The 2024 amendments to the UAE labour law have introduced key changes aimed at further modernizing the legal framework governing employer-employee relationships. These updates are designed to align the UAE's labor market with international standards, ensuring that both employers and employees can operate in a fair, transparent, and flexible environment. Below, we break down the most critical amendments and what they mean for businesses in the UAE.

Key Amendments in the 2024 UAE Labour Law

Salary Continuation During Disputes

• Previous Law: The UAE labour laws did not include specific provisions for salary continuation during employment disputes.

• 2024 Amendment: Employers are now required to continue paying an employee's salary for up to two months while employment-related disputes are being resolved. This provision offers financial stability to employees during potentially lengthy dispute resolutions and reflects a commitment to fair treatment in the workplace.

Probation Period Notice

• Previous Law: Guidelines for notice periods during probation were detailed in the 2021 amendments, not in the 1980 law.

• 2024 Amendment: Employers must provide a minimum of 14 days' notice before terminating an employee during the probation period. Additionally, if an employee wishes to resign and leave the UAE, they must provide 14 days' notice. If they are joining another employer within the UAE, they must give one month’s notice.

Part-Time and Flexible Working Arrangements

• Previous Law: Part-time and flexible working arrangements were introduced under the 2021 law.

• 2024 Amendment: The law continues to support flexible work models, including part-time, remote, and job-sharing roles, allowing employees greater flexibility while ensuring they receive the same entitlements as full-time employees.

Claim Value Limit for Labour Disputes

• Previous Law: There were no specific claim value limits for labour disputes.

• 2024 Amendment: Disputes involving claims up to AED 50,000 can now be resolved directly by the Ministry of Human Resources and Emiratisation (MOHRE) without the need for court intervention. This change aims to streamline the dispute resolution process, reducing the burden on courts.

Legally Enforceable MOHRE Decisions

• Previous Law: MOHRE decisions were not automatically enforceable.

• 2024 Amendment: MOHRE's decisions are now recognized as legally enforceable without requiring lengthy legal processes, providing greater authority to the ministry’s judgments.

Statute of Limitation for Labour Claims

• Previous Law: The statute of limitation was not clearly defined in previous laws.

• 2024 Amendment: The statute of limitation for labor claims is now clearly set at two years after the last working day. Employees who do not file a dispute within this period will lose the right to sue, bringing more clarity and finality to employment disputes.

Non-Compete Clauses

• Previous Law: Non-compete clauses were broadly defined, often leading to overly restrictive covenants.

• 2024 Amendment: Non-compete clauses must now be reasonable in scope, duration, and geographic area, ensuring that these clauses do not unduly restrict an employee’s ability to seek new employment.

Increased Penalties for Non-Compliance

• New Penalty: The penalties for employers who fail to provide necessary visas or work permits have been significantly increased, emphasizing the government's commitment to enforcing compliance with employment regulations.

Expanded Grounds for Summary Dismissal

• Previous Law: Summary dismissal was allowed on limited grounds.

• 2024 Amendment: The grounds for summary dismissal have been expanded to include unauthorized employment and abuse of position for personal gain. Employers must adhere to procedural safeguards, including investigations and written warnings, before proceeding with summary dismissal.