The UAE Ministry of Human Resources and Emiratisation has announced that it will resolve disputes involving amounts up to Dh50,000. This new policy, effective from 1 January 2024, applies to cases related to companies and workers in the private sector, domestic workers, and domestic worker recruitment agencies.
The decision is also applicable to disputes regarding non-adherence to amicable settlement decisions previously made by the Ministry, irrespective of the claimed amount. This initiative is designed to save customers’ time and effort, streamline procedures, and speed up the process for claimants to receive their legal entitlements.
These changes align with the Federal Decree-Law No. 20 of 2023, which amends provisions of Federal Decree-Law No. 33 of 2021 concerning the Regulation of Employment Relationships, and Federal Decree-Law No. 21 of 2023, amending aspects of Federal Decree-Law No. 9 of 2022 about Domestic Workers.
Under the new amendments, any party involved in a dispute can file a lawsuit with the Court of Appeals within 15 working days after the Ministry’s dispute resolution decision. The court is required to schedule a hearing within three working days.
For disputes exceeding Dh50,000, the Ministry will continue its usual approach, seeking amicable settlements and referring unresolved cases to the relevant court within a maximum of 15 working days from the date of referral.
These amendments aim to speed up the resolution of labor complaints brought before the judiciary. They are expected to enhance legal compliance among workers, employers, and domestic worker recruitment agencies, and to reduce the number of irregular workers in the sector.