UAE Ministry to Settle Disputes Under Dh50,000 Starting 2024

The Ministry of Human Resources and Emiratisation is set to implement a new resolution mechanism for disputes involving amounts up to Dh50,000 related to companies, workers in the private sector, domestic workers, and recruitment agencies for domestic workers.

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The Ministry Introduces Swift Resolution for Disputes

In a bid to enhance efficiency, the Ministry of Human Resources and Emiratisation is set to implement a new dispute resolution mechanism for claims amounting to Dh50,000 or less. This initiative, effective January 1, 2024, encompasses disputes related to private sector companies, workers, domestic workers, and recruitment agencies.

Streamlining Procedures for Quicker Results

The streamlined process aims to save both time and effort for those involved in disputes, ensuring a faster and more straightforward resolution process. By expediting the settlement of claims, the Ministry seeks to provide claimants with their legal entitlements promptly.

Aligned with Legislative Amendments

In light of recent legislative changes, this decision is in line with the regulations pertaining to employment relationships and domestic workers, as well as with Federal Decree-Law No. 20 of 2023 and 21 of 2023, respectively, which modify provisions related to these laws.

Court Appeal Option for Disputing Parties

Under the new mechanism, disputing parties have the option to file a lawsuit with the Court of Appeals within 15 working days of being notified of the Ministry's decision. The court is committed to scheduling a hearing within three working days, ensuring a fair and swift legal process.

Continued Amicable Settlement Efforts

The Ministry will keep trying to help people settle their differences amicably if the amount at stake is more than Dh50,000. If a mutually agreeable settlement cannot be reached, the matter will be swiftly sent to the relevant court for final disposition, with a maximum time limit of fifteen business days from the referral date.

Promoting compliance and reducing irregularities

These amendments are not only designed to expedite the resolution of labour-related complaints but also to foster greater compliance with legal obligations among workers, employers, and domestic worker recruitment agencies. Additionally, the streamlined process aims to contribute to a reduction in the number of irregular workers, promoting a fair and efficient labour dispute resolution system in the UAE.

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