Reach Employment Article

New Labor Regulations in UAE

In February 2022, the UAE implemented a new labor law governing employment relations in both private and public sectors. The UAE Federal Law No. 33, titled the “New Law”, was put into effect along with a number of Executive Regulations that elaborate on its terms.

The “New Law”

The New Law is aimed at ensuring more flexibility for employees and the employment market in general. It introduces amendments to policies concerning employment contracts, employment types, flexible work, and additional leave types. This will consequently strengthen the UAE’s position as one of the most prominent local and global labor markets, offering flexibility and efficiency, and attracting international talent.

Equality and Inclusion in the Workplace

The New Law addresses harassment and bullying in the workplace and prohibts discrimination on the basis of race, ethnicity, sex, religion, national origin, or on the grounds of disability.

Women are now officially entitled to equal pay for the same work, with maternity leave being set to 45 days at full pay and a further 15 with half pay, protecting pregnant women from termination due to pregnancy.

Recruitment and Outsourcing

Concerning recruitment and outsourcing agencies, all activities of intermediation, temporary recruitment and employment outsourcing are now regulated by the Executive Regulations, protecting the rights of all parties involved for balanced employment relations. Any recruitment and outsourcing company has to renew its license annually and is now responsible for complying with the provisions of the New Law and the Executive Regulations regarding the outsourced employees they recruit for a third party beneficiary.