Employment Ban in UAE- Frequently asked Questions

1. I have worked with my employer under a fixed contract for a period of two years, but I didn’t completed the period of my labor contract…whereas my employer wants to cancel my labor card with a ban of work for one year in a pretext that I didn’t completed the contract period?

The worker shall be banned from work for one year from the cancellation date if he didn’t complete his fixed period contract…and has ceased working without legal reason…and he shall not have the right to work with other employer during such period.

2. I have worked with an employer with a contract of unlimited period and I didn’t worked for the notice period… shall the employer have the right to put the pan stamp on my passport? Article: 129:

The employer shall have the right to put the pan stamp if the worker didn’t work for the notice period after resignation…or if he worked for some days from the notice period and ceased working after that altogether without reason…however, the worker shall not have the right to work for another employer during that period.

3. Is there any exclusion with regard to the one year ban on the worker if the original employer agreed to cancel the said ban? Article: 130:

The worker may be excluded from the provisions of the two Articles No. 128 and 129 with regard to the ban before joining the other work and this shall be through the approval of Minister of labor based on the application of the original employer.

4. I am employed under a limited period contract for 3 years and I have asked my employer not to renew the same…then who shall pay the costs of the return ticket? Article: 131:

If the worker has completed his limited period contract and if he didn’t want to renew the same…the employer must be obliged to pay his return tickets. And if the worker has joint some other work, then his new employer should be obliged to pay his said return tickets.

5. If I worked under limited or unlimited period contract and submitted my resignation, shall I have the right to ask for return tickets?

If the worker has resigned or terminated his service contract, he should bear the costs of the return tickets.

6. I have completed my labor contract, whereas there is a stipulation in such labor contract showing that my employer should bear the costs of my family return tickets in addition to the baggage shipping costs, have I the right to bound him to the same?

If such stipulation is present in the labor contract, the worker shall have the right to claim for the said costs…

7. As for the return tickets, shall my employer have the right to return me to the capital of my home country or to the place he has already brought me from?  To the place he has already brought you from.41. My employer has cancelled my labor card, and I am now present at the labor camp, but he asked my to leave this accommodation, What is your opinion about this?

The employer shall have the right to ask the worker to leave the accommodation, if he has paid to the worker all his work dues.

8. If a labor compliant has been referred to the court…from when does the period of 30 days for vacation of the accommodation shall start to go into effect?

Article: 131: - The employer shall file a complaint to vacate the worker from the accommodation…, and the 30 days period shall start to be effective commencing from the date in which the employer has deposited the worker’s dues with the Ministry as a trust…, if the worker didn’t vacate the accommodation after this, the concerned authorities should take the necessary action.

Termination of Unlimited Employment Contract in UAE- Frequently asked questions

Termination of the employment contract by worker: article (117).

1. I am employed under a labor contract of unlimited period, and I want to leave my Present job. What should I do?

This labor should submit his written resignation letter…And should mention in it that he want to work for a period of one month only, and this one month period shall represent the notice period fixed in one month.

2. I have terminated the service of one labor employed with me under a labor contract of unlimited period; do I need to give him a notice of one month?

Yes… because, based on Article No. 117, if the employer is desirous to terminate the service of any of his employees, he should do so in writing and should give him a notice of one month as per the law…except in case of termination pursuant to Article No.120

3. I am employed under a labor contract of unlimited period…and I receive my salary on per diem basis…, how can I send a notice to my employer in case I have submitted my resignation? Article No. 117

The notice can be send by per diem labors as follow:

1- If the labor has worked for a period exceeding 6 months and less than one year, he should sent a notice of (one week) to his employer.

2- If the labor has worked for a period not less than one year, he should send a notice of (two weeks) to his employer.

3- If the labor has worked for a period not less than five year, he should send a notice of (one month) to his employer.

* Example (1): A labor with a labor contract of unlimited period, who worked with his employer for a period of 7 months for a salary of DHS. 25/day…If such worker needs to resign, he should give a notice of one week to his employer commencing from the date of his resignation letter

* Example (2): A labor with a labor contract of unlimited period, who worked with his employer for a period of one year for a salary of DHS. 30/day…If such worker needs to resign, he should give a notice of two weeks to his employer commencing from the date of his resignation letter

*Example (3): A labor with a labor contract of unlimited period, who worked with his employer for a period of five years for a salary of DHS. 50/day…If such worker needs to resign, he should give a notice of one month to his employer commencing from the date of his resignation letter *Example (4): A labor with a labor contract of unlimited period, who worked with his employer for a period of three years for a salary of DHS. 20/day…If such worker needs to resign, he should give a notice of two weeks to his employer commencing from the date of his resignation letter

4. If the employer or the worker refused to receive the termination or resignation letters, how can we proof the same?

- Both parties should resort to the Labor Relation Department…As for the worker, he should continue in performing his duties in case he has submitted a compliant.

5. I have submitted my resignation letter to my employer, knowing that I am working under unlimited labor contract, do the said one month notice to be calculated within the total service period? Article No. 118

- Yes, such period shall be calculated within the total service period provided that the worker has actually worked within the said period

6. I have worked during the notice period of one month after I have submitted my resignation letter… And after the notice period has expired, my employer asked for an extension of the notice period without any reason. Shall he have the right to do the same?

The employer may extent the notice period after the worker has completed his work in that period, but the same should be under the consent of both parties.

7. I have submitted my resignation letter to my employer, knowing that I am working under unlimited labor contract besides, we have already, me and my employer agreed to reduce the notice period, what shall be my legal position in such a case?

The one-month notice period may neither be reduced nor may the month period be relieved from even if the same has happened under the consent of both parities… but the respite period may be increased, (the month notice)

8. How can the month notice allowance be calculated if the worker has submitted his resignation letter or if the employer has terminated the service of the worker…and the worker has already done his duties during the said period?

- It shall be calculated based on the last salary received by the worker.

* Example: A labor with a labor contract of unlimited period, and who worked with his employer for a salary of DHS.2000… but at present time, he receives DHS. 3000 as the employer has increased his salary- In this case, the worker shall have the right to receive the one month notice salary based on the last salary he received from his employer which amounts to DHS. 3000

9. I have worked with my employer for a period of one year under a labor contract of unlimited period, yet I have submitted my resignation letter… and I have worked during the notice period of one month, but it was stipulated in my labor contract that if I submitted my resignation, I should work for 3 month as a notice period…Do I need to be bound to such condition?

- Yes, the labor should be bound to the one month notice period, (3 months), if his contract so requires.

10. In case the worker has submitted his resignation letter, but he suddenly ceased working before completing the one month prescribed notice period, what shall be the legal action in this case? Article No. 119

 If the worker didn’t work during the notice period or if he didn’t complete the prescribed period…he should, in this compensate the employer with an allowance called: (the notice allowance) and this shall be through the last salary received by him from his employer.

11. In case the employer has terminated the worker’s unlimited labor contract and didn’t ask the said worker to work during the notice period…, or if he has reduced the notice period, then What shall be the legal action towards such case?

- If the employer has terminated the service of his employee, he should, in case he is not desirous to avail the work of his employee during the notice period, pay to the worker the one month notice period’s salary based on the last salary received by the worker. And in case the employer has terminated the service of his employee after the later has worked for a limited period from such notice period, then the employer should compensate his said employee for the remaining period.

* Example: The employer has terminated the service of his employee, whereas such employee has worked for 20 days from the one month notice period, but the employer has asked him to cease working…In this case, the employer has to compensate the worker also for the remaining period which amounts to 10 days.

12. A worker was terminated by the employer after the former has worked for 11.5 months…whereas the employer has paid him the value of the one month notice period, do such worker deserves the end of service gratuity?

The worker shall not have the right to obtain the end of service gratuity as he didn’t work during the one month notice period.

13. If the worker has submitted his resignation letter and was ready to work during the one month notice period…and the employer has waived such period, do such worker deserves the allowance of the one month notice period?

 Yes, he shall have the right to claim for the allowance of the one month notice period.

14. In case the worker has submitted his resignation letter and took a leave… or resigned during such leave period…shall the said one month notice period become invalid?

 No, it shall not become be invalid and the worker should work for the one month notice period.

15. May the employer terminate the worker without notice? Article: (120)

 Yes it is possible in some cases including:

1- If the worker has impersonated a false personality or nationality or if he has presented forged documents or certificates.

2- If the worker is still in the probation period and was dismissed within or at the end of such period.

3- If the worker has committed a mistake out of which a great loss has resulted to the employer…provided that such employer has already reported this case to the Ministry of Labor within a period of 48H from being informed by the incident.

4- If the worker has violated the work safety instructions or the work place, provided that such instructions were in writing and displayed in a prominent place.

5- If the worker hasn’t performed his main obligations as per the labor contract…and continue in so doing in spite of a written investigation made with him for this purpose and of noticing him not to repeat this violation, otherwise he shall be liable for termination.

6- If the worker has been finally adjudged by a competent court for a crime damaging honor, general morals or for breach of trust.

7- If he had disclosed the company’s confidential information.

8- If he was found drunk or using drugs during the work hours.

9- If he had assault his employer, the manager in charge or any one of his colleagues during the work hours

10- If the worker is absent without presence of reasonable cause, for: - More than discontinuous 20 days during the year.- More than 7 continuous days.

Note: In all the above cases, the employer should prove the occurrence of the relevant incident.

* Example: I have worked with my employer…and he has accused me for the crime of breach of trust…an investigation in the matter was carried out and as a result I was finally adjudged for a fine and imprisonment… ACCORDINGLY, the employer terminated my service…so I am claiming for the amount of the notice period and the compensation such termination.- The worker shall not have the right to have the amount of the notice period based on Article: 120 of the labor law as such worker was dismissed as a result of breach of trust…so the employer shall have the right to terminate him without notice.

* Example: I have been absent from duty for more than 7 continuous days…when I am back to work, my employer dismissed me without any reason… I am claiming for the amount of the notice period.- The worker shall not have the right to have the amount of the notice period if he was absent without reason for 7 continuous days… but if he has any reason, such as an approved sick leave, his employer shall not have the right to dismiss him.

16. If the employer is having a right to dismiss the worker without notice…, shall such worker have the right to leave the work without a notice? Article: 121:

 The worker may have such right in the following two cases:

* If the employer has violated his obligations before the worker with respect to the terms provided for in the contract and the law.

* If an assault had happened against the worker from the employer or from his representative.

Note: The worker should prove the occurrence of both cases.

* Example: I am working with my employer… but he didn’t pay me the salary of 3 months…so I have left the work…but my employer is claiming for the notice period?

The employer shall not have the right to claim for the notice period as he has violated the law and the labor contract based on Article: 121

17. My employer has dismissed me without any reason after I have passed the probation period… do such dismissal considered arbitrary? Article: 122

 If the employer has dismissed the worker, after the probation period without any reason, or if the reason of such dismissal has no connection with the work or if it is due to a complaint to the concerned authorities against the employer or for a case filed against the employer…then such dismissal shall be considered arbitrary.

18. If the employer has arbitrary dismissed me without presence of any reason and I am damaged due to the same…how can such damage and arbitrary dismissal be determined?

Article: 123 The competent court is the party which adjudge the employer to pay the compensation for the worker…and it is the party which estimate the value of such compensation as per the work nature and size of damage incurred by the worker in addition to his period of service…provided that the compensation value shall not exceed the salary of 3 months calculated on the basis of last salary received by the worker.

19. The employer has terminated my service due to the fact that I am not fit from the health point of view, shall he have the right to do the same? Article: 124:

 He may not have the right to do the same for health reasons before the worker has utilized all his legally due leaves. However any agreement or condition contrary to this Article shall stand null and void.

20 Can I have the right to obtain an experience certificate after I have spent my work period with my employer? Article: 125:

The employer should give the worker, on the basis of the later request, and at the end of his contract period, a free experience certificate…such certificate should include:

A- Date of joining the work

B- His contract expiry Date.

C- Total service period

D- Type of work.

E- Last salary obtained in addition of other entitlements, if any.

* The employer should also give back to the worker all his certificates, tools and equipment, if any.

21. I have worked with my employer, but he have sold the establishment for some other person…how can I obtain my work dues? Article: 126:- Based on Article: 126, the service shall be continuing even if the establishment was sold to any other person…both new and old employers shall be jointly responsible for a period of 6 months…and after this period the new employer should bear the responsibility alone.

* Example: An establishment was sold by the original employer to some other person, but the original employer didn’t settle the labors dues…then 3 months were elapsed since it was sold to the new employer…in this case both the new and old employers shall be jointly obliged to pay the workers dues…and after 6 months the new employer shall bear such responsibility alone.

22. I have signed the labor contract…whereas mentioned in the said contract a term which stipulates that after the expiry of my service or during suspension of my work, I should not work with any other competing company for a period of two years?

 Article: 127:- If it was agreed in the labor contract as such…then the worker should be bound to the same…and should not work with any competing company all through the period mentioned in the contract… provided that:

1- The worker should be of 21 years of age when the said contract was concluded.

2- To fix the time…e.g.: Not to work with any competing company for a period of two years from the date of cancellation.

3- To fix the place…e.g.: Not to work with any competing company in UAE…or any particular Emirate.

4- Type of work… e.g.: In the same company’s field of work… or the same job.

* Important:The condition of non- competition was not stipulated in the labor contract approved by Ministry of Labor, but it was mentioned in the labor contract concluded abroad or in the internal labor contract concluded between the two parties or in the work offer, do this be valid?

Cancellation of the Limited Contract By Employer And Worker -in UAE

Termination of Employment Contract in UAE – Frequently asked Questions

First: cancellation of the limited contract by employer:

4. My contract is a limited contract and the employer dismissed me without a legal reason, am I entitled to compensation for the injustice dismissal? … Article (115) :

If the employer dismissed you and revoked the contract without the reasons provided in the article ( 120) , he shall compensate the worker by a pay of (3) months or the period remained from the contract , whichever is shorter … unless otherwise provided by the contract.

* Example: a worker with limited contract started from 10/1/ 2005 and expires on 9/1/ 2008 … and the employer dismissed him without a reason or justification in 3/2/2007 .. here, the worker is entitled for a compensation against the injustice dismissal , payment for ( 3) months.

* Example: a worker with a limited contract started from 10/ 1/ 2004 and expires on 9/ 1/ 2007 .. the employer dismissed him without a reason or justification in 3/12/ 2006 .. here, the employer shall compensate the worker for the injustice dismissal for the remaining period of the contract. Namely, he was dismissed in 3/12/2006 before his contract expires in 9/1/ 2007 .. so the remaining period as from date of dismissal to the date of expiry of the contract is = (37) days … and it is the period for which the worker is entitled for compensation by the employer .. ( this is the explanation for phrase of " the remaining period from the contract).

5. Is the compensation for injustice dismissal calculated on the basic salary or the total salary?

Compensation is calculated on the total salary received by the worker According to the article (115) in which it is mentioned the word (remuneration) … and the remuneration is provided for by the labor law, … article (1). (Remuneration):

" All payments made to the worker on a yearly, monthly, weekly, daily, hourly, piece work, or production or commission basis. Remuneration shall include raise of living and include as well any grant given to the worker as a reward for his honesty or efficiency if such amounts are provided for in the contract of employment or in the internal regulations of the establishment or have been granted by custom or common practice to such extent that the workers of the establishment regard them as part of their remuneration and not as donations”

Second: Revocation Of The Limited Contract Of Association

6. My contract is a limited contract and I submitted my resignation before my contract expires, shall I pay a compensation to the employer for revocation of the contract? … article (116):

Where the contract is broken by the worker before the limited time. Worker should by 45 day from his total salary or the residual period of the contract whichever is shorter

7. I worked with the employer for two years and my contract is limited by (3) years and I obtained a work opportunity at another place …. Is the employer entitled to deduct (45) from my dues for non- completion of the contract of employment?

According to What has been mentioned into these questions:

In all cases and according to the article (116): If the contract of the worker is with a limited period and he submitted his resignation before expiry of the contract without the reasons provided for in article (121)., the worker shall compensate the employer for What he has sustained from damage sue to revocation of the contract through compensating the employer by half of remuneration of the last three months or the remaining period from the contract , or whichever closer , unless otherwise provided for by the contract.

* Example: a worker with a limited period contract for (3) years .. he worker two years and ( 11) months … and he submitted his resignation , here, he shall compensate the employer by a half of remuneration of the last three months or the remaining period from the contract , or whichever closer from them , unless otherwise provided for in the contract.

8. My contract is a limited and it has not been expired yet , may I submit my resignation and serve for one month of notice ?

As for the limited contracts, there is no one month of notice … because the one month notice is for the unlimited contract -therefore , the worker shall compensate the employer by a half of remuneration of the last three months or the remaining period from the contract , or whichever closer from them , unless otherwise provided for in the contract.

* Example: a limited contract started from 4/3/2005 and expires on 3/ 3/ 2008 , and the worker submitted his resignation in 5/6/ 2006 - here, the worker shall compensate the employer by a half of remuneration of the last three months or the remaining period from the contract , or whichever closer from them , unless otherwise provided for in the contract.

9. I submitted my resignation before ( 6) months from expiry of my limited contract and the employer wants to deduct a remuneration of 45) days , is he entitled for so ?

As per the article (116) from the labor law … the employer is entitled to deduct from the total remuneration - due to your revocation of your contract of employment with no reason

10. a worker with limited contract which will be expired after one year, submitted his resignation due to his personal circumstances : ( family problems at his home country) or ( he obtained another job) shall he pay the compensation amount ?

Yes, the employer is entitled to demand the worker for the compensation amount, because these are personal matters

11. How the compensation is calculated, on the basic or total salary?

It is calculated on the last remuneration received by the worker.

Termination of Employment Contract in UAE – Frequently asked Questions

1. When the contract is terminated?

It is terminated in the following cases:

If both parties agree on its termination, provided that the worker's consent is given in writing, If the limited contract expires, unless tacitly or expressly extended. If the employer resigned the worker or the worker submitted his resignation in the unlimited contracts, provided that each of them shall notify the other according to the law.

2. Is the contract terminated by worker's or employer's death? - Article (114).

Employment contract shall not be terminated by employer's death, unless the subject of the contract is connected with his own person. But the contract is terminated by worker's death or his total disability, on a condition of providing an approved medical certificate for the same.

3. If the worker's disability is partial, is the employment contract terminated?

If the disability is partial, he can perform other works according to his health condition -an employer shall , according to a request from the worker , shall shift the worker to another position suitable to the worker .. and to pay him the salary given at such position.

* Example: a worker is injured.. His injury is partial as per a medical report.. The worker then requested from the employer to shift him from his current position (builder) to another one suitable with his health condition (guard) - there, the employer shall pay the worker a monthly salary of (guard ) , not a salary of his last position ( builder).

The Ministry of Labour take steps to prevent abuse of sponsorship system in UAE



Saqr Gobash Saeed Gobash, Minister of Labour-



Expats allowed to find jobs after contract ends
The Ministry of Labour will take steps to prevent abuse of the sponsorship system.In a statement to the Federal National Council yesterday, Saqr Gobash Saeed Gobash, Minister of Labour, defended the sponsorship system saying that it was legal and common in many countries, but under different names.

Admitting the existence of abuses of the system and illegal practices, Gobash pledged actions will be taken to stop these abuses and illegal practices.He was responding to a question raised by Yousuf Obaid Ali Al Nuaimi, a representative from Ras Al Khaimah, who called for free labour movement and cancellation of costly sponsorship system.Gobash said the labour ministry will soon issue a decision allowing workers, whose contracts ended, to join new jobs if the market is in real need of them.

Gobash said that the move approved by the Cabinet will address certain negative impacts of the sponsorship system for foreign workers.One day earlier, Al Nuaimi told Gulf News the sponsorship system for foreign workers must be scrapped within three to five years to stop misuse of the system and allow free movement of workers.

He added the existing labour sponsorship system, according to a study, costs the country about Dh50 billion a year to host more than four million foreign workers. The representative rejected the labour minister's statement, which he said fell short of answering many queries he raised.He demanded that the minister show up in person at a later session to address these issues.

The representative suggested that before abolishing the costly system, rules must be enforced to protect rights of workers and employers."Eventually, all foreign workers must be under the jurisdiction of one authority — the Ministry of Labour. Workers must be allowed to change jobs smoothly once a contract ends and no employer should be allowed to withhold workers' passports," Al Nuaimi said.

He added employers' rights must also be guaranteed, citing the right of every business to protect information it regarded as commercially sensitive.

According to an estimate, the average annual cost of hosting a worker is about Dh55,000.

Gobash, however, said the ministry will respect the contracts signed between workers and employers. ‘The ministry [of Labour] will not intervene between workers and employers during the period of these contracts, unless a party failed to abide by its obligations. After the job contract ends, each party to it will be free to determine the new relationship they wish to enter either with the same party or a third party. There will be no restrictions as long as no violation of the law is made."

Cost of workers in UAE

The minister also stressed commitment to guarantee any rights of the employers and restore the government's full control of the labour market.

The cost of a skilled worker is Dh144,000 and the cost of an unskilled worker is Dh33,000, according to Dr Mouawiya Al Awad, Director of the Institute for Social and Economic Research at Zayed University.The overall average annual administrative and recruitment costs per worker are estimated at Dh2,674. For skilled workers the cost is Dh3,404 while it is Dh2,296 for unskilled workers

Canadians entering UAE to apply for entry permits starting 2011 January 2

Abu Dhabi: Starting January 2, Canadians will have to obtain a pre-arranged visa to enter the UAE, official sources said yesterday, amid souring ties between the two countries.Visas will be required for tourism and business purposes but Canadians living in GCC countries can enter the UAE on their residence visa, an Interior Ministry official told Gulf News.The new requirement announced by the UAE's embassy in Ottawa comes amid an increasingly bitter spat centred on landing rights for UAE airlines.

The dispute has already cost Canada access to a military air base that is a crucial link in the supply line for its mission in Afghanistan.

Previously Canadians, like travellers from 34 countries including the United States and much of Europe, were able to obtain a visa on arrival to the UAE under a visa waiver system. More than 25,000 Canadians are living in the UAE, an official estimated.

The visa waiver policy will no longer apply to Canada because relations had dipped to a point where they were "neither healthy nor hopeful", the Associated Press quoted an official source in Abu Dhabi as saying. "The visa waivers are granted to countries with a special relationship ... built on economic and other areas of close and growing cooperation," the source said.

"The current status of relations with the government in Canada compared with other countries on the visa waiver programme is at a much lower level. ... It isn't fair to include it with countries with which we have a healthy and productive relationship."

Another official told Gulf News that the decision is in response to the Canadian government's insistence on visas for Emiratis wanting to travel to Canada. The UAE embassy in Ottawa was instructed to announce the decision to Canadian officials; he said.The official added that this decision has no negative impact on the bilateral relations between the two countries. The UAE has ratcheted up the pressure on Ottawa after failing to secure additional landing rights for Emirates and Etihad airlines.

UN Council setback

The UAE last month also moved to bar Canada from using the Mirage air base that was expected to play an important role in the drawdown of Canadian troops and equipment from Afghanistan.A UAE official told Gulf News earlier the UAE lobbied against Canada's bid for a non-permanent United Nations Security Council seat. Canada pulled out of the race after falling behind rivals in an early round of voting in what was seen as a significant setback for the G-7 economic power.— With additional inputs from Abdullah Rasheed, Abu Dhabi Editor and AP

Aviation dispute

•October 10: The UAE is disappointed that despite intensive negotiations over the last five years the UAE and Canada have been unable to arrive at an agreement on expanding the number of flights between the two countries.

•October 11: Canadians barred from military base, a crucial link in the supply line for its mission in Afghanistan.

•October 14: Official source announces UAE lobbied against Canada's bid to win a seat on the United Nations Security Council because of its anti-Arab policies.

•November 9: UAE cancels visa waiver policy for Canadians, in a tit for tat move.

Wages Protection System -WPS - In UAE

Wages Protection System (WPS) is an electronic salary transfer system that allows institutions to pay workers’ wages via banks, bureaux de change, and financial institutions approved and authorized to provide the service.

The system, developed by the Central Bank of the UAE, allows the Ministry of Labour to create a database that records wage payments in the private sector to guarantee the timely and full payment of agreed-upon wages.

The WPS covers all institutions registered with the Ministry across all sectors and industries and will benefit different categories of labour.

The WPS reflects the UAE's leading position in the region, and will increasingly project the country as a model worth emulating in the following areas:

• Reiterating commitment to protect workers’ wages;

• Providing innovative solutions that help employers safeguard their own interests and reduce the time and effort needed to pay workers' wages;

• Taking serious steps to improve job security in order to strengthen work relationships in the UAE and safeguard the rights of all parties concerned;

• Entrenching transparency and competitiveness;

• Ensuring that the UAE Ministry of Labour is regularly and constantly updated on wages data in the private sector in order to guarantee that employers fulfill their salary obligations;

• Taking protective and proactive measures to reduce labour disputes pertaining to wages.

WPS targets the following parties from the Ministry partners:

• Workers: each and every individual who works in the private sector in return for agreed-upon wages and who has a labour card issued by the Ministry;

• Employers: whoever owns a company or institution registered with the Ministry and hires one or more workers in return for agreed-upon wages;

• Banks: the financial institution which the employer has a bank account with,, that is used to transfer the wages amount through WPS to the appointed agent to distribute to the labours.

• Agent: any bank, bureau de change, or financial institution approved and authorized by the Central Bank of the UAE to offer wages payment services via WPS. The Central Bank of the UAE will issue a regularly updated list showing names of approved and authorized agents.

Joining WPS requires:

1. The company needs to be registered with the Ministry;

2. The company should have a bank account with one of the banks operating in the UAE;

3. The company should enter into contract with any bank, bureau de change or financial institution approved and authorized by the Central Bank of the UAE to provide the service. The two parties shall agree on any service fees and charges.

4. Workers’ wages will be transferred via WPS by the deadlines specified in the Ministerial Resolution No. 788 of 2009.

Deadlines for institutions to start transferring workers' wages via WPS

Number of workers* Period granted Deadline

100 and above  - 3 months (starting September 1) 30 November 2009

15 to 99 workers - 6 months (starting September 1) 28 February 2010

Less than 15 - 9 months (starting September 1) 31 May 2010

*The periods granted to comply with the new system and start transferring workers' wages via WPS will not apply to institutions which were already denied new work permits when the Ministerial Resolution 788 for 2009 was issued for failing to pay workers' wages on time, nor to institutions which failed to pay workers' wages for one month or more after the Ministerial Resolution was issued.

5. The institution will have to transfer workers' wages via WPS within two weeks of their due date, or on the dates specified in the work contract if wages are paid more frequently than monthly.

6. The employer will be responsible for all expenses incurred upon joining WPS, including bank fees, service provider charges, and all other costs. Employers are not allowed to share any costs with workers' by any means, including deducting from their wages, directly or indirectly.

The mechanism to apply for WPS is as below:

The WPS applying mechanism is as below:

• The company shall open an account with one of the banks operating in the country, in case it doesn’t have one upon joining the WPS system;

• The company shall enter into contract with a WPS agent that is approved and authorized by the Central Bank of the UAE to provide this service, be it a bank, bureau de change , or a financial institution;

• The employer shall issue instructions to its bank to transfer wages to workers. Instructions shall be accompanied by a detailed wages list and a copy of the list shall be sent to the agent.

• The WPS will send workers' details and wages as well as the salary transfer instructions electronically to the Central Bank of the UAE, who will then forward those details to the Ministry of Labour database in order to make sure that the details received correspond with those registered with the Ministry;

• The WPS will send the approved information to the appointed agent in order to start paying the wages.

Consequences of failing to join WPS

• Institutions failing to transfer workers' wages by the deadlines specified above will be denied the right to have new work permits. This ban will only be lifted in the month following the transfer of workers' wages in full.

 Institutions that delay wages’ payment more than one month of the due date will be denied the right to have new work permits, along with all institutions owned by the owner of the violating institution, and to refer all those responsible for the violation to the court, in accordance with Ministerial Resolution No. 788 of 2009.

Sponsering Your Parents - UAE visa Rules

sponsor your parents, and/or parents-in-law, for a residence visa in Dubai and the UAE. Note that a residence visa is not the same as a family UAE visit visa. The residence visa process involves 2 steps. First obtaining an entry permit, second step is to convert entry permit to a residence visa after parents arrive in the UAE. New UAE visa rules from July 2008 have the following requirements and restrictions for sponsoring parents.
Both mother and father must be sponsored, unless one is dead, or they are divorced.
You should be the only provider supporting them (if they live with other children in another country then you'll have a tough job proving that).
Minimum salary for sponsor is AED 6000 per month if in company provided accommodation, or AED 7000 month if paying for own accommodation.
Medical insurance for parents is required.
Your accommodation should be at least 2 bedrooms.
AED 5000 deposit for each parent requried.
Residence visa is limited to one year at a time (renewable).
Your sponsorship is only for a residence visa. Your parents are not allowed to work. But don't tell them that otherwise they'll never do the dishes.
Documents required for sponsoring parents residence visa
Your passport with residence visa.
Copy of your parents passport for entry permit, original passport for residence visa.
Photograph of each parent (one specified by immigration department but bring a spare).
Letter attested by your embassy to verify your relationship, and that you are the sole provider.
Salary certificate, or labour contract (salary needs to be specified).
Tenancy contract, attested by the Dubai Land Department in Dubai. If the number of bedrooms is not stated, then you'll need a letter from your landlord stating the number of bedrooms. This might not apply to professional employees on high salaries (unconfirmed).
Application form - get this at the typing center when you apply.
Cost of parents entry permit is AED 110 (add 100 dhs for urgent applications) and typing center fees - should be less than 50 dhs.
Cost of parents residence visa is AED 110 per year (add 100 dhs for urgent applications), Empost fees (10 dhs?), and typing center fee.
Procedure to sponsor parents for UAE residence visa
Visit the Naturalization and Residence Department of the emirate which issued you your residence visa e.g. Dubai NRD. If you live and/or work in a different emirate, you could try there - bring labour card and/or tenancy contract to prove it - but don't be surprised if you get shooed away.
Bring all documents to the DNRD and submit them. An Approval Committee will decide whether or not you will be allowed to sponsor your parents (takes about 2 weeks). If yes then go to the typing center with the approval letter and your documents to fill in the visa application. Pay your fees and they'll fill in the application form. Take the application form back to the DNRD (ask the typing center for directions). If you've paid urgent processing fees, you should be issued with an entry permit (entry visa) for your parents while you wait, otherwise it should be ready in a couple of days.
Send the entry permit or a copy to your parents. If you send the copy, you'll need to deposit the original at the airport a few hours before they arrive. After your parents arrive, take them, or send them, to a medical clinic to do the blood test and x-ray required of all UAE expat residents.
Bring the entry permits and original passports, the deposit receipt, another 3 photos, and all previous documentation (or whatever's left of it) back to the typing center of the immigration department to convert their entry permit to a residence visa. A second 5000 dhs deposit is not required. You need to do this within 60 days of their arrival (DNRD information) but that sounds generous. Allow 30 days maximum to avoid surprise overstaying fines.
Your parents passports should be sent back within a week or two with the new residence visa pasted in, sooner if you pay the urgent fees. If your parents arrive in the UAE on another entry permit of some sort - UAE tourist visa, visit visa on arrival, or sponsored visit visa, you might be able to transfer them to a residence visa but you'll still need all the other documentation. It is not necessary to depart and re-enter the UAE when changing entry permit to residence visa.
Renewal of parents residence visa
Visit the typing center at the immigration department with your passport, your parents passports, deposit receipt, and fees (same as application fees the first time). Get the form filled in, head over to the residency department, hand in all the documents and wait a week or two.

Sponsoring Parents in UAE - Ministry denies visa policy has changed

The Ministry of Interior has denied rumours that it has stopped issuing visas to the immediate relatives of expatriate residents. Major General Nasser Al Awadi Al Menhali, Director-General of the Naturalisation and Residency Department, told that visas are still being issued to immediate family members, and especially to parents.

He added that a husband has the right to sponsor his wife, parents and in-laws. Wives in turn have the right to sponsor their husbands, parents and in-laws. Parents have the right to sponsor their children if they are under the age of 21. The ministry takes into consideration humanitarian and social imperatives and sometimes issues visas to children above the age of 21 who want to visit their families or continue their education.

A local Arabic-language newspaper reported yesterday that the Naturalisation and Residency Department had stopped issuing visas to parents of residents, but continued to issue them to husbands, wives and children. The report prompted panicked expatriates to call newspapers and residency department offices.

Al Menhali said there had been no change in the UAE's naturalisation and residency laws. Applicants are required to deposit a guarantee of Dh5,000, in addition to the visa application fee

Labour Ministry issues fresh warning to dormant firms

The Ministry of Labour has warned again that it would not tolerate violations by dormant companies which fail to report the closure of any of their units, leading to loss of jobs by their workers, Alkhaleej newspaper reported .Companies violating existing rules would be fined Dh50,000 for each sacked worker while all establishments sponsored by the owner of the abusing firm would be blacklisted by the government, the paper said.

The Ministry issued the warning during an open meeting organised by the Ministry of Labour on Monday for employees and private sector representative.

Officials said the Ministry had received several applications from dormant or shut firms reporting their new status and asking for permission to transfer the visas of labourers of such firms to other establishments belonging to the same owner.

“In case employers or workers do not inform the Ministry that such an institution no longer exists and that they are not employed any more, then the Ministry will transfer their visas to other establishment belonging to the employers without prior request or approval by the owners,” the paper quoted Mohammed Jameel, Director of the Guidance Section at the Ministry, as saying.He said workers laid off as a result of a shut firm must inform the Ministry within three months of the date of closure.“Should they do so more than three months after the closure, then the Ministry will consider them as jobless and violators of the residence law…in this case, we will cancel their visas and give them a work ban for one year.”