Global People Solutions Webcast UAE & GCC Region Employment Practice & Employee Benefits Developments
The Middle East has become a dynamic talent market, and the Gulf nations are actively reforming laws and institutions to support the growth.
The United Arab Emirates Introduces a New Option for End of Service Benefits
The UAE cabinet recently introduced an alternative way for private sector employers to deliver the End of Service Gratuity (EOSG) to their expatriate (non-Emirati) employees in the UAE and its free zones. The new government-sanctioned option involves externally funding a gratuity savings plan through monthly contributions that would replace the lump-sum payment calculation under the existing EOSG system.
Implementation details of the new voluntary EOSG are yet to be released by the UAE government.
UAE Passes Amendments to Emiratization Framework
The United Arab Emirates (UAE) government had previously introduced legislation increasing the number of UAE nationals who are working in the private sector by increasing quotas under its existing Emiratization framework. All private sector employers with at least 50 employees will be required to increase Emiratis’ proportion in the workforce to at least 10% of the workforce by 2026.
The Emiratization requirements which entered into effect on 30 June 2023 increased the Emiratization quota from a 2% to a 4% Emiratization quota.
UAE introduces mandatory unemployment insurance scheme [Updated]
The United Arab Emirates (UAE) government recently introduced – for the first time – a mandatory unemployment insurance scheme. The scheme aims to protect employees who lose their jobs for reasons out of their control, by ensuring the availability of unemployment income for up to three months. The new Involuntary Loss of Employment (ILOE) insurance scheme, which was announced by the Minister of Human Resources and Emiratization in May 2022, came into effect 1 January 2023.
United Arab Emirates introduces a new labor law [Updated]
The United Arab Emirates government recently passed a new labor law introducing many significant changes to the employment law regime. The most notable changes addressed in this article include the extension of maternity leave, the introduction of new family leave […]
The United Arab Emirates (UAE) to introduce a new working week for federal government entities
The UAE government recently announced a change in the working week schedule for public sector employees. On 3 January 2022, the UAE public sector is moving to a 4 ½ workday week, with employees working from Monday to mid-day Friday […]
UAE expands equal pay provisions
The president of the UAE recently approved Decree Law No.6 2020 (the Decree), expanding existing equal pay provisions. The Decree was issued on 25 August 2020, and should enter into effect one month after its publication in the UAE Official […]
UAE introduces parental leave benefit
The president of the UAE recently approved Decree Law No.6 2020 (the Decree) granting private sector employees five working days of employer-paid new parental leave. The Decree was issued on 25 August 2020 and should enter into effect one month […]
UAE DIFC mandatory retirement plan final guidance
Update: Final guidance has been issued by the DIFC, a special economic zone in Dubai, on the implementation of the new DIFC Employee Workplace Savings plan (DEWS), which replaces the current end-of-service gratuity payment plan for expatriate employees. The plan, […]
Dubai International Financial Centre (DIFC) to replace end-of-service gratuity with funded workplace savings plan
Update: Final guidance has been issued by the DIFC, a special economic zone in Dubai, on the implementation of the new DIFC Employee Workplace Savings plan (DEWS), which replaces the current end-of-service gratuity payment plan for expatriate employees. Click here […]