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UAE New Labour Ban Law: Key Changes and Implications

uae new labour ban law

What is UAE new labour ban law?

The UAE’s employment landscape witnessed a significant transformation with implementation of the new Federal Decree-Law No. 33 of 2021, governing labour relations in the private sector.

This law, effective since February 2, 2022, aims to enhance employment rights, attract top talent, and strengthen the UAE’s position as an attractive destination for work and living.

Central to this new legislation is the “labour ban,” which has implications for employees and employers.

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Key Changes Under the UAE New Labour Ban Law.

One of the noteworthy changes brought about by the new labour law is the requirement for all workers to be employed on limited-term contracts with a maximum duration of three years.

This change encourages employers to transition from unlimited contracts to fixed-term agreements, offering renewal options. Employers have until February 3, 2023, to make this transition.

Understanding Limited-Term Contracts.

A limited-term contract, correlated with the UAE resident visa’s tenure, automatically expires at the end of its term unless terminated prematurely by one party or mutually renewed.

This change clarifies and stabilises employees and employers regarding their contractual commitments.

Implications of the Labour Ban under the New Law.

The UAE’s Ministry of Human Resources and Emiratization (MoHRE) has set guidelines regarding labour bans under the new law.

Employees who decide to quit during probation may face a one-year labour ban, preventing them from legally working in another UAE-based firm for a year or more.

When is a One-Year Labour Ban Imposed?

Employees intending to terminate their employment contract during the probation period must adhere to specific conditions outlined in the Federal Decree-Law No. 33 of 2021 and Ministerial Resolution No. 47 of 2022.

This includes providing 30 days written notice to the current employer if they wish to work for another employer within the UAE or 14 days written notice if they plan to leave the country.

Exemptions from the Labour Ban.

Certain categories of workers are exempt from the labour ban, as determined by Article 11 of Cabinet Resolution No. (1) Of 2022.

These categories include workers with essential skills, those whose residency visas are sponsored by their families, and golden visa holders. The government may also identify specific professional categories based on market needs.

FAQs about UAE new labour ban law.

The main change is requiring all workers to be employed on limited-term contracts with a maximum duration of three years, improving employment stability.
Al Mulla is a trusted legal expert in the UAE, specializing in labour ban law cases, offering expert advice and assistance tailored to your needs.

Conclusion.

The introduction of the UAE’s new labour ban law in 2022 fundamentally changed the employment landscape. With a focus on limited-term contracts and guidelines for probationary period termination, the law seeks to create a balanced environment for employees and employers.

If you seek legal advice or assistance regarding labour ban law cases in the UAE, Al Mulla Lawyer & Legal Consultant is a trusted expert.

Contact the office of Al Mulla via Whatsapp. Click here. Or visit us at our law firms: Dubai. You can also call us on phone: 00971501961291.

Read about Labour Ban Abu Dhabi: Regulations and Implications in 2023 and learn How to Check Labour Ban in UAE.

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