UAE Ministry To Resolve Disputes of Under AED50,000, Labour Disputes Simplified
Smaller work disputes will be settled by a UAE government ministry, starting from January 1.
The Ministry of Human Resources and Emiratisation (MoHRE) will resolve AED50,000 ($13,616) or less disputes that are raised to it and related to companies and workers in the private sector, domestic workers, and domestic worker recruitment agencies with final executive decisions as of 1 January 2024.
This decision also applies to disputes related to non-commitment to amicable settlement decisions previously resolved by the Ministry regardless of the claimed amount.
The new process aims to save customers’ time and effort, streamline procedures, and expedite the process for claimants to collect their legal entitlements.
The updated mechanism comes in line with Federal Decree-Law No. 20 of 2023 on Amending Certain Provisions of Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationships, and Federal Decree-Law No. 21 of 2023 Amending Certain Provisions of Federal Decree-Law No. 9 of 2022 Concerning Domestic Workers.
The new amendments allow either party in a dispute to file a lawsuit before the Court of Appeals within 15 working days of being notified of the Ministry’s decision to resolve the dispute.
The court then schedules a hearing within three working days.
The Ministry will continue with its usual procedures, working to find amicable settlements for disputes exceeding AED50,000, and referring cases where an amicable settlement could not be reached to the relevant court for resolution within a maximum of 15 working days from the date of referral.
The amendments serve to expedite the resolution of labour complaints referred to the judiciary, enhancing compliance with legal obligations among workers, employers, and domestic worker recruitment agencies, and reducing the number of irregular workers.
They also form part of the continuous development efforts to legislation in order to enhance the UAE’s global competitiveness, reduce the occurrence of labour disputes, and expedite their resolution, while safeguarding the rights of all parties to an employment contract through a fair and transparent legislative environment, renowned for integrity and impartiality.
The UAE labour market topped the world on the Lack of Labour Disputes index in the IMD World Competitiveness Yearbook 2022, issued by the International Institute for Management Development(IMD) in Switzerland.
