There is an introduction of changes to the current UAE labor laws. The significant changes are related to the termination without prior notice. Further, it also addresses the issues concerning suspension. Furthermore, the Federal law related to the labor law of 1980 was replaced. It is replaced with the Federal Decree-law on the regulation of labor relations in 2021 to cater to the rising demands. This was initially introduced in 2021 and applies to all the private-sector establishments which keep changing to cater to the needs of the times. It is also applicable to the free zone companies which are operating under the Dubai International Financial Centre and Abu Dhabi Global Market. Any lawyer in Dubai can explain you the practical implications of this law, as well as related to DIFC and ADGM. For ADGM you might have to consult someone from Abu Dhabi.
- The amendments were introduced with the motive to foster a positive work environment. Besides, it also aligns all the companies into 1 path without any discrimination. The historic developments were made to undermine the UAE’s commitment to bring a pragmatic approach to the working environment.
Keen to adopt the best practices
Besides it also demonstrates its dedication to bring in employment legislation aligned with the international standards. UAE is keen on adopting the international best practices in its emerging markets. We will be discussing in detail the key provisions and terms and conditions regarding the termination or dismissal and temporary suspension of employees. Both situations are comprehensively discussed in the new labor laws. Lawyer in Dubai are also known for keeping good practices.
Termination without a prior notice
Termination without a prior notice seems to be illegal or unfair but there are instances where it is acceptable. Under the new labor law, there are some situations where termination without any prior notice of the employees is legally right. Firstly, if the employee assumes a false identity and conceals their real identity from the employer, it may lead to termination. For it, the employee may have submitted forged certificates or documents, immediate termination is fair.
Second, in case the employee is involved in committing a serious error or blunder that has resulted in major material loss to the employer. Any deliberate harm or damage to the property or workplace is just not acceptable. Therefore, the immediate action can be taken by the employer. Once the employee has admitted his mistake, the employer can terminate him.
Employee who violates the safety measures
An employee who has violated the safety measures despite being fully aware of them also comes under the umbrella. In this situation termination without prior notice is indispensable.
Fourthly, in case the worker fails to perform his responsibilities stipulated in the employment contract also faces termination. For remedy, the employer must be issued 2 warning letters in writing before the firing. The new labor law further illustrates the process that must be followed regarding the dismissal of employees without prior notice. In case the employee has not performed the duties under the employment agreement, the employer can be dismissed. Before dismissal the employer should conduct a written investigation into the matter. Furthermore, the employer is obliged by the law to first send 2 warning letters to the employees before dismissal.
On the other hand, the new labor law also highlights the temporary Suspension from work. There are certain provisions under which the temporary suspension is permitted. The new labor elaborates a complete mechanism that must be followed by the employers when a temporary suspension from work needs to be done. As per the new labor law, the employer can suspend the employers on an ad-hoc basis for 30 days at max. This is normally undertaken for disciplinary investigations. During their period, the employee remains suspended and will be given half of the salary.
Once the violation is not established nor proven against the employee, the employee will be receiving full salary for the month of the suspension period. In the previous labor law, there was no specific time duration for the suspension. Now it is set at 30 days which was absent before. Furthermore, no guidelines were provided previously by the law regarding salary payment.
The New Labor Law has been revised and amended to protect the rights of the labor force in the UAE. The UAE is undoubtedly taking the matter of worker exploitation very seriously. Therefore, crucial matters are addressed under the law to apply the best standards in the UAE labor markets. These new labor laws have put an end to any kind of employee misuse, blackmail, or exploitation.
Additionally, the main aim is to support the welfare of the employees and secure them from exploitation at the hands of the employer. Nonetheless, this milestone will encourage better industrial progress in the UAE labor markets. It will improve the efficiency and productivity of the employees, workers, and labor force as they feel more secure, confident, and safe. This will boost a balanced work environment for the workforce as well as for the employer. It further improves the relationship between employer and employee and also safeguards the interest of the workers.
