ME-ALLIANCE LEGAL UPDATE
Federal Decree-Law No. (9/2024) amending some provisions of Federal Decree-Law No. (33/2021) regulating labour relations
In a competitive context, effective regulation of labor relations is essential to balance the rights and obligations of both employers and employees. Ensuring protection for workers and enabling them to secure their rights within a legal framework is crucial. To address these needs, Decree-Law No. 9/2024 has been issued, amending certain provisions of Federal Decree-Law No. 33/2021 concerning the regulation of labor relations. This amendment replaces Articles (54) and (60) of Federal Decree-Law No. 33/2021 and introduces several significant changes.
Fines and Penalties:
A fine ranging from AED 100,000 to AED 1 million is imposed for employing unauthorized workers, using work permits for purposes other than those issued, or failing to settle workers’ rights in the event of facility closure or suspension. This also applies to employing juveniles in violation of the law, as well as agreeing to employ juveniles in violation of its provisions.
Criminal Penalty for Fictitious Employment:
The Decree-Law introduces a criminal penalty for fictitious employment, including fictitious Emiratization, with fines between AED 100,000 and AED 1 million. This penalty applies to employers who circumvent labor market regulations and appoint workers in a fictitious manner. The penalty amount is multiplied by the number of fictitious appointments.
Court Jurisdiction:
The Decree-Law specifies that disputes should be brought before the Court of First Instance instead of the Court of Appeal, particularly if there is disagreement with a Ministry of Human Resources and Emiratization decision. Additionally, lawsuits regarding rights arising under this Decree-Law cannot be heard after two years from the termination of the employment relationship.
Criminal Lawsuit Initiation and Reconciliation:
A criminal lawsuit for fictitious employment can only be initiated at the request of the Minister of Human Resources and Emiratization or their delegate. The Ministry is also empowered to grant reconciliation upon the employer’s request before a ruling is issued. Reconciliation involves paying at least 50% of the minimum fine and returning all financial incentives received for fictitious appointments. The criminal case is considered resolved upon payment of the reconciliation amount.
Court Referrals:
The Decree-Law mandates that the Courts of Appeal refer all labor-related requests, disputes, and grievances to the competent Court of First Instance from the implementation date of this Decree-Law, excluding cases that have already been adjudicated or reserved for ruling.
The issuance of Decree-Law No. 9/2024 marks a significant development in the UAE’s legislative framework for labor relations. It aims to enhance the efficiency of the labor market, improve competitiveness, and ensure the fair regulation of labor relations. This update reflects the ongoing efforts to refine and advance the legislative structure in the Emirates, ensuring better protection and clarity for all parties involved in labor relations.
To view the resolution:
https://pdf.ac/2XVHW9 >> https://pdf.ac/2XVHW9
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