New UAE Labour Law: From Salary To Notice Period, Everything To Know!

by Deeplata Garde
by Deeplata Garde 994

The announcement of the new UAE Labour Law has brought a radical shift for jobseekers. The previous law replacement happened on Wednesday, 02 February. The working model turned topsy turvy. The Federal Law No. 8 of 1980 and its amendments changed to Federal Decree-Law No. 33 of 2021. The new model introduced various factors to challenge the economy of the UAE. This includes a three-year contract, employer and employee rights.

3-Year Contract

A ban is now imposed on limitless contracts. Now UAE will abide 3 yr contract for all working sectors. This is about to bring a big wave in the market. However, previously signed contracts will reduce to 3yr or less depending on the organization.

Rules For Employers & Employers

The workers and employers abide to fulfil certain tasks and responsibilities as per legislation.  Above all, they can’t breach their code of conduct by working for multiple employers. Follow the work responsibilities diligently which will make the employer have faith in you.
Also, Employers on the other hand are specifically barred from collecting the cost of recruiting. In conclusion, employers can’t take money from workers. Be it directly or indirectly, under Article 6 of the legislation.

Working Hours And Overtime

According to a new law, the maximum regular working hours are eight hours per day or 48 hours per week. Economic sectors have exceptions. In addition, Article 19 of the act has a thorough description of how will overtime get compensation.

Payment Deduction

The employer holds the right to cut the wage of their employees. This is clearly stated in Article 25 of the new law. The rule also sets a limit of 50 per cent on the highest amount of pay that may be withheld.

Notice Period

A notice period of 30 to 90 days is mandatory according to Article 43. Moreover, when both parties agree, the notification period should waive off as well. This comes under the ‘Notice of termination of an employment contract.’

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