The United Arab Emirates (UAE) has recently implemented several significant legal reforms across various sectors. Here are some of the key changes:
- Employment Law Reforms
- Alternative End-of-Service Gratuity Scheme: A new voluntary scheme allows private sector employers to manage end-of-service gratuity payments by contributing to a licensed investment fund on behalf of employees. This initiative aims to protect workers from inflation and insolvency, while promoting responsible investment.
- New Anti-Discrimination Law: The UAE has introduced legislation to combat discrimination in the workplace, ensuring equal treatment and opportunities for all employees.
- Amendments to Labor Law: The UAE government has enacted amendments to the labor law, including provisions to prevent fictitious recruitment practices, such as fake Emiratisation. Employers found guilty of such practices may face fines ranging from AED 100,000 to AED 1 million.
- Mental Health Legislation
- Mental Health Law: Effective from May 30, 2024, the UAE introduced a Mental Health Law aimed at protecting employee mental health rights. This law applies across the UAE, excluding the financial free zones of the Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC).
- Corporate Taxation
- Minimum Top-Up Tax: Starting January 2025, the UAE will implement a 15% minimum top-up tax on large multinational companies with consolidated global revenues of €750 million or more. This aligns with the OECD’s global minimum corporate tax agreement and aims to ensure that large companies pay a minimum of 15% tax, making tax avoidance more difficult.
- Trade Agreements
- Free Trade Agreement with Australia: The UAE has signed a free trade agreement with Australia, set to take effect in six months. This agreement will make over 99% of Australian products entering the UAE market tariff-free, enhancing trade relations and economic cooperation between the two nations.
- Legal Reforms
- Penal Code Amendments: The UAE’s new Federal Crime and Punishment Law, effective from January 2022, retains many provisions of the previous penal code and introduces new restrictions or increases penalties for existing offenses. This law contains 479 articles concerning crimes and offenses and their punishments.
These developments reflect the UAE’s ongoing efforts to modernize its legal framework, enhance economic competitiveness, and protect the rights of individuals and businesses.
