All About the Major End of Service Benefit Law Change

UAE has implemented a new system for end-of-service benefits for workers in the private sector and free zones.

In collaboration with the Securities and Commodities Authority and the Ministry of Human Resources and Emiratization (MoHRE), Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, introduced a new initiative during a cabinet session at the Al Watan Palace in Abu Dhabi.

The initiative makes sure that the UAE stays at the forefront of policies meant to improve employee welfare and promote economic stability.

The system is set up so that private and public sector employees can benefit from it.

Several other significant measures were also approved during the cabinet meeting, including the establishment of the "Office of the Federal Regulator for the Water and Electricity Sector," the introduction of a new system for federal government rewards and incentives, and the passing of a federal law to control the weights of heavy vehicles on the nation's roads.

Sheikh Mohammed tweeted, “The aim is to preserve the workers’ savings, which represent the end of their services in the operating companies, and to ensure that they are invested in a safe way to guarantee their rights and achieve the stability of their families.”

What is the new law in the UAE to regulate heavy-weight vehicles on roads?

A new law intended to control the weight of heavy vehicles on public roads has received approval from the UAE government, and its implementation is planned for the following year.

Sheikh Mohammed said, “Heavy vehicles with a maximum total weight exceeding 65 tons will be prohibited from using state roads, a measure aimed at preserving our advanced infrastructure and enhancing road safety.”

What is the new rewards and incentives system announced by the UAE? 

The federal government also unveiled new rewards and incentives to increase employee motivation in an effort to promote excellence and strengthen the legal framework.

The initiative divides both monetary and non-monetary rewards into three divisions, each of which is intended to honor and inspire workers at various levels of performance.

The first category calls for great annual employee performance, while the second honors outstanding achievements made by government organizations.

The third category honors devoted workers who have made significant contributions to the country and the state as a whole.

Other than these initiatives, The Office of the Federal Regulator for the Water and Electricity Sector was established at the cabinet meeting.  

“This office’s mission is to oversee electricity and water trade among the emirates of the country and across borders, as well as to regulate the production, transmission, and distribution of electricity and water within the nation. The new office will operate under the Ministry of Energy and Infrastructure’s purview,” Sheikh Mohammed said.

Eleven new federal laws covering social, economic, technological, and health-related issues will also be issued by the Council of Ministers.

These include ground-breaking regulations for assisted reproduction, media regulation, e-commerce, and the space industry. The Human Genome Use Law is one of these regulations that is of utmost importance.

Sheikh Mohammed added, “These legislative measures encompass various aspects of society, the economy, health, and technology, creating an optimal legislative environment in the UAE that promotes social stability, economic growth, and an improved quality of life for all, God willing.”