Abu Dhabi: Starting tomorrow, the amended UAE labor law will be implemented, offering enhanced protections for workers while imposing severe penalties on companies that fail to comply. Designed to safeguard workers’ rights, this law includes fines reaching up to AED 1 million for violators.
Among the key changes, the amendment extends the statute of limitations for filing legal actions in Labour disputes to two years. If a Labour dispute involving amounts below AED 50,000 cannot be resolved through mediation by the Ministry of Human Resources and Emiratization (MOHRE), the case can be filed in the primary court within 15 days. This reform aims to protect the interests of both workers and employers, according to MOHRE.
The amendment also introduces stringent penalties, ranging from AED 100,000 to AED 1 million, for violations such as employing workers without proper work permits, unauthorized hiring, misusing work permits, closing businesses without settling workers’ rights, recruiting workers without providing jobs, employing minors, and other breaches of Labour laws.
Furthermore, companies that disagree with MOHRE’s decisions in Labour disputes now have the option to challenge these decisions directly in primary courts, bypassing the appeal process. These cases are required to be heard within three working days and resolved within 30 days.
The new law also allows workers up to two years to file compensation claims after employment termination, extending the previous one-year limit. This extension starts from the date of job termination, providing workers more time to reclaim any lost benefits. It also offers relief to workers who may have had to leave the country immediately after termination, as they can still file a case within two years upon their return.
Additionally, the law imposes severe penalties for those involved in fraudulent Emiratization practices. Such cases require permission from MOHRE to be filed. Offenders found guilty must repay any benefits received from the ministry, including fee exemptions, alongside paying the prescribed fines.
These amendments mark a significant step in reinforcing the UAE’s commitment to protecting workers’ rights while maintaining fair Labour practices.
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