UAE Leads World in Labour Dispute Resolution with 98% Success Rate
<p><strong>Abu Dhabi, September 27, 2025</strong> – The <strong>United Arab Emirates (UAE)</strong> has emerged as a <strong>global leader in labour dispute resolution</strong>, according to the <strong>2024 IMD World Competitiveness Yearbook</strong>. The UAE ranked <strong>first worldwide</strong> for the lowest rate of labour disputes, underscoring its commitment to protecting both workers and employers in a transparent, fair, and efficient manner.</p><p>The achievement was highlighted after the <strong>Ministry of Human Resources and Emiratization (MoHRE)</strong> announced that it had successfully resolved <strong>98% of labour complaints</strong> in the first half of 2024 without referring them to court. This milestone reflects a proactive approach to maintaining workplace harmony and strengthening the UAE’s labour market competitiveness.</p><h3>Over 175,000 Complaints Resolved Amicably</h3><p>Between January and June 2024, MoHRE received more than <strong>175,000 labour complaints</strong> from private-sector employees and domestic workers. Remarkably, nearly all were settled through <strong>amicable resolutions</strong>, avoiding lengthy litigation processes.</p><p>The Ministry attributed this success to:</p><p><strong>Simplified complaint procedures</strong> that make it easy for workers to raise grievances.</p><p><strong>Specialised legal researchers</strong> who mediate disputes with neutrality.</p><p><strong>Emphasis on transparency and fairness</strong> in handling claims.</p><p>These efforts ensure that disputes are resolved efficiently, saving both time and resources for employees and employers alike.</p><h3>New Jurisdiction Powers Boost Efficiency</h3><p>Since <strong>January 1, 2024</strong>, MoHRE has taken over jurisdiction for disputes in the <strong>private sector, domestic work, and recruitment agencies</strong>. The Ministry now has the authority to issue binding decisions in cases where:</p><p>The claim does not exceed <strong>Dh50,000</strong>, or</p><p>Either party fails to file a lawsuit in court within <strong>15 days</strong> of notification of MoHRE’s decision.</p><p>This shift has dramatically <strong>reduced litigation time</strong>, making it easier for workers to access their rights without unnecessary delays.</p><h3>Global Recognition for UAE’s Labour Market</h3><p>The IMD report not only recognised the UAE for its dispute resolution system but also highlighted its strong performance in other <strong>labour market competitiveness indicators</strong>.</p><p>MoHRE noted that the country averages only <strong>three complaints per 100 workers</strong>, showcasing the UAE’s position as one of the <strong>world’s most stable labour markets</strong>.</p><h3>Confidentiality and Legal Protections</h3><p>MoHRE reaffirmed that all labour disputes are handled with the <strong>utmost confidentiality</strong>. The Ministry’s framework is aligned with <strong>Federal Decree-Law No. 33 of 2021</strong> on the Regulation of Employment Relations and its executive regulations.</p><p>The complaint-handling process includes:</p><p><strong>Filing within 30 days</strong> of a contractual or legal breach.</p><p><strong>Resolution within 14 days</strong>—through settlement, final decision, or referral to court.</p><p><strong>Right of appeal</strong> to the Court of Appeal within 15 working days.</p><p>Where amicable agreements or small-claim disputes are settled, MoHRE’s decision is considered <strong>final and enforceable</strong>.</p><h3>Balanced Protection for Employers and Employees</h3><p>MoHRE emphasised that its mandate is not only to safeguard workers’ rights but also to protect employers. By ensuring balanced dispute resolution, the Ministry strengthens the UAE’s reputation as a <strong>global destination for living, working, and investing</strong>.</p><p>The Ministry also facilitates the cancellation of work permits when needed and allows complainants to withdraw their cases at any stage before a decision is finalized, ensuring flexibility for all parties.</p><h3>Reinforcing UAE’s Global Leadership</h3><p>The launch of the <strong>Tarabichi Center for Joint Care</strong> earlier this month and other major healthcare and labour initiatives have underscored the UAE’s vision of becoming a hub for excellence in all sectors, including labour governance.</p><p>By maintaining a fair and transparent system, MoHRE is not only <strong>reducing disputes</strong> but also building a stronger culture of <strong>trust, stability, and productivity</strong>.</p><h3>Conclusion</h3><p>With <strong>98% of labour disputes resolved amicably</strong> and global recognition through the <strong>IMD World Competitiveness Report</strong>, the UAE has solidified its status as a <strong>world leader in labour market stability</strong>.</p><p>Through swift procedures, impartial mediation, and enforceable decisions, MoHRE continues to set international benchmarks, ensuring the rights of both employers and employees are protected while reinforcing the UAE’s attractiveness as a destination for global talent and investment.</p>