Dispute between employee and employer is unfortunate in every workplace, including the UAE. These disputes can negatively impact the working environment and, if not resolved, could lead to legal action.
To avoid such situations, the UAE has established laws and procedures that guarantee the rights of both employers and employees. This article will explore resolving a dispute between an employee and an employer in the UAE.
With the introduction of Federal Decree-Law No. 20 of 2023, significant amendments have been made to the labour dispute resolution process, which will also be discussed in this article.
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Table of Contents
Steps of Resolving Dispute Between Employee and Employer UAE
- Filing a Complaint.
The first step towards resolving a dispute between an employee and an employer in the UAE is to file a complaint with the Ministry of Human Resources and Emiratisation (MoHRE).
Both parties can file a complaint, and the MoHRE will attempt to settle the dispute amicably. If the dispute cannot be resolved, it will be referred to the judiciary. - Registering the Labor Complaint with the Competent Court.
- If the dispute is referred to the judiciary, the employee must register the labour complaint with the competent court within 14 days from the date of approval.
The labour complaint must be accompanied by a memo summarizing the dispute, evidence from both parties and comments from the relevant labour department. - Attending a Hearing.
The competent court will then fix a hearing for the claim within three days of receiving the request and notify both parties. Evidence will be presented during the hearing, and the court will decide. - Applying for a Temporary Work Permit.
During the process of the labour case, the employee must apply for a temporary work permit with a new employer, except when he or she has been reported absent by the employer. - Cancelling the Original Work Permit.
If the working relationship has been terminated, the employee must submit a request to cancel the original work permit within 14 days of the issuance of the final judgment in the labour lawsuit. - Time Limit for Filing Claims.
According to Article 10 of the UAE Labour Law, no claim for rights due will be heard after one year from the violation date.
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Employment Dispute Cases in the UAE
In the event of a dispute between employee and employer in Dubai, seeking legal advice and representation is always recommended.
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Scope of the New Employment Dispute Decree
Under the amended provisions of the Labour Law, MOHRE has been granted expanded powers to adjudicate Dispute between employee and employer below a specified threshold of AED 50,000.
This marks a fundamental shift as MOHRE now acts as both mediator and final arbiter, issuing enforceable judgments in cases of non-compliance with amicable settlements.
Enforceability of MOHRE’s Decisions
Decisions rendered by MOHRE now hold the weight of a writ of execution, granting them the same legal power as judgments issued by local courts.
This change underscores MOHRE’s elevated role in dispute resolution, emphasizing enforceability and accountability.
Appeal Process and Threshold Distinctions
Parties dissatisfied with MOHRE’s decisions can appeal directly to the Court of Appeal within 15 days, suspending execution until a final determination is reached.
The Decree also distinguishes between disputes below and above the AED 50,000 threshold, with MOHRE’s role expanding significantly in the former cases.
Ensuring Salary Payments and Preventing Collective Disputes
MOHRE is empowered to compel employers to continue paying salaries for up to two months during disputes causing salary suspensions, prioritizing employee welfare.
Moreover, the Decree grants the Minister authority to issue preventive measures to prevent an individual dispute between employer and employee from escalating into collective grievances, safeguarding the public interest.
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Updated 18 July 2024
FAQs about disputes between employees and employers in UAE
Conclusion.
A dispute between employee and employer can be stressful and time-consuming, but the UAE has established laws and procedures to ensure that these disputes are resolved fairly and justly.
Following the steps outlined above, employees and employers can work towards a beneficial resolution for all parties involved.
Seeking legal advice and representation, such as that provided by Al Mulla, can also help to ensure that an employee dispute is handled effectively and efficiently.
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A legal consultant specializing in UAE labor law. He regularly publishes articles on the website and writes on various areas of UAE law, with a specific focus on labor law.