The UAE has introduced a significant amendment to its Labour Law, aimed at accelerating the resolution of labor disputes in the private sector, including for Overseas Filipino Workers. The Ministry of Human Resources and Emiratisation (MOHRE) announced on Monday, December 18th, the enactment of Federal Decree-Law No. 20 of 2023, which is set to replace Article 54 of the existing Federal Decree-Law No. 33 of 2021, effective from January 1st, 2024.
Under the new legislation, MOHRE will be authorized to make final executive decisions on labor disputes involving claims of up to AED50,000 for individual workers and companies in the private sector. The Ministry emphasizes that this new process is designed to reduce time and effort for claimants, streamline procedures, and hasten the collection of legal entitlements.
The resolution process for labor complaints will also see changes in 2024. Previously, MOHRE encouraged amicable resolutions between employers and employees in disputes. Unresolved cases were then referred to a competent court. However, the new amendment grants MOHRE the power to issue final judgments on disputes below the AED50,000 threshold, or in cases relating to non-compliance with MOHRE’s previously resolved amicable settlement decisions, regardless of the claim amount.
In instances where either party is dissatisfied with MOHRE’s judgment, they are entitled to appeal through the Court of Appeals as per Article 1 (3) of the new law. The appeal must be filed within 15 working days of the Ministry’s decision. The Court of Appeals is required to schedule a hearing within three days and resolve the issue within 15 working days, significantly expediting the dispute resolution process.
