UAE announced multiple new rules, changes implemented, to improve the quality of life of residents

In an attempt to improve the lives of its people and residents, the United Arab Emirates has been passing and changing several laws in recent years.

To keep up its ranking as the top place for expat lifestyle, incomes, and family stability, the country issued new legislation in 2023 and reexamined others.

 

Job loss insurance scheme:

All citizens and residents were obliged to register for the Involuntary Loss of Employment programme on January 1st of this year.

The programme is available to workers in both the public and private sectors, with the exception of minors, investors, domestic assistants, temporary contract employees, retirees who have earned pensions and started a new career, and workers in free zones.

Workers whose base pay is less than Dh16,000 must pay Dh5 a month (VAT included). In the event of an involuntary termination, they will be entitled to 60 percent of their average base pay for three months.

Those whose base wage exceeds Dh16,000 are required to pay Dh10 + VAT each month.

 

End-of-service scheme:

Commencing on November 1, 2023, the end-of-service policy permits UAE employees to allocate their gratuity among several savings plans.

Upon termination of employment, employees will be entitled to collect its benefits in addition to the cumulative profits from the investment funds.

 

Bankruptcy:

On October 31 of this year, a new bankruptcy law was released; it will take effect on May 1st, 2024.

By preventing separate enforcement procedures for creditors, the new legislation safeguards the rights and interests of both debtors and creditors. Without regard to a deadline, the court may order a stay of creditors' actions against debtors until the restructuring plan is approved.

It is possible to prolong the three-month moratorium. Debtors aren't allowed to request a longer repayment period than six months, though.

 

Corporate tax law:

Companies all around the nation were subject to a 9% corporation tax rate starting on June 1, 2023, the start of the fiscal year.

The bill states that only firms that make more than Dh375,000 a year would have to pay the tax, which is a benefit for small and medium-sized enterprises.

The tax will only be applied to actual profits; it will not be applied to the business's overall revenue.

 

Civil marriage:

On February 1, 2023, a new Federal Personal Status Law went into effect. This law governs the marriage conditions and procedures for all foreign nationals who are not Muslims.

The legislation has made the processes for child custody, divorce, inheritance, testaments (wills), and paternity evidence clearer.

 

Surrogacy:

This year, the United Arab Emirates permitted non-Muslim couples to use surrogacy to conceive children.

Numerous changes to this rule have made it possible for unmarried, non-Muslim couples to have IVF and other forms of fertilisation and implantation.