Major changes to the UAE labor law will come into force from August 31, 2024, under Federal Decree-Law No. 9 of 2024.
These changes pretended to strengthen the labor legislation and enhance the rights of employees in private employers.
1. Prolonged Time for Labour Demands
Among its provisions, one can point to the expansion of the present period for the filing of Labor complaints. Before the amendment, the workers were expected to commence the claims for their labor rights within one year from when they were entitled to do so.
This has now been provided to be two years from the date of termination of employment. This extension is applicable for both the employees and the employers, providing them with more time to consider the situation before opting for the legal recourse.
2. Changes in the Appeal Process for Cases Under Dh50,000
Since January 1, 2024, the MOHRE has dealt with labour disputes relating to damages not exceeding Dh50,000. Earlier, any given decision made by MOHRE could be taken to the Court of Appeal while under the amendment, the same could only be referred to the High Court.
However, under the new law, a challenge of the decision of the MOHRE must be made directly to the Court of First Instance within fifteen working days.
The Court of First Instance will schedule a hearing within three working days and come to a final determination within 30 days at most. This change is particularly remarkable as there will be no more appeals after the Court of First Instance’s ruling.
In continuing cases, any appeals that are still pending in the Court of Appeal will automatically be taken to the Court of First Instance without any extra costs being incurred.
3. Tougher Labour Laws and Penalties
The amended law increases the severity of the sanctions for a violation of labor regulations. Fines, which were earlier set from Dh50,000 to Dh200,000 for infractions such as hiring workers without work permits, has been raised from Dh100,000 and Dh1 million.
Moreover, new provisions relate to bogus employment, with penalties starting from Dh100,000 up to Dh1 million. Such employers may also be forced to repay any incentives offered to them by governmental agencies, with the fines being proportional to the number of workers involved in the fake hiring.