These amendments represent a significant enhancement to the protection of employees’ rights, while also imposing stricter penalties on employers for violations. This article provides an overview of the key changes, focusing on the increased penalties, enhanced protections for employees, and the implications of these updates for employers operating in the UAE.
Overview of the Amendments
1. Extended Statute of Limitations
Perhaps the most important amendment to the law is the increase in the limitation period for an employer or employee to bring an employment claim. The employer or employee now have two years from the date of termination of employment to file a labour claim (increased from one year from the date of entitlement of the right to claim).
2. Increased Penalties for Employer Violations
The Decree has substantially increased penalties for employer violations (increased to AED 100,000 to AED 1,000,000, from AED 50,000 to AED 200,000 depending on the specific violation).
3. Wages During Disputes
In cases where an employee's wages have been suspended due to a dispute, the Ministry of Human Resources and Emiratisation (“MOHRE”) may now instruct employers to continue wage payments for up to two months during the dispute process. This measure ensures that employees do not face undue financial hardship while their claims are being resolved.
4. Legally Enforceable Decisions by MOHRE
MOHRE’s role in resolving labour disputes has been strengthened, with its decisions now carrying the power of a writ of execution. This means that MOHRE's rulings can be enforced in the same manner as court orders, providing a more efficient and cost-effective means of resolving disputes. However, it is important to note that this enforceability applies only to cases with a value less than AED 50,000. For disputes exceeding this amount, the usual legal processes will continue to apply.
5.Changes to Dispute Resolution
A procedural change introduced by the Decree concerns the resolution of labour disputes. In the event of a disagreement with a decision issued by MOHRE, the case must now be brought before the Court of First Instance rather than the Court of Appeal. All pending disputes or grievances that were before the Court of Appeal as of the effective date of the Decree will be transferred to the competent Court of First Instance, with the exception of those already reserved for judgment.
6. Implications for Employers
For employers, these amendments signal a more stringent regulatory environment, demanding greater compliance with the UAE Labour Law. The substantial increase in fines and the introduction of new provisions related to fictitious employment practices highlight the importance of adhering to legal requirements and maintaining transparent and fair employment practices.
Employers should take steps to review their current practices and ensure that they are fully compliant with the new regulations. This includes updating employment contracts, ensuring proper documentation and authorisation for all employees, and reviewing internal policies and procedures to prevent any violations of the UAE Labour Law.
For any queries related to these amendments or guidance on navigating these changes, employers are encouraged to consult with our legal team to ensure that their practices align with the updated law.
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