Ministry of Labour standardised new contracts effective from 1 January 2016

Starting 1st January 2016, the UAE will implement the new labour contract that standardises employment terms, the Ministry of Labour said yesterday.

Under new labour contract rules, residents of the UAE cannot renew their work permits nor will they be issued new permits if an employer fails to provide a signed unified contract starting 2016. The ministry will approve requests by workers to move to another employer only if they met the terms and conditions of the contracts they are party to, the ministry officials said yesterday.

During a workshop, Humaid bin Deemas Al Suwaidi, Assistant Undersecretary for Labour Affairs at the Ministry of Labour, pointed out that the new procedures of recruiting foreign workers from outside the country will establish a stable, transparent and balanced relationship between workers and employers because they are built on contractual basis and mutual consent in line with labour regulations. This relationship will be terminated by consent from both parties or when either party fails to meet their obligations stated in the contract.

The new measures implement three new decrees issued previously by Saqr Ghobash, Minister of Labour, to regulate the labour market.

According to the new decrees, contracts will be for the term of only two years and can be renewed by consent from both parties, the employer and the worker.

A new work permit will be issued for the worker only after one year after the contract is terminated.