The new law introduces a series of measures to modernize labor legislation in the United Arab Emirates in the face of ever-changing labor practices. The law will require all employers and employees to take steps to ensure compliance with the new regulations. We are happy to advise and support you and your HR teams in reviewing the effects of these changes. If you are dismissed, the employee will continue to be entitled to a tip, unless you violate the rules set out in article 139 of the Labor Code. The rules in this article state: It is difficult to imagine how these new rules of termination during the probationary period are supposed to work in practice. If an employee resigns from a permanent contract, he is entitled to a tip at the end of service on the following sliding scale: Employees are now entitled to maternity leave and remuneration for stillbirths and newborns. 7. Consider implementing policies on equality and anti-bullying and harassment to reflect new anti-discrimination, bullying and anti-harassment regulations. This summarizes some of the key changes introduced by the new law. Although contracts of indefinite duration must be replaced by fixed-term contracts, the new Labour Code unusually prescribes minimum notice periods for the termination of contracts of indefinite duration, depending on seniority: (i) 30 days if the employee`s seniority is less than five years; (ii) 60 days if the worker`s seniority is more than five years; and (iii) 90 days if the period of service is longer than 10 years. We hope you find this information useful. Have a nice day! The new law sets out the different “models” that the parties can agree, including: Either party may terminate the employment relationship in writing for “just cause”.

Of this number of 6,999.30 Dh, only 1/3 is payable if you have worked between 1 and 3 years, so the total tip would be 2,333.10 Dh. The new law does not provide for Hajj holidays. However, this may be provided for in the implementing rules at the same time as the established public holidays. Unless otherwise agreed, the claims of outsourced employees remain the responsibility of their main employer if an employer outsources one or more of its main activities. `The salary used as the basis for calculating end-of-service remuneration shall not include payments to the worker in the form of reimbursements, accommodation, transport and travel allowances, overtime allowances, substitution allowances, cashier allowances, child-rearing allowances, leisure and social benefits and other bonuses or allowances.` Employers will be required to “introduce internal labour rules” in accordance with the next implementing rules. Fixed-term contracts generally do not have a notice period and simply expire at the end of the term or on the date specified in the contract (unless they terminate them earlier by one of the parties – see answers to questions 5 and 6 below). By law, no tips are paid for employees who do not complete a year of employment. The overtime exemption that applies to employees in a supervisory or managerial position under the current Labour Code will no longer apply and the implementing regulations will establish new exceptions. In the following, we have summarized the most important aspects of the new Labour Code as well as the most important action points for employers. For each of the new flexible working models, implementing regulations containing model employment contracts will be published. These templates will likely be in the relatively simple bilingual format published by the Ministry of Human Resources and Emiratization (MHRE), and we expect companies to continue to issue their own employment contracts with more demanding terms and conditions in addition to the new model contracts that will be introduced. The new law stipulates that the employer must respect a period of 14 days to terminate an employee`s employment relationship during the probationary period.

Conversely, employees who wish to change jobs during the probationary period must notify their employer one month in advance or 14 days in advance if they wish to leave the country. In cases where the employee wishes to move to another employer in the UAE during the probationary period (as opposed to waiving dismissal to leave the UAE altogether), the new employer is required to compensate the first employer for recruitment costs incurred by the first employer, unless otherwise agreed. If the employee resigns during the probationary period and leaves the UAE, but then returns within three months of leaving to take up another job in the UAE, the new employer is obliged to compensate the previous employer for the employee`s recruitment costs, unless otherwise agreed. Employees can work full-time, part-time, temporary or flexible. In practice, these “models” reflect the common working methods that have already been implemented by many employers in the UAE, and we do not believe that references to these in the new Labour Code will significantly affect employers or employees or the way they work. The remuneration at the end of service is calculated on the basis of the last salary to which the employee was entitled, namely the basic salary. Therefore, no allowance such as housing, subsidies, ancillary costs, furniture, etc. is taken into account. Nazanin Aleyaseen is a senior member of the international arbitration team. She regularly advises and represents international and UAE-based companies in arbitrations administered by DIAC, DIFC-LCIA, ADCACC and ICC as well as ad hoc proceedings.

She has full rights of representation and advises and represents clients in disputes before the courts of the Dubai International Financial Centre. An employee who has spent one year or more on uninterrupted duty is entitled to remuneration at the end of his or her period of service. Days of absence from work without pay will not be included in the calculation of the service period, and the tip will be calculated as follows: Workers in the federal and private sectors will receive the same benefits at the end of the service under the new general regulations announced Monday by the Ministry of Human Resources and Emiratization. A contract of indefinite duration is permanent and may be terminated for various reasons under the United Arab Emirates Labour Code (see answer to questions 13 and 14 below). An important change introduced by the new law is the obligation to have fixed-term employment contracts. This is a big change from the position of the previous law, in which it was possible for the parties to conclude employment contracts of indefinite duration, a structure that many companies have adopted for their employees in the United Arab Emirates. . b – If he withdraws without notice in cases other than those referred to in Article 121 (if the employer violates the contract or in the event of bodily injury) and in connection with contracts of indefinite duration or before the conclusion of five years of continuous activity in fixed-term contracts. When an employee is employed by another employer without complying with relevant processes and regulations. All workers must be employed on fixed-term employment contracts, which may not exceed three years and may be renewed for the same period. Employers have from 2. February 2022 12 months to convert all their employees to new contracts.

Employees who wish to move to another employer in the UAE during their probationary period may terminate their employment relationship in writing with at least one month`s notice. The new Labour Act stipulates that in this case, the employee`s new employer must compensate the former employer for recruitment costs. . The tip is calculated based on your base salary, which is deposited into your account without any additional allowance or bonus. This is a summary of this article on end-of-service benefits in the UAE. We hope you find this information useful. To work in the United Arab Emirates, you need a valid work permit. Most of you would already have one, but it`s still important to follow the new list of UAE work permit fees for 2019. In addition, the United Arab Emirates now allows work permits for men sponsored by their wives. The new law includes a similar list of termination/arbitrary termination events that were present in the previous law with some variations. For example, an employer can fire an employee without notice: UAE law entitles employees in the country to a certain set of end-of-service benefits (EoSB) that include tips in the UAE. These benefits are expanded as a sign of appreciation for the employee`s hard work and commitment to the company.

After the termination of the employment contract, the EoSB is remunerated cumulatively for the duration of the mandate carried out. Here`s everything you need to know about employee benefits at the end of service in the UAE. The employee is deprived of his salary at the end of his service in the following two cases: Significantly, the new law stipulates that employment contracts of indefinite duration must be converted into fixed-term employment contracts within one year from the date of entry into force of the new law. The implementation of this change will be an important consideration for all employers in the UAE. Employees must take their vacation in the year it becomes due, although it is unclear what will happen to the vacation if they do not. When an employee abuses his position in order to obtain personal gain. The best way to do this is to keep an employment diary that dates and records all important events at work (salary increases or reductions, reprimands and congratulations, performance evaluations, informal remarks from the employer). .