The year 2023 will bring new legislative changes to UAE residents which is set to improve their professional and personal lives. Here are some laws which will take effect as the new year starts.
- Unemployment insurance scheme
Employees will be able to get 60 per cent of their basic salary with a premium of Dh60 (Dh5 per month) or Dh120 (Dh10 per month), depending on the category they fall under.
The mandatory law will benefit employees who have completed a minimum of 12 consecutive months in their previous company. There are two categories under the insurance scheme, one for employees who are earning a basic salary of Dh16,000 or less and the second category is for employees earning a basic salary of over Dh16,000.
- Civil Personal Status Law
The Federal Decree-Law No. 41 of 2022 which covers the new personal status law for non-Muslims is set to take effect this February 1, 2023. It covers various aspects of civil life of, including marriage, divorce, estate, will and custody of children.
The provision of the law specifically applies only to non-Muslim residents in the UAE. It aims to regulate the marriage conditions and the procedures of contracting and documenting the marriage before the competent courts. The Civil Personal Status Law also specifies the procedures of divorce that can be initiated jointly or unilaterally and organize the procedures for settling the financial claims after divorce, and the arrangement of joint custody for children. Moreover, it covers the procedures for inheritance and testaments (wills) and proofs of paternity.
- All companies should have at least 2% Emirati employees
In line with the Emiratisation targets of the UAE for private sector under the Nafis programme, private companies with more than 50 employees are required to have at least 2 per cent Emirati nationals in their list of employees.
Starting January 1, 2023, businesses who are not able to follow this requirement will be penalized with an amount of Dh6,000 monthly for every citizen who has not been employed. The UAE Cabinet introduced this law with the aim to create more than 12,000 job opportunities annually for UAE citizens in all economic sectors.
- Corporate tax on taxation of corporations and businesses
Under the Federal Decree-Law No. 47 of 2022, businesses will become subject to UAE Corporate Tax from the beginning of their first financial year that starts on or after June 1, 2023.
Earlier this year, the UAE’s Ministry of Finance announced that it will introduce federal corporate tax on the net profits of businesses and will be applied across all Emirates. Under the new tax regime, corporations, and other businesses with taxable profits exceeding Dh375,000 will be mandated to pay a standard rate of 9 per cent.
- Family business law on family businesses
Starting January 2023, a new law under the Federal Decree Law No. 37 of 2022 will aim to turn 200 family-owned businesses into major companies by 2030, with a market value of over Dh150 billion and annual revenues exceeding Dh18 billion.
The law provides legal framework required to ensure the growth and diversification of family businesses’ operations. This Family business law is seen to enable businesses to expand and grow in a sustainable way, enhance their competitiveness and business growth inside and outside the country’s markets, in line with the objectives and projects of the 50 and the determinants of the UAE Centennial 2071.
