Dubai, January 28, 2024 – Recent shifts in UAE’s employment regulations have raised concerns among workers in mainland companies in Dubai. Employees are being asked to sign new contracts that deviate significantly from their original agreements, with reduced basic salaries causing apprehension. The question arises: Is this legal, and can dismissals under such circumstances be deemed arbitrary?
In response to these queries, it’s essential to consider the legal framework. Assuming your employment falls under a limited duration contract, Federal Decree Law No. 33 of 2021, Ministry Resolution No. 27 of 2023, and Administrative Resolution No. 38 of 2022 are applicable. The implementation of the Current Employment Law on February 2, 2022, marked a transition from the previous legislation, Federal Law No. 8 of 1980.
Employers were required to convert unlimited contracts to fixed-term ones by February 1, 2023, a deadline later extended to December 31, 2023. The conversion, as per Article 68(2) of the Current Employment Law, mandated adjustments within one year of its enactment. The minister could extend this period in the public interest.
Crucially, during the conversion process, employers were not allowed to alter existing terms and conditions unless it benefited the employees, as per Article 65(5) of the Current Employment Law. Any updates post-expiration had to adhere to the decree’s provisions.
If your employer is converting your unlimited contract to a limited one, they cannot modify the terms unless it favors you and your colleagues. Attempts to force the signing of revised contracts violate Article 14(1) of the Current Employment Law.
Should you and your colleagues face termination for refusing to sign, a complaint can be filed with the Ministry of Human Resources & Emiratisation. If an amicable settlement is not reached, pursuing an employment case in a Dubai jurisdiction court becomes an option.
Article 47 of the Current Employment Law entitles you to claim all employment entitlements, including compensation for arbitrary termination, should it occur.
In navigating these legal changes, understanding your rights and seeking proper legal advice becomes crucial.
