MAJOR CHANGES IN
UAE LABOUR LAW

Termination / Resignation during probation

Previous law

No notice period is required to be given by either party

New law

Employer must give a notice of 14 days to terminate the contract during probation period, which should not be longer than six months. Employees who want to change jobs during probation must give a month’s notice, or 14 days if they want to leave the country. In this case, the new employer will have to compensate the old employer for the visa costs and expenses for hiring the ex-employee, if specified in the labour contract. If an employee leaves the country and returns to take up a new job within three months, the new employer will have to pay the former employer visa costs and labour expenses incurred, if specified in the labour contract.

If an employee leaves the country without notice, the company can ask the Labour Department to impose a one-year ban.

Passport

Previous law

The practice of employers withholding passports of foreign employees is prohibited under Circular No. 267 of 2002 issued by the Ministry of Interior (MoI) — unless it is carried out by judicial authorities in accordance with relevant provisions of the law. However, if the employee consents to handing over the passport, then such possession of the employee's passport by the employer shall not be deemed unlawful, provided the consent is obtained in writing and the employer agrees to return the passport at the employee's request.

New law

The employer cannot confiscate official documents of employees, and it is illegal to hold an employee's passport as per the new law.

Study leave

Previous law

Not specified

New law

After working two years for an employer, workers are entitled to 10 days study leave in a year, provided they are enrolled in an accredited institution in the UAE.

Annual leave entitlement ( No change )

Previous law

30 calendar days per annum upon completion of one year of service

New law

30 calendar days per annum upon completion of one year of service

Annual leave accrual ( No change )

Previous law

Two days a month, if an employee's period of service is less than 1 year. 30 days a year, if an employee's service is more than or equivalent to 1 year

New law

Two days a month, if an employee's period of service is less than 1 year. 30 days a year, if an employee's service is more than or equivalent to 1 year

Annual leave during probation

Previous law

During probation, the annual leave is unpaid

New law

During probation, annual leave can be taken based on the actual accrual

Annual leave carry forward

Previous law

Annual leave can be carried forward to the following year. Forfeiting of annual leave is not allowed

New law

Carry forward of unused leave is subject to employer's approval. Employee must take leave in the year of entitlement.

Public holidays during annual leave

Previous law

Nothing specified

New law

If a public holiday falls during the annual leave, it will be counted as annual leave only. Public holiday will not be excluded from the annual leave.

Leave encashment (Annual + Leave in lieu)

Previous law

Basic salary + HRA

New law

Only on basic salary

Maternity leave

Previous law

A woman employee is entitled to 45 days maternity leave with full pay after completion of one year of continuous service with the company. If the period of service is less than one year, then maternity leave is paid on half pay basis.

New law

A woman employee is entitled to 45 days maternity leave with full pay regardless of the period of service. This can be extended by another 15 days of leave with half pay.

Maternity leave during miscarriage / still birth / upon death of an infant after birth

Previous law

Nothing specified

New law

Maternity leave also applies in circumstances where an employee miscarries after six months of pregnancy. In this case the maternity leave still applies i.e. A woman employee is entitled to 45 days maternity leave with full pay regardless of the period of service. This can be extended by another 15 days of leave with half pay. Further 45 days of extension without pay can be taken for pregnancy related sickness. An appropriate medical certificate must be produced.

Maternity leave after the child is born — disabled child or sick child

Previous law

Nothing specified

New law

If the pregnancy results in the delivery of a disabled or sick child, the employee is entitled to 30 days of full pay leave starting at the end of the maternity leave. This can be further extended by another 30 days without pay.

Compassionate leave

Previous law

Nothing specified

New law

Type 1 — Death of spouse: Paid leave of 5 days on the death of spouse.

Type 2 — Death of other relatives: Paid leave of 3 days on the death of parents, grandparents, siblings, children or grandchildren

Nursing breaks

Previous law

2 breaks of half an hour each for 18 months

New law

1 or 2 breaks not exceeding 1 hour a day for 6 months.

Settlement of gratuity

Previous law

I. Less than one year — no gratuity

ii. After 1 year but before completion of 3 years of service — 7 days basic salary per working year

iii. After 3 years but before completion of 5 years of service — 14 days basic salary per working year

iv. After 5 years of service — first five years on 21 days of basic salary per year and subsequent years on 30 days of basic salary per year

New law

I. Less than one year — no gratuity

ii. Less than 5 years of service — 21 days of basic salary per working year.

iii. After 5 years of service — first five years on 21 days of basic salary per year and subsequent years on 30 days of basic salary per year

Non-competition clause

Previous law

Not clearly specified

New law

Non-competition clause can now be written into a contract. The maximum restrictive period is 2 years from the date of termination.

Rest day

Previous law

If the circumstances require a worker to work on the rest day specified in the employment contract, or the internal work regulations, he or she shall be compensated with a substitute rest day.

New law

Everyone must have at least one rest day, with the option of more depending on the contract.

Termination of contract — Specific to unauthorised absence

Previous law

Absent for more than 10 inconsecutive days in one year, or more than 7 consecutive days without informing the employer.

New law

Absent for more than 20 inconsecutive days in one year, or more than 7 consecutive days without informing the employer.