Tim Elliott
Welcome to Lawgical, the UAE’s first and still the only, we believe, legal podcast. My name’s Tim Elliott. Lawgical comes to you from the Dubai-based legal firm HPL, Yamalova & Plewka. And as ever, here’s the managing partner, Ludmila Yamalova.
Ludmila Yamalova
Good to see you.
Tim Elliott
Good to see you too, Ludmila. Now this time, it’s a very special edition of Lawgical. We took a quick look at the new UAE employment law recently, and I want to get into detail because there’s an awful lot to discuss. I want to try to make this a little bit easier to digest and split this into six relatively easy pieces, as it were.
But, Ludmila, can we start with something brand new to the law? This is something that hasn’t been spelled out before from a legal perspective. Let’s start with equality in the workplace because the new law really spells out attitudes to the way people should be treated at work.
Ludmila Yamalova
Indeed. Once again, we are talking about the new Law No. 33 of 2021, regulating employment relationships. This is a federal law that applies across the UAE. It covers all private sector companies and employees, regardless of their location, except for free zones like DIFC and ADGM, which have their own employment laws.
As you rightly said, one of the most groundbreaking provisions in the new law is the section on equality and non-discrimination. Specifically, Articles 4 and 14 prohibit all types of discrimination and mandate equality in the workplace. For example, the law explicitly states that discrimination based on race, color, sex, religion, national origin, ethnic origin, or disability is prohibited.
Tim Elliott
So, essentially, the law aims to ensure a more equitable working environment.
Ludmila Yamalova
Exactly. Interestingly, there is one exemption for special treatment of UAE nationals, which is understandable given the local labor market policies. Additionally, there is an entire provision ensuring that female workers have the same rights and protections as all other employees.
The law also introduces a specific clause on anti-harassment, which covers sexual harassment, bullying, verbal abuse, physical abuse, and mental abuse. Notably, the term “sexual harassment” is explicitly mentioned for the first time, which is groundbreaking.
Tim Elliott
That’s a big step forward.
Ludmila Yamalova
It is. The law also includes a section on sanctions and penalties for companies that fail to comply. This could mean fines for companies with discriminatory or harassing practices. It’s a significant change and one that will likely push companies to align their policies with the new legal standards.
Tim Elliott
Part one of our series focuses on equality in the workplace under the new UAE employment law. Let’s move on to part two—types of work and employment contracts. The new law introduces different types of work arrangements. These include full-time, part-time, temporary work, and project-based work. Ludmila, can you break those down for us?
Ludmila Yamalova
Certainly. The previous law primarily allowed for full-time employment only. Now, the new law recognizes various types of work arrangements: full-time, part-time, temporary work, flexible work, and project-based arrangements.
This flexibility reflects the UAE’s efforts to modernize its labor market. For example, a doctor can now offer services to multiple hospitals or clinics legally, and a web designer can work independently for several companies under a freelance license.
Tim Elliott
And what about contracts?
Ludmila Yamalova
All employees will now have a limited contract for up to three years, which can be renewed. While it may seem restrictive, the benefits are more protective for employees compared to the previous system of limited and unlimited contracts. Executive regulations will provide a template for these contracts, and companies have one year from the law’s enactment to align their contracts with the new provisions.
Tim Elliott
Part two looks at the types of work and contracts under the new law. Let’s move to part three: probation and probationary periods. Under the new law, employers must provide employees with a 14-day notice for termination during probation. Can you elaborate?
Ludmila Yamalova
Yes, under the previous law, termination during probation required no notice. Now, employers must give a 14-day notice. Employees, on the other hand, must give a one-month notice if they leave to join a new employer, and the new employer is required to compensate the previous employer for recruitment costs.
If an employee leaves the UAE during probation, they must provide a 14-day notice. However, if they return to the UAE within three months to work for a new employer, the new employer must still compensate the original employer.
Tim Elliott
That’s quite a shift.
Ludmila Yamalova
It is. These changes aim to balance employee and employer rights while addressing common challenges in the labor market.
Tim Elliott
That’s part three, covering probation. Let’s move on to part four: leave and holidays.
Tim Elliott
The new law introduces various types of leave, including study leave, national service leave, mourning leave, and parental leave. Can you explain these?
Ludmila Yamalova
Certainly. The new law offers more leave options. Annual leave remains the same at 30 days per year, but there are new additions:
- Bereavement leave: 3–5 days, depending on the degree of relationship.
- Parental leave: 5 days per year for either parent.
- Study leave: 10 days per year after two years of service.
- National service leave: For UAE nationals.
Maternity leave has also been extended to 60 days—45 days at full pay and 15 days at half pay.
Tim Elliott
That’s part four, leave and holidays. Let’s dive deeper into maternity leave in part five. How has maternity leave changed under the new law?
Ludmila Yamalova
The maternity leave is now 60 days—45 days at full pay and 15 days at half pay. Additionally, mothers with sick or disabled children can take up to 120 days of leave (90 days at full pay and 30 days unpaid).
Importantly, the law prohibits termination on the grounds of pregnancy or maternity. It also grants nursing breaks for six months after returning to work.
Tim Elliott
Finally, part six: termination and end-of-service benefits. How does the new law handle termination?
Ludmila Yamalova
The new law ensures that all employees, regardless of how their employment ends, are entitled to end-of-service benefits. Part-time employees now qualify for benefits proportional to their service.
Additionally, end-of-service must be paid within 14 days of termination. The law also includes provisions for payments to nominated beneficiaries in the event of an employee’s death.
Tim Elliott
That wraps up part six and our comprehensive look at the new UAE employment law. Another insightful episode of Lawgical. Ludmila Yamalova, managing partner at HPL, Yamalova & Plewka, thank you as always.
Ludmila Yamalova
Thank you, Tim.
Tim Elliott
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