UAE’s new labour law to largely align public and private sector benefits

A new labour law set to take effect in the UAE from February 2, 2022, will ensure that both public and private sector work practices and benefits are largely aligned, a senior official has said.

The new law will “limit the differences between both sectors in a way that will boost our goals of establishing an integrated, sustainable and efficient and more attractive work environment” Dr Abdulrahman Al Awar, Minister of Human Resources and Emiratisation was quoted as saying by local media.

Under the new law, employees in both sectors will get similar leaves and end-of-service benefits. They will also have the option to choose between flexible, part-time and temporary work models.

All employers will also have to offer limited period contracts which can be renewed.

“The new rule is the first of its kind as it unifies the general rules of work in the country based on limited contract,” the minister said.

End-of-service

Under the new law, an employee who has spent one year or more in continuous service shall be entitled to an end-of-service gratuity when leaving the company.

Those working in a job for up to five years will be entitled to gratuity based on 21 days of salary for each year of work. If an employee has served for a longer period, the gratuity will increase to 30 days of salary for each year of work following the first five years.

Leave

The law mandates that all full-time employees working in the public and private sector will receive annual leaves of up to 30 days.

It will also standardise leaves for maternity, paternity, sickness, study and bereavement.

All employees will also be protected under anti-discrimination provisions that prohibit employers from recruiting on the basis of race, colour, gender, religion, nationality, social origin or disability, the minister added.