In February 2022 the new UAE Labour Law came into force marking a landmark change to the employment landscape in the United Arab Emirates – the first significant change in employment legislation in 41 years. Employers in the UAE (with the exception of the DIFC and ADGM free zones, which have their own employment laws in place) were given one year (from 2 February 2022) to ensure that they are compliant with the provisions with the new law.
As July is almost finished, this means that UAE employers have a little over six months to ensure that their human resources (HR) affairs are in order. This includes having all employees on fixed term contracts and having the requisite policies and procedures in place as required by the UAE Labour Law.
As the new president of the UAE, His Highness Sheikh Mohammed Bin Zayed Al Nahyan, in his recent address to the nation, emphasised the importance and value of human capital in the UAE, this is a good time to ensure that companies’ employment policies and processes are compliant with the law and supports this vision.