UAE Labour Law - Gratuity Calculation

As per Article (132) of the UAE Federal Labour Law, and in respect to the end-of-service gratuity we quote the following: A worker who has completed a period of one or more years of continuous service shall be entitled to severance pay on the termination of his employment. The days of absence from work without pay shall not be included in calculating the period of service. The severance pay shall be calculated as follows: 21 days' remuneration for each year of the first five years of service. Thirty days' remuneration for each additional year of service provided that the aggregate amount of severance pay shall not exceed two years' remuneration.

UAE work visas- the grace period for cancelled visa may be extended

Individuals whose work visas have been cancelled, following redundancy, may soon be able to stay in the UAE for a longer period of time to find work, according to a report in Emirates Business.At present, UAE labour and immigration laws require expats who have lost their jobs, to find work within one month - or leave.The newspaper quoted Hani Rashid Al Hamli, Dubai Economic Council (DEC) Secretary-General, who said Dubai, along with the federal government, is "working on" stretching the grace period for holders of cancelled visas. The length of the likely extension wasn’t given.

The report added that the new policy, which may be announced in the first half of this year, is expected to address the potential cases of job cuts due to the financial crisis. "This is one of the top and urgent issues that we are tackling at the Dubai branch and at the federal level - to have a longer (grace) period. They are working on that, I can assure you of that," Al Hamli told the newspaper. Al Hamli, when asked whether the new policy would take affect in the second half of the year, indicated it would be earlier than that, perhaps in one month or two months, although he couldn’t go into specifics due to the government having to upgrade the immigration laws, which will take a measure of time

Residency visa clarity to boost realty sector

Resolving issues linked to the residency status of expatriate property purchasers will provide a floor to the Dubai realty market, according to a new report."Measures such as a removal of the current link between employment and residency status, and a clarification of the law providing for residency for expatriate purchasers may be required to provide a floor to the market," Jones Lang LaSalle (JLL), a real estate advisory firm, said in a report titled "Dubai City Profile – A Review of the Dubai Property Market."The report expects activity in the residential sector to slow further in the first half of the year as nervous investor sentiment coupled with lower rental rates will encourage residents to lease rather than buy. As investors continue to adopt the "wait and see" approach, landlords are also becoming more flexible with payment terms, accepting cheques on a quarterly or even monthly basis. The government is taking various measures to try and alleviate the effect of the global financial crisis such as the rental cap has been replaced by a rent freeze. Rents can only be increased where they are significantly below the average as set out in Real Estate Regulatory Agency's recently launched index. According to JLL, the residential market is currently undergoing a price correction and rental yields have fallen from around nine per cent to six per cent over the past six months. Since the third quarter of 2008, asking prices for both villas and apartments have seen an average decrease of 10 per cent to 20 per cent, but prices of villas have declined by less than those of apartments due to their limited supply. "Given the absence of speculators and the inability of end users to raise finance, it is not surprising that transactional prices have declined even further over the past six months, with transaction prices typically 30 per cent to 50 per cent below asking prices." Rental rates registered an average increase of around 20 per cent for both villas and apartments in the third quarter, but decreased by four per cent to eight per cent in the fourth quarter. "We estimate that market-wide physical occupancy currently averages around 70 per cent for residential units that have been completed and handed over, although this figure is significantly lower in some projects."According to JLL, approximately 32,000 new residential units were completed in 2008, bringing the total residential stock across to around 253,000. The majority of completions were in projects such as Discovery Gardens, International City and the Marina Promenade.

The six-month labour ban in Dubai may be revised or scrapped

The six-month labour ban in Dubai may be revised or scrapped altogether, a senior official said. The move comes in the wake of thousands of expatriates losing their jobs in Dubai due to tough economic conditions.Abdul Razaq Qamber, training head at the Inspection Department at the Ministry of Labour (MoL), said the ministry is set to revise a ministerial decision imposing a six-month ban on expatriate workers, XPRESS reported.Employees working outside the free zones and who resign or lose their jobs are automatically slapped a six month ban, preventing them from moving from one company to another.Qambar was speaking during a discussion on workers’ wages held on Sunday at the Ministry of Labour in Dubai.