In brief The UAE Government has recently announced legislation requiring employees in the Federal Government and private sector to register in an unemployment insurance scheme. The scheme is designed to provide financial support to employees in the event that the employee loses their job. What do employees need to do? Employees must register with an unemployment insurance scheme starting from 1 January 2023.Unemployment insurance schemes are provided by a number of selected insurance providers in…
What has changed? The maximum three-year limit for fixed term contracts has been removed. While contracts still require to be for a limited term, employers now have flexibility with regards to the length of the term. We have already prepared and have been using our new contract templates (and issued contract amendments converting unlimited term contracts to limited term contracts). Do we need to change all of our contracts again? Unlikely. We expect that the…
Increasing the number of UAE nationals in the private sector has long been a key objective for the government. In the past, the UAE government has launched a significant number of laws and initiatives to support the localisation of the workforce. The government has recently increased its efforts in this regard and introduced a suite of new laws, including an obligation to recruit Emirati employees at the rate of 2% per year, to drive forward…
In brief The long-awaited Decree-Law No. 33 of 2021 on Regulation of Labour Relations (the “New Labour Law”) is among a number of new legal developments introduced recently in the UAE. Over the course of the last few weeks we have also seen significant changes to the Data Protection and e-Transactions Laws, and of course, the change to the UAE weekend which has attracted significant attention worldwide. On Tuesday, 7 December 2021, the UAE Government…
In brief In a significant development, the National Council for Wages has finally set the long awaited salary thresholds applicable to the private sector: Minimum wage: EGP 2400 per monthMinimum annual salary increase: 3% per year These changes which are implemented by virtue of decree No. 57 of 2021 will apply as of 1 January 2022. What has changed? Effective January 2022: All companies must ensure that their employees receive no less than EGP 2,400…