What changed in UAE labour laws this year and the initiatives to promote workers' welfare in the country

  DUBAI – Students are now allowed to work in the UAE private sector under a new decree announced on Wednesday (July 13) by the Ministry of Human Resources and Emiratisation. Under the decree, students between the ages of 12 and 18 will be allowed to work for training purposes, while those aged 15 to 18 can get permits to work in the private sector. All students need a written consent from a parent or guardian to apply for work permits. Read more So what changed in UAE labour laws this year? ExpatMedia.Net has compiled a comprehensive list of the new labour rules implemented in the UAE this year. Work permits for students Expatriate or national students from ages 12 to 18 are now allowed to work in the UAE's private sector. Students may apply for three kinds of permit: temporary work permit (for employment of up to six months); part-time work permit (less than six hours of work per day, for a period not exceeding one year); and juvenile work permit (for students between the age of 15 and 18 who want to work for a period not exceeding one year). Unified labour contracts Since January 1, standardised labour contracts were made mandatory in order to promote clarity of employment terms and transparency for workers and employers. Under the ministry-approved standard employment contract for new hirees, a worker must be presented with an employment offer that contains details of employment terms and conditions, regulations and labour laws. The contract must be signed by the worker. The unified contract is also required for all contract renewals. All terms in the contract cannot be changed, added or substituted unless approved by the labour ministry.  No unified contract? No work permit Work permits will no longer be renewed and no new permits will be issued to UAE residents if an employer fails to provide a signed unified contract. Three-stage recruitment of foreign workers There is a three-stage procedure to recruit foreign workers from outside the country on a two-year work visa. First, the employer applies for quota on the number of workers recruited. Next, an offer letter is given to the worker, which details rights, duties and the terms of conditions. This can be done through “Tas’heel” service centres or through the ‘MoLApp’ smartphone application. In this phase, employers are required to electronically sign the job offer letter and send it to the worker, whether through email or through an employment agency. To indicate acceptance, the worker should sign the document. Workers can also review their work contract through the ministry’s website www.mol.gov.ae after registering on the site using their passport number, nationality and transaction number. The third step requires employers to send to the labour ministry the job offer signed by the worker. The ministry will review each application to ensure that all requirements are met, before issuing a permit allowing the worker to come to the country. Employers have a 14-day deadline to complete signature procedures following the worker’s entry into the UAE. Should the worker complain of any delay, the ministry will allow the worker to seek a new job offer.  Labour contract in several languages The UAE labour contract will be written in both Arabic and English in addition to a third language that the worker understands, including many Indian languages such as Tamil, Telugu and Malayalam. This is particularly helpful to semi-skilled or unskilled workers. By making the contract available in their mother tongue, it would be easier for workers to understand the terms and conditions of their labour contract and ensure that they are not misled or duped into false commitments. Ability to switch jobs Under the new rules, expatriate employees are free to switch jobs under certain conditions. The ministry has appointed 63 legal professionals to help resolve labour disputes, and 100 staff members to facilitate the process of dispute resolution. A worker is allowed to transfer to a new job if the worker follows due process in terminating a renewed fixed-term contract. In a non-term contract, the worker needs to complete the six-month minimum period of employment. A worker can also switch jobs and obtain a new work permit, irrespective of the time spent with the employer, when the termination of employment is caused by the employer’s failure to meet contractual obligations. Six ways to terminate fixed-term contracts  For two-year contracts, the contract is terminated if the term of the contract has expired and it is not renewed, or if the employer and employee mutually agree to end the contract. Either party can also unilaterally terminate the contract or renew it, provided that legal consequences of early termination are met, including notification in writing at least one month to three months in advance. Either the employer or worker can also act unilaterally to terminate the contract without complying with the legal steps, including non-provision of early notification. For renewed term contract, either party can act unilaterally to terminate the contract. A contract can also be terminated if a worker commits violations prohibited under the Federal Labour Law. Term contracts can be terminated with notice periods of between one and three months if the terminating party continues to honour contractual obligations for the term duration or if the terminating party indemnifies the other party in the amount not exceeding the equivalent of three months’ gross wages. Four ways to end non-term contracts Non-term contracts can be terminated if both parties consent to termination or if either party gives notice of termination at least one month or three months in advance. Non-term contracts may also be terminated if one party unilaterally acts to terminate the contract but bears consequences of early termination. The non-term contract can also be terminated if an employee violates labour law rules. Employee’s signature needed for contract renewal The employee’s signature is now required before contract renewal can be processed and new work permit is issued. Previously, work permits were renewed only after the Labour Ministry received a notification through the employer stating that both parties agreed to renew the contract. Under the new procedures, workers have the option of accepting to renew the contract or amend the work privileges and conditions upon agreement by both parties. On the other hand, employees are able to completely end the contract and search for alternatives or return back home. Maximum term for limited-term contracts The maximum term for limited-term contracts — and their renewal — is now set at two years. Granting a new work permit For both term and non-term contracts, a new permit may be granted upon termination of the worker’s employment when the term of the contract has expired. A new permit can be granted when both worker and employer mutually consent to terminating the contract during the term, but the worker needs to have completed at least six months employment or should qualify for a ministry-classified skill set. A new permit can also be issued to a worker whose employer terminated him or her without reason, provided the worker has completed six months in the job. The six-month rule is waived if the worker has skill levels classified by the ministry. Varying skill levels are set for those who hold a university degree, post-secondary diploma or high school diploma. A worker may be granted a work permit for all term and non-term contracts if it is determined that the employer has failed to meet legal and contractual obligations, including but not limited to when the employer fails to pay the worker’s wages for more than 60 days. A worker may also be granted a permit if the labour ministry confirms that the employing company has been inactive for more than two months or has shut down without providing employment to the worker during the period. Work permits may also be issued in labour disputes raised at the labour court, with a ruling in favour of the worker. The labour disputes include early termination and non-payment of wages, including end of service dues. MFD/Expat Media This article was first published on May 7, 2016 and updated on July 14, 2016.