The UAE will introduce a new labor law on February 2, 2022, which will ensure that both private and public sector work practices and benefits are largely aligned.
The law will “limit differences between the two sectors in such a way as to advance the establishment of a more integrated, efficient, sustainable, and attractive work environment.
Under this new law, employees in both sectors will receive similar leave and end-of-service benefits. In addition, they will choose between flexible, part-time, and temporary work models. As a result, all employers will be required to offer limited-term contracts that can be renewed.
End-of-service
Employees that have served continuously for one year or more will be entitled to receive a gratuity at the end of their employment.
Those who have worked at their current job for up to five years will be entitled to a gratuity based on 21 days of salary for each year of employment. For employees who have served for a more extended period, the gratuity will increase to 30 days of salary for each year of service after the first five years..
Leave
In accordance with the law, all full-time public and private sector employees are entitled to 30 days of annual leave. It will also standardize leaves for maternity, paternity, sickness, study, and bereavement leave.
The law also protects employees from discrimination, which prohibits employers from recruiting based on race, color, gender, religion, nationality, social origin, or disability.