Key Amendments to UAE Labor Law No. (33) of 2021 Under Federal Decree-Law No. (9) of 2024
The UAE government has issued Federal Decree-Law No. (9) of 2024, introducing major updates to Federal Decree-Law No. (33) of 2021 regulating labor relations. These amendments were published in the Official Gazette (Issue No. 780) on July 31, 2024, and came into effect 30 days after publication.
The changes primarily affect Articles (54) and (60) of the Labor Law and aim to improve worker protection, streamline legal procedures, and enforce stricter penalties for labor violations.
- Court of First Instance Jurisdiction in Labor Disputes Below AED 50,000
Under the amended Article 54, the Ministry of Human Resources and Emiratisation (MOHRE) now has the authority to issue binding decisions in labor disputes where the claim does not exceed AED 50,000, or in cases where either party fails to comply with a previous amicable settlement decision—regardless of the claim amount.
These decisions are treated as enforceable executive instruments. Either party may challenge the decision by filing a case with the competent Court of First Instance within 15 working days from notification. The court must:
- Schedule a hearing within 3 working days
- Issue a final judgment within 30 working days
The ruling of the Court of First Instance is final and binding, and the legal challenge temporarily suspends enforcement of the Ministry’s decision.
- Inadmissibility of Cases Filed Without Following Article 54 Procedures
The amended law explicitly states that failure to comply with the procedures and deadlines set out in Article 54 will result in the case being dismissed as inadmissible by the Court of First Instance.
- Extension of the Statute of Limitations for Labor Claims to Two Years
The new amendment extends the legal time limit for filing labor-related claims from one year to two years after the end of the employment relationship. This gives both employees and employers more time to seek their rights under UAE labor law.
- Heavy Fines for Labor Law Violations (Up to AED 1 Million)
Under the amended Article 60, employers may face administrative fines ranging from AED 100,000 to AED 1,000,000 for serious violations, including:
- Employing workers without valid work permits
- Recruiting workers and leaving them without employment
- Misusing work permits for unauthorized purposes
- Closing down a business without settling workers’ entitlements
- Employing minors illegally
- Guardians allowing minors to work unlawfully
Additionally, employers who falsely hire workers to obtain government benefits or help employees avoid obligations may be required to:
- Repay all incentives and benefits obtained
- Pay a fine for each worker involved in the fake employment
Criminal proceedings for such offenses may only begin with the approval of the Minister or an authorized representative.
The law also allows for settlement before judgment in such offenses—employers may resolve the issue by:
- Paying at least 50% of the minimum fine
- Refunding any financial incentives received
- Upon full settlement, criminal charges will be dropped
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