UAE Labor Disputes: New Law Shifts Power to Ministry for Swift Resolutions

In a significant update to labor law, the Ministry of Human Resources and Emiratisation (Mohre) now holds authority to settle disputes amounting to Dh50,000 or less without resorting to court proceedings. This pivotal amendment aims to streamline the resolution process, ensuring swift justice for employees across the United Arab Emirates.

During a recent workshop convened at the Mohre headquarters in Muhaisnah, a dedicated team of legal researchers elucidated the intricacies of this legislative change and its far-reaching implications.

Outlined below is a procedural breakdown for navigating this novel approach to dispute resolution:

**Filing a Complaint:** Employees with labor-related grievances can initiate the process by submitting a complaint to the Mohre office through various channels including in-person visits, online submissions, or by contacting the call center.

**Resolution Process:** Upon receipt of the complaint, the Ministry undertakes a thorough review, endeavoring to achieve an amicable resolution. If reconciliation proves elusive, the following avenues are pursued:

– Disputes exceeding Dh50,000 proceed to court for adjudication.
– Disputes valued at less than Dh50,000 are resolved directly by the Ministry.

**Subsequent Steps:** In cases resolved by the Ministry, a writ of execution is issued, necessitating the involved parties’ attendance at court for annotation. The Ministry’s judgment stands as final, although the filing of an appeal suspends the execution of the decision.

**Appeal Mechanism:** Dissatisfied parties retain the right to appeal the Ministry’s judgment by filing a lawsuit with the Court of Appeals within a stipulated 15-day window. The appellate process entails a prompt scheduling of a hearing within three working days, culminating in a verdict within 15 working days, thereby rendering the Court of Appeals’ decision definitive.

**Statutory Timeframe:** Employees must adhere to a specified timeframe for filing disputes against their employers, commencing from the last date of communication regarding the dispute, with a grace period of one year.

**Wage Withholding:** As part of the dispute resolution framework, the Ministry reserves the authority to compel employers to disburse withheld wages to the affected workers, up to a maximum duration of two months.

This legislative reform heralds a paradigm shift in labor dispute resolution, prioritizing efficiency and accessibility while upholding the rights of all stakeholders within the UAE’s workforce landscape.

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