The United Arab Emirates has just announced major changes to its labor legislation, aimed at strengthening regulation and protecting workers' rights. These changes, introduced by Federal Decree-Law No. 9 of 2024, have been in force since August 31, 2024. Let's take a look at the main points of these amendments.
Extension of the limitation period for claims
One notable change concerns the limitation period for employment-related claims. Previously set at one year, this period has now been extended to two years from the end of the employment relationship. This means that both employers and employees now have more time to assess their situation and file a claim if necessary.
In this way, the parties involved in a dispute can take the time to analyze their case before launching proceedings, ensuring better preparation and potentially a fairer resolution of conflicts.
Implications for employers and employees
This extension allows employers and employees to better organize their procedures and avoid rushing. It is essential that everyone is aware of this new deadline, so that they can act accordingly and not miss the opportunity to assert their rights.
Changes to appeal procedures for small claims
Other adjustments concern claims worth up to 50,000 dirhams. From now on, such cases will be decided by the Ministry of Human Resources and Emiratisation(MOHRE), with no possibility of appeal to the Court of Appeal. Decisions must be challenged directly before the Court of First Instance within 15 days.
This process is designed to be quicker and more efficient, with hearings scheduled within three working days and decisions handed down within the following 30 calendar days. Once rendered, the decision is final and not subject to further appeal.
Simplified procedure for minor claims
- The MOHRE issues a decision on all claims of 50,000 dirhams or less.
- Disputes must be lodged with the Court of First Instance within 15 days of notification.
- A hearing is scheduled within three working days.
- A judgment is rendered within 30 days of the filing of the dispute.
The aim of simplifying this procedure is to reduce case processing times and provide faster, more accessible justice for the parties involved.
Increased fines for labor violations
The new decree also entails a significant increase in fines for various types of labor violations. In particular, offences such as hiring workers without proper permits, using work permits for unauthorized purposes or closing down establishments without settling workers' rights will be subject to much harsher financial penalties.
The fines, previously between 50,000 and 200,000 dirhams, now range from 100,000 to 1 million dirhams. This increase is intended to deter abusive practices and provide better protection for workers.
Focus on increased legal compliance
It is crucial for employers to ensure that they comply with all regulations in order to avoid these heavy penalties. Similarly, workers need to be aware of their rights, so they can better defend themselves in the event of a breach by their employer.
Transfer of current business
With regard to labor cases currently awaiting decision, the new article specifies that these will be transferred to the Court of First Instance at no additional cost. This provision is intended to harmonize procedures and ensure a smooth transition to the new legal framework.
Employers and employees should therefore check the status of their files to ensure that they are being processed according to the new guidelines, to avoid any misunderstandings or unjustified delays.
