UAE Labour Update: Four key changes for onshore UAE employers to be aware of
Type
E-journal
Date
13 Sep 2016
Jurisdiction
United Arab Emirates
Taxonomy
Pay, Benefits & Tax, Rights & Duties of Employees & Employers, Termination of Employment
Copyright
LexisNexis
Relevant company
Clyde & Co
Legal reference
Article 127 of Federal Law No. 8/1980, Cabinet Decision No. 13/2009, Ministerial Decision No. 212/2014, Ministerial Decision No. 297/2016, Ministerial Decision No. 591/2016, Ministerial Decision No. 713/2016, Ministerial Decision No. 739/2016
Analysis
The Ministry of Human Resources and Emiratisation, formerly the Ministry of Labour (the Ministry), has recently issued a string of new Ministerial Decisions and Decrees designed to address gaps in the employment regulatory framework and reinforce existing legislation affecting employers falling under the Ministry's jurisdiction. This article highlights four of those key changes and their potential impact on onshore UAE employers. Pleas also refer to our accompanying article in this bulletin entitled "UAE Emiratisation Update" which considers two key changes to the resolutions regarding Emiratisation.
Change 1-Accommodation for Low Income Employees
Employers with more than 50 employees, earning less than AED 2,000 a month (pursuant to the Wage Protection System), are required to provide those employees with free accommodation according to Ministerial Decision No. 591/2016. Such accommodation must meet the standards and criteria already in place for labour accommodation [Ministerial Decision No. 212/2014 if the accommodation is dedicated to less than 500 workers or according to Cabinet Decision No. 13/2009 if the accommodation is dedicated to more than 500 workers].