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UAE – Labour laws to be revised to encourage more Emiratis into the labour market

26 November 2014

Minister for Labour Saqr Gobash Saeed Gobash announced yesterday that a revised labour law has been drafted to boost Emirati workforce participation rates. The revised law is  also expected to impact workers in the country’s free zones; which among other things are exempt from import and export taxes and personal income taxes, reports Gulf News

In a letter to the Federal National Council, Mr Gobash stated: “The revised labour law will explicitly bring the private sector’s benefits on a par with those of the public sector to boost the presence of Emiratis in private businesses.”

In his letter Mr Gobash advised that the new legislation will clearly state that the law will be applicable to workers in free zones, which are part of the UAE’s territories.

Proposed reforms of the UAE’s labour market include, among other things, subsidising of citizens’ wages in the private sector, boosting their job security, and a two-day weekend, to attract more citizens to the private sector, which boasts more than 4.2 million jobs.

Major amendments that are being planned include reducing the number of days of annual leave to which employees are entitled - from 30 days to 21.

The last time amendments were made to the UAE’s labour laws was in 1986.