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temporary exemptions for eligible employees. 2. Employment contract The employer must now prepare the employment contract in writing in Arabic in four copies, with one copy retained by the employer, one by the employee, one by the competent social insurance office, and one by the relevant administrative authority. If the worker is a non- national and does not speak Arabic, the employment contract may be prepared in both Arabic and the employee’s language. 3. Limited-term contract termination If an employer terminates a limited-term contract, the New Labour Law entitles the latter to one month’s salary for each year of service. 4. Notice period update The notice period for resignations has now been increased to three months, rather than two months under the previous law, allowing for improved planning

The requirement to retain employee files has been extended to five years after the employee’s termination date.

2. Resignation process Employers are required to respond to employee resignations within 10 days, after which the competent administrative authority must formally approve them. The requirement to retain employee files has been extended to five years after the employee’s termination date. What does this mean for businesses? Employers can now legally hire workers who previously did not fit into available legal definitions for working arrangements. This could reduce reliance on contractors. 3. Retention requirement

and transition for both employees and employers. What does this mean for businesses? Businesses must review the New Labour Law and ensure compliance. This will include translation of contracts into Arabic, statutory increments, and new termination regulations, among others. Administration & Record-Keeping 1. New Working Arrangements The New Labour Law broadens the definition of employment relationships to include new working arrangements such as remote work, part-time work, flexible working arrangements, and job sharing.

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GLOBAL PAYROLL MAGAZINE ISSUE 20

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