Study shows employers in UAE value communication skills over artificial intelligence

If you are an employee of a parent company in Dubai, the provisions of UAE labor legislation and its amendments apply. It is important to know what legal mistakes employees make when resigning regarding labor rights, notice periods, end-of-service benefits, and wage disputes.

According to Article 43 of Federal Decree-Law No. (33) of 2021 on the Regulation of Labor Relations (Labor Law), either the employee or the employer may terminate the employment contract for a valid reason. This must be accompanied by written notice of no less than 30 and no more than 90 days, according to the notice period stipulated in the contract.

Article 43(1) of the Labor Law states that either party can terminate the contract for any lawful reason, provided the other party is notified in writing and agrees to work during the agreed notice period, which is no less than thirty (30) days and no more than ninety (90) days.

Sometimes employees mistakenly believe that resignation is immediate, or that they can stop attending work without completing the entire notice period. The established notice period must be observed unless otherwise agreed.

Furthermore, Article 43(3) stipulates that the party failing to observe the notice period must pay compensation, called a notice premium, to the other party, even if the failure to comply with the deadline has not caused damage. This compensation equals the employee's salary for the entire notice period or the remaining part thereof. Consequently, an employee who does not complete the agreed notice period may be obliged to pay compensation equivalent to the salary for the unworked period. Similarly, an employer who fails to observe the stipulated notice period may be obliged to compensate the employee.

Employees are advised to submit their resignation in writing, keep proof of submission and acceptance, hand over employer property and receive a receipt, and not delete, copy, or destroy any employer data. They should also clearly record the effective date of termination and the last working day. Additionally, they must avoid abandoning their job without following the established procedures for terminating employment relations.

Article 51 of the Labor Law regulates end-of-service gratuity for eligible employees. According to Article 51(2) of the Labor Law, a full-time foreign employee who has worked for at least one year of continuous service is entitled to end-of-service gratuity upon termination of employment. The payment is calculated based on the basic salary as follows: a. For the first five years of service—a salary equivalent to twenty-one (21) days for each year. b. For each year beyond five years—a salary equivalent to thirty (30) days.

Article 51(6) of the Labor Law specifies that the total end-of-service gratuity for a foreign worker shall not exceed the salary for two years.

Article 53 of the Labor Law obliges the employer to pay the employee salary and other due payments within 14 days from the date of termination of the employment contract. The employer must pay the salary through the Wage Protection System, where applicable.

Article 22 of the Labor Law requires that wages be paid in accordance with agreed working conditions. Article 25 of the Labor Law establishes limitations on the circumstances and amounts under which deductions from employees' salaries can be made.

If an employee believes that the employer is illegally withholding wages, end-of-service gratuity, or other labor rights, or depriving them of legal rights, they must first raise this issue with the Ministry of Human Resources and Emiratisation (MoHRE). Article 54 of Federal Decree-Law No. (9) of 2024, amending certain provisions of Federal Decree-Law No. (33) of 2021, regulates the resolution of individual labor disputes. According to Article 54(2) of the Amended Labor Law, MoHRE may issue a decision if the claim amount does not exceed 50,000 AED, or if either party fails to comply with a friendly settlement previously issued by MoHRE.

Article 54(3) of the Amended Labor Law further specifies that the party disagreeing with such a decision may file a lawsuit in the competent Court of First Instance within 15 working days from the date of notification or announcement of the decision. If a friendly settlement cannot be reached in cases outside the jurisdiction of MoHRE decisions, the dispute is referred to the competent court in accordance with Article 54(4) of the Amended Labor Law.

Furthermore, Article 54(9) of the Amended Labor Law states that a claim will not be considered regarding any rights arising under the provisions of this Decree-Law after two years from the date of termination of employment. An employee can seek clarification or assistance from MoHRE if they have concerns about labor rights or the employer's compliance with the Labor Law. Both the employee and the employer can benefit from maintaining proper documentation and familiarizing themselves with applicable legal requirements and dispute resolution procedures, which can reduce the likelihood of disputes and facilitate their resolution.

Artificial intelligence (AI) offers employees new opportunities to accelerate work, but for many specialists in the United Arab Emirates (UAE), the saved time does not always lead to a reduction in workload.

Despite 76 percent of workers in the UAE expressing enthusiasm for the changes AI will bring, compared to 65 percent globally, and 72 percent noting more opportunities for innovation than a year ago, the pressure to complete a greater volume of tasks continues to rise.

According to the Korn Ferry UAE Workforce Report 2026, based on the opinions of 500 professionals in the country, 70 percent of employees report a significant increase in their workload over the past two years. These results highlight a growing dilemma in the workplace: as AI automates routine tasks and opens up opportunities for innovation, are employees benefiting from increased efficiency, or are they simply expected to do more?

Najiba Suleiman Abubaker, Senior Manager of HR and Culture at Hotpack, believes that companies must ensure that the implementation of AI does not automatically lead to an increase in employee responsibilities. She notes that AI can simplify work by handling repetitive and laborious tasks, allowing specialists to focus on problem-solving, making better decisions, and performing meaningful tasks. However, she emphasizes that saved time should not automatically mean additional duties, and organizations must find a balance between efficiency and staff well-being.

According to her, HR departments need to collaborate closely with business leaders to assess the quality of work, set realistic expectations, and analyze workloads, rather than focusing solely on final results. Furthermore, managers require training to fairly distribute tasks and evaluate performance amid changing job roles due to AI. Employees must also understand how to use this technology responsibly, especially when dealing with confidential data.

Abubaker concludes that regular feedback helps HR determine whether the technology is reducing pressure or, conversely, intensifying it. Ultimately, AI should improve the human work process itself, not just the volume of that work.

Aws Ismail, co-founder of Onyx AI Solutions, believes the problem often lies not in the technology itself, but in how companies utilize the saved time. He states plainly that many companies simply fill the freed-up time with additional work, which is a management issue, not an AI one. If a person saves two hours and is then given two new assignments, nothing improves.

Ismail advises organizations to use AI to eliminate tedious and repetitive duties so that employees can concentrate on tasks requiring human judgment and interaction. For example, at Onyx, an AI recruiter handles initial call screening, allowing recruiters to spend more time communicating with candidates and stakeholders. In his view, the goal should be to increase productivity, not just efficiency and output volume.

He also believes that performance evaluation methods must change. When employees are evaluated primarily on the quantity of work completed, AI can only increase the number of tasks expected of them. Instead, they should measure the value they bring, and he believes HR should lead this process. Teams need to be asked what part of their work causes fatigue, and that should be handed over to AI first.

Ismail asserts that businesses must decide for themselves how the saved time will be used—to improve work quality, develop new skills, or establish a more sustainable pace. He stresses that AI represents a huge opportunity to improve work, but only if companies allow their employees to feel this benefit and genuinely enjoy using the technology, rather than just focusing on pure profit.

Shabil Ummer, HR Director at V Group International, points out that AI has helped employees regain time, not increase their workload. He argues that this only happens when one principle is followed: we must use AI, not let AI use us. Across retail, wholesale, e-commerce, and support divisions, company employees use AI for document drafting, data analysis, and report preparation. Tasks such as handling first-level customer inquiries, which previously took hours, are now done in minutes.

Ummer notes that the freed-up time allows workers to focus on customers, teamwork, and business problems requiring human judgment. AI also helps managers distribute project responsibilities more fairly according to employee capabilities. He believes organizations need to rethink the concept of a productive workday as AI integrates into daily operations. He insists that companies must change daily expectations, but the metric must remain work quality, not its quantity. A good day is defined by the value created, not the number of tasks completed.

For HR departments, the task is to ensure that increased efficiency translates into tangible benefits for employees, not just a new set of goals. In Ummer's view, HR's role is to set boundaries so that the time saved by AI is directed towards improving work, training, and customer service, rather than simply completing more tasks.

A new study by the recruitment firm Hays showed that more than a third of organizations in the UAE and other Gulf countries have increased their use of contract or temporary workers compared to two years ago, as project-based hiring gains momentum.

According to two surveys conducted via LinkedIn, 38 percent of companies are using more contract personnel than before. In the first survey, which involved 1636 respondents, 26 percent indicated that usage remained about the same, 21 percent reported a decrease, and 16 percent stated that their organization does not use contract employees at all.

In the second survey, which gathered 1323 responses, employers were asked about the reasons for hiring contractors. The most frequent reason was managing demand based on projects, cited by about 43 percent of respondents. This was followed by the need for greater workforce flexibility (32 percent), while 15 percent pointed to risk reduction and compliance, and 10 percent reported hiring contractors to find the right specialist.

These results indicate that employers are primarily using contractors to execute projects rather than for risk management or regulatory compliance. Ryan Tagg, Senior Director at Hays Middle East, noted that temporary specialists offer a fast and flexible way to solve problems when a business requires additional expertise or project support.

He emphasized: 'What is particularly interesting is that project demand became the strongest factor in our recent survey. This suggests that organizations are thinking less about workforce size and more about its capabilities. They want access to expertise when they need it without necessarily increasing the permanent staff.'

This shift occurs against the backdrop of companies across the region continuing to implement growth plans, invest in technology, and adapt to changing skill requirements. Many projects require expertise only for a specific period, making contractor hiring attractive to both employers and specialists themselves.

Flexibility and blended workforces

Nearly a third of respondents named flexibility as the main reason for using contractors, reflecting the need to scale teams up or down depending on the project portfolio, market conditions, and business priorities. Tagg added that the line between permanent and temporary hiring is blurring. 'Organizations are now forming blended workforces that combine permanent staff with temporary specialists, allowing them to access skills more effectively while maintaining flexibility.'

As transformative projects continue in GCC countries, contract hiring is likely to play an important role in helping organizations obtain the necessary expertise to ensure growth while maintaining flexibility.