The government of the United Arab Emirates introduced new Labor laws in the country in 2022. This exemplary initiative was taken in the UAE to improve the working conditions and work environment for the labor force. All the new labor laws are applicable to private sector businesses in the emirates. The change was brought to bring the improvement in the working environment in the country. Besides, the efforts are dedicated to aligning with global standards. This is a detailed guide to provide you with an overview of some major changes to labor laws, especially about the termination of employees. It discusses the new provisions and termination without prior notice and the temporary suspension or termination of employees. Furthermore, the article discusses the comparison between the two provisions with the previous laws. It also discusses the implications of the new labor laws for both- employers and employees in the UAE. Hire Labour and Employment Lawyers, (Emirati), for an advanced learning and understanding.
- The New Labor Law clearly outlines the 10 circumstances under which an employer can terminate employment without dispatching a prior notice. It may include cases regarding the false submission of identity documents, false information causing financial losses to the employer, violation of workplace ethics and rules, and the list goes on.
- In comparison to the previous laws, there are plenty of noteworthy differences. The new law specifies that the employer should follow the proper procedure before the dismissal of an employee without an earlier notice. The employer needs to launch a written investigation. Alongside, they need to issue 2 warning letters to the employee regarding the failure to fulfill his duties as per the employment.
- The new labor law separately addresses the termination either during or at the end of the probation period of the employee. This eliminates the ground for immediate dismissal on the spot. Another main change brought to the UAE labor law is regarding the entitlement of the dismissed employee to the end-to-service gratuity. DUBAI Labour and Employment Lawyers are also offering consultation on this topic.
- As per the previous labor law, employees were terminated under specific conditions who did not qualify for the end-of-service gratuity. The new labor law of the UAE offers greater clarity into this matter now.
Disclosure of Confidential Information
Under the new law, it is more evident concerning the disclosure of confidential information by the workers. It further states that the disclosure of sensitive information can lead to substantial material loss to the employer. Besides, it may also result in personal gains for the employees. The reporting timeline for such incidents and instances will lead to an immediate dismissal. As per the new labor law, the duration of immediate dismissal has been extended from 48 hours to 7 working days.
Moreover, the two new grounds for immediate dismissal have been added to the list. It includes the abuse of position for any type of personal gain and joining another establishment without following the adequate process.
Temporary Suspension Dealt as per New Labor Law:
The New Labor Law also brought changes to the temporary suspension. Previously it was governed by Article 112 of the labor law. As per the New Labor Law, duration is established. It sets a maximum suspension period of 30 days for disciplinary investigations. During the time of suspension, the employee is entitled to receive half salary.
For instance, if the employee is acquitted or the investigation is dismissed, then the employee is entitled to receive full salary during the suspension period. Now the burden of proof is no longer on the employee. The employee doesn’t need to show that the suspension was arbitrary. Instead as per the new labor law, the employees are facilitated.
Nonetheless, the New Labor Law ensures that employees are paid proper salaries during the pending suspension. Besides, if the investigations prove the innocence of the employee he is eligible to get a full salary. Therefore, it can be said that suspension under the New Labor Law begins from the date of accusation. Previously, it commenced from the date of reporting to authorities.
The Implications of the New Law:
The New Labor Law of the UAE is a clear-cut reflection of the government of UAE towards improving the working conditions for the employees. It shows the commitment and dedication to meet international employment standards. It also improves the industrial progress of the country. It is a way to protect the rights of employees in the UAE. As greater protection is offered to the labor force, it will improve their productivity and efficiency.
Furthermore, it offers a balanced approach to the labor market. It not only safeguards the interests of employees but also secures the rights of the employers. It hinders the wrongful dismissal and unfair termination of any kind in the UAE. Previously, the burden of proof regarding the arbitrary termination and suspension lies with the employers. Now, documentation is highly emphasized. Besides, it requires a thorough justification of such an action.
These crucial changes and amendments represent a significant shift in the legal landscape of the UAE. This ensures that labor disputes are minimized and also ensures fair treatment in the workforce for the employees.
