S ERIES OF

LEGAL W ORKSHOP S
SESSION 1
17 - 19 - Marc h 20 22
7PM - 9PM
Le g a l Maxim s Office

SPEAKERS

Ad v. MOHAMMED
SHARAFUD HEEN Mr. BIJU THOMAS
Manag ing Dire c tor Le g a l Consultant
 Probation Period
Old Law New Law

Probation up to a maximum of 6 The maximum period of probation is 6 months

months Notice period of 14 days to terminate

Employment can be terminated New Obligations on Employee:

without notice during the
probationary period • If resignation is to join another employer in the UAE,
then employee to provide one months’ notice & new
employer has to compensate the current employer for
the employee’s recruitment costs incurred (unless
agreed otherwise)

• If resignation is to leave the UAE, the employee must

provide 14 days’ notice. If employee returns to the UAE
within 3 months, new employer to compensate the
previous employer for the employee’s recruitment costs

Failure on part of employee - Labour Ban of a year

 Part Time and Flexible Working Arrangements
Old Law New Law

Part-time and flexible working New alternatives for flexible employment introduced:
arrangements are not expressly
addressed • Part-time Work: Part-time employees allowed. Entitled
to vacation leave on a pro-rated basis

• Temporary Work: Based on the Project Period. Similar

arrangement as provided by fixed term contracts under
the Current Law.

• Flexible Work: Working hours and/or days of work

alter depending on the employer’s workload and
economic and operational variables of the Employer
 Fixed Term Contracts
Old Law New Law

Two forms of contract currently All employees to enter into fixed term employment
exist: contracts for a maximum period of three (3) years

Unlimited Term Contracts - In full Employees under unlimited term contract - Either party
force unless terminated may terminate the contract for a legitimate reason subject
to minimum notice provisions:
Fixed Term Contracts - Terminate
at the end of the agreed term • 30 days( if service is less than 5 years)
unless renewed by the parties • 60 days (if service is more than 5 years)
• 90 days (if service is more than 10 years)
 Non-Competition Restrictions
Old Law New Law

Restrictive covenants are Non-competition restrictions permitted if limited in Time,

permissible, if reasonable - Limited Geography and to the extent necessary to Protect the
in terms of Time, Geography, and Legitimate Business interests of the employer
Type of Work
Maximum restrictive period of 2 years from the
Courts were reluctant if restrictive termination date
periods exceeded six months
(unless there is legitimate risk to If employee is unlawfully terminated, any restrictive
the business) covenants gets automatically nullified
 Discrimination and Equal Pay
Old Law New Law

Equal Pay for Men and Women for Equal Pay for Men & Women for the same work
the same work
Prohibits discrimination on the grounds of race, colour,
Protection for discrimination in the sex, religion, national origin, social origin and any disability
event of dismissal due to an that would impair equal opportunities (during
employee’s pregnancy or maternity employment and while Recruiting)
leave
Prohibited from terminating an employee (or threatening
to terminate) if she is pregnant or on maternity leave.

No specific penalties mentioned. Fines may range between

AED 5,000 and AED 1,000,000 for a breach (with a possible
multiplier effect)
 Currency of Salary Payments
Old Law New Law

Employees’ salaries must be paid in Salaries may now be paid in a currency other than UAE
UAE dirhams, into a UAE bank Dirhams, where agreed in the employment contract.
account
It remains to be seen how this will work in practice
 Bullying & Sexual Harassment
Old Law New Law

No existing provisions under the Sexual Harassment, Bullying, Verbal, Physical or

existing law relating to Bullying or Psychological Violence towards an employee are
Sexual Harassment prohibited from their employer, supervisor, colleagues or
those working with them.

Employer is prohibited from coercing or threatening an

employee to undertake work or provide services against
their will

No specific penalties attributed. Employer may be liable

for fines ranging between AED 5,000 and AED 1,000,000
for breaches of the law (with a possible multiplier effect)
 End of Service Gratuity
Old Law New Law

Gratuity calculated on the basis of CALENDAR Gratuity calculated on the basis of WORKING
days. Entitlement reduced if employee resigns days
before 5 years of service: (significant change on the current position)

Unlimited term contract: Gratuity reduction provisions for resigning

• Less than 3 years- Gratuity reduced by 2/3 employees are conspicuously absent (i.e.
• More than 3years but less than 5 years - Gratuity resigning employees are entitled to a full gratuity
reduced by 1/3 payment, if they have completed at least one full
year of service)
Fixed term contract: Before completing 5
years - No gratuity is payable Provisions regarding alternative pension/savings
schemes are not mirrored (it remains to be seen
Arrangements of Employer contributions into whether MOHRE will recognise such
pension or other savings scheme in lieu of arrangements)
paying Gratuity are permissible
 Payment of End of Service Entitlements
Old Law New Law

No provisions or time frames under All end of service entitlements must be paid within
the existing law to pay employees’ end 14 days from the termination date
of service entitlements
Failure to comply may result in a fine of between
AED 5,000 and AED 1,000,000 (with a possible
multiplier effect)

No compensation is payable to the employee in the

event that this time frame is not complied with
 Maternity Leave
Old Law New Law

Maternity leave is for 45 calendar days Maternity leave increased to 60 calendar days (first
at full pay and, on expiry, employees 45 days fully paid & remaining 15 days at half pay).
are entitled to a further 100 days of Nursing breaks reduced from 18 months to 6
consecutive or intermittent maternity months
“sick” leave (if suffering from
pregnancy or delivery related issues). Maternity leave applies in case of miscarries after 6
months of carrying, still births and/or upon the
On resuming job, entitled to two death of an infant after birth
additional breaks per day (not
exceeding one hour in aggregate) for Additional 30 calendar days of maternity leave (with
nursing, until the child attains 18 full pay), for employees who give birth to a disabled
months of age or sick child requiring “constant companion”. Can
extend this leave for additional 30 days (unpaid).

Maternity “sick” leave is reduced to 45 days

 Parental and Additional Leave
Old Law New Law

No provisions under the existing law Number of new leave categories introduced:
pertaining to compassionate leave or
study leave Compassionate Leave: 5 days in the event of the
death of an employee’s husband or wife. 3 days in
case of death of an employee’s mother, father, son,
brother, sister, grandson, grandfather or
grandmother

Parental Leave: 5 days

Study Leave: 10 days per year for an employee (with

more than two years’ service) who is studying with
an approved UAE education institution
 Employee Termination
Old Law New Law

At present, employment may be Fixed term contracts can be terminated on notice for
legitimately terminated: a “legitimate reason”

• Without notice (for reasons set out Payment in lieu of Notice Period allowed
in Articles 88 and 120)
• With notice, for a “valid” reason (i.e. If employer terminates the contract, employee is
reasons attributable to an permitted 1 day of unpaid leave per week (for
employee’s performance or searching for a new job)
conduct)
• By mutual agreement Termination with notice is now permitted, if the
• For fixed term contract - upon employer is bankrupt or insolvent, or there are any
expiry of the agreed term economic or exceptional reasons.

… Continued
 Employee Termination
Old Law New Law

Employee can be terminated with notice if he/she:

• abuses their position for profit or personal gain; or

• commences work for another employer without complying
with the applicable rules and procedures

Employee may leave employment immediately and without

notice:

• Where there is serious danger in the workplace that threatens

the safety or health of the employee & Employer took no
action to eliminate the danger

• Where an employee is assigned to perform work (without their

consent) that is fundamentally different from their job
description as per the employment contract
 Compensation for Unlawful Termination
Old Law New Law

Courts may award compensation for Concept of “arbitrary dismissal” removed

“arbitrary” dismissal (i.e. being a
dismissal that is “unrelated to the Employee’s termination is unlawful
work” of the employee)
(i) if the termination was as a result of the employee
filing a serious complaint against the employer
(ii) If the employee filed a case against the employer
which is successfully upheld

If termination is unlawful, Labour Courts may ask

employer to compensate up to three months’ total
remuneration (basic salary & allowances), plus other
contractual and statutory entitlements. The Court, in
deciding compensation, will consider the amount of
damage sustained by the employee, length of service
and type of worked performed
Thank You!
+971 50 260 0687
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