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Employers must transition employees to short-term contracts by February 1st

Updated: Jan 27

For UAE businesses, there are two crucial deadlines related to employment legislation, the first of which is in less than a week.

Except for businesses located in the free zones of The Abu Dhabi Global Market and Dubai International Financial, all employers must transfer contracts by Wednesday, February 1 in accordance with the most recent labor law.

Domestic workers employed by families are likewise exempt from the reforms.

Businesses that don't renew employment contracts risk a fine or penalty, albeit the amount hasn't been made public by the government.

Your day-to-day employment may not be impacted by the laws, but it is a 1980 statute that is a part of a larger makeover of the employment environment in the private sector.

The adjustment will make it simpler for businesses and employees to agree on project-based employment, job-sharing, and part-time hours.

It is up to employers and employees to come to an agreement on a contract duration after a federal order announced in October abolished the original three-year cap. Businesses who revised contracts following the initial ruling in February but prior to the decree in October could need to do so once more.

Businesses in the private sector will adapt how they run in order to support job sharing and more flexible working arrangements.

According to regulations put in place in February of last year, the majority of those in the private sector would work shorter, fixed-term contracts and be permitted to remain in the nation for up to 180 days after quitting a position.

The government removed a three-year restriction on the length of fixed-term employment contracts in the private sector in an update released in October.

The legislation will no longer place a limit on how lengthy an employment contract can be; instead, employment contracts must cover a stated time under the proposed modifications.

The most likely beneficiaries of more flexible working hours are students and workers who are returning after a break.

People will be able to work on a temporary basis to finish a certain contract as well as for more than one employer for a predetermined number of working hours or days.

Employers were reminded to evaluate their employment contracts and update them as necessary in order to avoid penalties or fines.

Unemployment insurance

The deadline for UAE citizens to sign up for unemployment insurance is also drawing near.

By June 30th, everyone employed by a business that is subject to the Ministry of Human Resources and Emiratization must register.

The insurance program becomes active on January 1.

Workers will just have to pay between $5 and $10 each month. They may receive tens of thousands of dirhams every month for three months to get them by if they lost their employment.

More info in our next coming article.

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