A Federal Law has been passed bearing far-reaching consequences: a Federal Ministry has been given power to behave as a Court of Law. Decree-Law 20 of 2023, commencing 1st January 2024, allows the Ministry of Human Resources and Emiratisation (MOHRE) to make decisions having the force of law which, previously, could only be made by the Courts. Until now, MORHE‘s role was only to mediate between Employers and employees- failing which, the claim would go to the Labour Courts. But now, MOHRE can go further and decide claims of not more than AED 50,000 in value, as well as bigger claims where mediated solutions are not honoured.
Such decisions will bind the parties akin to decisions of a Court of first instance – appealable for 15 working days to the Court of Appeal.
Although we await the implementing regulations/executive decision, it is clear that this could fast-track claims which, until now, presented a challenge to small claimants with limited means who are unsure as to the outcome – for whom going to the Courts was a grim prospect and to whom even a modest claim meant a lot. In contrast, employers, who (previously) could reasonably expect such claims to fizzle out, might have a few unwelcome surprises in store.
Stay tuned for further Employment Law updates!
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HAPPY NEW YEAR TO EVERYONE!
Managing Partner