New UAE labour contract terms must not exceed 2 years

Dubai - 'If employers delay fixed-term (limited contract) renewal, they could face fines of Dh500 monthly.'

New labour contract terms will now not exceed a period of two years, following a study carried out by the Ministry of Labour, said a senior official.
Giving details of the changes expected in the new year, Humaid bin Deemas Al Suwaidi, Assistant Undersecretary for Labour Affairs, said that the new decree will end the current contractual procedures, which link both parties to periods of four years and more.
He said that this period would now be reduced to two years to be renewed for the same period.
"This follows a study which revealed several negative aspects affecting the employment relationship that runs for several years under the same conditions without the need to include a written acceptance letter by the worker."
He also said that if employers delay fixed-term (limited contract) renewal, they could face fines of Dh500 monthly.
"If both ends continue a working relationship without renewing that contract, it will be considered a non-fixed term (unlimited) by default. However, employers can terminate the relationship with the worker if the latter violates labour laws stated in Article (120).
"Both ends cannot agree on exemption from the notice period requirements or even reducing its duration," Al Suwaidi said.
The recent decrees states that the employers have to grant permits immediately to the workers with non-fixed term contracts and classified in first, second and third working skills, either by reaching an agreement with the employer or a desire to shift to other facilities after completing the notice period and dues or if the employer chose to end the contract without referring to the worker, and thus ending the need to post a six months ban, he said.
Workers with fourth and fifth working skills will be able move to another facility only after completing a period of not less than six months with the current firm.
This will exclude workers with labour complaints forwarded by the ministry to the labour court with a requirement in this case issuing a final judgment in favour of the worker including eligibility pay off at least two months, or compensation for unfair dismissal or termination of a fixed contract before meeting its deadline or any other rights that had been voided by the employer to the worker without a clear reason.
The official also said that workers' fulfilling their legal obligations with respect to employers in accordance to contracts is the main condition for approving their mobility to other facilities. "The ministry stands at the same distance from both parties at all stages of their working relationship and guarantees rights preservation even after contract termination," said Al Suwaidi.
Speaking of fixed-term contracts, he said that if one of the parties decided to end the contract during the renewal period start by notifying the other party before the date of termination, they must complete the notice period (decided), then pay agreed dues not exceeding the total remuneration of three months salary. This applies for both sides.
asmaalizain@khaleejtimes.com

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