New Amendments to the UAE Labor Law 2024: Federal Decree-Law No. 9 of 2024
The UAE has recently enacted Federal Decree-Law No. 9 of 2024, introducing substantial amendments to Articles 56 and 60 of the UAE Labor Law (Federal Decree-Law No. 33 of 2021 concerning the Regulation of Labor Relations). These amendments are designed to enhance the protection and regulation of the relationship between employers and employees, providing greater clarity on the rights and obligations of each party. Below is a comprehensive analysis of the key amendments:
I. Amendments to Article 54 on Individual Labor Disputes:
Amendment of Jurisdiction: Under the new amendments, the jurisdiction to adjudicate labor cases subsequent to the Ministry’s final decision on labor complaints has been assigned to the Court of First Instance, instead of the Court of Appeal, which previously had jurisdiction over such cases. Additionally, Article 2 of the new Decree-Law mandates that all requests and disputes be referred to the Court of First Instance from the date of the Decree-Law’s enforcement, excluding cases in which a judgment has been issued or those reserved for judgment.
Extension of the Period for Adjudication of Cases Following the Ministry’s Final Decision on Labor Complaints: The decree extends the period for adjudicating labor disputes from 15 days to 30 days, allowing more time for thorough consideration of cases.
Extension of the Statute of Limitations in Labor Cases and Effective Date: The statute of limitations for labor cases has been extended to two years instead of one year. Moreover, this period is now calculated from the date of the termination of the employment relationship, rather than from the date the claim arose, as was the case under the previous law, allowing workers more time to claim their rights.
II. Amendments to Article 60 Regarding Fines Imposed on Employers:
Tougher Penalties for Violations: The new Decree-Law has increased the penalties imposed on employers who violate the laws, whether by employing workers without a permit, leaving them without work, or engaging in any actions that infringe on workers’ rights according to Article 60. The minimum fine has been raised to AED 100,000, and the maximum has been increased to AED 1 million, up from the previous limit of AED 200,000.
Sanctions for Fictitious Employment: The amendments introduce new penalties for the crime of fictitious employment, including fraudulent Emiratisation, imposing fines ranging from AED 100,000 to AED 1 million on any employer found to be circumventing labor laws, regulations, or decisions by engaging in sham employment practices.
Employer’s Financial Liability: The decree further stipulates that employers are to bear all financial consequences arising from fictitious employment. The amendments empower the court to order the employer to repay any financial incentives or benefits received by the employee as a result of such fictitious employment, without granting the employer the right to seek reimbursement from the employee.
The amendments introduced by Federal Decree-Law No. 9 of 2024 represent a significant evolution in the regulation of labor relations within the UAE. They underscore a clear legislative intent to tighten oversight of legal compliance, while striving to balance the interests of both employees and employers. These changes are poised to foster a more equitable and transparent working environment, prompting employers to reassess their practices to ensure conformity with the new legal framework.
In light of these developments, Yasin Al Hamed Advocates and Legal Consultants remains committed to guiding our clients through the complexities of these legislative changes. We offer expert legal counsel to ensure that our clients’ labor practices align with the latest legal requirements, safeguarding their interests and upholding their professional reputation.