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Resolving Labor Disputes in the UAE

Resolving Labor Disputes in the UAE: Key to a Healthier, Stronger Workplace Culture
Resolving Labor Disputes in the UAE: Key to a Healthier, Stronger Workplace Culture 800 500 HRSG

UAE is touted for its highly skilled labor. According to the Global Labour Resilience Index (GLRI) 2024, the UAE has the highest labor resilience of all Arab countries. Not only that, it is one of the top choices for working professionals.

When you are attracting immense global talent, you are also responsible for the quality of the work environment. The UAE recognizes it and takes it very seriously. The Federal Decree-Law No. 33 of 2021 (Regarding the Regulation of Employment Relationship and its amendments), also known as the UAE Labor Law, governs the rights of employees in the private sector. It applies to all the employees working in the UAE, regardless of whether they are UAE nationals or expatriates. 

These laws also help the company, employees, and officials resolve labor disputes. How? We will tell you all about it in this blog. 

UAE Labor Law

The UAE Labor Law came into effect on 2nd February 2022, repealing the previous Federal Law No. 8 of 1980. It governs the employer-employee relationship in the private sector, protecting both the parties. The law covers matters relating to the following:

  • Working hours
  • Overtime
  • Leaves
  • Vacation and public holidays
  • Employing juveniles
  • Employee records
  • Safety standards
  • Minimum wage
  • Termination of employment
  • End-of-service gratuity payments
  • Work injuries and more

Significant Changes to the Labor Law You Need to Know

The new labor laws have brought about significant changes. Below is a brief overview of the same:

  • Employers may continue to give the employee up to 2 months’ salary during employment disputes. 
  • If the dispute is not resolved within 14 days, the Ministry of Human Resources and Emiratisation (MOHRE) can refer the matter to a competent court.
  • Employers can now hire employees for remote work with a mandatory written agreement.
  • If the claim value is under Dh 50,000, MOHRE has the power to make binding decisions. If it exceeds, the body will act as a mediator or refer the case to a competent court.
  • Employees have a 2-year period post their termination to file labor claims. 
  • The penalty for violations by employers has increased.
  • Female employees now have 60 days of maternity leave.
  • Emiratization has increased for companies.
  • Employee non-compete clauses now must be necessary and limited in scope as well as duration. 

There are some more changes to the labor law. For more detailed insight, read our blog UAE Labor Laws 2025: All the Key Details You Need to Know. 

Resolving Disputes

Despite the best efforts from the government, it is quite natural for disputes to occur between both employers and employees. The question we should be asking is: How do you resolve labor disputes in the UAE?

There are three laws governing labor disputes in the UAE. They are:

  • Federal Decree-Law No. 33 of 2021 — Regulation of Labour Relations in the Private Sector
  • Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree-Law No. 33 of 2021 — Regulation of Labour Relations
  • Ministerial Resolution No. 47 of 2022 — Settlement of Labor Disputes and Complaints Procedures.

Let’s take a closer look at what the process looks like. 

To begin with, both parties have an equal chance to file a labor complaint with the Ministry of Human Resources and Emiratisation (MOHRE). These complaints are then settled amicably or referred to a competent court by the MOHRE.

Federal Decree-Law No. 33 of 2021

According to Article 54 of this decree-law, the following guidelines are set:

  • During a dispute, if any of the parties is entitled to the resulting result, they must submit a request to the Ministry. 
  • If an amicable (friendly) settlement is not achieved within 14 days, the Ministry will refer it to a competent court. Along with it, the Ministry will provide a memorandum that will state the following things — [a] a dispute summary, [b] arguments of both parties, and [c] the Ministry’s recommendation. 
  • The court is required to fix a hearing and notify the parties within 3 days from the date of receiving the complaint.
  • Penalties or any relevant action against the employer will only be taken after the dispute is settled or resolved by law. 
  • If the dispute leads to the suspension of the employee’s wages as per the regulations, the Ministry may not use its power to direct the employer to pay the wage for a maximum of 2 months.
  • The Ministry has the power to implement other administrative measures on the establishment to avoid the individual dispute turning into a collective labor dispute.

Additionally, Article 55 exempts the workers or their heirs from paying a judiciary fee for litigation and execution at all levels if the dispute claim is under AED 100,000.

labor dispute Resolved in UAE

Ministerial Resolution No. 47 of 2022

Ministerial Resolution No. 47 of 2022 guides workers who have submitted a labor complaint to the labor court. Here’s what it states:

  • Once the MOHRE approves the referral to the judiciary, the worker must register the labor complaint with the court within 14 days. 
  • Workers need to refrain from working for another employer unless they have a temporary work permit from the Ministry
  • If the labor lawsuit results in the termination of the working relationship, the worker needs to submit a request to cancel the original work permit within 14 days from the date the final judgment is passed.
  • If the final judgment results in cessation of work, the worker’s work permit will be canceled after 6 months from the date of complaint referral to the court.

Filing Labor Complaints  

There are three ways the employee or the employer can file a complaint and track it. 

Via Website

  • Visit the official MOHRE website. 
  • On the menu tab, find ‘Services.’ 
  • From the dropdown menu, click on ‘Add Complaint.’
  • The Add Complaint screen will open. 
  • Fill in the relevant details. Choose wisely from the dropdown list that appears for ‘Complaint type.’
  • Submit the form

If you wish to use the mobile app, you can do that as well by following the same process. When you submit the complaint, a Twa-fouq Centre legal advisor will contact you within 72 hours. 

You will receive the transaction number as well. Use it to track the status of your complaint in the MOHRE Inquiry Services section. 

Call Centre

Alternatively, you can get assistance from the MOHRE call center. Dial 600-5900-00 to file a complaint. Here, a customer care representative will guide you and help resolve your complaint. They may forward it to the Department of Complaints and Advice if they are unable to resolve it. You will be assisted in filing an official complaint for legal action. 

Twa-fouq Service Centres

As we said, the UAE government takes great care of its employers and employees. The Twa-fouq Service Centres are evidence. These centers are licensed by the MOHRE and function under its direct supervision. Their primary role is to help the parties reach an amicable solution, investigate the complaint, and make suggestions to the Ministry for approval. Additionally, they offer legal advice if you’re unaware of your rights. The good part is that they deliver these services in Arabic, Urdu, and English. 

Conclusion 

UAE has established a very strategic and convenient system for employers and employees to register complaints and resolve labor disputes. They have also provided additional support in the form of Twa-fouq Service Centres to make the entire process easier. 

Furthermore, the deadlines for resolving disputes for all parties involved and MOHRE’s powers in case of dispute settlements are aimed at finding a solution as soon as possible.

That being said, there’s a chance to avoid disputes by following all the protocols laid down by the government, designing fair policies, and having strong HR operations in place. 

We at HRSG support companies with powerful HR processes. These include support for tasks such as workforce administration, payroll & compliance services, attendance & leave management, benefits administration, travel & expense management, HR helpdesk, talent management services, recruitment, performance, onboarding, compensation, and more.

We help you rewire your organization with a new, more connected model that leaves no space for miscommunication or misalignment. Connect with us today for actionable results.

KSA Labor Laws 2025

KSA Labor Laws 2025: A Comprehensive Guide for Employees and Employers
KSA Labor Laws 2025: A Comprehensive Guide for Employees and Employers 800 500 HRSG

The labor laws in the Kingdom of Saudi Arabia, KSA otherwise, are a set of rules and regulations that govern the labor practices in the kingdom. Initially issued by the Royal Decree in September 2005, these labor laws have undergone significant amendments, the most recent being 2024. 

The recent amendments to the labor laws aim to create an attractive work environment and achieve Saudi’s Vision 2030. This blog explores the KSA labor laws to help prepare employers and employees for the year 2025. It will answer important topics around women’s employment, key changes to the laws, labor regulations, vision 2030, and more. Let’s start. 

Vision 2030: What You Need to Know

Vision 2030 is Saudi Arabia’s effort to diversify the economy, develop its public sectors, as well as enhance the overall quality of life for Saudi citizens. The Vision Realization Programs are the driving force behind Vision 2030. Each program has a distinct way forward and an approved delivery plan that meets pre-defined objectives and key performance indicators. Some of the programs included are:

  • Fiscal Sustainability Program
  • Public Investment Fund Program
  • Financial Sector Development Program
  • Human Capability Development Program
  • National Industrial Development and Logistics Program

Some of the goals, as shared by the key leaders, are:

  • Harness the strong investment capabilities to stimulate the economy and diversify it.
  • Leveraging the strategic location and transforming it into a global hub connecting Asia, Europe, and Africa. 
  • Better partnership opportunities with the private sector

Labor Laws: Key Changes & What You Should Remember

The new amendments are said to affect 38 articles of the Labor Law, with 7 articles being deleted and 2 new articles being added. The following is a detailed breakdown of the changes and what you should be aware of in 2025.

Employment Laws: The Basics 

Age (for Employers)

KSA has a minimum age requirement for employment. For males, it is 21 years old, and for females, it is 22 years old. Moreover, anyone who is 15 or older but younger than 18 years of age is considered a ‘minor’ and cannot be employed in hazardous roles or any job that endangers their health, safety, or morals. That being said, any individual younger than 15 years cannot work or enter a place of work. These laws apply to every employee, no matter their nationality. 

Health & Dress Code (for Employees)

All employees must submit a certificate of fitness by undergoing a medical assessment at an accredited medical center to prove their fitness for the role. As for dress codes, females have a dress code that is suggested to follow in the workplace. The dress code is as follows: 

  • Top: Full-sleeved clothing with a high neckline and loose-fitting 
  • Bottom: Full-length and loose skirts or bottoms

Time Management Laws

The time management laws in the KSA regulate working hours, over hours, rest periods, etc. Here’s a breakdown of the hours. 

  • Working hours: 8 hours a day and 48 hours a week. During Ramadan, the hours are reduced to 6 per day and 36 per week. 
  • Rest periods: Employees are entitled to a minimum of 30 minutes of break for rest, meals, or prayers after 5 consecutive hours of work.
  • Overtime: Overtime hours will be entitled to overtime pay at 1.5 times their regular hourly wage. Alternatively, the employer and employees can agree to a paid compensatory time off instead of overtime pay.
  • Weekly rest: All employees are entitled to one day of full rest. Officially, Friday is a weekly off in Saudi Arabia. However, businesses can change this. 
  • Public holidays: All employees are entitled to paid leaves for the 5 officially recognized public holidays. 
  • Annual leaves and holidays: After 1-5 years of service, the employees are entitled to 21 days of paid annual leave. This increases to 30 days after 5 years of service. 
  • Sick leaves: Employees can take up to 30 days of paid sick leave with medical certificates. The next 60 days may go from one-third to the third quarter.
  • Maternity Leave: Maternity leave for all female employees has been increased from 10 weeks to 14 weeks now.
  • Paid Bereavement Leave: 3 days of paid leave in the event of the death of a spouse or a relative.
  • Hajj leave: Muslim employees can take 10-15 days of paid leave to perform the Hajj pilgrimage after completing 2 years.

Ministry of Human Resources and Social Development KSA

Saudization

The 2024 amendments have introduced several key measures and reinforced the policy of Saudization. In simple words, Saudization, or Nitaqat in local terms, requires businesses to hire Saudi Arabians. Each business has a hiring quota to fulfill, which depends on the following: 

  • Classification of the business 
  • Size of the business 
  • Percentage of current Saudi Arabians in the workforce

Here’s what the current quota looks like:

  • Businesses with 5 or fewer employees must have 1 Saudi employee
  • International companies must have a Saudi national holding a role next to a general manager
  • Businesses with more than 100 employees need to have 30% Saudization

Probation Period

If the worker is subjected to a probation period, it must be clearly stated in the work contract, and the duration shall not exceed 180 days. Originally, the probation period was 90 days at maximum, and employers had to have a written agreement to extend this period. 

Termination

The employment contract can be terminated under the following circumstances: 

  • Upon expiry of the contract, unless the contract has been explicitly renewed in accordance with the laws. 
  • Mutual agreement, given that the worker’s consent is in writing. 
  • The notice period of termination for the fixed contract is a 30-day notice period if the termination is from the employee’s side and a 60-day notice period if from the employer’s side.
  • In the case of an indefinite contract, termination can occur due to discrimination by either party. The employer must give a 30-day notice period, while the employee must give a 15-day notice period. 
  • A new provision for termination on account of bankruptcy has been introduced. The employment contract will be terminated upon the issuance of a final court order in bankruptcy proceedings. 

Renewal of Employer’s Work Permit

Previously, the Ministry had the right to decline the request to renew an employer’s work permit if they violated the Saudization requirements set by the Ministry. 

Under the new amendment, which is an addition to Article 35, the Ministry can decline the request if the employer violates conditions mentioned in the Regulations, not just the Saudization requirements. Following this amendment, the Regulations will regulate the non-renewal procedures. It ensures that the worker is not affected by the non-renewal of the work permit, including the possibility of transferring the worker’s services to another employer without the consent of the non-compliant employer. 

Regulations for Non-Saudis/Expatriate Workers

Although the contract of the non-Saudi was to be written in a fixed term, if the term of employment was not specified, the duration of the contract was considered equal to the duration of the work permit. 

Post the amendment, if the duration of the contract is not specific, it is considered to be 1 year from the date on which the worker actually assumes their duties. If the worker’s work continues after the term, the contract is considered to be renewed automatically for a similar term of 1 year. 

Furthermore, employers cannot employ non-Saudis for a role other than the role specified in the work permit. Even foreigners cannot change their profession without necessary legal measures.

Training and Development 

Before the amendment, the employer was required to ‘prepare’ his Saudi employees and enhance their technical, vocational, and other skills to replace the non-Saudi workers gradually. Moreover, the employer was required to keep a list of Saudi workers who had replaced non-Saudi workers. 

Under the new law, ‘prepare’ has been replaced by ‘develop a policy to train and qualify,’ which implies a more structured approach. Furthermore, the amendment removes the requirement of a list. It just states that the Regulations will determine the relevant provisions in this regard.

End-of-Service Payment 

The end-of-service payment for the first five years shall be half of a month’s salary for each year of service. For every subsequent year after five years, it shall be one month’s salary for every year. 

Conclusion

Having robust HR policies and a foolproof contract for all your employees can help you navigate the KSA Labor laws with ease and comfort. It will also protect you from violating any of the regulations mentioned in the Regulations or outlined by the Ministry and paying a penalty for the same.

If you need assistance in your HR operations or help with navigating the employee agreements, you can contact HRSG. Our cloud-based HRMS platform (Octofy) offers a comprehensive suite of services to streamline and enhance business operations. From AI-powered HR and payroll solutions to tailored talent consulting and rewards strategies, Octofy optimizes workforce and financial management. 

UAE Labor Laws 2025

UAE Labor Laws 2025 Unpacked: All the Key Details You Need to Know
UAE Labor Laws 2025 Unpacked: All the Key Details You Need to Know 800 500 HRSG

The UAE is well-known for its advanced approach to everything, including its labor laws. The government’s ability to stay ahead of the curve and meet the changing demands of the employees as well as the employers makes it one of the top destinations for building a global career. 

This year, the UAE has made significant amendments to its UAE Labor Laws intending to modernize and enhance various aspects of employment for both parties involved. What are these changes? Here’s a breakdown of all the fundamental changes for you and what they mean.

UAE Labor Laws 

The UAE Labor Law, or Federal Law 8 of 1980, governs employment relationships and all surrounding aspects to ensure fair practices. The changes in the labor law create a balanced and fair working environment. Additionally, it encourages employers to adopt a competitive and flexible labor market which supports economic growth as well as protects an employee’s rights. 

Here are some of the critical changes that have come through:

1. Salary During Employment Disputes 

According to this change, the employer may have to continue giving their employees salary for up to 2 months while any employment disputes are being resolved. Moreover, if the dispute isn’t settled within 14 days, The Ministry of Human Resources and Emiratisation (MOHRE) has the power to refer the dispute to a competent court. 

The idea is to provide financial stability to the employees during lengthy disputes and give them more power. 

2. Flexible Working Arrangements 

Previously, only full-time working employment was allowed in the UAE. Part-time working arrangements were introduced in 2019. However, it is now that employers can hire employees for temporary, flexible, remote working, and job-sharing roles. Moreover, they have the option of compressed workweek options. 

Additionally, some of the key requirements of remote work provisions include:

  • Mandatory written agreement 
  • Specific working hours 
  • Data security protocols 
  • Guidelines on performance monitoring

3. Revised Claim Value for Disputes

If the labor dispute claim value is under Dh 50,000, then The Ministry of Human Resources and Emiratisation (MOHRE) has the power to make binding decisions. If it exceeds the said amount, the MOHRE will continue acting as a mediator and may refer it to a competent court. This is done to streamline the disputes based on monetary values. 

4. MOHRE Decisions Are ‘Writ of Execution’

With this amendment, the decisions of The Ministry of Human Resources and Emiratisation (MOHRE) become legally enforceable, strengthening the body’s authority. 

MOHRE UAE Labor Laws

5. Extended Time for Labor Claims 

As per earlier labor laws, the employees had 1 year from the date of termination of the employment relationship to file a labor claim. Post amendments, employees now have a 2-year time frame from their date of termination to file any labor claims against their previous employer. 

6. Increased Penalty for Violations by Employers 

Besides having to pay wages for up to 2 months during a dispute, the amendments to the labor laws have increased the penalty for employer violations. These penalties can be anywhere ranging from AED 100,000 and AED 1 million, depending on the severity of the violation.

7. Extended Maternity Leaves 

Earlier, female employees were only granted 45 days of maternity leave. With the amendments coming in, female employees will now enjoy 60 days of maternity leave

8. Increase in Emiratization 

Emiratization is a program by the UAE government to increase the participation of UAE nationals in the private sector. As per the rules, if a private company has 50 or less than 50 employees, they need to have 1 Emirati. Similarly, if they have 51-100 employees, they need to have 2 Emiratis. 

In 2025, this will increase to hiring 2 Emiratis for private companies with 20-49 employees. If they haven’t employed 2 Emiratis by 2025, the companies will have to pay a financial contribution of AED 108,000 to the government.

9. Non-Compete Restrictions

The latest amendments include specific rules for employee non-compete. The non-compete clauses must be necessary and limited in scope and duration. The new law states that the non-compete can exceed a duration of 2 years. Moreover, employees need to be compensated for agreeing to the non-compete clauses, which must be paid during the period the clauses are in effect.

Moreover, the employee can challenge the non-compete clauses if they are too restrictive or unreasonable. In such a situation, the labor court can review and invalidate the clause if deemed necessary. 

How Can Employers Adhere to New Labor Laws?

Step 1 is ensuring that you adhere to new labor laws in 2025 and meet international standards to learn about their nitty-gritty in detail. Once you are equipped with all the knowledge, step 2 would be to review your existing employee contracts and make necessary changes to them to reflect the latest practices. 

Consider including clauses for flexible working arrangements, salary continuation, and other aspects. As an employer, you need to develop clear policies addressing important topics such as harassment prevention, discrimination, as well as non-compete. Finally, informing your employees about the significant changes will help you stay compliant. 

Conclusion

The new labor law focuses on further fine-tuning the work environment in the UAE, giving employees more power and helping employers retain top talent. It is aimed at creating a positive and fair work environment, which is globally appreciated and enhances a company’s reputation in the market.

If you need assistance in your HR operations or help with navigating the employee agreements, you can contact HRSG. Our cloud-based HRMS platform (Octofy) offers a comprehensive suite of services to streamline and enhance business operations. From AI-powered HR and payroll solutions to tailored talent consulting and rewards strategies, Octofy optimizes workforce and financial management.

Image showing labor laws for HR professionals

Understanding Labor Laws and Compliance Requirements in Pakistan: A Guide for HR Professionals
Understanding Labor Laws and Compliance Requirements in Pakistan: A Guide for HR Professionals 602 422 HRSG

The labor laws of Pakistan hold significant importance in regulating the relationship between employers and employees, ensuring equitable treatment and protecting workers’ rights. For HR professionals, comprehending these labor laws and compliance requirements is pivotal to managing human resources efficaciously and establishing a legally compliant workplace. Through this blog, we aim to delve into the fundamental facets of employment regulations in Pakistan, offering invaluable insights for HR professionals striving to align their workplace policies with the national labor laws.

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UAE Employment Laws and Regulations
UAE Employment Laws and Regulations 900 530 HRSG

Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector, known as the ‘UAE Labour law’, governs the labour rights of employees in the private sector. It applies to all employees working in the UAE, whether UAE nationals or expatriates. However, there are certain categories of employees who are exempt from the law and may have to follow another set of regulations. Learn about employment laws and regulations in the private sector.

Working in the private sector

Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector, known as the ‘UAE Labour law’, governs the employer-employee relations in the private sector. The provisions of the law apply to all businesses, employees and employers in the private sector. The law became effective on 2 February 2022. It repealed the previous Federal Law No. 8 of 1980.

The new law aims to protect both parties in the employment relationship and enables them to obtain their rights in a balanced manner. It covers matters related to working hours, overtime, leaves, vacation and public holidays, employing juveniles, employee records, safety standards, minimum wage, termination of employment, end of service gratuity payments, work injuries amongst others.

The new law introduces several work models such as full-time, part-time, temporary and flexible. It abolishes the ‘unlimited’ type of contracts and admitted only limited or fixed-term contracts. It grants new types of leaves and tackles issues related to harassment, bullying, physical violence and psychological abuse against employees.

The law prohibits forced labour and discrimination on the basis of gender, race, colour, sex, religion, national or social origin or disability. It also spells out employers’ obligations towards employees.

Scope of the law

The law applies to all employees working in the UAE, whether UAE nationals or expatriates. However, it does not apply to:

employees and workers of the federal government and the local government entities employees of the armed forces, police and security domestic servants.

Resolutions and circulars

Learn about key resolutions and circulars pertaining to employer-employee relations in the private sector.

Domestic helpers law

Read provisions of  ‘domestic helpers law’ (PDF, 500 KB).

Ministry of Human Resources and Emiratisation (MoHRE) is responsible for overseeing the employer-employee relations and maintaining labour rights in the private sector. Contact MoHRE for more information on your rights and obligations as per the ‘UAE labour law’.

 

Disclaimer: This page has been sourced directly from https://u.ae/en/information-and-services/jobs/employment-laws-and-regulations-in-the-private-sector

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