New laws have shaken up the private sector work landscape in the UAE.
The amended labour regulations, which were first outlined by the government in November 2021 and came into effect on Feburary 2, 2022 provide options that were not available before and strengthen employees' rights.
One of the major changes under the new rules is that people will be able to live in the country for up to six months after leaving a job.
Shorter, fixed-term contracts will also be introduced for most private-sector employees and some residents will now have the option to condense their working week as long as the contracted hours are met.
This may spur some individuals to make the jump and look for a role that is better for them
Emily Roberts,
Genie recruitment
Louise Vine, managing director at Inspire Selection recruitment agency in Dubai, said she is encouraged by the new law.
“When someone loses their job, they have six months to find a new one instead of only 30 days, so it offers more stability for their family,” she said.
“Also, when someone wants to quit because they really do not like their job, they now have six months to find another, so feel less pressured into accepting a job they do not want.
“It also gives them time to find a job that they're really happy with, at the right level and the right salary and so on.”
In her years as a recruiter, Ms Vine said she has come across people who have “accepted jobs out of desperation”, only to have a visa, which buys them time to find their ideal job.
She said this short-term employment is financially detrimental to the employer and creates an unstable work environment.
“Despite the law change, we don't see the great resignation phenomenon which has been reported in the US happening here,” said Ms Vine.
“The UAE is very different from the US and while this new law does allow people to walk away from their jobs more easily, the majority of people we come across are looking for work and are very keen to continue earning. Not many are in a position to spend six months with no pay due to the high cost of living.”
Emily Roberts, a consultant at Genie, a recruitment agency in Dubai, said the move will have a positive effect on workplace well-being and environments, as many job seekers can now spend time searching for the right opportunity.
“I believe this may spur some individuals to make the jump and look for a role that is better for them,” she said.
“As a recruiter, I do come across a lot of candidates who are deeply unhappy in their roles, which can be due to a number of reasons [such as] poor management or no work-life balance.”
A lot of people could not take the leap of resigning in the past, without another role confirmed, mainly because of the visa restrictions they would face, she said.
“The 180-day security will support those individuals who are itching to make a move and allow time to find a new position that suits them rather than perhaps rushing a process to accept something quickly,” said Ms Roberts.
“This will also give the opportunity for good talent to stay within the region as there's longer to secure something adequate.”
With an influx of expatriates looking to move to the region, she said the law changes will lead to “better retention rates for employers”, as they can be assured that the individual has had the time to consider all of their options before taking the best role for them.
Emirati lawyer Awatif Mohammed said the new law enhances the rights of both employers and employees.
“Employees will not fear losing jobs on the spot with the mandatory 14-day notice period during probation that employers must abide to,” he said.
“The market will further attract talents and skills from across the world, especially after allowing different styles of work, a move that came in response to the challenges forced by Covid-19 but proved necessary to the progress the country is witnessing.”
How job sharing works
Under the condensed hours options, if an employee is expected to work 40 hours a week under their contract, they can now work those hours over three days, said Abdulrahman Al Awar, Minister of Human Resources and Emiratisation.
Other flexible working options include shared jobs, when two people work in a single role and split the hours after agreeing to the arrangement with their employer.
David McKenzie, group managing director of recruitment agency Mackenzie Jones, said the shared job option would be beneficial for those looking to get back to work after time off.
“If you think about people doing job shares, they will most likely be working mothers looking to get back to part-time work,” he said.
“As they will already be supported by a spousal visa, all they would need is a labour card.
“By introducing this working structure as an option, what you’re doing is empowering people in the workplace who didn’t have many options before.”
With input from Salam Al Amir
The specs: 2017 Ford F-150 Raptor
Price, base / as tested Dh220,000 / Dh320,000
Engine 3.5L V6
Transmission 10-speed automatic
Power 421hp @ 6,000rpm
Torque 678Nm @ 3,750rpm
Fuel economy, combined 14.1L / 100km
PROFILE OF HALAN
Started: November 2017
Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga
Based: Cairo, Egypt
Sector: transport and logistics
Size: 150 employees
Investment: approximately $8 million
Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar
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How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
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GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
The specs: 2018 Nissan Altima
Price, base / as tested: Dh78,000 / Dh97,650
Engine: 2.5-litre in-line four-cylinder
Power: 182hp @ 6,000rpm
Torque: 244Nm @ 4,000rpm
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Pearls on a Branch: Oral Tales
Najlaa Khoury, Archipelago Books
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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