The new labour law in UAE, enacted under Federal Decree-Law No. 33 of 2021, came into force on February 2, 2022, new labour law uae replacing the previous labour law that had been in place since 1980. This legislation marked a major shift in employment relationships, rights, and regulations, offering more flexibility and enhanced protections for both employers and employees.
At MAC Debt Collection, we understand how important it is for businesses, employees, and legal professionals to stay compliant with the UAE’s labour law framework—especially when it involves financial disputes, end-of-service benefits, employment contracts, or wrongful terminations. Our team is here to help you navigate any legal complications arising from the new changes in the labour law.
Key Highlights of the New Labour Law UAE
Here’s a detailed look at the most significant changes under the new UAE labour law that all stakeholders need to be aware of:
1. Employment Contracts Must Be Fixed-Term
Under the new law, all employment contracts in the UAE must now be limited-term (fixed-term) contracts. Open-ended (unlimited) contracts are no longer allowed.
- Maximum contract duration: 3 years (renewable)
- All existing contracts must be converted to fixed-term within one year of the law’s enactment (by February 2023).
Why it matters: This creates more clarity around obligations, duration, and renewals. MAC Debt Collection can assist in reviewing and adjusting contracts for compliance.
2. Flexible Work Models Introduced
The law introduces new work models to suit a dynamic workforce, including:
- Full-time
- Part-time
- Temporary
- Freelance
- Remote/Work-from-home
Why it matters: Businesses now have the legal framework to hire under various flexible terms. Misclassifying employees could result in legal disputes. We help companies mitigate risk when restructuring workforce contracts.
3. End of Service Benefits – New Calculation
Gratuity or end-of-service benefits remain a key area of concern. Under the new law:
- Employees are entitled to full gratuity after completing one year of service (no deduction for resignations).
- Calculated based on 21 days’ wage per year for the first 5 years and 30 days per year thereafter.
- Payment must be made within 14 days after the contract ends.
Why it matters: Employers failing to pay on time could face fines and legal actions. At MAC Debt Collection, we can pursue unpaid gratuities legally and efficiently.
4. Anti-Discrimination and Equal Pay
For the first time, the law includes strong anti-discrimination provisions:
- No discrimination based on gender, race, colour, religion, nationality, or disability.
- Women are entitled to the same pay as men for the same work.
Why it matters: Employees now have stronger legal grounds for filing complaints. We assist with labour dispute resolution and representation in such cases.
5. Probation Period Changes
Employers must now give 14 days’ notice if terminating an employee during probation. If the employee resigns:
- 1-month notice is required if joining another UAE employer.
- 14-day notice if leaving the country.
Why it matters: Non-compliance can lead to compensation claims. Our team can help ensure that probation-related terminations are handled lawfully.
6. Leave Entitlements Under New UAE Labour Law
The new law includes updated rules for employee leave, such as:
- Annual Leave: 30 calendar days per year after one year of service.
- Maternity Leave: 60 days (45 days full pay + 15 days half pay), with options for extended unpaid leave.
- Paternity Leave: 5 days paid.
- Bereavement Leave: 3-5 days depending on relation.
- Study Leave: 10 days per year for employees studying at accredited institutions.
Why it matters: Employers must keep accurate leave records. MAC Debt Collection helps businesses and individuals resolve salary or leave-related payment issues.
7. Termination and Compensation
The law has redefined wrongful termination and severance compensations:
- Termination must be for a legitimate reason or through mutual consent.
- Arbitrary or discriminatory dismissal may result in compensation of up to 3 months’ salary.
Why it matters: If you’ve been terminated unfairly or owe compensation to a former employee, MAC Debt Collection offers professional legal recovery services.
8. Non-Compete Clauses Are Regulated
Employers can now include non-compete clauses of up to 2 years, provided:
- The nature of the work warrants it.
- Geographical and time limits are clearly stated.
Why it matters: Disputes over non-competes can hinder employment transitions. We help resolve such contract enforcement cases legally.
MAC Debt Collection: Your Partner in UAE Labour Disputes
Navigating the new UAE labour law can be challenging, especially when dealing with financial disputes, unpaid dues, wrongful dismissals, or contract violations. That’s where MAC Debt Collection steps in.
We specialize in:
- Salary recovery and unpaid dues
- End-of-service benefits claims
- Employment contract compliance
- Wrongful termination legal support
- Legal dispute settlement with employees or employers
Our experienced legal professionals and debt recovery agents ensure that your rights are protected while maintaining compliance with the new labour regulations in the UAE.
Final Thoughts
The new labour law in UAE has set the stage for a more transparent, fair, and flexible work environment. While the changes are progressive, they also place new responsibilities on both employers and employees. Whether you’re a business owner trying to stay compliant or an employee facing unfair treatment, MAC Debt Collection can provide the legal guidance and recovery solutions you need.
Need help with labour law disputes or unpaid benefits?
📞 Contact MAC Debt Collection today for expert assistance.
