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Federal Decree-Law No.14/2022 – A Synopsis

MEDIA / Articles / Federal Decree-Law No.14/2022 – A Synopsis
A summary of Federal Decree-Law No. 14/2022, which amends some sections of Federal Decree-Law No. 33/2021 regulating the regulation of labor relations, is given below.

The Federal Decree-Law No. 14/2022, Regulating Labor Relations (the Labour Law), which has been recently released by the UAE government, amends Clause (3) of Article (8) of Federal Decree-Law No. 33/2021 (the Amendment). An earlier rule that stated that employment contracts in the private sector had to be for a maximum of three years has been amended by the Amendment.

Employers and employees will no longer be constrained by the employment contract's maximum three-year duration thanks to the aforementioned Amendment. The length of the employment contract must still be specified, but it is no longer limited and can be set at whatever the parties feel appropriate given the circumstances. With the exception of the Dubai International Financial Center (DIFC) and Abu Dhabi Global Markets (ADGM) Freezones, the Amendment will apply to the private sector throughout the UAE. Both domestic employees and members of the public sector are exempt from this amendment.

With the Amendment, parties will have greater freedom and security while writing an employment contract, as well as additional security and protection for both employers and employees. Employees will now have the added benefit of knowing their jobs are secure, while employers will gain from having a trained employee who they helped develop continue with the company. Additionally, it will benefit the market by promoting investment and productivity.

By achieving a balance in the workforce, improving the employer-employee relationship, and making the UAE an even more desirable alternative for workers, the Amendment further emphasizes the UAE government's ongoing commitment to ensuring that it accomplishes its long-term development objectives.

This article's information is meant to serve as a general introduction to the topic. Please seek expert guidance regarding your unique circumstances.

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