What is the new labour law in UAE?

What is the new labour law in UAE?

Federal Decree – Law No. 33 of 2021 on the regulation of labour relations in the private sector came into force on 2 February 2022. The law is designed to enhance employment rights and boost the competitiveness of the UAE as a place to live and work, helping the region to attract and retain world class talent.

What is the minimum basic salary percentage in UAE?

Currently, there is no UAE minimum wage. Also, there is no basic salary percentage in the UAE Labour Law; meaning the law does not require that the basic salary be a certain percentage of the gross salary. Nevertheless, common practice is for basic salary to be 60% of the gross salary and for allowances to be 40%.

Can I change my job after 6 months in UAE 2022?

Probation periods cannot be more than six months, and a notice of two weeks must be given to terminate them during this time. Employees who want to change jobs during the probation period must give a month’s notice, or 14 days if they want to leave the country.

What is new labour rule?

Under the new labour codes, employees would be allowed to get three week-offs. Any employee would have to work for not more than 48 hours. This means those employees who work for 8 hours every day will get only one week off. However those who work for 12 hours every day will be entitled to three week-offs.

What is the new law in UAE 2022?

The United Arab Emirates (UAE) has a new set of labor laws governing private-sector employment relations. On February 2, 2022, Federal Decree Law No. 33 of 2021 took effect, repealing and replacing Federal Law No. 8 of 1980, as amended, in its entirety.

Can I resign after 6 months in unlimited contract?

Answers (1) You can quit the job without your employer’s consent, but you need to send him an official email to tell him you will leave the job, even if he refuses before 6 months are complete.

What is the minimum wage in UAE 2021?

For UAE nationals, the minimum wage is determined by the level of education: No high school certificate- 3,000 AED. High school certificate- 4,000 AED. College degree or higher- 5,000 AED.

Can basic salary be less than 40?

Basic Salary Tax Liability Basic salary is always taxable and should, therefore, not be more than 40% of the CTC. However, it should also not be kept too low since it will then result in reduction in the other constituents of the salary.

Is there 13th month pay in UAE?

Dubai employers do not give 13th- month cheques or annual increases as is the case in countries where minimum wage laws exist.

Is NOC required for job change in UAE?

The No Objection Certificate (NOC) is no longer required for workers to change jobs, the Ministry of Labour (MoL) has confirmed.

How much I will pay if I resign under limited contract?

Please note that as per Article 116, if an employee revokes the limited contract for any reason other than Article121, the employee shall be required to compensate an amount which shall not exceed ½ month wage for three months or for remaining period whichever shorter.

How long can I stay in UAE after resignation?

As per the law, you can stay up to 30 days post the cancellation of your employment visa. After this period, if you continue to overstay you attract a fine of AED 100 for the first day and AED 25 for each day thereafter till you exit or amend your visa status.

What is full and final settlement?

The full and final settlement consist of clearance of dues towards an employee upon their exit from the company. It includes the salary drawn, leave encashment, reimbursements, variables etc.

What is the new wage code?

The New Wage Code directs a company to pay the due salary and full and final settlement of wages within two days of the last working day of the employee. Most companies currently take 45 days to 60 days to process the full and final settlement. It is a common practice followed by most firms.

What is wage Code 2022?

New Wage Code 2022: Full and Final Payment in just 2 Days But, according to the new rules, a company must pay the full and final settlement of wages and dues within two days of an employee’s last working day following their resignation, dismissal or removal from employment and services.

Can my employer reduce my salary UAE?

Employers may temporarily or permanently reduce the salaries of employees with the agreement of the employee. In the case of a temporary reduction, this is effected by executing an appendix to the employment contract of the individual in the form prescribed by the MOHRE and lodging it with the MOHRE.

What happens if I resign after 6 months in UAE?

However, there are possible consequences if you resign from your job (depending on your type of contract – limited or unlimited). If you decide to resign during the probation period, you will get an automatic 6 months labour ban by MOL which means you are not allowed to work in a UAE-registered company for 6 months.

Can I resign after 6 months in limited contract UAE?

Yes, you can resign if it has been previously agreed upon by your employer in writing. Make sure to serve the notice period and abide by the legal stipulations stated above, which varies based on your years of service but shouldn’t exceed 3 months.