Starting tomorrow, Wednesday, the Federal Decree-Law No. 33 of 2021 concerning the regulation of labor relations will come into effect for all establishments, employers, and workers in the private sector in the country. Consequently, the Federal Law No. 8 of 1980 regarding the regulation of labor relations will no longer be in effect. His Excellency Dr. Abdul Rahman Al-Awar, Minister of Human Resources and Emiratisation, stated that the new law enhances the position of the UAE labor market as one of the most prominent and important global labor markets characterized by flexibility, efficiency, ease of doing business, and attracting talents, experiences, and skills, while ensuring protection and balanced rights for both parties in the employment relationship.
**Multiple Options**
He added that the new law provides several options for employers and workers to determine the form and style of the contractual employment relationship in a way that aligns with both parties' desires, particularly with the existence of 12 types of work permits and 6 types of work patterns under which contractual labor relationships arise. He pointed out that the executive regulations of the decree-law, recently adopted by the Cabinet, set out the conditions and controls for work patterns and the obligations of both the employer and the worker for each pattern, ensuring the interests of both parties in the employment contract.
**Work Patterns**
As of tomorrow, Wednesday, the new law and its executive regulations allow contracting under six work patterns which include: full-time work, working for one employer for the full daily working hours throughout working days, part-time work which entails working for one or more employers for a specific number of hours or days, temporary work which is necessitated by its nature to be for a specified duration or focused on a specific task and ends upon completion, flexible work which has variable hours or days based on the size of work and economic and operational changes for the employer, allowing the worker to work at varying times based on the work's needs.
The innovative work patterns also include remote work, where all or part of the work is performed outside the workplace instead of physically being present, regardless of whether it is part-time or full-time, in addition to job-sharing, where tasks and duties are divided among multiple workers to perform predetermined tasks, affecting the wage value for each, proportionately adjusted. The decree-law and its executive regulations specify the amount of end-of-service gratuity and annual leave according to the work patterns in a manner that ensures the rights of both contracting parties.
**Work Permits**
The Ministry of Human Resources and Emiratisation will begin issuing 12 types of work permits from tomorrow, allowing registered businesses to employ workers under these permits, which include a permit for bringing in workers from abroad, a permit for a non-national worker's transfer in and out of a registered establishment, a permit for those on family sponsorship, a temporary work permit for employing a worker for a specific duration to perform a designated job, and a mission work permit for registered establishments wishing to hire a worker from abroad to complete temporary work or a specific project with a specified time frame.
The part-time work permit allows registered establishments to hire a worker under a part-time contract, which requires fewer working hours or days compared to full-time workers. Workers can hold contracts with more than one employer after obtaining the necessary permit from the ministry, while a work permit for youth enables individuals aged 15 to 18 to work in a registered establishment under the law's controls and regulations.
**Training Permits**
Work permits also include a training and employment permit for students, allowing registered businesses to train or employ students aged 15 and over, adhering to specific conditions that ensure a suitable training and work environment, and a citizen work permit for the citizens or sons of the GCC member states, enabling registered establishments to hire citizens or GCC residents.
A work permit is granted for holders of golden residency upon a registered establishment's request to employ a worker within the country holding gold residency, and a citizen intern work permit for establishments wishing to train citizens according to their recognized qualifications.
A freelance work permit is granted for individuals wishing to engage in freelance work independently (under their self-sponsorship for expatriates) without the need for a specific employer or active employment contract, enabling them to earn direct income by providing services for a specified period or completing specific tasks, without being considered employees of the individuals or establishments involved.
**Employment Contract**
It is scheduled for indefinite employment contracts to be converted to fixed-term contracts within one year of the decree's entry into force, with the duration not exceeding three years. The parties may agree to extend or renew the contract for similar or shorter or longer periods. In cases of extension or renewal of the contract, the new duration is considered an extension of the original duration and is added to the calculation of the worker's continuous service.
The decree-law requires that the employment contract contain essential information, such as the employer’s name and address, the worker’s name, nationality, date of birth, proof of identity, qualifications, job or profession, start date, workplace location, working hours, rest days, probation period if any, contract duration, agreed salary including benefits and allowances, annual leave duration, notice period, termination procedures, and any other data required by the ministry as needed for organizing the relationship between the two parties.
**New Clauses**
Workers and employers may agree to include new clauses in the approved contract forms, provided they comply with the provisions of the decree-law, regulations, and legal systems. Additionally, the contract may be changed from one work pattern to another subject to mutual consent from both the worker and the employer and fulfilling all dues arising from the first contract, following the procedures established by the ministry.
**Various Leaves**
The new law defines the leaves entitled to the worker, including a mourning leave of five days in the event of the death of a spouse, and three days in the event of the death of a parent, child, sibling, grandchild, grandparent, or anyone else, starting from the date of the death, as well as parental leave of five working days for a worker (whether father or mother) who has a newborn, to care for their child, which can be taken continuously or intermittently within six months of the child's birth.
The law also allows a worker to take a study leave of ten working days per year for those enrolled in an accredited educational institution in the country to take exams, provided their service duration with the employer is no less than two years. A citizen worker is entitled to a leave of absence to perform national service with pay in accordance with applicable legislation in the country.
To implement the new law, the Ministry of Human Resources and Emiratisation will apply the conditions, regulations, and procedures for issuing, renewing, and cancelling work permits and transferring workers from one establishment to another starting today, allowing employers to meet their labor needs and benefit from their capabilities and productivity at the lowest operational costs, especially considering the new work patterns.
