Federal Decree-Law No. (33) of 2021 On the Regulation of Labor Relations

 

Preamble

* Abrogating:

Federal Law No. (8) of 1980 dated 20/04/1980

 

We, Khalifa Bin Zayed Al Nahyan, President of the United Arab Emirates,

After perusal of:

the Constitution;

Federal Law No. (1) of 1972 Concerning the Jurisdiction of Ministries and the Powers of Ministers, and the amending laws thereof;

Federal Law No. (6) of 1973 On Entry and Residence of Foreigners, and the amending laws thereof;

Federal Law No. (8) of 1980 On the Regulation of Labor Relations, and the amending laws thereof;

Federal Law No. (3) of 1987 Promulgating the Penal Code, and the amending laws thereof;

Federal Law No. (10) of 1992 Promulgating Law of Evidence in Civil Transactions, and the amending laws thereof;

Federal Law No. (11) of 1992 Promulgating the Code of Civil Procedures, and the amending laws thereof;

Federal Law No. (35) of 1992 Promulgating the Criminal Procedural Law, and the amending laws thereof;

Federal Law No. (7) of 1999 Concerning Pension and Social Security, and the amending laws thereof;

Federal Law No. (29) of 2006 Concerning the Rights of People with Special Needs, and the amending laws thereof;

Federal Decree-Law No. (2) of 2015 On Combating Discrimination and Hatred, and the amending laws thereof;

Federal Law No. (13) of 2016 On Judicial Fees in Federal Courts;

Federal Law No. (14) of 2016 On Violations and Administrative Penalties in the Federal Government;

Federal Law No. (13) of 2020 On Public Health; and

Based on the proposals of the Minister of Human Resources & Emiratization, and the approval of the Cabinet,

Hereby promulgate the following Federal Decree-Law:

 

Article (1) Definitions

In implementing the provisions of this Decree-Law, the following terms and expressions shall have the meanings ascribed to each of them unless the context requires otherwise:

State: The United Arab Emirates.

Ministry: The Ministry of Human Resources and Emiratization.

Minister: The Minister of Human Resources and Emiratization.

Private Sector: All the companies, incorporations, establishments and any other entities which are fully owned by individuals or jointly owned with the federal or local governments, as well as all the companies and incorporations fully owned by the federal or local governments unless their constituting acts stipulate that they are governed by the provisions of other laws.

Establishment: Any economic, technical, industrial or commercial unit, or any other unit falling under the categories approved in the State and licensed by the competent authorities, where Workers are employed, aiming at producing or marketing goods or providing services.

Employer: Any natural or juridical person employing one or more Workers in return for a Wage.

Worker: Any natural person permitted by the Ministry to work for any of the Establishments licensed in the State, and under the supervision and management of the Employer.

Juvenile: Any person who has completed 15 years of age and below 18 years.

Work: Any human effort — whether intellectual, technical or physical — exerted in accordance with various work models.

Work Permit: A document issued by the Ministry, by which a natural person is permitted to work for a licensed Establishment.

Employment Contract: Any agreement concluded between the Employer and the Worker, whereby the latter undertakes to work for the Employer and under the management and supervision thereof, in return for a Wage payable to him by the Employer. Such a contract shall be in accordance with the contract templates specified by the Implementing Regulation of this Decree-Law.

Probation Period: The period that the Employer might stipulate in order to evaluate the Worker’s performance and to enable the Worker to understand his duties and get familiar with the workplace environment, and based on which the Employment Contract is continued or terminated pursuant to the provisions of this Decree-Law.

Notice Period: The notice period specified in the Employment Contract, and which is to be observed by both parties in case either of them intends to terminate the Employment Contract.

Basic Wage: The wage specified in the Employment Contract and paid to the Worker in return for his Work under the Employment Contract, whether on a monthly, weekly, daily, hourly or piecework basis. The Basic Wage shall exclude any other allowances or in-kind benefits.

Wage: The Basic Wage plus allowances, whether in cash or in kind, determined under the Employment Contract or under this Decree-Law. The Wage may include: any benefits in kind provided by the Employer to the Worker or their cash equivalent, if such benefits were determined as a part of the Wage stipulated in the Employment Contract or under the policies of the Establishment; or allowances given to the Worker in return for any efforts exerted, or for any risk that he might encounter during the performance of his Work or for any other reasons; or cost of living allowance, a percentage of sales or a percentage of profits paid to the Worker in return for his efforts in promotion or productions or collection.

Working Day: Any official working day as specified by the resolutions implementing this Decree-Law.

Workplace: The worksite agreed upon in the Employment Contract, or where the Worker performs the agreed duties and services for the Employer.

Continuous Service: An uninterrupted service for the same Employer or the legal successor thereof, from the service commencement date.

Day-Worker: Any Worker who is hired and paid by the day.

Work Injury: Any of the occupational diseases specified in the schedule issued by virtue of a Cabinet Resolution, or any other injury that arises during the Worker’s performance of his Work or as a result thereof. A Work Injury shall include any accident to be proven to have occurred to the Worker on his way to or back from his work, provided that the trip to or from the Workplace is made directly, without delay, default or diversion from the normal route.

Medical Authority: Any federal or local governmental authority responsible for healthcare affairs or any other private healthcare establishment that is licensed to provide healthcare services inside the State.

Worker’s Family: The spouse and sons and daughters.

Labor Disputes: Any dispute arising between the Employer and the Worker solely, the subject matter of which is related to this Decree-Law, its Implementing Regulation or the Resolutions issued in implementation thereof.

Collective Labor Disputes: Any dispute arising between an Employer and the Workers thereof, the subject matter of which is related to the common interest of all of the Workers or a group of them.

 

Article (2) - Objectives

This Decree-Law aims to:

1. Ensure efficiency in the labor market in the State and also to attract and retain the best future talents and skills for employment, as well as provide an attractive business environment for Employers; hence assist both parties to achieve the national development objectives of the State.

2. Regulate labor relations and determine the rights and obligations of both parties in such legal relationship in a balanced way.

3. Enhance the flexibility and sustainability of the labor market nationwide, by guaranteeing the protection of the parties of the work relationship, its development and the exceptional circumstances that might affect such relationship.

4. Support and enhance the skills of Workers in the Private Sector, in order to achieve the targeted efficiency and productivity of manpower in the State.

5. Provide protection to the parties of the labor relations and enable them to get their rights under this Decree-Law.

 

Article (3) - Scope of Application

1. The provisions of this Decree-Law apply to all Establishments, Employers, and Workers in the Private Sector inside the State.

2. The provisions of this Decree-Law shall not apply to the following categories:

a) Employees of the federal and local governmental entities;

b) Members of the armed forces, police and security; and

c) Domestic workers.

3. The Cabinet may, upon proposal of the Minister, exempt any category from all or certain provisions of this Decree-Law, and determine the relevant legislation applicable thereto.

 

Article (4) - Equality & Non-discrimination

1. All forms of discrimination based on race, color, sex, religion, national or social origin or disability that would scale down the possibilities of equal opportunity, prejudice equal access to or continuation of employment and enjoyment of rights are prohibited. Employers are also prohibited from discriminating between Workers in relation to the tasks of the same job.

2. Rules and procedures aiming to enhance the participation of the UAE nationals in the labor market shall not be deemed discriminating.

3. Without prejudice to the rights of the working women, stipulated by this Decree-Law, all the provisions regulating the employment of Workers shall apply to working women without discrimination.

4. Female Workers shall be given the same salary of male Workers if they are performing the same Work or performing another Work of equivalent value. In this regard, the Cabinet shall, based on the Minister’s proposal, issue a Resolution regarding the procedures, controls and criteria necessary for the assessment of Works of equivalent value.

 

Article (5) - Employment of Juveniles

1. It is prohibited to employ any person who has not completed 15 years of age.

2. For employing a Juvenile, it is conditional:

a) To obtain a written consent from his custodian/guardian;

b) To have a certificate issued by the Medical Authority proving his fitness for the required work;

c) That the actual working hours do not exceed six (6) hours per day during which one or more breaks of not less than 1 hour in total shall be granted. Such break(s) shall be determined to ensure that the Juvenile Worker does not work more than 4 consecutive hours;

d) That the Juvenile Worker does not work between 07:00 PM and 07:00 AM.

e) That the Juvenile Worker does not work in hazardous or onerous Works or in Works that, due to their nature, might inflict any harm on his health or safety or morals. In this regard, the Minister shall issue a Resolution, in liaison with the competent authorities, determining such hazardous and onerous Works.

f) That the Juvenile Worker does not work overtime or kept inside the Workplace beyond the official working hours or work during off-days or public holidays.

3. The Implementing Regulation of the Decree-Law shall determine the rules of employing Juveniles as well as the procedures to be observed by Employers and the Works which are prohibited in relation to Juveniles and the controls related to excluding certain entities, which aim to the occupational training and qualification of Juveniles, including charitable, educational and training organizations, from certain provisions of this Article.

 

Article (6) - Recruitment of Workers

1. No Work may be performed in the State and no Worker may be recruited or employed by any Employer without obtaining a Work Permit from the Ministry in accordance with the provisions of this Decree-Law and its Implementing Regulation.

2. The Implementing Regulation of this Decree-Law shall determine the conditions, controls and types of work permits as well as the procedure of issuance, renewal and cancelation thereof.

3. It is prohibited to practice the activity of recruitment or recruitment brokerage unless after obtaining a license from the Ministry for such purpose in accordance with the conditions and procedures set out by the Implementing Regulation of this Decree-Law.

4. The Employer is prohibited from charging the Worker, whether directly or indirectly, for the costs of his recruitment and employment.

5. The Minister shall, in liaison with the competent authorities, issue the Resolutions determining the types of Works which are prohibited for the Employers to recruit and hire Workers to perform.

 

Article (7) - Work Models

1. The models of Work to be contracted for shall be as follows:

a) Full-time Work, which means working for only one Employer for the entire daily working hours throughout the Working Days.

b) Part-time Work, which means working for one or more Employers for a specific number of working hours or Working Days.

c) Temporary Work, which means the kind of Work which is carried out within a specific period of time, or which involves a specific task and ends with its completion.

d) Flexible Work, which means the kind of Work which involves changing working hours or Working Days, depending on the Work volume or on the economic and operational circumstances of the Employer. The Worker may work for the Employer for flexible hours or days depending on the Work’s circumstances or requirements.

e) Any other model specified by the Implementing Regulation of this Decree-Law.

2. The Implementing Regulation of this Decree-Law shall determine the conditions and requirements of the Work models as well as the obligations of both Workers and the Employers depending on each Work model.

 

Article (8) - Employment Contract

1. The Employer shall conclude the Employment Contract with the Worker in accordance with the Work model agreed upon. The Employment Contract shall be made in two counterparts, one is to be kept by the Employer and the other is to be handed to the Worker. The Employment Contract shall be in the forms specified in the Implementing Regulation of this Decree-Law.

2. The Worker, or his representative, may prove the Employment Contract, the Wage and any of the rights to which he is entitled under this Decree-Law and its Implementing Regulation using all means of proof.

3. The Employment Contract shall be a term-limited contract whose term may not exceed three (3) years. Upon agreement between the two parties, the Employment Contract may be extended or renewed, one or more times, for a similar or a shorter period.

4. In case of extending or renewing the contract’s term, the new term(s) shall be deemed as extension(s) of the original term and shall be added to it when calculating the term of the Worker’s Continuous Service.

5. If the parties continue to perform the Employment Contract after the expiration of its original term or after the completion of the agreed Work without any explicit agreement, the original contract shall be deemed as implicitly extended with the same terms and conditions.

6. Subject to Clause (3) of this Article, the Implementing Regulation of this Decree-Law shall specify the templates of Employment Contracts in accordance with the approved skill levels as well as the provisions related to changing the work model and registration of the same with the Ministry.

 

Article (9) - Probation Period

1. The Employer may hire the Worker on probation for a period not exceeding six (6) months starting from the commencement date. The Employer may terminate the Worker’s employment during that period upon serving a 14-day written notice, at least, prior to the termination date.

2. The Employer may not hire the same Worker on probation for more than one time. If the Worker successfully completes the Probation Period and continues his Work, the Employment Contract becomes valid in accordance with the terms and conditions agreed upon. In such case, the Probation Period shall be deemed as part of the service period.

3. In case the Worker wishes to join another Employer inside the State during the Probation Period then he has to serve a 30-day notice, at least, on his current Employer prior to the desired date of termination. In such case, the new Employer shall undertake to compensate the current Employer for the costs of recruiting the Worker unless otherwise agreed.

4. In case the expatriate Worker wishes to terminate the Employment Contract during the probation period then he must serve a 14-day notice, at least, prior to the desired date of terminating the contract. In case the Worker desires to return to the State and to obtain a new Work Permit within three (3) months from the date of departure, then the new Employer shall be responsible for paying the compensation stipulated in Clause (3) of this Article, unless the Worker and the original Employer have agreed otherwise.

5. If either party terminates the Employment Contract without observing the provisions of this Article, then such party shall be responsible for paying to the other party a compensation equal to the Worker’s Wage due for the Notice Period or for the remainder thereof.

6. In case the expatriate Worker leaves the State without observing the provisions of this Article, then he may not be granted a Work Permit for a period of one (1) year from the date of his departure.

7. The Ministry may exclude certain job categories, skill levels or manpower from the non-granting-of-work-permit provisions stipulated in Clauses (4) and (6) of this Article in accordance with the controls and procedures set out in the Implementing Regulation of this Decree-Law.

 

Article (10) - Non-compete Clause

1. In case the Work assigned to the Worker allows him to have access to the clients or trade secrets of his Employer, then latter may stipulate in the Employment Contract that the Worker shall abstain, after the expiration of the Contract, from competing with the Employer or from joining any competing project in the same sector. Such non-compete clause shall be specific in terms of the time and place and type of Work to the extent necessary to protect the lawful interests of the Employer. The term of such non-compete clause may not exceed two (2) years from the expiration date of the Employment Contract.

2. The non-compete clause shall become void in case the Employer terminates the Employment Contract in violation of the provisions of this Decree-Law.

3. The lawsuit filed by the Employer claiming the Worker’s violation of the provisions of this Article may not be heard in case such lawsuit was filed after the lapse of a period of one (1) year from the date of discovering such violation.

4. The Implementing Regulation of this Decree-Law shall determine the provisions regulating this Article as well as the skill levels and jobs that may be exempted from the provisions of Clause (1) of this Article in accordance with the conditions and controls to be set out by the Implementing Regulation.

 

Article (11) - Outsourcing some parts of the Work

The Employer may outsource some of the original Works, or any part of them, to another Employer. In such case the other Employer shall be solely responsible for all entitlements of his Workers who perform such Works which are accrued pursuant to the provisions of this Decree-Law unless the parties agree otherwise.

 

Article (12) - Assigning different Work to the Worker

1. The Employer may not assign to the Worker any Work that substantively differs from the Work agreed upon unless it was necessary or unless it was for the purpose of avoiding any accident or to rectify the results thereof, and in that case such assignment must be temporary and in accordance with the provisions of the Implementing Regulation of this Decree-Law.

2. In circumstances other than those referred to in Clause (1) of this Article, the Employer may assign a different Work to the Worker other than the Work agreed upon in the Employment Contract, provided that the Worker issues a written consent in this regard.

3. In case the Worker was required to perform Works that differ from the Work agreed upon within the Employment Contract or to change his place of residence, then the Employer shall bear the relevant costs including relocation and accommodation costs.

 

Article (13) - Obligations of Employer

The Employer is under obligation to:

1. Maintain the records and registers of the Workers in accordance with the conditions, controls and procedures regarding which a Resolution shall be issued by the Ministry. The Employer shall maintain the records of each Worker for a minimum period of two (2) years from the date of end of service.

2. Refrain from withholding the Worker’s official documents or to force the Worker to leave the State in case the employment relation came to an end.

3. Put in place bylaws for regulating the Work such as work regulations, regulations of sanctions, promotions and bonuses and other regulations and bylaws in accordance with the controls set by the Implementing Regulation of this Decree-Law.

4. Provide the Worker with suitable accommodation licensed by the relevant authorities in accordance with the rules, conditions and criteria applicable inside the State; otherwise, pay the Worker a cash allowance for the accommodation or to include such allowance in the Worker’s Wage.

5. Invest in developing the Workers’ skills and provide the minimum training, qualification and empowerment tools and programs in accordance with this Decree-Law and its Implementing Regulation.

6. Provide necessary safety means to protect the Workers from the risks of Work Injuries or occupational diseases that might occur during the Work and ensure providing guidance and awareness regulations as well as providing proper training to avoid such risks. The Employer shall also perform regular assessment to ensure that all parties are in compliance with the requirements of safety and security on both occupational and health levels in accordance with this Decree-Law and its Implementing Regulation as well as the other regulations applicable in this regard.

7. Take the necessary measures to ensure the Workers’ awareness of his entire rights and obligations at work in accordance with the tools and methods suitable for the nature of their Work.

8. Bear the Workers’ healthcare costs in accordance with the laws applicable inside the State.

9. Bear the costs of insurances, subscriptions and social security stipulated by the applicable laws.

10. Refrain from allowing the Worker to work for another Employer unless in accordance with the provisions of this Decree-Law.

11. Upon the expiration of the Employment Contract, grant the Worker, upon request, a certificate of experience free of charge. Such certificate shall state the date of joining, the end of service date, the total term of service, the job title, the type of work performed by the Worker, the last Wage received by the Worker and the reason for ending the Employment Contract. The said certificate may not contain any statements that might defame the Worker or diminish his chances in finding other job opportunities.

12. Bear the costs of repatriating the Worker to his homeland or to any other place the parties have agreed on unless the Worker has joined another Employer or unless the termination of the Employment Contract was due to a reason attributable to the Worker, in which case the latter shall bear such costs.

13. Provide a safe and appropriate working environment.

14. Any other obligations stipulated under this Decree-Law, its Implementing Regulation, any Cabinet Resolutions or any other laws applicable inside the State.

 

Article (14) - Prohibition of forced labor and other prohibitions

1. The Employer may not use any method to coerce or force the Worker to work against his own will or to threaten to impose any sanction on the Worker to force the latter to perform certain work or service against his own will.

2. It is prohibited for the Employer, the Worker’s managers or colleagues to sexually harass the Worker or to bully him /her orally or physically or psychologically.

 

Article (15) - Entitlements of Worker upon death

1. In case of the Worker’s death, the Employer shall hand to the Worker's Family any Wages or other monetary dues in addition to the end of service gratuity payable to the Worker under this Decree-Law and its Implementing Regulation, within a period not exceeding ten (10) days from the date of death or from the date on which the Employer became aware of such death.

2. Subject to the provisions of Clause (1) of this Article, the Worker may specify, in writing, the family member to be authorised to receive his dues in case of his death.

3. The Employer shall bear all the costs for sending the Worker’s body back to his homeland or to his place of residence if the Worker’s Family so requires.

4. The Ministry shall, in coordination with the relevant authorities, set a mechanism to retain the Worker’s dues in cases where the Worker dies, and it was not possible to hand his dues to his family or to the beneficiaries.

 

Article (16) - Obligations of Worker

The Worker is under obligation to:

1. Perform his Work personally and in accordance with the Employer’s directions and under the supervision of the Employer or his representative and in accordance with the provisions of the Employment Contract. The Worker shall refrain from outsourcing his work to any other Worker or person.

2. Observe good conduct and behavior during the Work and to perform his Work with honesty and integrity.

3. Protect the work and production tools in his custody and maintain the same through taking the necessary procedures for keeping them in their designated places.

4. Keep confidential all the information and data to which he has access due to his Work and to refrain from disclosing any of the trade secrets and to return anything in his custody to the Employer upon the end of his service.

5. Refrain from personally keeping the originals of any documents, whether hardcopies or softcopies, related to the trade secrets without a permission from the Employer or his representative.

6. Observe the health and safety instructions applicable inside the Establishment in accordance with applicable laws or in accordance with the work regulations and instructions.

7. Work during the official Working Days and working hours specified in the Employment Contract and to effectively communicate and respond in order to efficiently accomplish the required Work.

8. Work diligently to sharpen his occupational skills and improve his performance of the Works delivered to the Employer.

9. Refrain from working for other Employers in violation of the provisions of this Decree-Law and the other laws applicable in this regard.

10. Evacuate the accommodation provided to him by the Employer by no later than thirty (30) days from the end of his service date. However, the Worker may stay in his accommodation beyond the aforementioned period in case the Employer approves the same provided that the Worker shall bear the costs of staying or in case it was agreed on the same in writing between the Employer and the Worker.

11. Any other obligations stipulated under this Decree-Law, its Implementing Regulation, or any other laws applicable inside the State.

 

Article (17) - Working hours

1. The maximum number of normal working hours shall be eight (8) hours in one day or forty-eight (48) hours in one week.

2. The Cabinet may, based on the Minister’s proposal and in liaison with the relevant authorities, increase or decrease the daily working hours for certain sectors or certain categories of Workers as well as specify the work timings and breaks and the hours during which working shall be prohibited for certain categories of Workers in accordance with the manpower classification to be set out in the Implementing Regulation of this Decree-Law.

3. The time spent by the Worker in commuting between his accommodation and Workplace shall not be included in calculating the working hours except for certain categories of Workers and in accordance with the controls to be set out by the Implementing Regulation of this Decree-Law.

4. The Implementing Regulation of this Decree-Law shall set out the working hours during the holy month of Ramadan.

5. In case the Worker was not working on full-time basis, the original Employer, or any other Employer for whom the Worker is working in accordance with the provisions of this Decree-Law, may not request the Worker to work beyond the official hours agreed upon in the Employment Contract unless the Worker issues a written consent in this regard.

6. In case the Worker desires to work remotely, whether from inside or outside the State, and the Employer approves so, then the Employer may determine certain working hours.

 

Article (18) - Consecutive Working Hours

The Worker may not work for more than five (5) consecutive hours without one or more breaks the total duration of which may not be less than one (1) hour. Such break(s) shall not be included in calculating the working hours. The working hours and break times shall be regulated in accordance with the manpower classification set out in the Implementing Regulation of this Decree-Law in relation to Establishments working on shifts basis and in relation to certain job categories depending on their nature, such as field jobs.

 

Article (19) - Overtime Hours

1. The Employer may request the Worker to work overtime beyond the regular working hours provided that such overtime may not exceed a total of two (2) hours per day except in accordance with the controls set out in the Implementing Regulation of this Decree-Law. In all cases, the total working hours may not exceed one hundred forty-four (144) hours every three (3) weeks.

2. If the work requirements necessitate the Worker to work beyond the regular working hours, then such excess shall be deemed as overtime for which the Worker shall be entitled to receive payment in the same rate of the regular working hours (to be calculated based on the Basic Wage in addition to 25% of such Basic Wage at least).

3. If the work requirements necessitate the Worker to work overtime between 10:00 PM and 04:00 AM, then the Worker shall be entitled to receive payment in the same rate of the regular working hours (to be calculated based on the Basic Wage in addition to 50% of such Basic Wage at least).

4. If the work requirements necessitate the Worker to work on his day off specified in the Employment Contract or in the work bylaws/regulations, then the Worker shall be entitled to avail a day off in lieu of such day or to receive payment in the same rate of the regular working days (to be calculated based on the Basic Wage in addition to 50% of such Basic Wage at least).

5. It is prohibited to make the Worker work during two (2) consecutive off-days except in case of Day-Workers.

 

Article (20) - Exempted Workers’ Categories

The Implementing Regulation of this Decree-Law shall specify the categories of Workers which may be exempted from the provisions related to working hours in this Decree-Law.

 

Article (21) - Weekly Rest

The Worker shall be granted a weekly paid rest of not less than one (1) day in accordance with the Employment Contract or the work regulations/bylaws. The Cabinet may, by virtue of a Resolution, increase the weekly rest stipulated in this Article.

 

Article (22) - Determining the Wage’s value or kind and its payment

1. The Wage’s value or kind shall be specified within the Employment Contract; failing which, the competent Court shall determine the same being a Labor Dispute.

2. The Employer shall pay the Workers’ Wages on their due dates in accordance with the regulations adopted by the Ministry and in accordance with the conditions, controls and procedures set out in the Implementing Regulation of this Decree-Law.

3. Wages shall be paid in UAE Dirhams or in another currency if the parties agree on the same within the Employment Contract.

 

Article (23) - Calculating the Wages of Workers working on Piecework Basis

Regarding any matter related to Wages, the daily Wage of Workers working on piecework basis shall be calculated based on the average Wage received by the Worker against the actual working days during the six (6) months preceding the date of claim or the lawsuit.

 

Article (24) - Transferring a Monthly-Paid Worker to other Categories

A monthly-paid Worker may be transferred to Day-Workers category or to the weekly-paid Workers’ category or to piecework Workers’ category in case the Worker consents to the same in writing and without prejudice to the rights that have accrued to his benefit during the period he spent working as a monthly-paid Worker.

 

Article (25) - Deductions from the Worker’s Wage

1. The Worker’s Wage may not be deducted from except in the following cases:

a) Recovery of loan amounts given to the Worker provided that the maximum limit of monthly deduction stipulated in this Article shall be observed and the Worker shall approve the same in writing and the deduction shall be free of any interest;

b) Recovery of any amounts paid to the Worker in excess of his dues provided that the deducted amount may not exceed 20% of his Wage;

c) The amounts deducted against the subscription to retirement pensions and social security in accordance with the laws applicable inside the State;

d) The Worker’s subscription to the Establishment’s savings fund or the loans payable to the fund, as approved by the Ministry;

e) Installments of any social scheme or benefits or other services offered by the Employer as approved by the Ministry provided that the Worker approves the same in writing;

f) Amounts deducted from the Worker against the violations perpetrated by him in accordance with the list of sanctions applicable at the Establishment and approved by the Ministry provided that such deduction may not exceed 5% of his Wage;

g) Debts due for settlement by virtue of a Court judgment provided that such deduction may not exceed 25% of his Wage. In case of several debts, the amounts due for payment shall be distributed in accordance with the order of priority;

h) Amounts necessary for rectifying any damage caused by the Worker as a result of his default or breach of the Employer’s instructions and which resulted in damaging, destroying or losing the tools, machinery, products or materials owned by the Employer provided that the total deduction may not exceed the Wage of five (5) Working Days per month. Greater amounts may not be deducted unless upon the approval of the competent Court.

2. If the reasons entailing such deductions are numerous then the total deductions may not exceed 50% of the Workers’ Wage.

 

Article (26) - Enabling the Worker to perform his Work

1. The Wage shall be paid in return for the Work performed. The Employer shall undertake to enable the Worker to perform his Work; otherwise, he shall be under obligation to pay the Worker’s Wage agreed upon.

2. The Implementing Regulation of this Decree-Law shall determine the procedures of leaving the job in case the Employer abstain from enabling the Worker to perform the Work agreed upon in the Employment Contract.

 

Article (27) - Minimum Wages

The Cabinet may, based on the Minister’s proposal and in liaison with the relevant authorities, issue a Resolution specifying the minimum Wages of Workers or of any category thereof.

 

Article (28) - Public holidays and working during them

1. The Worker is entitled to a fully paid leave during the public holidays announced by virtue of a Cabinet Resolution.

2. If the work requirements necessitate the Worker to work during any of those public holidays, then the Employer shall compensate the Worker by granting him a day off in lieu of each day he worked during such public holiday or to make payment to the Worker against such day(s) in the same rate of the regular Working Days (to be calculated based on the Basic wage in addition to 50% of such Basic Wage at least).

 

Article (29) - Annual Leave

1. Without prejudice to the Worker’s rights that have accrued to his benefit prior to the date this Decree-Law takes effect, the Worker shall be entitled to a fully paid annual leave that is not less than:

a) Thirty (30) days for each year of his extended service;

b) Two (2) days for each month in case the term of his service was more than six (6) months and less than one (1) year;

c) Leave against the parts of the last year of work in case his service ended prior to availing his annual leave balance.

2. A part-time Worker shall be entitled to annual leave in accordance with the actual number of working hours spent at Work. The period of such leave shall be specified in the Employment Contract and in accordance with the Implementing Regulation of this Decree-Law.

3. The Employer may approve giving the Worker annual leave from his annual leave balance during the Probation Period. In such case, the Worker reserves his right in compensation against the remainder of his annual leave balance in case he does not successfully complete the Probation Period.

4. The Worker must avail his annual leave balance during the same year of entitlement. The Employer may determine the dates of such leave days in accordance with the work requirements and in accord with the Worker. The Employer may also grant the leave days alternately between the Workers in order to ensure an uninterrupted workflow. The Employer shall serve a 30-day prior notice, at least, on the Worker regarding the date of his annual leave.

5. Upon the Employer’s approval and in accordance with the regulations applicable within the Establishment, the Worker may carry his annual leave balance, in full or in part, forward to the following year.

6. The Worker is entitled to his Wage during the annual leave days.

7. The annual leave balance shall include the holidays stipulated by the law or by agreement in case such holidays fall during the period of the paid leave being availed by the Worker and shall be deemed as part of his paid leave period unless the Employment Contract or the regulations applicable within the Establishment contain provisions which are more favorable to the Worker.

8. The Employer may not prevent the Worker from availing his annual leave balance accrued for more than two (2) years unless the Worker desires to carry them forward or to receive cash payment against such annual leave balance in accordance with the regulations applicable within the Establishment as well as the Implementing Regulation of this Decree-Law.

9. The Worker shall be entitled to receive payment against the unused annual leave days in case he leaves work before availing them regardless of the number of those unused leave days. The Worker shall also be entitled to receive pro rata payment against the parts of the year he spent working for his Employer without availing the relevant leave days. Such payment shall be calculated based on the Basic Wage.

10. The Implementing Regulation of this Decree-Law shall specify the rules and conditions regulating annual leaves and the compensations to which the Worker is entitled in this regard.

 

Article (30) - Maternity Leave

1. A female Worker is entitled to a 60-day Maternity Leave according to the following:

a) The first forty-five (45) days shall be fully paid;

b) The following fifteen (15) days shall be half paid.

2. After availing the prescribed Maternity Leave, the female Worker may go on an unpaid leave for a period not exceeding forty-five (45) days, whether consecutive or inconsecutive, in case she was suffering from a disease resulting from pregnancy or delivery or in case her infant was suffering from a disease resulting from pregnancy or delivery and she cannot go back to work. Such disease shall be established by virtue of a medical report/certificate issued by the Medical Authority. Such period may not be considered when calculating the term against which the female Worker is entitled to her end of service gratuity or when calculating the term of subscription to the pension scheme in accordance with the laws applicable in this regard.

3. The female Worker shall be entitled to the Maternity Leave mentioned in Clause (1) of this Article in case she delivers after six (6) or more months of pregnancy whether the baby was delivered dead or delivered alive then died.

4. In case the female Worker delivers a sick baby, or a handicapped baby (one of the people of determination) and its health condition requires a permanent escort pursuant to a medical report/certificate issued by the Medical Authority, then the female Worker shall be entitled to a 30-day paid leave to commence after the end of her Maternity Leave and in such case, the female Worker shall also have the right to extend her leave for another 30 days but this time on unpaid basis.

5. The Employer shall grant a Maternity Leave to the female Worker at any time upon her request as from the last day of the month preceding the month during which the delivery is expected. The same shall be established by virtue of a report/certificate issued by the Medical Authority.

6. Availing the Maternity Leave by the female Worker or her absence from work for the other reason mentioned in this Article shall not prejudice her right to avail the other leave days.

7. If a female Worker works for another Employer during her authorised leave under this Article, the Employer shall have the right to deprive her from her Wage for the period of such leave or to recover any wages paid to her in this regard.

8. The Employer may not terminate a female Worker or address a warning to her for availing a Maternity Leave or for being absent from work in accordance with the provisions of this Article.

9. After returning to work from the Maternity Leave, the female Worker shall be entitled, for a period of no more than six (6) months from the date of delivery, to one or two breastfeeding breaks per day, the total duration of which shall not exceed one (1) hour.

 

Article (31) - Sick Leave

1. In case the Worker sustains an illness not caused by a Work Injury, he must notify the Employer of such illness by no later than three (3) working days and shall provide a medical report; issued by the Medical Authority; describing his case.

2. The Worker shall not be entitled to any paid sick leave during the Probation Period. However, the Employer may grant the Worker an unpaid sick leave based on a medical report issued by the Medical Authority stating the necessity for granting such sick leave.

3. Upon completion of the Probation Period, the Worker shall be entitled to a sick leave not exceeding ninety (90) days in total; whether consecutive or inconsecutive, against each year as follows:

a) The first fifteen (15) days shall be fully paid;

b) The following thirty (30) days shall be half paid;

c) Any sick leave days afterwards shall be unpaid.

4. The Worker shall not be entitled to the Wage during the sick leave should the illness directly arise from the ill behavior of the Worker. The Implementing Regulation of this Decree-Law shall specify the cases wherein the Worker shall not be entitled to his Wage in such event.

5. The Employer may terminate the service of the Worker after the exhaustion of the sick leaves prescribed in this Article in case he was not able to report back to his Work. In such case, the Worker shall be entitled to all his dues under this Decree-Law and its Implementing Regulation.

 

Article (32) - Miscellaneous Leaves

1. The Worker shall be entitled to a paid leave as follows:

a) Bereavement leave for five (5) days in case of the death of the spouse, and three (3) days in case of the death of a parent, child, sibling, grandchild or grandparent, starting from the date of death.

b) Paternity leave for five (5) Working Days, whether the father or the mother, who receives a newborn. Such leave is to be availed either consecutively or inconsecutively over a period of six (6) months from the date of birth of the newborn.

c) Any other leaves to be determined by the Cabinet.

2. A Worker who is an affiliate student or a full-time student at an accredited educational institution inside the State may be granted study leave for ten (10) Working Days per year for the purpose of taking the examinations, provided that he has completed at least two (2) years of service with his Employer.

3. An Emirati Worker shall be entitled to a paid sabbatical leave to perform the National or Reserve Service, pursuant to the laws applicable in the State.

4. For availing leaves referred to in this Article, proof, issued by the relevant authorities, must be presented.

5. The Implementing Regulation of this Decree-Law shall set out the provisions related to granting and regulating the leaves referred to in this Article.

 

Article (33) - Unpaid Leave

1. Upon the Employer’s consent, the Worker may take unpaid leave, other than those referred to in this Article.

2. Such leave(s) referred to in this Article shall not be considered when calculating the Worker’s term of service or when calculating the term of subscription to the pension scheme in accordance with the laws applicable in this regard.

 

Article (34) - Failing to report to work after a leave

A Worker who fails to report to his work after the end of his leave without a legitimate reason shall not be entitled to his Wage against the period of his absence after the end of his leave.

 

Article (35) - Commencement of the Notice Period in case of terminating the Contract during the Leave

If either party wishes to terminate the Employment Contract, in accordance with the provisions of this Decree-Law and its Implementing Regulation, during the leave period, then the Notice Period agreed upon in the Employment Contract shall only commence on the day following the date on which the Worker returns from his leave, unless the parties agreed otherwise.

 

Article (36) - Occupational health and safety

Establishments shall adhere to the provisions of Federal Law No. (13) of 2020 on Public Health and all the resolutions issued for the implementation thereof as well as any other laws issued in this regard. The Implementing Regulation of this Decree-Law shall determine the role of the Ministry in this regard as well as the provisions related to the Workers’ safety, protection and healthcare.

 

Article (37) - Compensation for work injuries and occupational diseases

1. The Cabinet shall, based on the Minister’s proposal and in liaison with the relevant authorities, issue a Resolution specifying the Work Injuries, the occupational diseases, the conditions and procedures to be followed in the event of occurrence of any of those injuries or diseases, the Employer’s relevant obligations and the amount of compensation payable to the Worker in case of permanent total disability or permanent partial disability as well as the compensation amount payable to his Family in case of the Worker’s death and the rules of distributing such compensation amount and the amounts of such distributions.

2. In case a Worker sustains a Work Injury or an occupational disease, then the Employer shall be under obligation to:

a) Bear the Worker’s treatment costs until he recovers and becomes able to return to his duty or proves his disability, in accordance with the conditions, controls and procedures set out by the Implementing Regulations of this Decree-Law.

b) In case the Work Injury or the occupational disease prevents him from performing his Work, then the Employer shall be under obligation to pay the Worker his full Wage for the period of treatment or for a period of six (6) months, whichever is the lesser. If the treatment period exceeds six (6) months, the Worker shall be paid half of his Wage for another six (6) months or until he recovers, proves his disability or dies, whichever is earlier.

3. If the Worker dies as a result of a Work Injury or an occupational disease, then his family shall be entitled to a compensation equivalent to the Worker’s Basic Wage for twenty-four (24) months, and the compensation amount may not be less than AED 18,000 (Eighteen Thousand Dirhams) or in excess of AED 200,000 (Two Hundred Thousand Dirhams). The compensation amount shall be calculated on the basis of the Basic Wage that the Worker was receiving before his death and shall be distributed to his beneficiaries as specified by the Implementing Regulation of this Decree-Law. The rights of the deceased Worker’s Family in his end of service gratuity, and any other monetary dues shall be reserved.

 

Article (38) - Cases wherein the Worker is not entitled to Work Injury compensation

A Worker shall not be entitled to a compensation against a Work Injury, if the investigations conducted by the competent authorities prove that any of the following events occurred:

1. Deliberate self-injury;

2. That the injury occurred under the influence of alcohol, drugs or other psychotropic substances;

3. That the injury is a direct consequence of a deliberate violation of the precautionary instructions affixed in conspicuous places at the Workplace, as specified by the Implementing Regulation of this Decree-Law.

4. That the injury is a direct consequence of the Worker’s deliberate misconduct.

5. That the Worker refused, without legitimate reason, to undergo a checkup or to follow the treatment plan determined by the Medical Authority.

 

Article (39) - Disciplinary Sanctions

1. The Employer, or his representative, may impose any of the following sanctions on any Worker who violates the provisions of this Decree-Law, its Implementing Regulation and the resolutions issued in implementation thereof:

a) Serving a non-disciplinary written notice (letter of reprimand);

b) Serving a written warning letter;

c) Deducting no more than five (5) days per month from his Wage;

d) Suspension from work for a period not exceeding fourteen (14) days along with deducting the Wage of those days of suspension;

e) Depriving the Worker from the periodic increments for a maximum period of one (1) year for those Establishments having periodic increment scheme, in case the Worker was entitled to such periodic increments pursuant to the terms of his Employment Contract or pursuant to the Establishment’s bylaws;

f) Depriving the Worker from getting promoted for a maximum of (2) two years, for those Establishments having a promotion scheme;

g) Dismissing the Worker while reserving his right in getting the end of service gratuity.

2. The Implementing Regulation of this Decree-Law shall determine the necessary conditions, controls and procedures for imposing any of the sanctions referred to in Clause (1) above, and the relevant mechanism for appealing against such sanctions.

 

Article (40) - Temporary suspension from Work

1. The Employer may temporarily suspend the Worker from Work on half pay for no more than thirty (30) days, to conduct a disciplinary investigation if the investigations procedures so require. In case the investigation was shelved, or concluded that the violation was not established or in case the Worker was sanctioned by a warning letter, then the Worker shall be entitled to his Wage for the suspension period.

2. The Employer may temporarily suspend the Worker from work if he is accused of an offence against the person (life), property, honour or honesty, pending a final decision by the competent judicial authority, and his pay shall be suspended during such suspension period. In the event that a decision is issued concluding that the Worker is not to be brought to trial, or if the Worker is acquitted for non-commission of a felony or in case the investigation is shelved due to insufficient evidence, then the Worker shall be returned to his duty and all his suspended Wages shall be paid to him.

 

Article (41) - Certain controls of imposing Disciplinary Sanctions

1. Disciplinary sanctions may not be imposed on the Worker for any of the acts committed outside the Workplace, unless such act(s) is/are related to his Work.

2. Only one disciplinary sanction may be imposed against each single violation, in accordance with the provisions of Article (39) hereof.

 

Article (42) - Cases wherein the Employment Contract comes to an end

The Employment Contract shall come to an end in any of the following cases:

1. In case the parties thereof agree, in writing, to terminate it;

2. In case of the expiration of the contract’s term, unless it was extended or renewed pursuant to the provisions of this Decree-Law;

3. Upon the desire of either party, subject to the provisions of this Decree-Law related to the termination of Employment Contract and subject to the Notice Period agreed upon in the contract;

4. In case of the Employer’s death unless the subject matter of the contract is attached to the Employer’s person;

5. In case of the Worker’s death or permanent total disability, as evidenced by a certificate issued by the Medical Authority in this regard;

6. In case the Worker is sentenced to a custodial sentence, by virtue of a final judgment, for a term of not less than three (3) months;

7. In case of the permanent closure of the Establishment, pursuant to the laws applicable in the State;

8. In case the Employer becomes bankrupt, insolvent or unable to continue conducting his business for any economical or extraordinary reasons, in accordance with the conditions, controls and procedures set by the Implementing Regulations of this Decree-Law and the laws applicable in the State;

9. In case the Worker does not satisfy the Work Permit renewal requirements for any reason that is beyond the Employer’ s control.

 

Article (43) - Employment Contract’s Termination Notice

1. Either party to an Employment Contract may terminate it based on any legitimate reason, upon serving a written notice on the other Party. The Worker shall continue perform his duties during the Notice Period agreed upon in the contract, provided that the Notice Period shall not be less than thirty (30) days and not exceeding ninety (90) days.

2. The Employment Contract shall remain valid during the Notice Period referred to herein and shall expire upon the expiration of the Notice Period. The Worker shall be entitled to his full Wage for the Notice Period based on the latest Wage he was receiving and shall perform his Work during the Notice Period if the Employer requested him to do so. The parties may agree to waive the notice period clause or to decrease its term, in which case all the Worker’s dues, to which he is entitled against the Notice Period agreed upon in the Employment Contract, shall be reserved. The Notice Period shall be equal for both Parties unless it was more favorable to the Worker.

3. The party failing to comply with the Notice Period provisions shall pay a “Compensation in lieu of Notice” to the other, even if there was no harm resulting from such failure. The compensation shall be equal to the Worker’s Wage for the entire Notice Period, or the remainder thereof.

4. The payment against the Notice Period shall be calculated based on the latest Wage that the Worker was receiving (for Workers who are paid on monthly, weekly, daily or hourly basis) and based on the average daily Wage referred to in this Decree-Law in relation to Workers who work on piecework basis.

5. In case the Employment Contract was terminated by the Employer, then the Worker shall have the right to absent from work during the Notice Period for one working day per week without pay, to search for another job. The Worker may specify such day of absence provided that he serves the Employer with a 3-day prior notice, at least, regarding each day of absence.

 

Article (44) - Cases of Worker’s dismissal without Notice

The Employer may dismiss the Worker without prior notice, after conducting a written investigation with him. The dismissal decision shall be in writing and reasoned, and shall be handed by the Employer, or his representative, to the Worker in any of the following cases:

1. In case the Worker assumed a false identity or submitted forged certificates or documents.

2. In case the Worker commits an error that results in a gross material loss to the Employer, or purposely damages the Employer’s property along with admitting the same, provided that the Employer notifies the Ministry of such incident within seven (7) working days from becoming aware of the occurrence thereof.

3. In case the Worker violates the Establishment’s bylaws related to the Work safety, Workers’ safety or the safety of the Workplace, provided that such safety instructions are in writing and affixed in conspicuous places, and that the Worker is made aware of the same.

4. In case the Worker fails to perform his main duties as set out in the Employment Contract, and such failure continued despite conducting a written investigation with him for such reason and after being served with two warnings of dismissal in case such failure is repeated.

5. In case the Worker discloses any of the trade secrets related to the industrial or intellectual property and such disclosure resulted in losses to the Employer, loss of opportunity or in case the Worker achieved a personal benefit therefrom.

6. In case the Worker is found in a state of drunkenness or under the influence of a narcotic or psychotropic substance or commits any act of moral turpitude at the Workplace during the working hours.

7. In case the Worker commits a verbal or physical assault or any other form of assault, that is punishable under the laws applicable inside the State, against the Employer, the manager-in-charge, any of his supervisors or co-workers.

8. In case the Worker absents himself from Work for more than twenty (20) inconsecutive days in one year, or for more than seven (7) consecutive days without a legitimate reason or a justification that is acceptable to the Employer.

9. In case the Worker misuses his position for private gain.

10. In case the Worker joins another Establishment without complying with the controls and procedures prescribed in this respect.

 

Article (45) - Leaving Work without Notice

The Worker may walk out of his Work without notice while reserving all his rights and dues at the end of his service in any of the following cases:

1. In case the Employer breaches any of his obligations under the Employment Contract or under this Decree-Law or the Resolutions issued in implementation thereof, provided that the Worker serves the Ministry with a 14-working day notice before the date of leaving the Work, and provided that the Employer fails to rectify such breach despite being notified by the Ministry to do so.

2. In case it is established that the Worker was subjected to assault, violence or harassment at the Workplace by the Employer or by his legal representative, provided that the Worker reports such act(s) to the relevant authorities as well as to the Ministry within five (5) working days from the date of becoming able to report the same.

3. In case there is a serious risk that threatens the Worker’s safety or health inside the Workplace, provided that the Employer is made aware thereof, and fails to take the necessary actions to eliminate such risk. The Implementing Regulation of this Decree-Law shall determine the controls related to serious risks.

4. In case the Employer requests the Worker to perform some Work that substantially differs from the Work agreed upon in the Employment Contract, without obtaining the Worker’s written consent to the same, except in cases of necessity as set out in Article (12) of this Decree-Law.

 

Article (46) - Termination of Employment on grounds of medical incapacity

The Employer may not terminate the Worker’s service on grounds of medical incapacity unless after all the leaves prescribed by the law have been exhausted by the Worker. Any agreement to the contrary shall be void even if it was concluded prior to the date on which this Decree-Law takes effect.

 

Article (47) - Unlawful Termination

1. The Employer’s termination of the Worker’s service shall be deemed unlawful in case such termination was due to a serious complaint submitted by the Worker to the Ministry or due to filing a lawsuit against the Employer and such lawsuit was proven to be valid.

2. In case it is proven that the Employer’s termination of the Worker’s service is unlawful pursuant to the provisions of Clause (1) of this Article, then the Employer shall be obligated to pay to the Worker a compensation to be determined by the competent Court. The compensation value shall be determined based on the type of work, the volume of damage sustained by the Worker and the term of his service. In all cases, the compensation amount may not be in excess of the Wage of three (3) months and shall be calculated based on the latest Wage that the Worker was receiving.

3. The provisions of Clause (2) of this Article may not prejudice the Worker’s right in receiving the compensation in lieu of notice and the end of service gratuity in accordance with the provisions of this Decree-Law.

 

Article (48) - Continuity of Employment Contracts

Employment Contracts which are valid at the time of changing the legal form or position of the Establishment shall continue to be valid, and the new Employer shall adhere to the terms of such Employment Contracts as well as to the provisions of this Decree-Law, its Implementing Regulation and the Resolutions issued in implementation thereof, starting from the date of amendment of the Establishment's details with the competent authorities.

 

Article (49) - Joining a new Employer after expiration of the Employment Contract

In case the Employment Contract expires in accordance with the provisions of this Decree-Law, the Worker shall have the right to join another Employer in accordance with the conditions and procedures set out in the Implementing Regulation of this Decree-Law.

 

Article (50) - Unauthorised absence from Work

1. In case an expatriate Worker absents himself from Work without legitimate reason before the expiration of the Employment Contract’s term, then he shall not be granted another Work Permit to join another Employer inside the State, pursuant to the provisions of this Decree-Law, for a period of one (1) year from the date of being absent from Work. No other Employer, who becomes aware of such incident, may employ or retain him during such period.

2. The Ministry may exclude certain job categories, skill levels or Workers from the provisions of Clause (1) of this Article in accordance with the conditions and procedures set out in the Implementing Regulation of this Decree-Law.

3. The Employer must notify the Ministry of any incident of absence from Work in accordance with the procedures set out in the Implementing Regulation of this Decree-Law.

 

Article (51) - End of service gratuity for full-time Workers

1. A UAE-national Worker shall be entitled to an end of service gratuity at the end of his service pursuant to the State’s applicable laws regulating pensions and social security.

2. A full-time expatriate Worker who completes one or more years in Continuous Service shall be entitled to an end of service gratuity upon the end of his service. Such amount shall be calculated based on the Basic Wage according to the following:

a) Wage of twenty-one (21) Working Days against each of the first five years of service;

b) Wage of thirty (30) Working Days against each subsequent year of service.

3. The expatriate Worker shall also be entitled to receive a pro-rated end of service gratuity against the parts of the year he spent working for his Employer provided that he has completed one year of Continuous Service.

4. Unpaid days of absence from Work may not be included when calculating the term of service.

5. Without prejudice to the provisions of other laws regarding the pensions or retirement benefit given to Worker in certain Establishments, the end of service gratuity shall be calculated based on the latest Wage that the expatriate Worker was receiving (for Workers who are paid on monthly, weekly, or daily basis) and based on the average daily Wage referred to in this Decree-Law in relation to Workers who work on piecework basis.

6. The end of service gratuity of an expatriate Worker may not exceed, in aggregate, the Wage of two years.

7. The Employer may deduct from the Worker’s end of service gratuity, any amounts payable to the Employer by law or those amounts which are due by virtue of a Court judgment, in accordance with the conditions and procedures set out by the Implementing Regulation of this Decree-Law.

8. The Cabinet may, based on the Minister’s proposal and in liaison with the relevant authorities, set other schemes alternative to the end of service gratuity. The Resolution issued by the Cabinet in this regard shall set out the conditions, controls and mechanism of subscription to such alternative schemes.

 

Article (52) - End of Service Gratuity for Workers employed under other Work Models

The Implementing Regulation of this Decree-Law shall determine the mechanism regulating the end of service gratuity for non-full-time expatriate Workers in a manner that enhances the efficiency and attractiveness of labor market, and as the interests of the Employment Contract’s parties may require.

 

Article (53) - Payment of the Worker’s dues upon the Contract’s Expiration

The Employer shall, within fourteen (14) days after the expiration of the Employment Contract, pay the Worker all his Wage and other dues provided for in this Decree-Law, the Resolutions issued in implementation thereof, the Employment Contract or in the Establishment’s bylaws.

 

*This Article has been replaced with the text of Article (54) of the Federal Decree-Law No. (9) of 2024 Amending Some Provisions of Federal Decree-Law No. (33) of 2021 On the Regulation of Labor Relations

Article (54) - Individual Labor Disputes

1. In case a dispute arises between the Employer and the Worker, or any one of their beneficiaries, in connection with any rights accrued to either of them under the provisions of this Decree-Law, then the concerned party shall file an application to the Ministry, which shall examine such application and take the necessary action to amicably settle the dispute between them.

2. In case no amicable settlement could be reached within the time limit prescribed in the Implementing Regulation of this Decree-Law, the dispute shall be referred to the competent Court, and shall be accompanied with a memorandum containing a summary of the dispute, the parties’ arguments as well as the Ministry’s recommendations in this regard.

3. Individual Labor Disputes shall be treated as disputes between the relevant Establishment and Worker. Pending a settlement of the dispute in accordance with this Decree-Law and its Implementing Regulation, no sanctions may be imposed, nor any administrative measures may be taken against the Establishment which may cause harm to the other Workers of the Establishment or to the Employer. As an exception to the provisions of this Clause, the Ministry shall have the right, while the dispute is ongoing, to order the Employer to continue in paying the Worker’s Wage for a period of two (2) months at most in the event that the dispute has resulted in casing such payment. The provisions of the Implementing Regulation of this Decree-Law shall be observed in this regard.

4. By virtue of a Resolution from the Minister, other administrative measures or arrangements may be taken against the Establishment in order to avoid turning the current Individual Labor Dispute into a Collective Labor Dispute that might prejudice the public interest.

5. The competent Court shall, within three (3) days from the date of receiving the application, schedule a hearing for examining the lawsuit and notify the two parties of the date of such scheduled hearing and shall dispose of the matter on a summary basis.

6. The competent Court shall dismiss the lawsuit in case the procedures set out in Clause (1) of this Article have not been observed.

7. A lawsuit related to any of the rights accrued under the provisions of this Decree-Law shall become time-barred after the lapse of one (1) year from the date of entitlement to the right that is the subject matter of the lawsuit.

 

Article (55) - Exemption from Judicial Fees

1. Labor actions and applications filed by the Workers or their heirs, whose value does not exceed AED 100,000 (One Hundred Thousand Dirhams) shall be exempted from judicial fees throughout all stages of litigation and execution.

2. The Cabinet may, based on the Minister’s proposal, amend the value referred to in Clause (1) of this Article either by way of increase or decrease whenever necessary.

 

Article (56) - Collective Labor Disputes

1. In case a dispute arises between the Employer and all of the Workers, or any group of them, and no amicable settlement could be reached, then the Employer or the Workers shall file a complaint to the Ministry in accordance with the controls and procedures set out in the Implementing Regulation of this Decree-Law.

2. The Minister may take other administrative measures or arrangements against the Establishment in order to avoid any consequences of the current Collective Labor Dispute that might prejudice the public interest.

3. The Cabinet may, based on the Minister’s proposal, constitute one or more committees to be named (the “Collective Labor Disputes’ Committee”) for the purpose of examining Collective Labor Disputes that could not be settled amicably by the Ministry. The relevant Resolution shall determine such Committee’s constitution, functions, and the mechanism of issuance and enforcement of its decisions as well as the other provisions related to ensuring seamless functioning.

 

Article (57) - Labor Inspection

1. Employees of the Ministry who are authorised by virtue of a Resolution issued by of the Minister of Justice in agreement with the Minister, shall acquire the capacity of judicial officers in establishing any violation perpetrated in relation to the provisions of this Decree-Law, its Implementing Regulation and the Resolutions issued in implementation thereof and shall have the right to access the relevant Establishment, detect violations and issue the necessary reports in this regard.

2. The Implementing Regulation of this Decree-Law shall determine the procedures of labor inspection.

 

Penalties/Sanctions

Article (58)

Applying the penalties stipulated in the Decree-Law may not prejudice any severer penalties stipulated in any other law.

 

Article (59)

Shall be punishable by a fine of no less than AED 20,000 (Twenty Thousand Dirhams) and no more than AED 100,000 (One Hundred Thousand Dirhams), whoever:

1. Submits false information or document with the intent to recruit an expatriate to work inside the State.

2. Obstructs or prevents any of the judicial officers from the implementation of the provisions of this Decree-Law, its Implementing Regulation and the Resolutions issued in implementation thereof, or attempts to prevent such officer from performing his work whether by force, violence or by threatening them to use force or violence.

3. Discloses any trade secret (confidential information) to which he had access due to his Work as a public officer or as a judicial officer who was assigned to implement the provisions of this Decree-Law, its Implementing Regulation and the Resolutions issued in implementation thereof even if such disclosure occurs after such person leaves service.

 

*This Article has been replaced with the text of Article (60) of the Federal Decree-Law No. (9) of 2024 Amending Some Provisions of Federal Decree-Law No. (33) of 2021 On the Regulation of Labor Relations

Article (60)

Shall be punishable by a fine of no less than AED 50,000 (Fifty Thousand Dirhams) and no more than AED 200,000 (Two Hundred Thousand Dirhams), whoever:

1. Employs a Worker without obtaining a Work Permit for him.

2. Recruits or employs a Worker and leaves him without Work.

3. Closes an Establishment or ceases its activity without taking the necessary procedures for settling the Workers' dues, in violation of the provisions of this Decree-Law, its Implementing Regulation and the Resolutions issued in implementation thereof.

4. Employs a Juvenile in violation of the provisions of this Decree-Law.

5. Approves the employment of a Juvenile in violation of the provisions of this Decree-Law (this applies to the Juvenile’s guardian).

 

Article (61)

Shall be punishable by imprisonment for a period of no less than one (1) year and by a fine of no less than AED 200,000 (Two Hundred Thousand Dirhams) and no more than AED 1,000,000 (One Million Dirhams), or by either of them, whoever misuses the electronic authorisations/login credentials granted to him in relation to accessing the Ministry’s systems or who enables another person to access such system in a manner that results in any disruption to the labor procedures or relations.

 

Article (62)

The fine imposed on Employers under this Decree-Law shall be multiplied by the number of Workers in respect of whom the violation was perpetrated, subject to a maximum of AED 10,000,000 (Ten Million Dirhams).

 

Article (63)

Shall be punishable by a fine of no less than AED 5,000 (Five Thousand Dirhams) and no more than AED 1,000,000 (One Million Dirhams), whoever breaches any the provisions of this Decree-Law, its Implementing Regulation and the Resolutions issued in implementation thereof.

 

Article (64)

In case of repetition of any of the violations referred to in this Decree-Law, its Implementing Regulation and the Resolutions issued in implementation thereof, before the lapse of (1) one year from being convicted for a similar violation, the offender shall be punishable by imprisonment and by a fine which value shall be the double of the amount prescribed in this Decree-Law, or by either of those punishments.

 

Final Provisions

Article (65)

1. The Rights stipulated in this Decree-Law represent the minimum rights of Workers. The provisions of this Decree-Law shall not prejudice any of the rights prescribed for Workers under any other law, agreement, declaration, regulation or Employment Contract, which are more beneficial to the Workers than those stipulated in this Decree-Law.

2. Neither the Employer nor Worker is allowed to misapply the provisions of this Decree-Law, its Implementing Regulation and the Resolutions issued in implementation thereof, and neither of them is allowed to take any act which might restrict the other's freedom or the freedom of other Workers or Employers, with the intent of achieving any gain or to establish a point of view that is contrary to the freedom of work or contravenes the jurisdiction of the relevant authority which is entrusted with the mission of resolving the disputes.

3. Any provisions to the contrary of the provisions of this Decree-Law shall be deemed void even if it preceded its effective date, unless it is more beneficial to the Worker. Any discharge, conciliation or waiver of any of the Worker’s rights arising under this Decree-Law shall be deemed void to the extent that it conflicts with its provisions.

4. The Employer may set and apply organisational bylaws and schemes within the Establishment that would be beneficial to the Worker more than those prescribed in this Decree-Law and its Implementing Regulation. In the event of conflict between such schemes and bylaws and the provisions of this Decree-Law, then conditions which are more beneficial to the Worker shall apply.

5. The Employer may not revise the terms and conditions of the Employment Contract with the Worker that has been valid prior to the promulgation of this Decree-Law, with the intent of applying the provisions of this Decree-Law, unless such amendments were for the Worker’s own good and benefit. The Employment Contract may be updated after its expiration in accordance with the provisions of this Decree-Law.

6. Either the Employer or Worker may terminate the unlimited-term contract concluded before the effective date of this Decree-Law for a legitimate reason by serving the other party with a 30-day prior written notice in the event that the term of service was less than five (5) years, or a 60-day prior written notice the event that the term of service exceeded five (5) years, or a 90-day prior written notice, in the event that the term of service exceeded ten (10) years.

7. The amounts payable to the Worker, or the members of his Family, under the provisions of this Decree-Law shall take priority over all the Employer's amounts, and shall be paid immediately after the amounts payable to the public treasury and the legal alimony awarded to the wife and children have been paid.

 

Article (66) - Prevailing Language

1. Arabic shall be the language used in all records, files, data, forms and any other documents provided for in this Decree- Law, its Implementing Regulation and the Resolutions issued in implementation thereof.

2. The Employer is under obligation to use Arabic language in the contracts concluded with the Workers, as well as in issuing the instructions and circulars addressed to the Workers, together with another language that is understood by non-Arabic speakers. The Arabic and foreign texts must match, and in case of any discrepancies, the Arabic version shall prevail.

 

Article (67) - Calculation of Dates and Periods

Gregorian calendar shall be adopted in calculating the dates and periods of time stipulated in this Decree-Law. In the application of the provisions of this Decree-Law, a calendar year shall comprise three hundred sixty-five (365) days, and a calendar month shall comprise thirty (30) days.

 

Article (68) - Adjustment of Status

1. The provisions of this Decree-Law shall apply to unlimited-term Employment Contracts concluded under Federal Law No. (8) of 1980 referred to herein.

2. Employers shall, within (1) one year from the effective date of this Decree-Law, adjust their respective statuses and convert any unlimited-term Employment Contracts into limited-term Employment Contracts in accordance with the conditions, controls and procedures set out in this Decree-Law. Such grace period may be extended by the Minister for similar periods, as the public interest may require.

3. Subject to Clause (2) above, the Employer may calculate the end of service gratuity in accordance with the provisions of the unlimited-term Employment Contract stipulated in Federal Law No. (8) of 1980, referred to herein.

 

Article (69) - Appealing the Ministry's Decisions

The parties of labor relation may, in accordance with the procedures set out in the Implementing Regulation of this Decree-Law, appeal the decisions issued by the Ministry.

 

Article (70) - Cabinet’s Competences

For the purposes of this Decree-Law, the Cabinet shall have the following competences:

1. Adopting the conditions, controls and procedures for the classification of the Establishments that are governed by the provisions of this Decree-Law, and the privileges offered to each category of such Establishments.

2. Adopting the conditions, controls and procedures for the classification of the skill levels of Workers who are governed by the provisions of this Decree-Law and the privileges provided to each of those levels.

3. Adopting the conditions, controls and procedures of employing the students of the educational institutions that are accredited in the State, in the manner that enhances the labor market’s efficiency and manpower competitiveness and that enables the Employers to benefit from such human resources.

4. Adopting the conditions and controls of employing persons with special needs (People of Determination) in positions that commensurate with their physical, technical and intellectual capacities; determining their rights, obligations and privileges in a manner that contributes to their empowerment and engagement in the development path and encourage Employers to employ them and provide them with all means of support and empowerment.

5. Adopting the policies, legislation and regulations that would regulate the labor market in the State, enhance the contribution of UAE nationals to the labor market and urge Employers to recruit and employ UAE nationals.

6. Issuing the decisions that would minimise the effects of any public exceptional circumstances that the labor sector in the State might be facing.

7. Changing the terms, rates or values stipulated in this Decree-Law, in line with the labor market changes and needs, as well as according to what the public interest may require.

8. Determining the fees necessary for the implementing the provisions of this Decree-Law and its Implementing Regulation.

 

Article (71) - Ministry’s Competences

For the purposes of this Decree-Law, the Ministry shall have the following competences:

1. Proposing policies, strategies and legislation in relation to the following:

a) encouraging and urging Establishments to invest in Worker training and empowerment, and elevate their skill levels, competency and productivity;

b) adopting modern technologies and recruiting the best talents according the needs of the State’s labor market in order to improve productivity;

c) training the students of public and higher education institutions accredited in the State.

2. Setting uniform templates of the regulations that govern the labor relations inside Establishments, and issue the controls and mechanisms of approving the same, in a manner that best serves the interests of the Worker and Employer.

 

Article (72) - The Implementing Regulation

The Cabinet shall, based on the Minister’s proposal, issue the Implementing Regulation of this Decree-Law.

 

Article (73) - Repeals

1. Federal Law No. (8) of 1980 on the Regulation of Labor Relations shall be repealed.

2. Any provision to the contrary of, or in conflict with the provisions of this Decree-Law shall be repealed.

3. Decisions, regulations and rules that were in force prior to the effective date of this Decree-Law shall continue to apply to the extent that they do not conflict with the provisions hereof, until they are replaced in accordance with the provisions of this Decree-Law.

 

Article (74) - Publication and Coming into Force

This Decree-Law shall be published in the Official Gazette, and shall come into force on February 2, 2022.

 

Issued by us at the Presidential Palace in Abu Dhabi

Date: 13 Safar 1443 Hijri,

Corresponding to: 20 September 2021

 

His Highness Sheikh Khalifa bin Zayed Al Nahyan,

President of the United Arab Emirates