Abu Dhabi: The new rules issued by the Ministry of Labour are expected to raise transparency in the labour market and improve employment conditions, which would help attract new talent to the UAE.
However, the rules might make it harder to retain employees as they ease labour mobility, some analysts said.
Nuno Gomes, information solutions leader for Middle East at Mercer Consulting, a human resources firm, said that companies operating under the Ministry of Labour regulations (as opposed to those in free zones) could face challenges in retaining talent.
“Employees will be essentially free from now on to change employers without having to receive the letter from their employer that they could start immediately in another location. Retention was as easy as not letting the employee take up another employment unless they left the country for six months, which made it very difficult for people to change jobs,” he said.
As per the new rules, after a notice period, workers do not require their employer’s consent to start employment elsewhere immediately.
However, other analysts said that the increased flexibility in employee mobility could boost workers’ relation with their employers and thus boost motivation.
Eyhab Abdeen, partner at PricewaterhouseCoopers’ (PwC) People and Organisation Consulting, said that the increased level of transparency is the highlight of the announcement, which will resonate in the labour market.
“I think that it will help organisations actually retain employees because when you create that level of transparency early on around working conditions, and when you create boundaries on the termination of contracts…people actually stick around because they’re motivated, committed, and engaged, rather than being forced to stay, which is demotivating,” he said.
Similarly, Markus Wiesner, chief executive officer of Aon Hewitt Middle East, a global human resources consultancy, said that introducing more employee-friendly regulations will give people more confidence in working in the UAE.
“Easier movement between organisations will increase labour mobility and make it easier for employers to attract talent. The labour market is certainly developing in the right direction, but more needs to be done to attract top talent. It will be a challenge to keep up with planned economic growth without compromising on the quality of talent,” he said.
Wiesner added that setting up a mandatory pension system for every employee as well as monitoring the cost of living more carefully will help make the UAE’s environment more attractive for employees.
