New Laws for the CEO their Appointment and Perks
NEW LAWS FOR THE CEO, THEIR APPOINTMENT AND PERKS
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has recently passed a new law, Law no. 8 of 2021, related to the appointment of the Chief Executive Officers in Dubai and the benefits attached with it.
The law is restricted to the Chief Executive officer of all the departments that are inclusive under the Dubai Government’s Human Resource Management Law No. 8 of 2018. This new law will come into effect from the date of its publication in the Official Gazette.
According to the law, a resolution has to be passed by the chairman of the Executive Council of Dubai in order to appoint a CEO. In addition to this, the law also enumerates about the performance indicator, benefits of economic nature, the procedure for application of their leaves as well as a procedure for their appointment and secondment.
Further, with the introduction of this law, the major amendment that can be seen is that the CEO are now free from any kind of civil liability that might arise due to any action or negligence on their part with subject to their duties. There is an exception to the same, it looks like the CEO cannot be saved from such civil liability arising out of their actions or negligence when such act or negligence have an attached element of mens-rea on their part or if it is the result of a grave fault.
The introduction of the new law resulted in the replacement of the already existing, law no. 2 of 2015 and decision no. 1 of 2015 which were specifically on the subject of Dubai Government’s Human Resources Management for Chief Executive Officers and to the salaries and incentives of CEOs in Dubai Government respectively. It also provides that in case of contradiction between this law and any other legislation, this law will be upheld. The Chairman of the Executive council of Dubai is also responsible for the issuance of any resolution, if needed in case of the implementation of this law.