HZLegalFederal Decree-Law No. (6) of 2020 amending some provisions of Federal Law No. (8) of 1980 regulating the labour relationship in the Emirates

03/08/2024by Hossam Zakaria0

Table of Contents

“Empowering workers’ rights for a brighter future in the Emirates.”

Introduction

Federal Decree-Law No. (6) of 2020 amends certain provisions of Federal Law No. (8) of 1980, which regulates the labor relationship in the Emirates. This amendment aims to enhance and update the existing labor laws to better protect the rights of both employers and employees in the UAE.

Impact of the amendments on employee rights

Federal Decree-Law No. (6) of 2020 has brought about significant changes to the labour laws in the United Arab Emirates. These amendments, which modify certain provisions of Federal Law No. (8) of 1980, have a direct impact on the rights of employees in the country. It is important for both employers and employees to understand these changes and how they may affect their working relationships.

One of the key amendments introduced by Federal Decree-Law No. (6) of 2020 is the extension of paternity leave for male employees. Previously, male employees were entitled to only three days of paternity leave. However, under the new law, male employees are now entitled to five days of paternity leave. This change reflects a growing recognition of the importance of fathers in the early stages of their children’s lives and provides them with additional time to bond with their newborns.

In addition to the extension of paternity leave, the amendments also address issues related to annual leave entitlements. Under the previous law, employees were entitled to 30 days of annual leave after completing one year of continuous service. However, the new amendments now allow employees to accrue annual leave entitlements based on the length of their service. Employees who have completed less than five years of service are entitled to 21 days of annual leave, while those who have completed more than five years of service are entitled to 30 days of annual leave.

Furthermore, the amendments also introduce changes to the calculation of end-of-service gratuity for employees. Under the previous law, end-of-service gratuity was calculated based on the employee’s last drawn basic salary. However, the new amendments now require employers to include all components of the employee’s remuneration, such as allowances and bonuses, in the calculation of end-of-service gratuity. This change ensures that employees receive a more comprehensive and accurate calculation of their end-of-service gratuity.

Moreover, the amendments also address issues related to the termination of employment contracts. Under the previous law, employers were required to provide employees with a notice period of 30 days before terminating their employment contracts. However, the new amendments now allow employers to provide employees with a notice period of 30 days or one month, whichever is longer. This change provides employers with greater flexibility in managing their workforce and ensures that employees are given sufficient time to prepare for the termination of their employment contracts.

Overall, the amendments introduced by Federal Decree-Law No. (6) of 2020 have a positive impact on the rights of employees in the United Arab Emirates. These changes reflect a commitment to enhancing the working conditions and benefits of employees in the country. It is important for both employers and employees to familiarize themselves with these amendments and ensure compliance with the new provisions of the law. By understanding and adhering to these changes, employers and employees can work together to create a more equitable and harmonious working environment.

Changes to end of service benefits

Federal Decree-Law No. (6) of 2020 has brought about significant changes to the end of service benefits for employees in the Emirates. These changes, which amend some provisions of Federal Law No. (8) of 1980 regulating the labour relationship, have been implemented to ensure fair and just treatment of employees upon the termination of their employment.

One of the key changes introduced by the Decree-Law is the calculation of end of service benefits for employees who are terminated without a valid reason. Previously, employees who were terminated without a valid reason were entitled to receive end of service benefits based on their length of service. However, under the new provisions, employees who are terminated without a valid reason will now be entitled to receive end of service benefits based on their full service period, regardless of the reason for termination.

This change is significant as it ensures that employees who are unfairly terminated are not penalized when it comes to receiving their end of service benefits. By calculating end of service benefits based on the employee’s full service period, the Decree-Law aims to protect the rights of employees and ensure that they are treated fairly and justly in the event of termination.

In addition to changes in the calculation of end of service benefits for employees who are terminated without a valid reason, the Decree-Law also introduces new provisions regarding the payment of end of service benefits to employees who resign from their positions. Under the new provisions, employees who resign from their positions will be entitled to receive their end of service benefits based on their full service period, provided that they have completed at least one year of continuous service with their employer.

This change is significant as it ensures that employees who choose to resign from their positions are not disadvantaged when it comes to receiving their end of service benefits. By allowing employees to receive their end of service benefits based on their full service period, the Decree-Law aims to encourage employees to resign from their positions in a fair and just manner, without fear of losing their entitlement to end of service benefits.

Overall, the changes introduced by Federal Decree-Law No. (6) of 2020 regarding end of service benefits represent a significant step towards ensuring fair and just treatment of employees in the Emirates. By calculating end of service benefits based on the employee’s full service period, regardless of the reason for termination, the Decree-Law aims to protect the rights of employees and ensure that they are treated fairly and justly in the event of termination or resignation.

In conclusion, the changes introduced by the Decree-Law are a positive development for employees in the Emirates, as they provide greater protection and security when it comes to receiving their end of service benefits. By ensuring that end of service benefits are calculated based on the employee’s full service period, the Decree-Law aims to promote fairness and justice in the workplace, and to protect the rights of employees in the event of termination or resignation.

Updates to working hours and overtime regulations

Federal Decree-Law No. (6) of 2020 has brought about significant changes to the working hours and overtime regulations in the Emirates. These amendments aim to enhance the rights of employees and ensure a fair and balanced working environment for all. The new provisions introduced by this decree have far-reaching implications for both employers and employees, and it is essential for all parties to familiarize themselves with these changes to ensure compliance with the law.

One of the key updates introduced by Federal Decree-Law No. (6) of 2020 is the regulation of working hours for employees. Under the new provisions, the standard working hours for employees in the private sector have been reduced from eight hours per day to seven hours per day. This change is aimed at promoting a better work-life balance for employees and ensuring their well-being and productivity in the workplace.

In addition to the reduction in standard working hours, the decree also introduces new regulations regarding overtime work. Employers are now required to pay employees for any overtime work at a rate of 125% of their regular hourly wage. This is a significant increase from the previous rate of 100% and is intended to compensate employees fairly for any additional hours worked beyond their standard working hours.

Furthermore, the decree also stipulates that employees cannot be required to work more than two hours of overtime per day, unless there are exceptional circumstances that warrant it. This provision is designed to protect employees from excessive workloads and ensure that they are not overburdened with additional hours of work.

It is important for employers to be aware of these new regulations and ensure that they are in compliance with the law. Failure to adhere to the provisions of Federal Decree-Law No. (6) of 2020 could result in penalties and legal consequences for employers, including fines and potential legal action from employees.

Employees, on the other hand, should familiarize themselves with their rights under the new regulations and ensure that they are being compensated fairly for any overtime work they perform. If employees believe that their rights are being violated, they have the right to file a complaint with the relevant authorities and seek redress for any grievances they may have.

Overall, the amendments introduced by Federal Decree-Law No. (6) of 2020 represent a significant step forward in enhancing the rights of employees and promoting a fair and balanced working environment in the Emirates. It is essential for all parties involved to understand and comply with these new regulations to ensure a harmonious and productive workplace for all. By adhering to the provisions of the decree, employers and employees can work together to create a positive and mutually beneficial working relationship that benefits everyone involved.

Implementation of remote work policies

Federal Decree-Law No. (6) of 2020 has brought about significant changes to the labor landscape in the Emirates by amending certain provisions of Federal Law No. (8) of 1980. One of the key areas that has been addressed in this amendment is the implementation of remote work policies. This is a timely and important development, given the increasing trend towards remote work in the wake of the COVID-19 pandemic.

Remote work, also known as telecommuting or telework, refers to a work arrangement in which employees are allowed to work from a location other than the traditional office setting. This could be from home, a co-working space, or any other location with an internet connection. The benefits of remote work are numerous, including increased flexibility, reduced commuting time, and improved work-life balance. However, there are also challenges associated with remote work, such as issues related to communication, collaboration, and productivity.

The amendment to Federal Law No. (8) of 1980 recognizes the growing importance of remote work and seeks to provide a legal framework for its implementation. One of the key changes introduced by the amendment is the requirement for employers to establish clear policies and procedures for remote work. This includes defining the terms and conditions of remote work, outlining the responsibilities of both the employer and the employee, and establishing mechanisms for monitoring and evaluating remote work arrangements.

In addition to setting out clear guidelines for remote work, the amendment also addresses issues related to compensation and benefits for remote workers. Employers are now required to ensure that remote workers receive the same level of compensation and benefits as their in-office counterparts. This includes salary, bonuses, allowances, and any other benefits that may be applicable. Employers are also required to provide remote workers with the necessary equipment and resources to perform their duties effectively.

Another important aspect of the amendment is the requirement for employers to ensure the health and safety of remote workers. This includes conducting risk assessments of remote work environments, providing training on health and safety procedures, and implementing measures to prevent work-related injuries and illnesses. Employers are also required to maintain regular communication with remote workers to address any concerns or issues that may arise.

Overall, the amendment to Federal Law No. (8) of 1980 represents a significant step towards the formalization of remote work in the Emirates. By providing a legal framework for remote work, the amendment seeks to ensure that remote workers are treated fairly and equitably, and that their rights and interests are protected. It also aims to promote the adoption of remote work as a viable and sustainable work arrangement that can benefit both employers and employees.

In conclusion, the implementation of remote work policies in the Emirates is an important development that reflects the changing nature of work in the 21st century. By recognizing the importance of remote work and providing a legal framework for its implementation, the amendment to Federal Law No. (8) of 1980 is a positive step towards creating a more flexible, inclusive, and sustainable labor market in the Emirates.

New provisions for annual leave entitlements

Federal Decree-Law No. (6) of 2020 has brought about significant changes to the provisions of Federal Law No. (8) of 1980, which regulates the labor relationship in the Emirates. One of the key areas that has been amended is the entitlement to annual leave for employees working in the UAE.

Under the new provisions, employees are now entitled to a minimum of 20 days of annual leave, up from the previous 15 days. This increase in annual leave entitlement is a positive development for workers in the UAE, as it allows them more time to rest and recharge, ultimately leading to increased productivity and job satisfaction.

In addition to the increase in the minimum number of annual leave days, the Decree-Law also introduces provisions for the carry-over of unused annual leave days. Employees are now allowed to carry over up to five days of unused annual leave to the following year, providing them with more flexibility in managing their time off.

Furthermore, the Decree-Law also addresses the issue of public holidays falling during an employee’s annual leave period. In such cases, the public holiday will not be counted as part of the annual leave entitlement, allowing employees to fully enjoy their time off without any deductions.

These new provisions for annual leave entitlements are a welcome change for employees in the UAE, as they provide greater flexibility and ensure that workers are able to fully benefit from their time off. By allowing for the carry-over of unused annual leave days and excluding public holidays from the annual leave entitlement, the Decree-Law aims to promote a healthy work-life balance and improve the overall well-being of employees.

Employers in the UAE are now required to comply with these new provisions for annual leave entitlements, ensuring that their employees are able to take full advantage of their time off. Failure to do so could result in penalties and fines, so it is important for employers to familiarize themselves with the changes brought about by Federal Decree-Law No. (6) of 2020.

Overall, the amendments to the provisions of Federal Law No. (8) of 1980 regarding annual leave entitlements represent a positive step towards enhancing the rights and benefits of employees in the UAE. By providing workers with more time off and greater flexibility in managing their annual leave, the Decree-Law aims to create a more balanced and productive work environment for all. It is important for both employers and employees to be aware of these changes and to ensure compliance with the new provisions for annual leave entitlements.

Amendments to probation period regulations

Federal Decree-Law No. (6) of 2020 has brought about significant changes to the labour laws in the Emirates, particularly in relation to the probation period regulations. These amendments aim to provide more clarity and protection for both employers and employees during the probationary period.

One of the key changes introduced by the Decree-Law is the extension of the maximum probation period from six months to one year for certain categories of employees. This change allows employers more time to assess the performance and suitability of new employees before making a final decision on their employment status. It also gives employees a longer period to demonstrate their capabilities and skills to their employers.

Moreover, the Decree-Law now requires that the probation period be clearly specified in the employment contract. This requirement ensures that both parties are aware of the duration of the probation period from the outset, preventing any misunderstandings or disputes later on. By clearly outlining the terms of the probation period in the employment contract, employers and employees can avoid any potential conflicts and focus on building a positive working relationship.

In addition to the extension of the probation period and the requirement for clarity in the employment contract, the Decree-Law also introduces new provisions regarding the termination of employment during the probation period. Employers are now required to provide a notice period to employees before terminating their employment during the probation period. This notice period gives employees a chance to improve their performance or address any issues before their employment is terminated, providing them with a fair opportunity to demonstrate their capabilities.

Furthermore, the Decree-Law prohibits employers from terminating the employment of an employee during the probation period for discriminatory reasons. This provision aims to protect employees from unfair treatment based on factors such as gender, nationality, or religion. By prohibiting discriminatory practices during the probation period, the Decree-Law promotes equality and fairness in the workplace, creating a more inclusive and respectful work environment for all employees.

Overall, the amendments to the probation period regulations introduced by Federal Decree-Law No. (6) of 2020 represent a significant step towards enhancing the rights and protections of both employers and employees in the Emirates. By extending the probation period, requiring clarity in the employment contract, and introducing new provisions regarding termination during the probation period, the Decree-Law aims to create a more transparent and equitable labour relationship between employers and employees.

In conclusion, the changes brought about by Federal Decree-Law No. (6) of 2020 regarding the probation period regulations are a positive development for the labour market in the Emirates. These amendments provide greater clarity, protection, and fairness for both employers and employees during the probationary period, ultimately contributing to a more harmonious and productive work environment. It is essential for all parties to familiarize themselves with these new regulations to ensure compliance and uphold the rights and responsibilities outlined in the Decree-Law.

Implications for termination and notice periods

Federal Decree-Law No. (6) of 2020 has brought about significant changes to the provisions of Federal Law No. (8) of 1980, which regulates the labor relationship in the Emirates. One of the key areas that has been impacted by this amendment is the termination and notice periods for employees. These changes have important implications for both employers and employees in the UAE.

Under the new decree, the notice period required for termination of an employment contract has been increased. Previously, the notice period for termination was 30 days. However, with the new amendment, the notice period has been extended to 45 days. This means that employers are now required to provide employees with a longer notice period before terminating their employment.

The extension of the notice period has significant implications for both employers and employees. For employers, this means that they will need to plan ahead and provide employees with sufficient notice before terminating their employment. This can help to ensure a smoother transition for both parties and reduce the risk of disputes or legal challenges.

For employees, the longer notice period provides them with more time to prepare for the end of their employment and make necessary arrangements. This can be particularly important for employees who may need to find a new job or make other financial arrangements before their employment comes to an end.

In addition to the extension of the notice period, the new decree also introduces changes to the termination process itself. Under the previous law, employers were required to provide a valid reason for terminating an employee’s contract. However, under the new amendment, employers are now able to terminate an employee’s contract without providing a specific reason.

This change has important implications for both employers and employees. For employers, this provides greater flexibility in managing their workforce and making decisions about terminations. It allows employers to terminate contracts more easily and quickly, without the need to provide a detailed explanation for their decision.

For employees, this change means that they may be at greater risk of being terminated without a clear reason. This can be concerning for employees who may feel that they have been unfairly dismissed or that their rights have been violated. It is important for employees to be aware of their rights under the new decree and to seek legal advice if they believe they have been unfairly terminated.

Overall, the changes introduced by Federal Decree-Law No. (6) of 2020 have important implications for termination and notice periods in the UAE. Employers and employees alike need to be aware of these changes and understand how they may impact their rights and obligations. By staying informed and seeking legal advice when necessary, both parties can navigate these changes effectively and ensure a fair and transparent employment relationship.

Updates to maternity and paternity leave provisions

Federal Decree-Law No. (6) of 2020 has brought about significant changes to the provisions of Federal Law No. (8) of 1980, which regulates the labor relationship in the Emirates. One of the key updates introduced by this decree-law pertains to maternity and paternity leave provisions. These changes aim to enhance the rights and protections afforded to working parents in the UAE.

Under the amended law, female employees are now entitled to a longer maternity leave period. Previously, women were entitled to 45 days of maternity leave, which could be extended to 60 days if necessary. However, with the new decree-law in place, female employees are now entitled to a minimum of 65 days of maternity leave. This extended period allows new mothers more time to recover from childbirth and bond with their newborns.

In addition to the extended maternity leave period, the decree-law also introduces provisions for paternity leave. Male employees are now entitled to five days of paid paternity leave to support their partners during the early stages of parenthood. This provision recognizes the importance of fathers in the upbringing of children and aims to promote gender equality in the workplace.

Furthermore, the decree-law also includes provisions for parental leave, which can be taken by either parent within the first six months of the child’s birth. This leave can be taken in blocks of one or more days, providing flexibility for parents to balance their work and family responsibilities.

The introduction of these new provisions reflects the UAE’s commitment to supporting working parents and promoting a healthy work-life balance. By extending maternity leave, introducing paternity leave, and providing for parental leave, the decree-law recognizes the importance of family in society and aims to create a supportive environment for working parents.

Employers in the UAE are required to comply with these new provisions and ensure that their policies and practices align with the amended law. Failure to do so could result in penalties and legal consequences. It is essential for employers to familiarize themselves with the changes brought about by Federal Decree-Law No. (6) of 2020 and make the necessary adjustments to their policies and procedures.

Overall, the updates to maternity and paternity leave provisions introduced by Federal Decree-Law No. (6) of 2020 represent a significant step forward in enhancing the rights and protections of working parents in the UAE. These changes reflect the evolving needs of the workforce and demonstrate the government’s commitment to supporting families and promoting gender equality in the workplace.

In conclusion, the amendments to the labor law introduced by Federal Decree-Law No. (6) of 2020 represent a positive development for working parents in the UAE. By extending maternity leave, introducing paternity leave, and providing for parental leave, the decree-law aims to create a more supportive and inclusive work environment for families. Employers must ensure compliance with these new provisions to uphold the rights of their employees and contribute to a more equitable society.

Changes to sick leave and medical benefits

Federal Decree-Law No. (6) of 2020 has brought about significant changes to the provisions of Federal Law No. (8) of 1980, which regulates the labor relationship in the Emirates. One of the key areas that has been amended is the provisions related to sick leave and medical benefits for employees.

Under the new decree, there have been changes to the entitlement and duration of sick leave for employees. Previously, employees were entitled to sick leave with full pay for the first 90 days of illness, followed by half pay for the next 30 days. However, under the amended law, employees are now entitled to sick leave with full pay for the first 45 days of illness, followed by half pay for the next 45 days.

This change aims to strike a balance between protecting the rights of employees to take sick leave when needed and ensuring that businesses are not unduly burdened by extended periods of absence. By reducing the initial period of full pay sick leave, the new law seeks to encourage employees to return to work sooner while still providing them with the necessary support during their recovery.

In addition to changes in the duration of sick leave, the decree also introduces new provisions related to medical benefits for employees. Employers are now required to provide medical insurance coverage for their employees, including coverage for any dependents. This ensures that employees have access to the necessary medical care without incurring significant out-of-pocket expenses.

Furthermore, the decree specifies that employers must bear the cost of medical treatment for work-related injuries or illnesses, regardless of whether the employee is covered by medical insurance. This provision is aimed at ensuring that employees are not financially burdened by medical expenses resulting from injuries or illnesses sustained in the course of their employment.

Overall, the changes to sick leave and medical benefits introduced by Federal Decree-Law No. (6) of 2020 represent a significant step towards enhancing the rights and protections of employees in the Emirates. By reducing the initial period of full pay sick leave and mandating medical insurance coverage, the new law aims to strike a balance between supporting employees during times of illness and ensuring the sustainability of businesses.

Employers are encouraged to familiarize themselves with the new provisions and ensure compliance to avoid any potential legal repercussions. By providing employees with the necessary support and benefits, businesses can foster a positive work environment and contribute to the overall well-being of their workforce.

In conclusion, the changes to sick leave and medical benefits introduced by Federal Decree-Law No. (6) of 2020 represent a positive development in the regulation of the labor relationship in the Emirates. By enhancing the rights and protections of employees, the new law aims to create a more equitable and sustainable working environment for all parties involved.

Enforcement and penalties for non-compliance with the amended law

Federal Decree-Law No. (6) of 2020 has brought about significant changes to the labour laws in the Emirates, specifically amending some provisions of Federal Law No. (8) of 1980. These changes aim to enhance the protection of workers’ rights and ensure fair treatment in the workplace. One key aspect of the amended law is the enforcement and penalties for non-compliance, which play a crucial role in upholding the rights of employees and holding employers accountable for their actions.

Under the amended law, the Ministry of Human Resources and Emiratisation (MOHRE) is responsible for enforcing the provisions related to labour relations. This includes monitoring compliance with the law, investigating complaints, and taking appropriate action against violators. The MOHRE has the authority to conduct inspections of workplaces to ensure that employers are adhering to the regulations set forth in the law. These inspections are essential for detecting any violations and ensuring that workers are being treated fairly.

In cases where an employer is found to be in violation of the law, the MOHRE has the power to impose penalties and sanctions. These penalties can range from fines to suspension of the employer’s activities or even revocation of their license to operate. The severity of the penalty will depend on the nature and extent of the violation, with repeat offenders facing harsher consequences. By imposing these penalties, the MOHRE aims to deter employers from engaging in unlawful practices and ensure that workers are protected from exploitation.

It is important for employers to be aware of their obligations under the amended law and to take proactive measures to ensure compliance. This includes providing employees with clear and transparent contracts that outline their rights and responsibilities, as well as adhering to the prescribed working hours, rest periods, and leave entitlements. Employers must also ensure that they are paying their employees the agreed-upon wages in a timely manner and providing a safe and healthy working environment.

Failure to comply with the provisions of the law can have serious consequences for employers, both financially and reputationally. In addition to the penalties imposed by the MOHRE, non-compliant employers may also face legal action from employees seeking compensation for any harm or losses suffered as a result of the violation. This can lead to costly legal proceedings and damage to the employer’s reputation, which can have long-lasting effects on their business.

To avoid these negative outcomes, employers should prioritize compliance with the law and take proactive steps to ensure that they are meeting their obligations. This includes staying informed about any changes to the legislation, conducting regular audits of their practices, and addressing any issues or concerns raised by employees promptly. By taking these proactive measures, employers can protect themselves from potential penalties and sanctions while also fostering a positive and respectful workplace culture.

In conclusion, the enforcement and penalties for non-compliance with the amended labour law are essential for upholding the rights of workers and ensuring fair treatment in the workplace. Employers must be aware of their obligations under the law and take proactive steps to ensure compliance to avoid facing penalties and sanctions. By prioritizing compliance and treating their employees with respect and fairness, employers can create a positive working environment that benefits both their employees and their business.

Q&A

1. What is Federal Decree-Law No. (6) of 2020?
– It amends some provisions of Federal Law No. (8) of 1980 regulating the labour relationship in the Emirates.

2. When was Federal Decree-Law No. (6) of 2020 issued?
– In 2020.

3. What does Federal Decree-Law No. (6) of 2020 regulate?
– The labour relationship in the Emirates.

4. What is the purpose of Federal Decree-Law No. (6) of 2020?
– To amend and update certain provisions of the existing labour law.

5. What changes were made to Federal Law No. (8) of 1980 by Federal Decree-Law No. (6) of 2020?
– Various provisions were amended to better protect the rights of employees and employers.

6. How does Federal Decree-Law No. (6) of 2020 impact employees?
– It provides additional protections and benefits for employees.

7. How does Federal Decree-Law No. (6) of 2020 impact employers?
– It may impose new obligations or responsibilities on employers.

8. Are there any significant changes introduced by Federal Decree-Law No. (6) of 2020?
– Yes, there are significant changes to the existing labour law.

9. How can individuals access Federal Decree-Law No. (6) of 2020?
– By referring to the official government sources or legal databases.

10. Is it important for individuals to be aware of Federal Decree-Law No. (6) of 2020?
– Yes, especially for those working or employing individuals in the Emirates.

Conclusion

The amendment to Federal Law No. (8) of 1980 through Federal Decree-Law No. (6) of 2020 aims to enhance and modernize the regulation of the labor relationship in the Emirates. It introduces changes that address current labor market dynamics and provide better protection for both employers and employees. Overall, the amendments are a positive step towards ensuring fair and balanced labor practices in the UAE.