Legislation Details
- Full Title: Federal Decree by Law Concerning Regulating Labour Relations
- Law Type: Federal Decree-Law
- Law Number: [no number] of 2021
- Issued Date: 20 Sep 2021
- Effective Date: 02 Feb 2022
- Official Gazette: No. 712
- Sector: Labour, Residency and Professions
- Status: Active
- Number of Articles: 150
- Chapters/Parts: 0
- Amendments: 3
Summary
This Federal Decree-Law regulates labour relations in the UAE's private sector. It aims to ensure the efficiency of the labour market, protect the rights of both employers and workers, and enhance the flexibility and sustainability of the labour market. The law covers a wide range of topics, including employment contracts, working hours, wages, leave, occupational safety, disciplinary measures, and dispute resolution. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 2) The law is significant for businesses and individuals in the UAE, as it establishes clear rights and obligations for employers and workers. It provides protections for workers while also giving employers flexibility to manage their workforce. The practical impact includes standardized employment contracts, regulated working conditions, and mechanisms for resolving labour disputes. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 2)
What is the scope and purpose of this law?
The provisions of this Federal Decree-Law apply to all establishments, employers, and workers in the UAE's private sector. It does not apply to employees of federal and local government agencies, members of the armed forces, police and security, or domestic workers. The Cabinet may also exclude other categories from the law's scope. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 3) The law aims to achieve several objectives, including ensuring the efficiency of the UAE's labour market, regulating labour relations and balancing the rights and obligations of employers and workers, enhancing the flexibility and sustainability of the labour market, supporting and rehabilitating the capabilities and skills of private sector workers, and providing protection to both parties in the labour relationship. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 2)
What are the key definitions under this law?
The law provides the following key definitions:
- State: United Arab Emirates
- Ministry: Ministry of Human Resources & Emiratisation
- Minister: Minister of Human Resources & Emiratisation
- Private Sector: Companies, institutions, establishments, or any other entities wholly owned by individuals or jointly with the federal or local government, and companies and establishments wholly owned by the federal or local government unless their Articles of Associations stipulate that they are subject to the provisions of another law
- Establishment: Every economic, technical, industrial or commercial unit, or any other unit approved in the State, in which Workers are employed and whose objective is to produce or market commodities or to provide services, and which is licensed by the Competent Authorities
- Employer: Every natural or legal person employing one or more Workers in return for a Wage
- Worker: Every natural person authorised by the Ministry to work for one of the licensed Establishments in the State, under the supervision and direction of the Employer
- Juvenile: Every person who is between fifteen and eighteen years of age
- Work: Every human effort, whether intellectual, technical or physical, performed according to different types of work
- Work Permit: A document issued by the Ministry, according to which a natural person is allowed to work for a licensed Establishment
- Employment Contract: Every agreement concluded between the Employer and the Worker, in which the latter commits to work for the Employer and under his supervision and direction, in return for a wage that the employer is obligated to pay, according to the contract forms specified by the Executive Regulations of this Decree by law
- Probation Period: The period that may be required by the Employer, which enables the Employer to evaluate the Worker's performance, and enables the Worker to become familiar with his job duties and familiarise himself with the work environment, and according to which he shall determine whether the employment contract shall be continued or terminated in accordance with the provisions of this Decree by law
- Warning Period: The notice period specified in the employment contract, which both parties to the contract shall abide by in the event that either of them wishes to terminate the employment contract
- Basic Wage: The wage specified in the employment contract, which is paid to the Worker in return for his work under the employment contract, on a monthly, weekly, daily, hourly or piece-meal basis, and does not include any other allowances or benefits in kind
- Wage: The basic wage, plus the cash allowances and benefits in kind that are decided for the Worker under the employment contract or this Decree by law
- Business Day: The official working day determined by the resolutions implementing this Decree by law
- Workplace: The work location agreed upon in the employment contract, or in which the worker performs the duties and services agreed upon for the employer
- Continuous Service: The uninterrupted service with the same Employer or his legal successor from the date of commencement of work
- Day Labourer: Every worker receiving a daily wage
- Work Injury: Any of the occupational diseases stipulated in the table issued by virtue of Cabinet resolution or any other injury arising from the Worker's work and sustained by the Worker while performing and as a result of such work. It is deemed as Work Injury any accident proven to be sustained by the Worker on his way to or back from his work, without any stopping or diversion from the usual route
- Medical Authority: Any federal or local government entity concerned with health affairs or any private health facility licensed to provide health services in the State
- Worker's family: Wife or husband, and male and female children
- Individual Labour Disputes: Any dispute between the Employer and one Worker individually, the subject matter of which is related to this Decree by law, its Executive Regulation and the resolution issued in implementation thereof
- Collective Labour Disputes: Any dispute between the Employer and his Workers, the subject matter of which is related to the common interest of all Workers or a group of them
(Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 1)
What are the main obligations and requirements?
The law imposes several key obligations on employers and workers: Employers must: - Obtain a work permit from the Ministry before recruiting or employing any worker. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 6) - Provide a safe and healthy work environment for workers. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 36) - Pay workers their wages on time and in full. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 22) - Provide workers with the necessary tools and equipment to perform their duties. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 26) - Comply with the law's provisions on working hours, overtime, and leave. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Arts. 17-33) Workers must: - Perform their work diligently and comply with the employer's reasonable instructions. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 16) - Maintain the confidentiality of the employer's trade secrets and proprietary information. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 16) - Refrain from competing with the employer's business during and for a reasonable period after the employment contract. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 10)
What licensing, registration, or approval requirements exist?
The law requires employers to obtain a work permit from the Ministry of Human Resources and Emiratisation before recruiting or employing any worker. The Executive Regulation of the law will determine the conditions, controls, and types of work permits, as well as the procedures for granting, renewing, and cancelling them. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 6)
What rights and protections does this law provide?
The law provides several key rights and protections for workers: - Prohibition of discrimination in employment on the grounds of race, colour, sex, religion, nationality, social origin, or disability. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 4) - Requirement for equal pay between men and women for the same work or work of equal value. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 4) - Restrictions on the employment of juveniles, including limits on working hours, prohibited tasks, and the requirement for parental consent and health certificates. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 5) - Entitlement to paid leave, including annual leave, sick leave, and maternity leave. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Arts. 29-32) - Compensation for work-related injuries and occupational illnesses. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 37) - End-of-service gratuity payments upon termination of employment. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Arts. 51-52)
Which authorities or bodies are responsible for enforcement?
The Ministry of Human Resources and Emiratisation is the main authority responsible for enforcing the provisions of this Federal Decree-Law. The law grants the Ministry several powers, including: - Issuing work permits for workers. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 6) - Determining the procedures, controls, and criteria for evaluating work of equal value between men and women. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 4) - Defining the juvenile employment system and the jobs in which it is prohibited to employ juveniles. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 5) - Issuing decisions on the penalties for non-compliance with the law's provisions. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 58) - Resolving individual labour disputes between employers and workers. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 54) The Cabinet is also empowered to exclude certain categories of workers from the law's scope and specify the applicable legislation. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 3)
What are the penalties for non-compliance?
The law specifies the following penalties for non-compliance: - Imprisonment for a period not exceeding 6 months and/or a fine of not less than AED 20,000 and not more than AED 100,000 for employing a person before they complete 15 years of age. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 58) - A fine of not less than AED 5,000 and not more than AED 50,000 for each worker for practicing the activity of recruitment or employment of workers without a work permit. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 58) - A fine of not less than AED 5,000 and not more than AED 50,000 for each worker for failing to pay the worker's wages on time and in full. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 58) - A fine of not less than AED 5,000 and not more than AED 50,000 for each worker for failing to provide a safe and healthy work environment. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 58) The law also empowers the Ministry to take additional measures, such as suspending the employer's business activities or cancelling their work permits, in cases of non-compliance. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 58)
What fees, charges, or financial provisions are specified?
The law does not specify any fees, charges, or financial thresholds. The legislation is silent on these matters.
What exemptions or exceptions apply?
The law does not apply to the following categories of workers: - Employees of federal and local government agencies - Members of the armed forces, police and security - Domestic workers (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 3) The Cabinet may also, upon a proposal by the Minister, exclude any category from being subject to all or some of the provisions of this law and specify the legislation applicable to them. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 3)
How are disputes resolved under this law?
The law establishes two types of labour disputes: 1. Individual labour disputes: Disputes between an employer and an individual worker related to the provisions of this law, its Executive Regulation, and implementing resolutions. These disputes are resolved by the Ministry. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 54) 2. Collective labour disputes: Disputes between an employer and their workers related to their common interests. These disputes are resolved through the procedures specified in the law. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 56) The law also exempts workers from paying judicial fees when filing labour disputes. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 55)
What are the key deadlines and time limits?
The law does not specify any deadlines or time limits. The legislation is silent on these matters.
How does this law interact with other UAE legislation?
This Federal Decree-Law repeals Federal Law No. 8 of 1980 Regulating Labour Relations and its amendments. (Federal Decree by Law Concerning Regulating Labour Relations, 2021, Art. 73) The law also references several other UAE federal laws, including: - Federal Law No. 1 of 1972 Concerning the Jurisdictions of Ministries and the Powers of Ministers - Federal Law No. 6 of 1973 Concerning the Entry and Residence of Foreigners - Federal Law No. 3 of 1987 Promulgating the Penal Code - Federal Law No. 10 of 1992 Promulgating the Law of Evidence of Civil Transactions - Federal Law No. 11 of 1992 Promulgating the Civil Procedures Code - Federal Law No. 35 of 1992 Promulgating the Criminal Procedures Law - Federal Law No. 7 of 1999 Promulgating Pensions an
Source Documents
This article analyses Federal Decree by Law Concerning Regulating Labour Relations 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.