The Law on Regulating Labor Relations in the UAE is a pillar of leadership and competitiveness

The Ministry of Human Resources and Emiratisation said that the United Arab Emirates has paid great attention to developing legislation governing the labor market in the country, in the context of a comprehensive view of the importance of balance between the interests of all components of the labor market, where labor relations are of strategic importance in legislation systems in the country since their origins, as they represent a basic pillar of the stability of the work environment and the achievement of sustainable development, the ambitious economic goals of the state, and its leadership in all areas of the market the job.

The Ministry stated that the decree of a federal law No. (33) of 2021 regarding the regulation of labor relations and its amendments came as an embodiment of this advanced legislative vision, which guarantees the protection of rights, enhances the flexibility of the labor market, and keeps pace with the relevant international standards, in order to achieve the common interest of all parties.

The UAE Labor Law is an advanced model for balanced legislation, which enabled the state to issue nine global indicators in the fields of the labor market, and to advance advanced pioneering centers in the rest of the fields, as it combines protection of rights, focus on duties, meet the requirements of the labor market, and enhance institutional stability, in a way that constitutes a basic pillar to attract investment, highlights the human approach, enhances competitiveness and partnership Sustainability, as well as the axes of the International Labor Organization agreements, takes into account the economic and social privacy of the UAE.

The UAE Labor Law (Decree of Federal Law No. 33 of 2021 and its amendments) embodies this balance in a practical way, in line with the UAE’s vision towards a flexible and attractive labor market, accompanies economic variables and maintains the human dignity of the worker, and works according to strict controls and laws based on the work contract that imposes balanced obligations on the parties to the labor relationship that is applied in transparency, and in light of a high legal environment, which is applied to The same resettlement system, whose contracts impose obligations on citizens employed in the private sector, to ensure the rights of all parties.

The Labor Relations Law in the state provides a leading legislative environment to enhance the attractiveness of the labor market, and to consolidate the state’s position as the best place to live and invest in the world, as it provides a comprehensive protection umbrella for workers, and guarantees their basic rights such as wages, working hours, leave, and health insurance, and criminalizes any form of discrimination or coercive harassment in the work environment, in addition to flexible work contracts, fair and rapid grievance mechanisms.

The law also enhances the rights of employers, and achieves a sustainable sustainable environment for the growth of their businesses, as the state obtained the first position in global competitiveness indicators in the lack of labor conflicts, which saves companies costs, administrative consequences, a lot of effort and time, in addition to that the UAE tops global indicators in the low costs of ending the end of service, the low cost of separation from service, and the indication of the absence of bureaucracy, which allows companies to manage manpower.

The state tops the first place in the growth of the workforce, the global expertise index, and the ability of the state to attract talents, as well as the first place in the Arab Talent Index 2024, according to the International Institute for Development, which constitutes a decisive factor and a major pillar in the growth and competitiveness of companies, due to the existence and attracting of competent workforce, Al -Mahr, who is able to carry out the requirements of modern business.

The state’s strategy, the efficiency of the development of legislation, and its flexibility, has achieved concrete results in the process of sustainable development, through the growth of the numbers of new companies by 32.16% last year 2024, and the strengthening of the state’s status is an attractive destination for investment, especially in the fields of knowledge economy and digital transformation, artificial intelligence, and other axes of the modern economy that constitute the nerve of the future economy.

UAE law guarantees the rights of employers, in a way that preserves their commercial interests and enhances the competitiveness of the private sector, through the possibility of terminating the work contract according to clear legal controls, including pre -warning and paying dues, taking into account the emerging work requirements, and the non -disclosure of professional secrets after the end of the contractual relationship by including the terms of non -competition in contracts.

The provisions of Decree Law No. 33 of 2021 regarding the regulation of labor relations and its amendments allow a flexible environment for the transfer of the worker to new companies and businesses, in a way that provides the rights of the employer at the same time, so the decree in his Article 9 states that in the event that the worker desires to move during the period of the experiment with another employer in the state, he must notify the original employer for a period of no less than a month or compensation for it equal to the worker’s wages for the period of notification or the remaining period of it.

The original employer also has the right to ask the new employer to compensate for the costs of recruitment and contracting with the worker, such as visa, residence, medical examination, issuance of the permit, and others, in order to ensure that the employer is not exposed to any losses resulting from the costs of recruitment of the worker.

The decree also dealt with all legal cases related to work relations, as the article itself stipulated that in the event that the foreign worker wants to terminate the contract during the period of the experiment to leave the state, he is obligated to notify the employer 14 days before the date specified to end the contract or compensate it equal to his total wage for the entire period of notification or the remaining period of it with the failure to grant the worker a work permit for a period of one year from the date of departure.

In addition, the Ministry is licensing employment agencies, whose roles are to provide mediation services between job seekers and employers in the private sector that guarantee the employer in the event of contracting with them by providing the worker in accordance with the skill groups and competencies that correspond to his requirements and can refer to them in the event that they are not committed to the agreement.

To ensure the actual and balanced application of the provisions of the Labor Law, the state, represented by the Ministry of Human Resources and Emiratisation, undertakes pivotal roles, the provision of a leading regulatory system to control and regulate the labor market, where inspection teams work to monitor the commitment of establishments to the provisions of the law, receive complaints, and impose sanctions when there are violations.