Dec 1, 2021 3 min read

United Arab Emirates Payroll Outsourcing Alert

United Arab Emirates – New Labor Law Announced.

A new labour law will, Federal Decree-Law No 33 of 2021 on the Regulation of Labour Relations, will be replacing Federal Law No. (8) of 1980, effective from 1 February 2022.

New Employment Contracts

With the new law brought into effect from 2 February 2022, new employment contracts will need to be drafted by companies in the private sector. Accordingly, the private sector is required to replace all current employment contracts with MOHRE with new employment contracts being updated with law No. 33 of 2021 by 2 February 2023.

Unlimited Term Contracts Abolished

All unlimited term employment contracts must be replaced with fixed-term contracts which must be renewed with the mutual consent of the parties for a similar span of time or less.

Terminations During Probation Require Notice

As per the new law, all terminations during probation periods require 14-day advance notice.

Equal Pay

Article 4 of the new law, states that women have the right to equal treatment which also includes being paid the same as their male counterparts. This is also done regarding women performing the same work of equal value to that of which the male employees are performing to promote fairness and equality.

Non-Compete Restrictions

When signing an employment agreement that contains a non-compete clause, the term and conditions of the non-compete restrictions are enforced, as follows:

Working hours

The worker should not work more than five hours straight without a single break. The break shall not be made in less than an hour and should not be calculated as part of the working hours. In addition, the employee breaks can be regulated by shifts regarding the nature of certain establishments as per the manpower classification specified in the Executive Regulations of this Decree-Law.

Mercans’ UAE Payroll Outsourcing Solutions

While Mercans’ UAE Payroll Outsourcing alerts will allow you to stay on top the latest development in UAE’s payroll regulations, you should still get in touch with Mercans’ UAE payroll outsourcing, compliance, PEO/GEO and BPO specialists for a free consultation on setting up fully compliant payroll and HR functions. Better yet, outsource your payroll and HR activities in UAE to Mercans and our UAE payroll outsourcing experts will ensure that your employees will always be paid on time and in accordance with the UAE regulations.

Mercans Recommend

View PDF

Mercans Statutory Alert UAE New Labor Law
Size

728.68 KB

Most viewed posts

View all posts

Avasant Selects Mercans as a Leader in Payroll Business Process Tra...

The meticulous research methodology employed by Avasant included analyzing publicly available information like SEC filings, annual reports, and executive interviews, along with engaging in discussions and market interactions.

Dec 22, 2023 4 min read

Global BPO Leader Infosys Selects Mercans’ Payroll Tech to Power i...

This partnership brings together Mercans' disruptive payroll tech and Infosys' consulting and BPO capabilities to create the most tech advanced and operationally resilient global payroll offering.

Sep 26, 2023 3 min read

Mercans: A Leader in Global Managed Payroll – ISG Provider Lens™ 2023

Payroll solutions and services study meticulously assessed 36 vendors across three distinct quadrants, and Mercans proudly emerged as a frontrunner.

Nov 9, 2023 2 min read