The legal framework underpinning the labour market of the United Arab Emirates has been almost completely overhauled by Federal Decree-Law No. 33, which came into force on 2 February. The country’s central government, which emphasised in its official announcement its desire to protect workers in the private sector, hopes the new law can eradicate the legal uncertainties surrounding the employer-employee relationship under the old law, which had remained unchanged since 1980. Companies will have until 2023 to adapt their contracts to the new legal requirements.
A new framework for contractual relationships. The new labour law radically reforms the legal framework for contractual work. One of the main measures introduced regards fixed-term contracts, which can no longer exceed three years. The law also limits the notice period for terminating an employment contract to a maximum of 90 days.
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