Dubai: The UAE will enforce significant amendments to its labour laws starting August 31, 2024.
These changes include extending the time limit for filing labour claims to two years, revising the legal process for disputes under Dh50,000, and increasing fines for companies violating labour regulations.
The new rules are part of Federal Decree-Law No. 9 of 2024, aimed at strengthening worker protections and ensuring stricter compliance from employers.
Extended period for labour claims
Previously, the law allowed for a one-year statute of limitations on labour claims. The key amendment now extends this period to two years, giving both employees and employers more time to assess their situations and pursue legal action, potentially leading to fairer dispute resolutions.
Under Article 54 (9) of the Labour Law, either party can file a claim within two years from the termination of the employment relationship.
Hari Wadhwana, an associate at Dubai-based law firm OGH Legal, noted that this extension benefits both employers and employees by providing additional time to evaluate and address their claims.
Extended period for labour claims
Previously, decisions made by the Ministry of Human Resources and Emiratisation (MOHRE) on labour cases with claims up to Dh50,000 could be appealed to the Court of Appeal. However, starting August 31, 2024, this process will change. Now, any lawsuits challenging MOHRE’s decisions must be filed directly with the Court of First Instance.
Article 54 (2) of the Labour Law confirms that MOHRE will continue to handle and enforce claims up to Dh50,000, but appeals will be processed differently. According to the new decree, the Court of First Instance will handle these cases, with a hearing set within three working days and a judgment issued within 30 working days from the filing date.
The judgment from the Court of First Instance will be final, with no further appeals allowed. For any pending cases before the Court of Appeal, they will be transferred to the Court of First Instance without additional fees.
Heavier penalties for labour law violations
Significantly higher fines for labour law violations have been introduced under the new law, with penalties now ranging from Dh100,000 to Dh1 million, up from the previous range of Dh50,000 to Dh200,000. This increase targets offenses such as employing workers without permits, misusing work permits, or closing businesses without settling worker rights.
Article 60 (2) of the decree also introduces severe fines for fictitious hiring practices, where workers are listed without actually being employed.
Employers found guilty of such violations may face not only these substantial fines but also be required to return any government incentives received as a result, with penalties multiplied by the number of fictitious workers involved.
These reforms underscore the UAE's ongoing efforts to create a fairer and more transparent labour market, offering stronger protections for workers while holding employers to higher standards of accountability.
Source: Gulf News