Changing Phase of the UAE Employment Markets

Changing Phase of the UAE Employment Markets

Equality

The new labour law focuses on ensuring on establishing equality and opportunities for all. Further, to establish equality in the workforce, female employees shall be subjected to all provisions and shall receive same wage as men. In addition, the new law prohibits employment of minors i.e., persons who have not attained the age of 15. The law permits employment of juveniles subject to certain restrictions to safeguard their interest.

Types of Contracts

There has also been an introduction of various models of work contracts that have been classified into full time, part time, temporary, flexible work and any other model specified by the Executive Regulations of Decree Law.

Depending on the model of work, the contract between the employer and the employee would have to be finalized and for the template of the contract, one would have to refer to the Executive Regulations of the decree.

Probationary Period

The probation period of an employee has been restricted to not exceed 6 months from the date of commencement of service, while the arrangement could be terminated by the employer with a written notice of not less than 14 days during such period.

However, should an employee during his ongoing probation, desire to resign and move to another employer in the UAE he would have to serve a written notice of a month but a foreign employee desirous of leaving UAE, would have to serve a written notice of 14 days.

Non-Compete Clause

The new law protects employer confidentiality by insertion of the Non-Compete Clause, whereby an employee who has access to his business secrets and clients may not establish himself in competition for a period of 2 years from the termination of contract.

We have only briefly covered few aspects of the updated law. Once the executive regulations are published, there would be greater clarity on each of the aspects within the law.