The UAE labor system has undergone significant reforms with the introduction of Federal Decree-Law No. 9 of 2024, marking an important shift in how labor disputes are handled. As of August 31, 2024, the Ministry of Human Resources and Emiratisation (MOHRE) has been granted the authority to make final decisions in labor complaints, a change designed to speed up dispute resolutions and provide more efficient protections for employees and employers alike.
MOHRE’s Expanded Role in Labor Complaints
Previously, labor disputes in the UAE were handled by both MOHRE and the court system. While MOHRE played a role in registering and mediating complaints, the final decisions often relied on the court system, which could be a lengthy and complex process. The new amendments, however, give MOHRE the ability to directly resolve labor complaints, allowing for quicker, more streamlined solutions without the need for extensive court involvement.
Key Provisions of the Amended Article 54
1. Amicable Settlement
MOHRE now prioritizes amicable settlements between employers and workers, aiming for faster resolutions without lengthy legal proceedings. This approach encourages dialogue and negotiation, reducing conflict and fostering smoother relations between parties.
2. MOHRE’s Expanded Authority
MOHRE has been granted the authority to issue final decisions in disputes where the claim value does not exceed AED 50,000. This decision-making power enhances MOHRE’s ability to address a wide range of employment-related conflicts more efficiently, without involving the court system in all cases.
3. Judicial Review
While MOHRE can make final decisions in many disputes, employees and employers dissatisfied with these decisions can still appeal to the Court of Appeal. However, they must file the appeal within 15 working days. This provides a safeguard to ensure fairness in the process.
4. Preservation of Worker Rights
During the dispute process, MOHRE can enforce measures to protect workers’ rights, such as ensuring the continuation of salary payments in some cases. This provision aims to prevent workers from suffering financially while awaiting the resolution of their disputes.
These amendments signify a significant shift towards a more effective, fair, and timely labour dispute process in the UAE. The changes aim to enhance worker protection while making the system more accessible for both employees and employers.
5 Changes to the UAE Labour Law in 2024
1. Legally Enforceable MOHRE Decisions
MOHRE now has the authority to make legally binding decisions in labor disputes. These decisions are enforceable without the need for further court action, aiming to expedite dispute resolution. This enhances efficiency, reduces court burden, and ensures quicker resolutions for both employees and employers in labor disputes.
2. Right to Appeal MOHRE Decisions
Parties dissatisfied with MOHRE’s decision now have the right to appeal within 15 working days. This amendment ensures fairness, offering an opportunity for both employers and employees to seek judicial review through the Court of Appeal. It protects the legal rights of both parties in labor disputes.
3. Claim Value Limit for Labour Disputes
MOHRE can now resolve disputes where the claim value is up to AED 50,000. This change allows for quicker resolution of smaller claims without court intervention, streamlining the dispute process. Larger claims still require judicial proceedings, but this threshold improves accessibility and efficiency for most workers.
4. Statute of Limitation for Labour Claims
Employees now have one year to file labor disputes from the date of the incident. This statute of limitations ensures timely resolution and prevents delayed claims, encouraging workers to act promptly. It also helps maintain efficiency within the labor system, ensuring that disputes are settled within a reasonable time frame.
5. Calculation of Salary Payments During Disputes
Employers must continue paying employees’ salaries during the dispute process. This rule ensures workers are not financially disadvantaged while awaiting the outcome of their case, particularly in disputes over unpaid wages or contract violations. It protects employees’ rights, providing financial stability during pending labor dispute resolutions.
Article 60 amendments
The amendments to Article 60 of the UAE Labour Law, as outlined in Federal Decree-Law No. 9/2024, significantly raise the penalties for employer violations. Employers now face fines ranging from AED 100,000 to AED 1 million for various infractions, including employing workers without valid permits, recruiting without actual employment, or engaging in fictitious employment schemes.
These changes reflect the UAE’s focus on strengthening employee rights and promoting compliance with labor regulations
Employer Obligations and Worker Protection
Under the UAE’s new labor law amendments, employers are required to provide a work environment that upholds employee rights, such as timely payment of wages, adherence to working hours, and occupational health and safety standards. In cases where disputes arise, the Ministry of Human Resources and Emiratisation (MOHRE) may intervene to resolve matters, and workers may be entitled to salary continuation for up to two months during the dispute period.
Additionally, the new provisions allow for judicial fee exemptions for labor cases, ensuring workers have better access to legal recourse.
What Happens If You Disagree with MOHRE’s Decision?
Although MOHRE now has the power to make decisions, the new system still includes an appeal process for employees or employers who are dissatisfied with the outcome. If a party disagrees with MOHRE’s decision, they can appeal the ruling to the Court of First Instance. This provides an additional layer of protection and ensures that no party is left without recourse if they believe the decision was unfair.
However, the introduction of MOHRE’s authority significantly reduces the need for lengthy court proceedings, ensuring that the majority of labor disputes can be settled without the need for judicial intervention.
How Hussain Lootah & Associates Can Help with Labour Disputes?
Hussain Lootah & Associates is a reliable labour lawyer in Dubai specializing in handling labor disputes, providing expert legal guidance to both employers and employees.
Their team offers comprehensive services, including negotiation, dispute resolution, and representation in courts or before MOHRE. With extensive experience in UAE labor laws, they ensure the protection of client rights, helping resolve issues like wrongful termination, unpaid wages, and contract violations efficiently.
Conclusion
The shift in how labor disputes are resolved in the UAE represents a significant step forward in improving the efficiency and fairness of the labor system. With MOHRE now empowered to make binding decisions, employees can expect faster resolutions, and employers can benefit from clearer guidelines on how to handle complaints. To navigate these changes effectively, it is recommended that both parties seek advice from labour lawyers in Dubai to ensure they fully understand their rights and obligations under the new law.
By adapting to the changes and embracing the updated process, both employers and employees can contribute to a more efficient and equitable workplace environment in the UAE.