Published On: January 17th, 2023 / Last Updated: January 16th, 2023 / 4.2 min read /

Understanding legal obligations of the Employers towards their employees as per UAE labor law

Employee relations have undergone a significant change in recent years thanks to Federal Decree-Law No. 33 of 2021 on the regulation of Labor Relations (New Labor Law), which took effect on 02-February-2022. Federal Law No. 8 of 1980 (Old Labor Law), which it replaced, was updated with several new provisions that increased worker flexibility and protections to meet economic demands in the United Arab Emirates.

The Employers must understand that these obligations are mandated by law and will take effect on February 2nd, 2022 and that they must abide by them. As per the Article 63 of this law; Failure to do so could result in penalties ranging from 5000 AED to 1,000,000 AED for non-compliance.

The New Labor Law seeks to regulate the contractual relationship between an employer and an employee and considers the growing demand from businesses for flexibility. As per Article 13 of this new law; the employer will comply with the below:

Top Responsibilities of Employers.

  1. Employee Data Management

According to the ministry’s directives and the laws and regulations, employers are required to keep employee files and documents for at least two years following the date of the employee’s termination. These documents include visa, passport, and other proof of the processing of payroll for employee salaries, among other documents.

  1. Not withholding employee documents.

Not withholding the official documents of the worker or forcing him to leave the State at the end of the employment relationship.

  1. Define Organizational Rules to the employees

According to the law, the Employer must define the organizational rules for the employees.  Organizational rules include specifying work instructions, penalties, promotions, rewards, and other laws related to work. It is better to have an employee handbook so that employees can refer to the same.

  1. Providing Housing/ Paying Housing Allowance

One of the main duties of the employer is to provide employees with a suitable place to live that has been approved by the relevant authorities, by paying them a housing allowance or other form of lodging, or by including it in their monthly wages.

  1. Training & Development

Providing a minimal amount of training by investing funds into programs to empower workers to develop their skills for its services with qualifications and tools in accordance with the provisions.

  1. Employee Rights

Employers are responsible for educating staff members about their rights and responsibilities at work, ensuring that they are aware of these rights and obligations to prevent any misconduct, and conducting periodic evaluations to ensure that everyone is abiding by the law and applicable rules and regulations.

  1. Health Insurance

Employers are required to bear all costs in accordance with the law and to ensure that employees are covered by the organization’s medical insurance program.

  1. Third-party Working

Not allowing the worker to work for others, except in accordance with the provisions hereof.

  1. Employee Settlement Benefits

After the employee is resigned, he or she must be given a certificate of experience that includes the worker’s name, the date they started working together, the last date of working, the type of work they were doing, and the last pay they received. And whether the contract’s term had already expired or not. The employer must ensure that the certificates are free of any information that could harm the employee’s chances of landing a new job or restrict his options.

  1. Air ticket

Bearing the repatriation expenses of the worker to his place of recruitment or any other place that both parties had agreed upon, unless he has already joined the service of another employer or unless the reason for terminating the contract was attributed to the worker, then that the latter shall be liable for incurring those expenses.

  1. Safe Work Environment:

Along with the responsibilities listed above, they must also ensure a safe and appropriate environment at work by giving employees access to the tools they need to protect themselves from harmful substances.

About HR Chronicle

HR Chronicle is the leading Cloud based HR and Payroll Management Software of the GCC Region.  HR Chronicle focuses on reducing the cost in HR Management by constantly updating as per the regulations and managing HR and Payroll process efficiently.   Designed to the GCC labor regulation and WPS Support, our masterclass service will streamline and automate HR and Payroll process and assure accurate payment as per the regulations.

Have a question and want to get started on your HR and Payroll automation journey? Please contact our sales team for any inquiries on pricing and licensing.  We will be glad to assist you.  You can also visit us at or email us at: You can also call us +971 4 3383775 or WhatsApp +971 55 650 6260.



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