Employees in the private sector can now opt to have the weekly requirement 40 working hours finished within three days, starting from February 2, 2022
President His Highness Sheikh Khalifa bin Zayed Al Nahyan, recently issued Federal Decree Law no. 33 of 2021 to regulate labour relations in the private sector.
The introduction of new forms of work under the law includes part-time work, temporary work, and flexible work.
According to Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, the new law comes in response to the rapidly-changing workplace environment during the Covid-19 pandemic.
“In the condensed working week, employees can choose to finish their 40 hours in three days instead of one week as per the contract signed by both parties,” said Al Awar.
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Meanwhile, the shared-job model allows two people to share the same job and split the pay on an agreement with the employer.
The work models would also cover freelancing, condensed working weeks and shared job models.
Employees will get the flexibility to work on a project hourly or for different employers.
The new law also introduced three-year contracts while employing teenagers over 15 years of age. It also defines a limited contract which may not exceed three years and is renewable for a similar or lesser period.
The decree also exempted workers from judicial fees at all stages of litigation, enforcement and petitions filed by workers or their heirs with a value not exceeding AED 100,000. The employers also cannot confiscate employees’ official documents.
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Also the workers “should not be forced to leave the country after the end of the work term” and the employer shall bear the “fees and expenses of recruitment and employment and shall not recover them directly or indirectly from the employee.”
Here are the key highlights of the new regulations:
• The Federal Decree – Law No.33 of 2021 on the regulation of labour relations in the private sector — will take effect from February 2, 2022.
• The new law seeks to ensure efficiency in the labour market and also attracts and retain the best talent and skills for employment, in tandem with providing a stimulating and conducive work environment for employees.
• The law supports the efforts to enhance the competitiveness of Emirati cadres in the labour market, as well as empower women.
• The new law aims to enhance the flexibility and sustainability of the labour market in the country, as well as guarantee protection of workers, the minister stressed.
• In Article 74, the decree-law stipulates that the employer may not use any means that would force the worker or threaten him/her with any penalty or force him/her to work for the employer or force him/her to provide a service against his/her will.
• The law forbids sexual harassment, bullying or any form of verbal, physical or psychological violence against a worker by the employer, his/her superiors at work or colleagues.
• It prohibits all forms of discriminations based on race, colour, sex, religion, national or social origin or disability that would scale down the possibilities of equal opportunity, prejudice equal access to or continuation of employment and enjoyment of rights.
• The amendments stressed that while not violating the prescribed rights of working women stipulated in this decree, all provisions governing the employment of workers without discrimination shall apply to women, with an emphasis on granting women the same wage as men if they are doing the same work or work of equal value, which will be determined by a Cabinet decision.
• Among the key amendments provided by the decree law is the introduction of new types of work to allow employers to meet their labour requirements and benefit from their energies and productivity at the lowest operational cost through part-time work, temporary work and flexy work, as well as allow employers to hire those whose work contracts have expired, but who are still in the country, through easy and flexible procedures.
• Part-time work allows work for an employer for a specified number of hours or days. Temporary work is work whose implementation requires a specified period of time or is focused on work that ends with completion of a specified job. Flexible work is work for which working hours or work days change according to the volume of work and economic and operating variables of the employer.
• The executive regulations of the law determine the conditions and control of work patterns and the obligations arising from each worker and employer, depending upon the type of employment, including what is related to end-of-service gratuity and as required by the interest of the two parties to the work contract.
• The law grants companies the flexibility to pay wages in UAE dirhams or in any other currency, according to the agreement between the two parties in the work contract.
• The decree-law also permits the employer to prohibit the worker from competing with the employer or participate in any competing project in the same business, should the work entrusted to the worker permit him/her to know the employer’s clients or access his or her trade secrets, provided that the condition is specified in terms of time, place and type of work to the extent necessary to protect legitimate business interests and the period of non-competition shall not exceed two years from the date of contract expiry.
• The decree-law specifies a fixed-term contract as one that doesn’t exceed three years, and it is permissible, upon agreement by the two parties, to extend or renew this contract for a similar or lesser duration once or more.
• The provisions of the decree-law shall apply to employment contracts of indefinite durations concluded in accordance with the Federal Law No (8) of 1980.
• The law stipulates that unlimited employment contracts are to be converted into fixed-term employment contracts, in accordance with the conditions, controls and procedures envisaged in this decree by law, within one year of the effective date of the existing contract and may be extended by the Cabinet for further periods as required in public interest.
• All private sector workers are entitled to a paid, weekly rest day, with the possibility of increasing the weekly rest day at the discretion of the employer, in addition to providing vacations for the workers, including compassionate leave ranging from three to five days, according to the degree of the employee’s relationship with the deceased. In addition, paternity leave of five days shall be granted to private sector workers. Any other leave shall be decided by Cabinet.
• 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 law stipulates the prohibition of withholding of official documents, such as passports, belonging to the workers and forcing him or her to leave the country at the end of an employment contract. This has been done to allow the worker to move to another establishment in the labour market. The worker shall also have the right to obtain his or her wages on the due date in accordance with the regulations approved by the ministry and according to the conditions and procedures as specified by the Executive Regulations of this decree-law.
• The decree-law permits the worker, in the event of expiration of the work contract, to move to another employer. A probationary period for the worker may not exceed six months, in accordance with the law’s executive regulations
• The amendments include a provision, according to which, a worker is entitled to an end-of-service gratuity, in accordance with the legislation regulating pensions and social security in the country.
• As per the law, a foreign worker who has worked full-time and who has completed one year or more of continuous service with an establishment, shall be paid end-of-service benefits calculated according to the basic wage, with a wage of 21 days for each of the first five years of service and 30 days for each subsequent year.
• The decree-law waives judicial fees in all stages of litigation in all stages of litigation, execution and requests made by workers or their heirs, the value of which does not exceed Dhs100,000.
• It regulates the obligations of the employer, the most prominent of which is the establishment of labour regulations, the obligation to provide adequate accommodation, protection and prevention, as well as train workers and help them develop their skills.
• In the meantime, the law regulates the workers’ obligations based on the terms of the employment contract and in accordance with duties, notably performing work during the specified times; abiding by work ethics and good conduct; keeping work secrets; developing job skills; committing not to work for another competing employer; vacating the labour accommodation within one month of expiry of employment contract and other obligations.
• The decree-law regulates the controls and conditions for terminating work contracts in a way that guarantees the rights of both parties. The amendments also strengthen the controls for the employment of juveniles, as well as with regards to the entitlements of the deceased worker, the requirements for occupational safety and other controls that guarantee the rights of both parties in a balanced manner.
