Workers in the UAE, the new UAE Labour Law rules will take effect this January 2016. This will bring forth more transparency between the employer and employee and covers conditions for terminating employees, labour permits to work for new employers and application of ministry-approved contracts.
New UAE Labour Law Rules Take Effect on January 2016
One of the notable updates is that Job Offer letters will be legally binding. The Ministry also mandates that the employer ensures that the workers have seen the job offer and have agreed on it in a language that they understand. The new rules will help make employees become more content and secure in the workplace.
Here’s a few notable updates:
Standard Work Contract
- A worker must be presented with an employment offer that conforms with the unified contract then signed by him or her as stipulated under MD 764 of 2015 on ministry-approved standard employment contracts.
- All contract renewals in force beforehand must use the new unified contract, in addition to the employment offer, the terms of which cannot be altered or substituted unless approved by the ministry.
- No clauses can be added to any contract unless compliant with and approved by the Labour ministry.
Terminating the Work Contract
- MD 765 meantime stipulates that an employee contract, which covers not more than a two-year term can only be terminated if: 1) The term of the contract expires; 2) The employer and employee mutually agree to end the contract; 3) Either party acts unilaterally to terminate the contract but complies with legal consequences of early termination including notification in writing at least one month in advance and not longer than three months.
- A two-year contract can also be terminated if a worker commits violations prohibited under Article 120 of the Federal Labour Law.
- Non-term contracts can be terminated if: 1) Both parties consent to termination; 2) one party gives notice of termination at least one month in advance and not exceeding three months; 3) if one party unilaterally acts to terminate but bears consequences of early termination.
- The non-term contract can also be terminated if an employee violates labour law rules under Article 120.