UAE unveils swift labour dispute resolution mechanism effective from 2024
Initiative applies to AED50,000 or less dispute cases
The UAE’s Ministry of Human Resources and Emiratisation (MoHRE) has announced a groundbreaking initiative effective January 1, 2024. The initiative empowers the Ministry to swiftly resolve disputes involving AED50,000 or less concerning companies and workers in the private sector, domestic workers, and the UAE’s recruitment agencies, with final executive decisions.
This progressive step also encompasses disputes related to non-compliance with amicable settlement decisions previously reached by the Ministry, irrespective of the claimed amount.
The initiative is geared towards saving valuable time and effort for all stakeholders in the UAE, streamlining procedures, and facilitating a quicker resolution process for claimants to secure their legal entitlements.
Aligned with Federal Decree-Law No. 20 of 2023, which amends specific provisions of Federal Decree-Law No. 33 of 2021 regarding the regulation of employment relationships, and Federal Decree-Law No. 21 of 2023 amending particular provisions of Federal Decree-Law No. 9 of 2022 concerning domestic workers, these amendments represent a significant leap in enhancing the UAE’s global competitiveness.
The timeframe
Under the new process, either party in a labour dispute can file a lawsuit before the Court of Appeals within 15 working days of being notified of the Ministry’s decision. The Court of Appeals then schedules a hearing within three working days, ensuring a swift legal process.
The MoHRE remains committed to its standard procedures, working to find amicable settlements for disputes exceeding AED50,000.
Cases, where an amicable settlement cannot be reached, will be referred to the relevant court for resolution within a maximum of 15 working days from the date of referral.
These amendments aim to expedite the resolution of labour complaints and promote compliance with legal obligations among workers, employers, and domestic worker recruitment agencies in the UAE.
The overarching goal is to reduce the number of irregular workers and maintain the UAE’s reputation for a fair and transparent legislative environment recognised for its integrity and impartiality.
Featured image: Image: The new MoHRE initiative applies to AED50,000 or less cases. Image: John Salvino
Last Updated on 10 months by News Desk 1
