Opinion | Editorials
Labour reforms in UAE will spur growth
Freedom to change jobs will benefit skilled workers and let firms fire inefficient people
- Gulf News
- Published: 00:00 December 29, 2010
A World Economic Forum (WEF) report has ranked the UAE fifth out of 139 countries for efficiency in the labour market. The country's ability to retain national, qualified manpower; flexibility of wage determination; professional code of ethics and productivity of its workforce, all contributed to it attaining this ranking.
The country scored low on the flexibility of the mechanisms governing the hiring and firing of workers. However, the government has already moved to deal with this by announcing new rules, which allow workers to move freely between jobs after two years with a company, among others. These new labour regulations will improve the position of the UAE in the WEF rankings in the coming year.
The introduction of increased competition and freedom of movement in the UAE labour market will make it more attractive to skilled workers and easier for companies to shed inefficient and unproductive workers. However, companies will also have to ensure that they can retain those in whom they have invested significant recruitment and training expenses.
By balancing the rights of workers with the demands of companies for productivity in a sophisticated labour market, the UAE will secure the skills the country needs for its social and economic development.
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