UAE Law and Practice Contributed by: Ahmed Ibrahim, Malack El Masry and Maryam Quadri, IN’P IBRAHIM .N. PARTNERS
Working Models The New Labour Law has introduced several flexible working models, amounting to six types of working models, as follows: • full-time: working for one employer daily for full working hours throughout the working week; • part-time: working for one or more employers for a defined number of hours or specific business days; • temporary: work that is required for a specific dura - tion or is task-based, concluding upon the comple - tion of the designated task; • flexible: working hours or days may vary depend - ing on the workload, as well as the employer’s economic and operational needs, in alignment with established business practices; • remote: full-time or part-time work that is con - ducted partially or entirely remotely, outside of the employer’s premises; communication is facilitated through electronic channels rather than physical presence; and • shared: work and responsibilities are shared among multiple employees, with wages distributed based on the proportion of work performed by each employee, as determined by business needs. Limitation on Fixed-Term Employment Contracts Previously, the New Labour Law stipulated that the maximum duration of a limited-term contract was three years. However, this restriction has since been removed, and the law no longer prescribes any statu - tory maximum or minimum term for such contracts. Dealing with Unlimited Term Employment Contracts While the New Labour Law no longer permits unlim - ited term contracts, employers are faced with exist - ing unlimited term employment relationships. In this regard, the Labour Law provided both the employer and the employee with the right to terminate an exist - ing unlimited-term employment contract for a legiti - mate reason, subject to the following minimum notice periods: • less than five years: a minimum notice period of 30 days; • between five and ten years: a minimum notice period of 60 days; and
Gazette on 30 January 2025 and came into effect 60 days later, on 31 March 2025. Under the Decree, a transaction will be regarded as an economic concentration capable of affecting com - petition in the relevant market if either of the following conditions is met: • if the total annual sales value of the relevant parties in the relevant market in the country (ie, the UAE) during the last fiscal year exceeds AED300,000,000; or • if the total share of the relevant parties exceeds 40% of the total transactions in the relevant market in the country during the last fiscal year. Where one of these thresholds is met, the parties involved must make an application for approval at least 90 days prior to completing the relevant trans - action. The CRC then has 90 days (extendable by a further 45 days) to review the transaction and issue a resolution approving the transaction in question oth - erwise it is considered rejected. Failure to comply with the notification requirement may result in administrative penalties and correc - tive measures imposed by the competent authority. The regime may also apply to transactions involving foreign entities where the relevant market affected is located within the UAE. 2.5 Labour Law Regulations Generally, the laws and regulations governing labour fall under Federal Labour Law No 33 of 2021 (the “New Labour Law”), which repeals Federal Labour Law No 8 of 1980. The executive regulations of the New Law were issued pursuant to Cabinet Resolution No 1 of 2022 and came into effect on 2 February 2022. The key points of the New Labour Law are outlined below. Employment Dispute Statutory Limitations Pursuant to Federal Decree-Law No 9 of 2024 amend - ing provisions of the New Labour Law, the statutory limitation to claim a labour dispute has been extended from one year from entitlement of right to two years from the expiry/termination of the employment rela - tionship.
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