The three main changes to labour legislation in the United Arab Emirates with effect from 31 August

Oracle
18 September 2024
3.28 pm

The United Arab Emirates has recently introduced substantial changes to their labour legislation. These changes are primarily aimed at greater protection for workers, improving regulation and simplifying judicial and administrative procedures. In this article, we will explore the key changes brought about by these legislative amendments and what they mean for employers and employees.

New deadlines for the settlement of disputes

Previously, parties involved in a dispute had one year from the end of the employment relationship to bring proceedings. This time limit has now been extended to two years, thereby giving them more time to analyse and prepare their cases. This extension is intended to allow for better preparation, thereby contributing to a potentially fairer resolution of disputes.

This means that employers must keep their employees’ records for a longer period in order to comply with the new requirements and be prepared in the event of a dispute. Similarly, workers will have more time to consult experts or lawyers in order to better understand and defend their rights.

Benefits of extending the deadline

Extending the period to two years offers several advantages:

Pressure reduction on workers to act quickly, at the risk of being ill-prepared.
The option to initiate mediation or amicable discussions before taking legal action.
Improving the accuracy and quality of the evidence presented.

Simplified procedures for small claims

Significant changes have also been made regarding claims of less than 50,000 dirhams. From now on, these cases will be settled directly by the Ministry of Human Resources and Emiratisation, with no possibility of appeal to the Court of Appeal. This process aims to make decisions faster and more efficient.

Hearings are now scheduled within three working days, with decisions handed down within the following 30 calendar days. Once handed down, the decision is final and cannot be further appealed. For employers, this means a quicker resolution of minor disputes. Employees, for their part, benefit from a prompt review of their complaints.

Impact on businesses

This reform brings with it a number of new obligations and requirements for employers:

Faster processing internal claims to avoid any protracted disputes.
Establishment of clear and precise procedures for handling employee complaints.
Regular review of human resources management practices and policies to ensure compliance.

Greater awareness of legal compliance

Another key aspect of the reforms is the emphasis placed on the legal compliance. Offences such as employing workers without the appropriate permits, misusing work permits or closing down premises without settling workers’ entitlements will now be subject to much more severe financial penalties.

These strict measures are prompting employers to be even more vigilant and to ensure that they comply strictly with all applicable regulations. Companies must therefore put in place robust processes to monitor their legal obligations, thereby minimising the risk of penalties.

Advice for employers

To ensure full compliance, here are a few recommendations:

Carry out regular audits of recruitment practices and the management of work permits.
Organise regular training sessions on legal standards for HR teams.
Establish clear procedures to safeguard workers’ rights in the event of a cessation of business.

Transfer of ongoing cases

With regard to labour disputes already pending a decision, the new regulations stipulate that these will be transferred to the Court of First Instance at no extra cost. This enables the processing of cases to be centralised and standardised in accordance with the new guidelines, thereby avoiding any confusion or unnecessary delays.

Employers and employees should therefore check the status of their files regularly to ensure they are being processed in accordance with the new rules. Particular attention must be paid to communication between the various parties to prevent any misunderstandings or unnecessary complications.

Proactive preparation of files

The transition to the Court of First Instance involves:

A detailed review of ongoing cases to identify any missing or incorrect documentation.
Close coordination with solicitors to ensure that cases comply with the new guidelines.
Continuous monitoring of case trends to anticipate and resolve any potential issues promptly.