Actions to be taken by early 2023
With only a few months left to comply with the changes in the new Labour Law, employers should take the following steps immediately:
▫ Update employment contracts to ensure they are up to date with the fixed-term provision and comply with the new Labor Law (e.g., gratuity and termination provisions);
▫ Reviewing policies to ensure they are consistent with the new developments, e.g., implementing equal opportunity and anti-bullying and harassment policies; and
▫ Reviewing their current immigration practices. With different types of work permits introduced for part-time and flexible work, employers need to ensure that their employees are working with the correct permit to avoid fines and penalties from the authorities.
In addition, employers must comply with the new Emiratization quotas starting January 1, 2023:
▫ 0-50 skilled employees: one national
▫ 51 to 100 skilled workers: two nationals
▫ 101 to 150 skilled employees: three nationals
▫ 151 skilled employees or more: one national for every 50 employees.
Non-compliance will result in fines of $1,634 per month for each UAE national not hired, with fines increasing by $273 per month annually.
Do you have some questions or need help to ensure compliance with the changes in the new Labour Law?
Suciu – Employment and Data Protection Lawyers, our member firm for the UAE, provides a full range of solutions designed to help you reduce costs and control risks concerning the new labor law requirements. Feel free to contact them today:
📧 info@suciuemployment.law
📞+971 (0) 585 183 710
