – Law No.33 of 2021 mandates that gratuity should be paid for all private sector workers for 21 days’ worth of their basic pay, for the first five years. It also outlines that individuals who have stayed for a minimum of six years would be paid their complete basic salary on top of the first 21 days’ worth of basic pay per annum for the first five years.
It also specified that those who do not complete a year’s work will not receive any gratuity.
Paulo Domingo from Dubai hopes that all companies would follow this new measure upon its full implementation this coming February.
“Dapat sana lahat ng nag-ta-trabaho dito sa Dubai ay merong makuha. Dapat lahat ng company ay sumunod sa patakaran, para lahat makakatanggap (ng gratuity), said Domingo.
More leaves for families
Federal Decree – Law No.33 of 2021 mandates at least one day off per week across the entire private sector, no matter what field they are working in. It also highlights that employers have the discretion to increase the number of rest days per week.
It also outlines leaves for expats, especially for new parents. Fathers can take a five-day paternity leave available for up to six months after their child’s birth.
Mothers who already have a 45-day fully-paid maternity leave, will have an additional 15 days of leave with only half of their salary, giving them more time to take care of their newborn child.
In addition, they are also allowed to take another 45 days of unpaid leave in case their child or they themselves get sick. The law mandates that the employee should secure a medical certificate as a supporting document in case they avail of the unpaid extended medical leave.
Christina*, an expectant mom from Abu Dhabi, said that this law will help her have enough time to take care of herself and her newborn this March 2022.
“Malaking tulong ito sa aming mag-asawa para magkaroon kami ng oras para sa unang naming anak. Maraming salamat UAE sa pag-aalaga sa aming munting pamilya,” said Christina.
Meanwhile, the new law also allows three days of mourning for an individual who loses a direct kin such as their parent, sibling, child, grandparent, or grandchildren. Employees who will mourn the death of their spouse will be allowed five days of leave to mourn for their loved one.
No forced exits
Employees no longer have to fear that they will be deported after finishing their contracts or resigning from their jobs. Federal Decree – Law No.33 of 2021 states that all employers will be prohibited from forcing employees to exit the country after their working relationship ends.
Furthermore, employees are also allowed to find new work opportunities as soon as their contract is finished or if their resignation was already accepted by their employer.
The law also stipulates that companies are not allowed to keep the passports and/or other official documents of their workers.
Non-discrimination policy
Starting February 2022, all employers will be mandated to follow a non-discrimination policy whenever they hire new employees. This means that they cannot select nor discriminate any jobseeker based on their race, gender, nationality, color, disabilities or any other forms of social constructs.
The law also assigns the employer the responsibility to pay for the fees and costs of recruitment and not to collect the same from the worker either directly or indirectly.
The new law also highlights that women should get equal pay for doing jobs of equal value as men.
In addition, no individual should ever be subject to any form of harassment, which includes (but not limited to): verbal, physical, or emotional bullying or abuse from their employers or colleagues.
