A new UAE labor complaint mechanism takes effect on 1st January 2024, which encompasses numerous changes in how workers in the private sector can raise their grievances. Under Federal Decree-Law No. 20 of 2023, the amendments aim to fast-track the resolution of labor disputes so that workers get due entitlements quickly and without hassle. The revised process strengthens the role of MOHRE in dispute handling and adds new protections for workers. Here is a detailed look at five major changes and how they benefit employees in the UAE.
- MOHRE’s Decisions Now Legally Enforceable
One major change is that the decisions of MoHRE are now legally binding. Previously, MoHRE basically performed the role of a mediator in labor disputes. Under the new law, decisions of the MoHRE, in particular those relating to claims not in excess of AED 50,000, are now enforceable in the same way as a court judgment by means of a ‘writ of execution’. If MOHRE makes a decision on a labor dispute where the claim is within this financial limit, it becomes instantly executable as a legal judgment.
This change will enable MOHRE to settle labor cases more effectively and ensure that workers get their dues without having to wait for long court proceedings. For instance, if a worker has not been given his gratuity or overtime and the MOHRE has ruled in his favor, such a ruling is now binding and can be executed like any other court decision.
- Right to Appeal
Despite the enhanced powers of MOHRE, the employee and the employer still have the right to appeal against the decision of MOHRE. Any party may further appeal to the Court of Appeals in case of dissatisfaction with the result within 15 working days from the notification of the decision. Such an appeal shall be a fast process. The court shall consider an appeal within three working days from the date of submitting the appeal and shall issue its judgment within 15 working days.
This appeal process shall further provide an equal opportunity to both disputants in respect of MOHRE’s decision, hence giving more protection to prevent any sort of injustice
- Limits on the Value of Claims
Another essential amendment has to do with the limit on the value of the claims that can be directly adjudicated by MoHRE. This new law will authorize MoHRE to make final decisions on disputes where the claim’s value is not more than AED 50,000. This threshold is very important for the speedy resolution of minor disputes and saves the judicial system from such disputes, allowing it to pay more attention to the major ones. Concerning disputes above AED 50,000, the role of MoHRE remains one of mediation, where the dispute is referred to the courts if the parties fail to reach an amicable agreement.
This is a change that will help speed up the process for smaller claims, allowing workers to get resolutions without hassle and thereby lightening the burden on court systems.
- Statute of Limitation for Labour Claims
The amended law has also set a one-year statute of limitation for labor claims. It is essential that workers file their complaints within a one-year period since the cause of action arose or, if the claim is due, since the date it became due. This limits the timeframe in which the disputes are to be resolved; hence, faster actions are required by both employees and employers.
In the absence of a claim filed within such a period, the right to sue shall be lost, whatever the merits of one’s claim may be. This provision promotes efficiency and finality in the resolution of labor disputes.
- Protection of Wages During Disputes
Under the new law, as part of the dispute resolution process, the Ministry may order the employer to provide the worker’s wages for a maximum of two (2) months, if the dispute results in the worker’s wages being withheld. It, therefore, offers additional protection to the worker who, even when the dispute is pending, can meet his financial commitments.
What Happens if the Labour Dispute is Not Resolved?
If the dispute is not amicably resolved in the time frame specified by law, it will be referred to the competent court with a statement summing up the points of dispute, arguments submitted by the parties, and recommendations of MOHRE. After receiving a request, the competent court must, within three (3) business days, convene a hearing, notify the parties involved, and proceed promptly with the adjudication of the case.
Types of Labour Complaints Addressed by MOHRE
The new law further expands the powers of MOHRE in dealing with most employment disputes, provided that the claim does not exceed AED 50,000. These examples include:
- Unpaid Wages or End-of-Service Benefits: Claims relating to overdue salaries, overtime work done, or when there are issues about the employee’s gratuity.
- Wrongful Termination Claims: Illegal dismissal claims against the employer, or wrongful termination without the statutory period of notice.
- Leave and Working Hours Discrepancies: Problems concerning annual leaves, unpaid leaves, or mistakes in working hours.
- Contractual Disputes: Disputes relating to the terms of a contract, including the nature of work, remuneration, or duration.
- Workplace Discrimination/Harassment: This implies discrimination or harassment on the ground of gender, race, religion, etc.
How HHS Lawyers in Dubai Can Assist
The new labor complaint procedure can be difficult and tricky for employees and employers alike. At HHS Lawyers in Dubai, our lawyers have extensive practice and experience in UAE labor law related to issuance of complaints, negotiation of settlements, and representations before the appeal courts. Whatever your case may be, an employee seeking justice or a legal opinion for your company as an employer, we are here to assist you in obtaining the best results.