All workers in the UAE’s private sector, including Overseas Filipino Workers, may have their labor disputes resolved faster and more easily with the new amendment to the UAE’s Labour Law.
On Monday, December 18th, the Ministry of Human Resources and Emiratisation (MOHRE) stated that the new legislation – Federal Decree-Law No. 20 of 2023 will replace Article 54 of the UAE’s Labour Law – Federal Decree-Law No. 33 of 2021, effective from January 1st, 2024.
Based on the new law, the Ministry will have the final executive decisions on labor disputes as long as the claims are less than AED50,000 for companies and individual workers in the private sector.
“The new process aims to save customers’ time and effort, streamline procedures, and expedite the process for claimants to collect their legal entitlements,” MOHRE stated in the announcement.
Labor complaints resolution will also change in 2024. In the past, if an employer or an employee reached out to MOHRE with a complaint, the Ministry would encourage both parties to pursue an amicable resolution. If the issue has not been resolved with this approach, the case will be referred to a competent court.
With the new amendment, the MOHRE will have the authority to render a final judgment on any dispute, as long as the claim amount is under AED50,000 or if the issue is related to non-commitment to amicable settlement decisions that MOHRE previously resolved, regardless of the claimed amount.
As per Article 1 (3) of the new law, if either party is dissatisfied with MOHRE’s judgment, they can file an appeal through the Court of Appeals, which should be done within 15 working days of the Ministry’s decision.
The Court of Appeals will then schedule a hearing within three days and resolve the issue within 15 working days as per the new law.
