Implementation of New Labour Laws in UAE
The Labour Laws were first drafted and implemented in UAE in the year 1980 and were defined under Federal Decree Law no. 8 of 1980. The purpose of such amendments was to implement regulations regarding labour relations. As we all saw the gradual growth of the foreign workforce in UAE, amendments to the existing laws and a few new regulations were proposed and passed by the government of UAE which came into effect from February 2, 2022, under Federal Decree Law no. 33 of 2021. Such Labour Regulations are governed by the UAE government authority i.e. Ministry of Human Resources and Emiratisation (“MOHRE”)
The main aim is to augment the regulations for different areas of employment (i.e., temporary, and part-time workforce), for greater work satisfaction and to increase the flexibility of the workplace.
1. Meaning and Purpose: Probation Period
The probationary period in the UAE is to evaluate an employee’s performance during the first few months of employment before awarding them a permanent position. During the probationary term, the employee is subjected to a rigorous assessment and performance evaluation. If the applicant/probationary is found to be qualified for the position after the review, the organization/employer shall hire them as permanent employees at its own discretion.
2. Regulations Regarding Probation Period Labour Laws
As defined under Article 1 of the Federal Decree-Law No. 33 of 2021 and explanation mentioned in Article 9 of the Federal Decree-Law No. 33 of 2021, An employee may be placed on probation for up to six months, during which time the employee’s services may be terminated by the employer without severance pay, provided, however, that a worker may not be placed on probation more than once during his employment with the same company. If a worker successfully completes his probationary period and remains in his position, the time will be counted against his service duration.
3. Termination of Employment Contract
Termination of the employment contract means that any of the Party may end the employment relationship between the employer and the employee. Such termination may place by either of the contractual parties.
4. Notice Period if the contract is terminated by the employer
The employer may at its own discretion terminate the employment contract within the probation period by providing 14 (Fourteen) days’ notice to the employee.
5. Notice Period if the contract is terminated by the Employee
In accordance with Article 9 of the Federal Decree-Law No. 33 of 2021, the law provides an option for the employees to terminate the contract with the following conditions:
Termination of Contract to join another organization
If the employee terminates the contract with an organization to join another employment, the employee shall provide 1-month prior notice to the existing organization. Further, if such a situation arises, the new organization will necessarily have to provide the compensation to the previous organization which shall be the costs of recruitment or contracting with the worker unless anything else is agreed upon.
Termination of Contract to leave the country
If the employee terminates the contract with an organization to leave the country, the employee shall be obligated to provide 14 days prior notice to the employer. In this scenario, the exiting employees cannot search for any jobs in UAE for 3 months from the date of leaving the organization and if the employee joins any other organization, the new employer needs to compensate the old employer which shall be the costs of recruitment or contracting with the worker unless anything else is agreed upon.
6. Leave Grants: Annual Leaves and Sick Leave
6.1 Annual Leave
As per Article 29 of the Federal Decree-Law No. 33 of 2021, During the probationary phase, the employer may agree to offer the employee leave from his annual leave balance, although the worker retains the right to be compensated for the remainder of his annual leave balance if he fails to pass the probationary term. Further, such leave permissions shall be at the discretion of the employer and if the probationary employee fails to be present against the discretion of the employer, the employer holds the right to deduct the salary of the employee or take any necessary action employer deems fit.
6.2 Sick Leaves
As mentioned in Article 29 of the Federal Decree-Law No. 33 of 2021, During the probationary phase, the employee is not eligible for paid sick leave. However, based on a medical report provided by a medical organization that specifies the need for the leave, the employer may grant him unpaid sick leave.
Harshit Trehan
Legal Consultant
legal5@convention360me.com