An Overview
These amendments took effect from the 1st of January 2024, and introduced pivotal modifications to the jurisdiction and authority of the Ministry of Human Resources and Emiratization (MOHRE) in adjudicating certain employment disputes.
Below is a comprehensive elucidation of the salient aspects of the amendment by Decree-Law No. (20) of 2023:
- Jurisdictional Scope: The amendments delineate the rights of employers, employees, and their beneficiaries to dispute any claims arising from the employment relationship. Upon receipt of such disputes, MOHRE is mandated to review and facilitate an amicable resolution.
- Resolution Authority of MOHRE: A significant provision grants MOHRE the authority to render a final judgment on disputes wherein the claim does not exceed fifty thousand (50,000) UAE Dirhams (AED), or in instances of non-compliance with an amicable settlement decision previously rendered. This represents a notable expansion of MOHRE’s authority from its traditional role of mediation.
- Executability and Appeals: The decree law confers upon MOHRE’s decisions the status of an executable judgment, akin to those issued by judicial courts. Parties dissatisfied with MOHRE’s decisions are accorded the right to appeal to the relevant Court of Appeals within fifteen (15) working days from the notification of the decision. The appellate process is expedited, with the court mandated to schedule and adjudicate the appeal within specified short time frames.
- Referral Mechanism to Courts: For disputes exceeding the threshold of AED 50,000 or where amicable settlement efforts falter, the matter is compulsorily referred to the competent court, accompanied by a comprehensive memorandum encapsulating the dispute, the contending arguments, and MOHRE’s advisories.
- Provision for Wage Payments: In furtherance of safeguarding employee welfare during the pendency of dispute resolution, the amendments empower MOHRE to mandate employers to remit workers’ wages for up to two (2) months.
- Preventive Measures Against Collective Disputes: To avert the potential escalation of individual disputes into collective labor unrest detrimental to the public interest, MOHRE is vested with the authority to impose requisite administrative procedures or measures on the employer.
- Expedited Judicial Procedures: The amendments obligate the competent court to promptly convene a hearing upon receipt of a dispute application, thereby ensuring swift adjudication.
- Statute of Limitations: It is stipulated that lawsuits pertaining to rights protected under this Decree-Law cannot be initiated after one (1) year from the maturity date of the said right.
Conclusion: These legislative amendments underscore the UAE’s commitment to enhancing the efficacy and accessibility of dispute resolution mechanisms within the employment sector, aiming to foster a balanced and equitable labor market and to streamline the dispute resolution process, ensuring quicker and more accessible justice for employees and employers.
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