How UAE employment law is changing in 2016

This content was originally posted in 7DAYS UAE website at: How UAE employment law is changing in 2016 As everyone prepares to head back to work after the festive holidays, a number of changes to Employment Law in the UAE are now in place. The regulations, which officially came into play on January 1, are the result of a number of concerns that have historically caused stress in relations between an employer and employee. The new laws aim to address those areas of tension and provide clarity and peace of mind to the work environment. There are three major areas that are in the spotlight under the new laws: 1) Issuance of residence permits to newly-hired employees, 2) the requirements of a labour contract for employees from abroad and, finally, 3) the termination of an employment contract. New Visas A common struggle for many employees in the UAE has been obtaining a work permit. The issuance of a work permit lies primarily at the discretion of the employer. 2016: The new law mandates the situations in which employers are required to issue a new visa. These include: where a contract’s term has expired and it is not renewed, where six months of employment have been completed, where an employer has failed to meet legal and contractual obligations, where a business is inactive and an employer has not given work to the employee, where an employee is terminated for no reason (assuming they have completed six months), where one party has given proper notice and/or compensation to the other party and where an employee has made a complaint to the ministry and a final ruling is made in favour of the employee, who is either terminated early or is owed outstanding wages. Employees who hold a certain degree of post-secondary education do not require to meet the six-month requirement in order to obtain a new work permit. These rules break down the barriers that employees often face in obtaining a new work permit, remove the discretion from the employer and place control in the hands of the Ministry of Labour for efficient and fair operating. Standard Work Contract Previously, when an employee was hired, the terms and conditions of the initial offer may vary from the employment contract required to be signed at the commencement of the job. Unfortunately, when an employee had relocated and was about to start a new job, it may have be too late to make any changes, and in other cases, such changes were overlooked. 2016: The new law makes it mandatory to provide a clear and detailed initial offer letter to the potential employee that the employee can then carefully review, including their duties and responsibilities. This initial offer letter and the contract must match in their terms and conditions. The employee will then have a clear idea of what their role is going to be. The employment offer must be executed by the employee and lodged at the Ministry of Labour and an entry permit shall not be issued until this is done. Any changes, alterations, additions or deletions to the employment contract must be approved first by the Ministry of Labour. This update provides assurance to employees who can feel at ease that the terms and conditions will not change at the last instance or unilaterally without their consent. These new changes shall also apply to individuals who live in the UAE and are starting a new job. This ensures that new employees do not relocate to the UAE on false promises. Termination 2016: Finally, the provisions regarding termination have changed to provide for consistency and awareness for both the employer and employee. It is important to note that with either the unlimited or limited contracts, there are certain situations that permit a contract to be terminated. First, either party may give one to three months’ notice of their decision to terminate the contract, in either a limited or unlimited contract. Second, both parties may together agree that it is time to terminate the contract. The latter are the typical courses of action. Outside of this, it sometimes happens that one party unilaterally terminates the employment contract. When this happens, that party terminating the contract in such a way must bear the legal and financial consequences of doing so, this consequence will apply under the new law. More specifically, the terminating party has to indemnify the other with the agreed compensation. The exception to this of course remains Article 120 wherein various circumstances are outlined where there has been reckless behavior on the part of the employee or employer in which case the contract can be immediately and automatically terminated. In conclusion, the objective of the new UAE labour laws is to provide transparency and clarity on the duties and rights of employees and employers. It is also clear that the updates provide greater protection to employees arriving to the UAE and leaving their existing jobs. Read the original story at: How UAE employment law is changing in 2016