Labour Day in the UAE: Spotlight on workers' welfare, contribution
1 May 2025 01:10
KHALED AL KHAWALDEH (ABU DHABI)Although May 1 is not a statutory public holiday in the UAE, 'Labour Day' has become a fixture in the national calendar, used to recognise the nine-million-strong workforce whose combined effort powers everything from Burj Khalifa's lifts to the desalination plants that keep the taps running.Government agencies, employers and civil-society groups mark the occasion with site visits, award ceremonies and social-media campaigns to remind the public that 'people are the engine of the economy', as the Ministry of Human Resources and Emiratisation (MoHRE) puts it.'Celebrating workers on their international day is an ongoing commitment that reflects the UAE Government's humanitarian values,' Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, said ahead of the day last year.This year's commemorations carry a sharper policy edge than usual. MoHRE and partner ministries have framed 2025 as the year of 'sustainable labour practices', rolling out digital labour contracts that can be signed on a smartphone in under ten minutes, tightening rules on compulsory health insurance for blue-collar workers and expanding the National In-Country Value programme to create more private-sector roles for Emiratis.
Major Labour Achievements With daytime temperatures already nudging 40°C, MoHRE has stipulated an annual Midday Break - now 21 years old - that usually runs from June 1 to September 15, banning outdoor labour between 12:30 pm and 3 pm. According to MoHRE, the programme has close to a 100% compliance rate, backed by more than 6,000 shaded rest stations for delivery riders and other outdoor staff. Companies caught breaking the rule face fines of up to Dh50,000.
Thick Legal Safety Net Labour Day 2025 also finds the UAE with a near-universal unemployment-insurance system. Launched in January 2023, the Involuntary Loss of Employment (ILOE) scheme now covers more than seven million workers - citizens and expatriates alike - offering up to 60% of basic pay for three months after a job loss. Participation became compulsory in late 2024, and free-zone employees were folded in soon afterwards. Policymakers argue that the pool both protects families against sudden income loss and makes the Emirates more attractive to global talent.MoHRE has paired the scheme with stiffer penalties for wage theft and unlicensed recruitment. Under amendments that took effect in August 2024, repeat offenders risk fines of up to Dh1 million and temporary suspension of their commercial licences. Legal consultancies report a surge in demand for compliance audits as companies seek to avoid public naming and shaming, as well as financial loss.
Rewarding Best Practice To reinforce positive examples, the ministry last month opened nominations for the third Emirates Labour Market Award. Winners - announced in December - share a Dh50 million prize pot and, more importantly, the sort of reputational lift that turns up in tender scores and talent pipelines. New judging criteria will look at how firms use artificial intelligence to predict workplace risks and how they are adapting to climate extremes, signalling that labour policy and environmental policy are converging.
Looking Ahead The labour agenda for the next 12 months is already crowded.
MoHRE will pilot a cloud-based Labour Market Simulation Model to test the economic impact of any new regulation before it is issued. Meanwhile, a new digital wallet, launched on April 28, will allow salary transfers and end-of-service benefits to be paid and tracked in real time.
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