Another reforming announcement by the UAE government for the private sector employment. Today the Ministry of Human Resources and Emiratisation (MHRE) announced a decree that unifies the working systems of the federal government and private sectors.

The new law, the Federal Decree Law no. 47 of 2021 would come into effective from February 2, 2022. As per the new law, employees in both sectors will get similar leaves and work models, including flexible, part-time, and temporary work.

The decision was taken to minimise the difference between the public and private sectors in the country.

Under the new Federal Decree Law no. 47 of 2021, employees in both sectors will get the same end-of-service benefits.

Under the new Federal Decree Law no. 47 of 2021, only limited contracts will be applied in the UAE’s labour market. Employees across the country will also be protected under anti-discrimination provisions that prohibit employers from recruiting on the basis of race, colour, gender, religion, nationality, social origin, or disability.

The new decree approved by UAE President His Highness Sheikh Khalifa bin Zayed Al Nahyan, is in line with the UAE’s largest legislative reforms with more than 40 new laws.

Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratisation said that the unified general provisions aim to build a flexible and competitive workplace. He said this will safeguard employee rights in a “balanced manner across the country.”

Under the new decree, employees in the normal work model in the public and private sector will have eight working hours per day or 48 hours per week with no more than 144 working hours per three weeks.

Dr Abdul Rahman Al Awar, Minister of Human Resources and Emiratisation, said the end-of-service benefits for Emiratis in the public sector will be based on legislation regulating pensions and social security, while expats in the public sector will have end-of-service benefits based on the basic salary.

“The worker is entitled to a gratuity for the served fraction of a year, provided that he completes one year of continuous service. The end-of-service gratuity is calculated on the basis of basic salary,” Dr Al Awar said.

If an employee has served for more than one year but less than five years, he is entitled to full gratuity pay based on 21 days’ salary for each year of work.

If the employee has served more than five years, he is entitled to full gratuity of 30 days’ salary for each year of work following the first five years.

“We allowed companies to adopt any alternative systems of end of the service,” he said.

Dr Al Awar said the new unified rules will strike a balance between the public and private sectors.

“The new rule is the first of its kind as it unifies the general rules of work in the country based on limited contract. The new law aims to ensure efficiency in the labour market and also to attract and preserve the best talents and skills for employment as well as providing a stimulating and attractive work environment for employees,” he said.

Dr Al Awar said that the work models, including flexible, part-time, and temporary work, will help in investing employee skills in the country for the benefit of the public and private entity.

“Employers can decide the models like full time, temporary work, part time and flexible work,” the minister said.

Last month UAE has come up with some major reforming announcements in the labour law for UAE private sector. The law includes other leaves like maternity, paternity, sick, study, compassionate leave (bereavement leave) etc.

Also, in the last week UAE has become the first country in the world to have less than five working days in a week by shifting the weekend to Saturday and Saturday along with half day off on Friday.

According to Dr Al Awar, the private sector in the UAE will have the flexibility to choose their weekend days.

“It’s up to the employer to decide their weekend,” Dr Al Awar said.

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