The Abu Dhabi Labour Court held a virtual session for employers to brief them on the updated labour law. Photo: Abu Dhabi Judicial Department
The Abu Dhabi Labour Court held a virtual session for employers to brief them on the updated labour law. Photo: Abu Dhabi Judicial Department
The Abu Dhabi Labour Court held a virtual session for employers to brief them on the updated labour law. Photo: Abu Dhabi Judicial Department
The Abu Dhabi Labour Court held a virtual session for employers to brief them on the updated labour law. Photo: Abu Dhabi Judicial Department

UAE officials warn private sector bosses to follow the new labour laws


Salam Al Amir
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The Abu Dhabi Labour Court on Sunday warned private sector bosses in the UAE to strictly follow the new employment rules that came into force on February 2.

The court held a virtual session for employers to make sure they were fully conversant with their rights and responsibilities and that a lack of knowledge could not be an excuse to break the law.

The lecture was held in co-operation with Abu Dhabi Chamber of Commerce and Industry and Abu Dhabi Judicial Department.

During the session, Judge Ali Hasan Alshateri, deputy head of Abu Dhabi Labour Court, spoke about how the new law offers options that were not available before and strengthens the rights of employees and employers.

He said the legal literacy programme was based on the cases that were brought before the court and it was important that employers were aware of the issues involving the law.

Judge Alshateri said the new law helps to create an attractive environment for investors and skilled labour.

“It improves the efficiency and sustainability of the labour market in the country," he said, and that it was important that a balance was achieved to protect both parties.

The new labour law at a glance

The updated law gives people the chance to opt for temporary and flexible work, freelance jobs, condensed working hours and shared jobs.

But this should be agreed with the employer.

The new laws highlight and emphasise the protection of anyone in the workplace and especially employees. It prohibits discrimination on the basis of race, colour, gender, religion, nationality, social origin, or disability.

UAE Salary guide 2022 - in pictures

Employers cannot withhold employees' documents, such as passports, and they cannot charge workers recruitment fees.

Employment contracts can last as long as three years and any indefinite contracts must be changed to fixed-term contracts that can be renewed.

Probation should not be more than six months and a two-week notice must be given if an employee is terminated during this time. Employees who want to change jobs during the probation period must give a month's notice and a 14-day notice if they want to leave the country.

Employers may not force workers to leave the country after the end of the work relationship or the termination of a work contract. Instead, workers will be allowed to move to another employer and there are plans to allow people up to 180 days to find a job without overstaying their visa.

No more than two hours of overtime are allowed in one day, under the new law.

Should the nature of the job require more than two extra hours in a day, employees must receive an overtime wage that is 25 per cent more than their regular hourly pay.

All employees are entitled to a paid rest day with the option of more depending on the contract.

The new law brings in the possibility of a "non-compete" clause being written into a contract.

An employer is now allowed to stop an employee from competing against them or to participate in a competing project in the same sector.

This is on the basis that the employee's job has allowed them access to privileged information.

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Name: ARDH Collective
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Total funding: Self funded
Number of employees: 4
What is blockchain?

Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.

The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.

Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.

However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.

Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.

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Should late investors consider cryptocurrencies?

Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.

They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.

“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.

He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.

Updated: June 20, 2022, 5:21 AM