Ever since the implementation of Federal Decree-Law No.20 of 2023, the private sector workers in the UAE may now be able to speed up their processes of labour complaints, as it was updated on January 1, 2024. They could now collect their overdue claims from the concerned, as they could receive their entitlements such as overtime pay and gratuities. 

The final decisions regarding the labour disputes with claims not more than Dh 50000 made by both companies and workers of the private sector will be issued by the Ministry of Human Resources and Emiratisation. Further changes made in the labour laws of the private sector of the UAE are given below. 

1. The newly changed laws are now legally effective

As per the ‘writ of execution’, the decisions taken by the authority are legally enforced. Moreover, it is a court order that permits a creditor to execute a judgment against a debtor. Besides that, the Ministry of Human Resources and Emiratisation has the authority to make final judgments when the disagreement of any labour case includes a claim of less than Dh 50000. Popular legal associates are of the say that the order has the effect of a writ of execution and is enforceable.

2. Right to Appeal

The employee or employer has the right to file an appeal when the MoHRE has the authority to issue a ‘writ of execution’. Within 15 working days of the announcement of MOHRE’s decision, these parties may appeal to the Court to Appeal. Based on Article 1 of the new law, the Court of Appeal's judgement will be final, and an appeal will suspend the execution of MOHRE's decision.

3. Cutting down the claim value of labour disputes

If the worth of the claim does not exceed Dh 50000 and the disputes resulting from any past amicable settlement recognised by MOHRE, regardless of the financial value of the claim, the Ministry may now issue binding decisions concerning any straightforward labour disputes. Previously, the Ministry used to chiefly resolve conflicts and submit unresolved matter to unresolved matters to judicial tribunals. Furthermore, it has been found that such faster settlement of minor disputes frees up court resources making way for more difficult matters.

MOHRE will be performing the same duties for disputes exceeding Dh 50,000. They will be serving as a mediator and referring the matter to the court if an amicable settlement is not reached. As per the new laws, the Ministry has the right to render a final verdict on any dispute when the claim amount is below Dh 50000. Moreover, the same will be implemented regardless of the claimed amount for the disputes associated with non-commitment to amicable settlement decisions previously settled by MOHRE.

4. Statute of limitation for labour claims

According to this amendment, it is on the date when the claim becomes due that the standard one-year statute of limitation for employment claims begins. In other words, a labourer could file a complaint with the Ministry within one year of the issue developing or the claim becoming due. Also, after this period, it becomes invalid irrespective of the merits of the claim. 

5. Salaries should be paid to the workers even during the times of the dispute

The Ministry may demand the employer to continue to settle the salary of the employee for up to two months if the dispute leads to the suspension of the payment of the employee.

What should be done if the labour dispute is not yet resolved?

The dispute will be heard by a competent court when both parties cannot achieve a resolution, as per the revised legislation. Further, along with a summary of the dispute and its recommendations, the Ministry will be referring the dispute to the courts when an amicable settlement is not reached within 14 days.