FEDERAL DECREE-LAW NO. 33
OF 2021 ON UAE LABOUR LAW

HIGHLIGHTS OF LAW NO. 33 OF 2021 ON UAE LABOUR LAW

The UAE announced the new Labour Law on November 16, 2021, repealing the Federal Labour Law No. 8 of 1980. The New Labour Law made substantial modifications to the country’s current employment system.

Except for free zone enterprises in Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM), the new Labour Law applies to all private sector establishments in the UAE. It introduces several adjustments that improve the working experience.

With this enormous accomplishment, the UAE has proved its commitment to aligning its employment legislation with recognised worldwide norms and developing market practices.

The provisions of the Decree-Law seek to preserve high labour market standards by establishing an appealing work environment for both employees and employers, allowing them to participate in the process of national development.

This may be accomplished by regulating the rights and duties of all parties involved in labour relations and ensuring the labour market’s resilience and sustainability under exceptional conditions.

The Decree-Law will apply to all private sector enterprises, employers, and employees in the state. As a result, federal and municipal government employees, as well as the armed forces, police and security, and any other group recommended by the Minister of Labour, are excluded.

ISSUER OF LAW NO. 33 OF 2021 ON UAE LABOUR LAW

The Labour Law in the UAE is issued by the UAE Ministry of Human Resources and Emiratisation (MOHRE). This law sets out the legal framework and regulations governing various aspects of labour and employment in the UAE.

WHO IS SUBJECT TO THE ‘UAE LABOUR LAW’?

The UAE Labour Law is primarily for both employers and employees in the UAE. It governs the employment relationship and outlines the rights and responsibilities of both parties. Here’s who the law is specifically for:

• Employers in the UAE.
• All employees working in the UAE, whether citizens or expatriates.
• Government Authorities.
• Lawyers, labour consultants, and legal advisors often reference the UAE Labour Law when representing employers or employees in labour disputes, contract negotiations, or other legal matters related to employment.
• Individuals or entities planning to establish and operate businesses in the UAE.