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UAE introduces changes to Federal Law No. 33 of 2021 Regulating Labor Relations

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Content updates

Law No. 9 of 2024 outlines new procedures for addressing labor law disputes through amending Article 54 and 60 of Federal Decree by Law No. 33 of 2021 Regulating Labor relations in the UAE.

  • Article 54 addresses individual labour disputes, detailing procedures for amicable settlements, Ministry resolutions, and court referrals. Key points include:

- The Ministry's responsibility in resolving disputes and issuing binding resolutions for claims up to AED 50,000.

- Parties to a dispute can only appeal the Ministry’s decision within 15 working days at the Court of First Instance instead of the Court of Appeal.

- Increased the time allocated to adjudicate claims to be 30 days from the date of filing. Prior to the amendment, appeals of the Ministry’s decisions were to be adjudicated within 15 days.

- Extended the statute of limitations for filing employment claims from one year (starting from the date of entitlement to the labor claim) to be a two-year limitation period that start from the date of termination of employment.

  • Article 60 lists fine increases for various labour violations, including:

- Employing workers without permits, using permits improperly, and failing to settle worker rights upon establishment closure.

- Fines to range from AED 100,000 to AED 1,000,000, with provisions for increased penalties for employing workers in a fictitious manner.

- The Ministry is able to settle certain violations before court rulings, with fines and repayment of financial incentives.

The law mandates that the Courts of Appeal refer relevant disputes to the Competent Court of First Instance without fees, except for cases already adjudicated or reserved for judgment.

The provisions of Law No. 9 of 2024 comes into effect on August 31, 2024.

UAE

Ashrakat Sayed
By Ashrakat Sayed

Ashrakat joined Thomson Reuters in 2022 as a Content Specialist. She is a graduate with Bachelor's Degree from York University, and a Paralegal Diploma from Seneca College. Ashrakat is also a Licensed Paralegal by the Law Society of Ontario, Canada. She is a native Arabic speaker and fluent in English. 

Ashrakat is currently a Legal Editor for Thomson Reuters MENA. She is based in Dubai and is responsible for maintaining and providing the latest legal content updates in the MENA region. 

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