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Major UAE Labour Law Changes Starting 31 August 2024! 🇦🇪"
"⚠️ New Labour Regulations in UAE: What You Need to Know for 31 August 🇦🇪"
"🚀 UAE's Updated Labour Rules: Everything Coming on 31 August 2024! 🇦🇪"
3 major changes to UAE Labour Law from August 31 – all you need to know

Time to file labour cases increased to two years, heftier fines for violating companies

Dubai: The UAE has introduced amendments to its labour law, effective from August 31, aimed at strengthening labour regulations and protecting the rights of workers.

The new amendments are part of Federal Decree-Law No. 9 of 2024, issued on July 29, and which comes into effect from August 31, 2024.

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Here are the key takeaways that you should know as a worker in the UAE’s private sector.

1. Statute of limitations for labour claims extended to two years

“Article 54 of the UAE Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (the UAE Labor Law) has undergone significant changes through Article 1 of Federal Decree-Law No. 20 of 2023 and subsequently through Article 1 of Federal Decree-Law No. 9 of 2024, the new decree,” Reda Hegazy, partner at Al Suwaidi and Company Advocates and Legal Consultants, told Gulf News.

One of these changes is the increase on the statute of limitations on labour cases.

“The statute of limitations for claiming labour rights under the UAE Labour Law has changed from one year from the date of entitlement of the right to two years from the date of termination of the employment relationship,” he said.

Hari Wadhwana, an associate at Dubai-based law firm OGH Legal, clarified that this extension can be used by both employers and employees.

Article 54 (9) of the Labour Law now permits for either employer or employee to file a claim under the Labour Law with the time of up to two years from the date of termination of the employment relationship, which gives parties more time to assess their situation and then file a claim,” he said.

Article 54 (9) of the Labour Law now permits for either employer or employee to file a claim under the Labour Law with the time of up to two years from the date of termination of the employment relationship, which gives parties more time to assess their situation and then file a claim.

2. No appeal for cases under Dh50,000, file a case with Court of First Instance, instead

Since January 1, 2024, the Ministry of Human Resources and Emiratisation (MOHRE) has been handling labour cases with claims of up to Dh50,000.

Article 54 (2) of the Labour Law confirms that MOHRE continues to have powers to hear, determine and issue decisions for all claims not exceeding Dh50,000 and these claims are immediately enforceable,” Wadhwana said.

But while earlier its decision could be appealed through the Court of Appeal, from August 31, this process will change.

“Lawsuits challenging the Ministry’s decision must now be filed with the Court of First Instance rather than the Court of Appeal. In the previous decree, Article 1 of Federal Decree-Law No. 20/2023, the Ministry's decision was appealable to the Court of Appeal within 15 working days. However, the new decree, amends Article 54 to allow any party involved in the dispute to file a lawsuit against the Ministry’s decision directly in the Court of First Instance. This represents a significant change, as it introduces a new legal process rather than an appeal, and importantly, the judgment of the Court of First Instance is final,” Hegazy said.

Explaining the new process, Wadhwana added that the lawsuit with the Court of First Instance must be filed within 15 working days from the date of notification of MOHRE’s decision.

“The Court of First Instance shall set a hearing within three working days with a judgement to be issued within 30 working days from the date of which the appeal was filed. Once this judgement is issued, no further appeals are permitted,” Wadhwana said.

NEW PROCESS FOR LABOUR CLAIMS OF DH50,000 OR LESS
• MOHRE issues decision.
• Any challenge must be filed with the Court of First Instance within 15 days of the judgement notification.
• Court of First Instance will set a hearing within three working days.
• Judgement to be issued within 30 working days from the date the appeal was filed.
• The judgement issued by the Court of First Instance is final.
What about pending labour cases?
Hegazy clarified that from August 31, as per Article 2 of the new decree, any pending requests, disputes, or grievances before the Court of Appeal will be transferred to the Court of First Instance without additional fees.

3. Increased fines for labour violations
The new law has also introduced heftier penalties for labour law violations. Under the previous law, fines ranged from Dh50,000 to Dh200,000 for offenses such as employing workers without permits, using work permits for unauthorised purposes, or closing establishments without settling worker rights. The

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