The United Arab Emirates has just announced some major changes to their labour legislation, with a view to strengthening regulation and protecting workers’ rights. These changes, introduced by the Federal Decree-Law No. 9 of 2024, have been in force since 31 August 2024. Let’s take a look at the key points of these amendments.
Extension of the limitation period for claims
One of the notable changes concerns the limitation period work-related claims. Previously set at one year, this time limit 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 lodge a claim if necessary.
This means that the parties involved in a dispute can take the time to analyse their case before initiating proceedings, thereby ensuring better preparation and, potentially, a fairer resolution of disputes.
Implications for employers and employees
This extension allows employers and employees to organise their procedures more effectively and avoid rushing. It is essential that everyone is aware of this new deadline so that they can take appropriate action and do not miss the opportunity to assert their rights.
Changes to the appeal procedures for small claims
Further adjustments relate to claims whose value does not exceed 50,000 dirhams. From now on, these cases will be decided by the Ministry of Human Resources and Emiratisation (MOHRE) with no right 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 faster and more efficient, with hearings scheduled within three working days and decisions issued within the following 30 calendar days. Once issued, the decision is final and cannot be further appealed.
Simplified procedure for minor claims
- The MOHRE issues a decision for any claim of 50,000 dirhams or less.
- Appeals must be lodged with the Court of First Instance within 15 days of being notified.
- A hearing is scheduled to take place within three working days.
- A judgement is handed down within 30 days of the filing of the appeal.
The aim of simplifying this procedure is to reduce the time taken to process cases and to provide the parties concerned with swifter and more accessible justice.
Increase in fines for labour law breaches
The new decree also leads to a significant increase in fines for various types of labour violations. In particular, offences such as employing workers without the appropriate permits, using work permits for unauthorised purposes, or closing down establishments without settling workers’ entitlements will be subject to much harsher financial penalties.
Fines, which previously ranged from 50,000 to 200,000 dirhams, now range from 100,000 to 1 million dirhams. This increase aims to deter abusive practices and ensure 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 severe penalties. Similarly, workers need to be aware of their rights so that they can better defend themselves in the event of a breach by their employer.
Transfer of ongoing cases
With regard to labour cases currently pending a decision, the new article specifies that these will be transferred to the Court of First Instance at no extra cost. This provision is intended to harmonise procedures and ensure a smooth transition to the new legal framework.
Employers and employees should therefore check the status of their applications to ensure they are being processed in accordance with the new guidelines, in order to avoid any misunderstandings or unnecessary delays.
