New labour contract rules will develop a free labour market in the UAE and discipline hiring practices in the country, according to experts and top executives.
Referring to new standardised contract that became effective from January 1, they say it is a step in the right direction and will benefit both workers and employers.
Shamlal Ahmed, managing director for international operations at Malabar Gold and Diamonds, said the new labour rules are clear indications that the policies are designed with the objective of regulating the labour force in a clear and transparent manner.
"At Malabar Gold and Diamonds, we welcome this initiative and see this as a positive and progressive step that will benefit both employees and employers in the long run," Ahmed told Khaleej Times.
As one of the fastest-growing economies in the world, he said the UAE is on a fast-track growth phase and strengthening labour laws stresses the importance that the authorities place on the workforce. He said new the labour laws safeguard the interests of all involved, whether they are citizens or expatriates, thereby establishing social justice. "This is likely to create a free labour market, which will help employers to pick the right talent and it will also lead to increased transparency," Ahmed said.
Atik Munshi, managing partner at Horwath Mak, said a unified contracts is a positive amendment to the rule and will improve and protect the work force. They were of the view that the new recruitment procedures will establish a stable, transparent and balanced relationship between workers and employees in line with labour regulations.
"Companies have to be more diligent and abide by the norms and rules of the jurisdiction they are located in. Except for the additional processes and documentation I do not think that company management will be effected in fact it would improve internal controls for the company," Munshi told Khaleej Times.
He said the major purpose of this amendment is to make sure that the employee rights are better-protected, particularly for the less-educated. Any change will require the authorisation of all parties including the labour department.
To a question, he said any change would meet some resistance and difficulty. It will not take long for the companies to adept.
Joy Alukkas, chairman and managing director of the Joyalukkas Group, said workers are the backbone of any organisation and any step taken to make their working conditions better should be welcomed with open arms.
"The government has just announced it so we are still unclear on the exact details on the law. But I am sure the government has the best interest of both the labour force and businesses in mind with this new initiative. We are in the process of understanding this in detail and will ensure 100 per cent compliance with requirements of it with immediate effect," Alukkas told Khaleej Times.
Harmeek Singh, owner and founder of Plan b Group, said the move to make signed unified contracts mandatory is surely another positive step to safeguard the interests of UAE's expat workforce.
"The emphasis on workman's consent on all contracts and negotiations will certainly increase Dubai's profile as a preferred work destination and enable employers to attract better quality human resource," he said.
"While ethical organisations have long exercised policies favouring their employees, this move will further ensure the best interests of workers across the UAE are protected," Singh added.
