27 Jan 2022

New UAE Labour Law: Your burning questions


UAE Labour Law – February 2022

Following on from our podcast on the top 50 changes brought in by the new UAE Labour Law, we bring you the first in our mini-series of the burning questions that employers are facing as they look to implement these changes. In this first alert, we’ve focussed on questions related to contractual terms and arrangements that employers should be considering as the 2 February 2022 implementation date of the new law approaches.

Key questions

The new law brings in rules around the fixed term nature of employment contracts, and rules related to other terms and conditions of employment that may require updates to be made to employment contracts. Key questions that should be considered are as follows:

  1. Do you have to issue new contracts of employment or is a variation letter enough to implement the changes required by the new law?
  2. Can you still issue unlimited term contracts?
  3. Do limited contracts have to be for three years?
  4. Can you have a six-month notice period?
  5. Is there a minimum wage?
  6. What benefits in kind form part of the "basic wage" for the purpose of calculating employee entitlements?
  7. Do the health and safety obligations extend to home working?
  8. How do you ensure compliance with the anti-discrimination provisions?
  9. How long can employees now carry forward holiday entitlement?
  10. Do you have to move to a Monday-to-Friday working week?

Get in touch

If you would like help answering or discussing any of the questions covered in this alert, or have any other employment-related issues, please contact Kiersten Lucas, Emily Aryeetey or Laura Anderson in our employment, pensions and incentives team, or your usual contact at Stephenson Harwood Middle East.