Understanding UAE Labour Law Changes in 2024
The United Arab Emirates continues to refine its labour legislation to create a more balanced and transparent work environment. The amendments to Federal Decree-Law No. 33 of 2021, which came into effect with additional executive regulations in 2024, bring important changes that every employer and employee in Dubai should understand.
Key Changes to Employment Contracts
All employment contracts must now include more detailed provisions regarding job responsibilities, working hours, and compensation structure. Fixed-term contracts have been standardized to a maximum duration of 3 years, with clear renewal procedures. Employers must provide contracts in both Arabic and English, with the Arabic version prevailing in case of disputes.
New Working Hour Regulations
The standard working week remains 48 hours, but the law now explicitly mandates overtime pay calculations. Employees working beyond normal hours are entitled to their basic salary plus 25% for daytime overtime and 50% for nighttime overtime. Friday work must be compensated with either another day off or overtime pay.
Updated Leave Entitlements
Annual leave entitlements have been clarified: 30 days per year for employees with more than one year of service. The law now explicitly prohibits employers from denying accrued leave for more than two consecutive years. New provisions also address emergency leave and study leave for employees pursuing further education.
End-of-Service Gratuity Changes
The gratuity calculation formula remains largely unchanged, but the law now requires employers to maintain separate gratuity funds or insurance policies. This protects employees in case of company insolvency. Our labour lawyers recommend all employees verify their gratuity accrual annually.
Termination and Notice Period Rules
Notice periods are now standardized: 30 days for employees with less than 5 years of service, and 60 days for longer-serving employees. Arbitrary dismissal protections have been strengthened, with employers required to provide written justification for termination. Wrongful termination claims can now result in compensation up to 3 months salary.
What Employers Must Do Now
- Review and update all employment contracts to comply with new requirements
- Implement proper overtime tracking systems
- Establish clear grievance procedures
- Ensure gratuity fund compliance
- Train HR personnel on new regulations
What Employees Should Know
- Request a copy of your updated employment contract
- Keep records of all working hours and overtime
- Understand your leave entitlements and use them
- Verify gratuity calculations annually
- Document any workplace violations
How We Can Help
At Al Mousa Law, our labour law team assists both employers and employees in navigating these regulatory changes. We provide contract review services, compliance audits for companies, and representation in labour disputes before MOHRE and Dubai Courts.
Contact us for a consultation to ensure your employment practices are fully compliant with the 2024 UAE Labour Law.