Legislation Details
- Full Title: Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government
- Law Type: Cabinet Resolution
- Law Number: No. (12) of 2023
- Issued Date: 02 Mar 2023
- Effective Date: 01 Jan 2023
- Official Gazette: No. 747
- Sector: Labour, Residency and Professions
- Status: Active
- Number of Articles: 26
- Chapters/Parts: 0
- Amendments: 1
Summary
This Cabinet Resolution establishes a freelance work leave program for employees of the UAE federal government. The purpose of the law is to enable federal government employees to take a leave of absence to establish or manage their own private sector businesses. The law sets out the conditions, duration, and financial provisions for this leave, as well as the obligations of federal entities and employees. This legislation is significant as it provides federal employees with an opportunity to pursue entrepreneurial activities while maintaining their government employment, which can foster innovation and economic diversification in the UAE. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 1-12)
What is the scope and purpose of this law?
The scope of this Cabinet Resolution is to regulate the freelance work leave for employees of the federal government in the UAE, excluding companies owned by the federal government. The purpose is to enable federal government employees to take a leave of absence to establish or manage their own private sector businesses. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 2)
What are the key definitions under this law?
The key definitions under this law are:
- Federal Entity: Any ministry, authority, institution, or regulatory agency affiliated with the federal government. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 1)
- Head of the Federal Entity: The Minister, Chairman of the Board of Directors, Head of the Entity, or the like. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 1)
- Employee: A national employee who occupies a position in the budget of a federal entity, excluding temporary or part-time employees. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 1)
- Citizen: A person who holds UAE nationality. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 1)
- Authority: The Federal Authority for Government Human Resources. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 1)
- Leave: The full-time self-employment leave. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 1)
What are the main obligations and requirements?
The main obligations and requirements under this law are: 1. The employee's purpose for the leave must be to establish, manage, or participate in a private sector economic enterprise. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 4(1)) 2. The employee must obtain the necessary licenses for their economic enterprise or prove they have initiated the licensing process. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 4(2)) 3. The employee must meet the criteria set by the Federal Authority for Government Human Resources and the Ministry of Economy. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 4(3)) 4. The employee must have a performance evaluation of at least 2 or equivalent from their employer. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 4(5)) 5. The employee must have at least 5 years of total service in federal or local government entities. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 4(6)) 6. The employee must have completed national service or provide evidence of their status. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 4(7)) 7. The employee must undertake not to use their employer's channels or means to promote their private enterprise. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 4(10))
What licensing, registration, or approval requirements exist?
To be granted the freelance work leave, the employee must obtain the necessary licenses for their economic enterprise from the competent authorities in the UAE, or have documents proving they have initiated the licensing procedures. The employee must also meet any additional conditions or controls set by their employer. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 4(2, 9))
What rights and protections does this law provide?
This law provides the right for eligible federal government employees to take a freelance work leave of up to two years to establish or manage their own private sector businesses. During the leave, the employee continues to receive 50% of their total salary, and their retirement contributions are maintained. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 5)
Which authorities or bodies are responsible for enforcement?
The key authorities responsible for the enforcement and implementation of this law are: 1. The Head of the Federal Entity, who has the authority to grant the freelance work leave to eligible employees. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 3) 2. The Federal Authority for Government Human Resources, which is responsible for specifying the number or ratio of employees eligible for the leave and issuing the necessary resolutions and manuals for implementation. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 6, 11)
What fees, charges, or financial provisions are specified?
The key financial provisions under this law are: 1. Employees on freelance work leave receive 50% of their total salary during the leave period. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 5(1)) 2. Allowances and benefits associated with the employee's position, except for child allowance, are not disbursed during the leave. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 5(1)) 3. The federal entity may benefit from the remaining portion of the financial allocations approved for the leave during the two-year period. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 5(3)) 4. The federal entity must bear the financial costs arising from the employee's return to work after the end of the leave, from its approved budget. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 6(4))
What exemptions or exceptions apply?
The law does not specify any exemptions or exceptions to its scope of application. It applies to all federal government entities, except for companies owned by the federal government. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 2)
What are the key deadlines and time limits?
The key deadlines and time limits under this law are: 1. The freelance work leave is granted for a duration of one year, which can be extended for an additional one year by the Head of the federal entity. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 5(1-2)) 2. The employee must continue working in their workplace for a period of not less than the notice period prescribed for their job grade before obtaining the leave. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 7) 3. The federal entity must obtain the approval of the Cabinet prior to granting leave to employees holding certain senior positions. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 5(4))
How does this law interact with other UAE legislation?
This Cabinet Resolution is related to the following UAE legislation: 1. Federal Law No. (1) of 1972 Concerning the Competences of Ministries and the Powers of Ministers, as amended. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Preamble) 2. Federal Law No. (7) of 1999 Promulgating the Pensions and Social Security Law, as amended. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Preamble) 3. Federal Decree-Law No. (49) of 2022 Concerning Human Resources in the Federal Government. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Preamble)
When did this law come into effect?
This Cabinet Resolution came into effect on 01/01/2023, as stated in Article 12. It was published in the Official Gazette No. 747. (Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government, 2023, Art. 12)
Source Documents
This article analyses Cabinet Resolution Concerning the Freelance Work Leave for Employees of the Federal Government for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.