Khalifa decree focuses on women, pay and gratuity
New move on private sector sheds fresh light on job contract, equal pay for men and women; it prohibits discrimination on grounds of race, religion, sex and nationality; ensures action against bullying at workplace.
President His Highness Sheikh Khalifa Bin Zayed Al Nahyan issued a federal decree law No. 33 of 2021 regulating labour relations in the private sector. The Law’s provisions shall be effective from February 2, 2022, to establishments, employers and workers in the private sector in the country.
It is scheduled to terminate the Federal Law No. 8 of 1980 concerning the labour relations, from the date of entry into force of the decree-law.
Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, stated that the decree-law is the largest update in the law regulating the labour relations in the UAE.
“The move comes in preparation for the next fity-year through a range of laws and legislation that respond to the requirements of this important stage in the history of the UAE and to optimally make use of the changes taking place in the labour world,” Al Awar said.
He continued, “The new law was carried out in consultation with the concerned parties in the federal and local government sectors and the private sector, in order to have a law that meets the aspirations and future vision of the labour market in the country.”
The decree-law specifies a fixed-term contract as one that doesn’t exceed three years, and it is permissible, upon agreement by the two parties, to extend or renew this contract for a similar or lesser duration once or more.
Al Awar also explained that the new law has created a sophisticated system of mechanisms that enhance the ease of business and the competitiveness of the labour market.
The new law also stated that a full-time worker who completed a year or more in continuous service, shall obtain end-of-service gratuity upon the end of his/her service, calculated according to the basic salary. He/she will get wage of 21 days for each year of the first five years of service, and 30 days for each year ater the fith onwards.
Al Awar affirmed the law aims to enhance the competitiveness of Emirati cadres in the labour market, as well as empowering women in this sector.
The decree includes 74 articles, as the new amendments stipulate that employer may not use any means that would force worker or threaten her/him with any punishment to work for him/ her, or force her/him to do work or provide a service against his/her will.
The law also prohibits sexual harassment, bullying, or any verbal, physical or psychological violence against worker, from employer, his/her superiors at work, his/her colleagues, or those working with him/her.
Further, it prohibits discrimination on grounds of race, colour, sex, religion, national or social origin, or because of disability. Moreover, it prohibits discrimination workers of the same job, while the rules and procedures that promote Emiratisation in the labour market are not considered discrimination.
The amendments affirmed that women be given a wage equal to that of men, if they perform the same work, or another work of equal value.
Part-time workers are allowed to work for more that one employer, for a specific number of working hours or days designated for work, according to the new decree.
The decree also allowed employer to stipulate in the labour contract that the worker not compete with him or participate in any competing project in the same sector, if the work entrusted to the worker allows him to know the employer’s clients, or to see his work secrets. Furthermore, time, place and type of work should be determined to the extent necessary to protect legitimate business interests. The period of non-competition shall not exceed two years from the date of contract expiry, in accordance with what is specified in the executive regulations of the decree.
The decree specified one type of labour contract, in terms of duration. It is a fixed-term contract not exceeding three years. This contract may be extended or renewed for similar or lesser periods once or more.
ABU DHABI: President His Highness Sheikh Khalifa Bin Zayed Al Nahyan has issued the Federal Decree - Law No.33 of 2021 on the regulation of labour relations in the private sector that will take effect from Feb.2, 2022.
The new decree-law seeks to enhance the elasticity, resilience and sustainability of the labour market nationwide, as well as ensure protection of workers’ rights. It places worker welfare and wellbeing at its core, and accordingly, a host of measures have been provided there into ensure a safe, healthy, and business-conducive environment for all employees in the private sector.
The provisions of the decree apply to employment contracts of indefinite duration concluded in accordance with the aforementioned Federal Law No.8 of 1980.
It is decided to convert work contracts of indefinite duration into fixed-term contracts, in accordance with the conditions, controls and procedures contained in this decree, within a year from the date of its entry into force, or the Cabinet may extend this period, for other periods as required by the public interest.
Worker shall get at least a paid one day off weekly, with the possibility of increasing the weekly leaves, according to the establishment’s discretion. Other leaves may also be granted to workers such as mourning leave ranging from 3 to 5 days, according to the degree of the deceased’s relationship, 5-day-parental leave, and any other leaves decided by the Cabinet.
The law also mandates employers to bear the fees and costs of recruitment and employment, and not to collect them directly or indirectly from workers.
The law stipulates the prohibition of holding official documents of workers, and not forcing him/her to leave the country, ater the end of the labour relation, or obstructing him/her from working for another employer or benefiting from the labour market.
The new law also stated that a full-time worker who completed a year or more in continuous service, shall obtain end-of-service gratuity upon the end of his/her service, calculated according to the basic salary. He/she will get wage of 21 days for each year of the first five years of service, and 30 days for each year ater the fith onwards.
The amendments also strengthened the controls for the employment of juveniles, the entitlements of the deceased worker, the requirements for occupational care and safety, and other controls that guarantee the rights of both parties to the labour relation in a balanced manner.