Dubai's real estate regulatory agency (RERA)eyes new laws on property valuations

Dubai's real estate watchdog is looking to bring in new legislation to regulate how house valuations are conducted, following the slump in prices which saw well over $100bn wiped off the emirate's property market assets.

Dubai's real estate regulatory agency (RERA) is planning to publish new guidelines for the industry by mid 2010 in a bid to create a more professional real estate valuation system, a senior official has said.

Mohammed Khodr Al-Dah, head of RERA's Land Department Real Estate Appraisal Centre (Taqyeem), said: "Having recognised the increasing importance of accurate evaluation of real estate assets, RERA is currently working with the Dubai Land Department and other interested parties to draft appropriate legal guidelines to regulate how valuations are conducted."

His comments, published in the latest MENA House View report by Jones Lang Lasalle, come as property prices in the emirate have seen declines of more than 50 percent from 2008 peaks.

In the report, Jones Lang Lasalle said that the introduction of more professional valuation standards was "an essential precondition for rebuilding the trust and confidence required for the recovery of real estate markets across MENA".

"Accurate and regular valuations comprise an integral part of the sound investment and risk mitigation strategies that investors need to adopt as the real estate market faces continued uncertainties and only selected stability in 2010," the report added.

Jones Lang Lasalle said that while valuations were not the sole answer to reversing a trend of falling transaction volumes, they could "provide a catalyst for the improvement in certainty and transparency required for the markets to recover".

Transit visa procedure to exit airports in Abu Dhabi, Dubai, Sharjah, Ras Al Khaimah

Airline transit passengers travelling with a stopover at Dubai Airport (or other UAE airport) who do not leave the terminal building not needed a UAE visa since they are not entering the UAE. Citizens of UAE free arrival visa countries do not need to pre-arrange any visa whether they are in transit or travelling to Dubai as a destination.

Any other passenger who does want to exit the airport will need a UAE entry permit. By exit, we mean anyone who wants to go through passport control. A 96 hour transit visa is available to visitors to the UAE. Remember also that different emirates in the UAE might have different ways of implementing immigration rules. You can obtain a 96 hour transit visa in one of the following ways:

Pre-apply through the airline, travel agent, or UAE hotel that you are booked with. None of them are likely to arrange a transit visa for you unless you are a customer.

Obtain one on arrival in Dubai at the Marhaba services counter in Terminal 1, or the Emirates Hotels and Visas for Dubai desk in Terminal 3. This is not guaranteed, as the granting of the visa is subject to Dubai immigration department approval. You will need to buy at least one night in a Dubai hotel from Marhaba or Emirates to be issued a transit visa.

Citizens of the following countries are not eligible for the 96 hours visa on arrival: Somalia, Afghanistan, Iraq, Niger, and Yemen.

The UAE's new companies law, expected to come out in 2010

The UAE's new companies law, which is expected to come out in 2010, will relax foreign ownership restrictions but will stop short of allowing 100 percent ownership, an Abu Dhabi government official said on Tuesday.

Mohammed Omar Abdulla, undersecretary of Abu Dhabi's department of economic development, made the remarks at a panel discussion.

"The new companies law in the UAE will make a relaxation in foreign ownership," he said. "It will not be up to 100 percent, it will be more than 49 percent."

Abdullah added that Abu Dhabi plans to set up a dedicated investment agency to attract foreign investment.

"In line with our five-year strategic plan, the department is working towards setting up a dedicated investment agency to serve the needs of international investors," said Abdullah .

The new agency will begin operations by the end of 2010 and will identify areas of opportunities to attract foreign investments, he added.

"International investors have a crucial role to play bringing in expertise, technology and best global practices," he told the conference.

Abdullah also said the Ministry of Economy was preparing the final draft of a new UAE companies law which will come out this year. The law will relax foreign ownership rules but stops short of allowing 100 percent ownership, he said. (Reuters)

The UAE Ministry of Labor has reduced the deposit expatriates pay to bring in domestic help to AED2,000

The fee for expatriates to sponsor domestic workers in Dubai has been reduced to from AED5,000 to AED2,000 - matching the deposit Emiratis pay for sponsoring domestic help, Gulf News reported.

According to a senior official from the Ministry of Interior, expatriates used to pay a AED5,000 deposit plus an additional AED5,000 to cover medical and visa costs.

“The deposit will now be refunded only when the domestic helper visa is cancelled and when she leaves the country,” Major General Mohammad Ahmad Al Merri, Director General of the Dubai Department for Residency and Foreigners Affairs told Gulf News.

These government incentives could be an attempt to maintain the number of domestic workers in the country, amid the financial crisis.

At the same time, the changes include an amendment that would see expatriates being refunded only when domestic workers were issued their residency visa, which is valid for one year only.

This could be problematic for sponsors since it is not uncommon for workers to run away. Both Emirati and expatriate sponsors stand to lose a lot of money if their domestic workers run away.Housemaids abscond for a variety of reasons; the most-often cited being abuse and mistreatment.

Interestingly, domestic workers in the emirates are not covered under the provisions of the labor law like other workers; their problems are considered as either immigration or police matters. And when there’s a conflict between a housekeeper and his or her employer, most workers are convinced the law is on the sponsors’ side.

It is unsurprising, then, that most domestic workers choose to runaway, in spite of losing their employment rights as a result of absconding.

It seems to Kipp the system needs more than mere fee adjustments

Visa and Residency procedures for the employees in Ajman University

The issue an employment visa to the employees working in the University, the following is required:

Notifying the Department of Human Resources to issue a work visa for the appointed employee in the university, specifying the job, basic and total salary,

A clear copy of the passport with a validity of not less than 6 months,

5 recent colored photos,

In the case of professions requiring university qualifications, employees must supply a copy of the degrees certified by the UAE Ministry of Foreign Affairs after translating them into Arabic,

An employment visa cannot be issued to Palestinians holding Egyptian documents,

135 AED fee for employment visa (to be issued in two weeks)

To transfer the sponsorship of an employee at the University from another party, the following procedures are required:

First – the sponsorship of any staff member cannot be transferred to the university from a non governmental working party to the university

Second - in the case transfer of sponsorship from the government to the university, the following procedures are required:

Notifying the Department of Human Resources to issue an employment visa for the appointed employee in the University, specifying the job, basic and total salary,

A no Objection letter from the former sponsor,

The original passport of a validity of not less than 6 months,

A copy of the labor ID of the new sponsor "credit signature" of the Department of Naturalization and Residency,

6 recent colored photos.

For the issuance of an employment residency for the employees of the University by virtue of a visa or sponsorship transfer by the university sponsorship, the following procedures are required:

Presence of staff members at the Public Relations Department directly upon arriving to the State,

The original passport and a copy of a validity of not less than 6 months,

The original employment visa, specifying the date of entry or the form of sponsorship transfer after approval,

The results of a medical examination issued by the Department of Preventive Medicine at the Ministry of Health,

The results of fingerprinting delivered by the Police General Department of Ajman,

2 recent colored photos,

350 AED fee for residency issuance (this procedure takes 10 days and is valid for three years).

To renew the residency of staff members of the University, the following is required:

Presence of the staff member at the Public Relations Department before 1 month before the end of his/her stay,

The original passport and a copy of which the validity should not be less than 6 months,

Notification from the Department of Human Resources to approve the renewal of residency of the staff member,

The results of a medical examination delivered by the Department of Preventive Medicine at the Ministry of Health,

The results of fingerprinting issued by the Police General Department of Ajman,

350 AED fee for residency issuance(this procedure takes 10 days an is valid for three years)

To cancel the residency of a staff member from the university sponsorship, the following is required:

The original valid passport and residency

A no reliabilities letter issued by the university administration,

Cancellation of residency takes a period of two working days,

The staff member whose residency is cancelled is given 30 days to leave the State if, and only if, the residency validity at the time of cancellation is effective,

In case the residency of the staff member terminates at the time of cancellation, he/she is to pay a fine resulting from the delay, gets a leave permit after paying a 100 AED fee, and leave the State on the same day of cancellation.

UAE moves to improve process for tourist visa -The Interior Ministry Media statement

Tourists or visitors who require a UAE-based sponsor to enter the country might be looking at an easier visa process in the future.

The Higher Permanent Committee for Finance and Assets of the Interior Ministry has recommended the UAE visa procurement process be outsourced to specialised companies in countries from which tourists or visitors seek to come.

The committee has proposed external offices run by firms specialising in visas be set up under the approval and supervision of UAE embassies, according to an Interior Ministry Security Media statement.

The proposal is a follow-up of a July 2008 decision announced by Lieutenant-General Shaikh Saif bin Zayed Al Nahyan, then Minister of Interior, amending certain provisions of the law of entry and residence of foreigners.

Under the decision, the Department of Naturalisation and Residency and the embassies and consulates of the UAE will have the authority to issue visas to foreigners for visiting relatives or friends who have legitimate resident visas here.

Apart from the GCC countries, whose residents do not require a visa, there are 33 countries whose residents are granted tourist or visitor visa on arrival — among them countries of Western Europe, the US, Canada, Australia, New Zealand, Japan, Singapore, Malaysia and Hong Kong.

For other countries, a visit requires a visa in advance through a sponsor in the UAE. The sponsor could be an authorised travel agent, the hotel at which a booking is made, a company or department with which the visitor has business, or a UAE resident who qualifies.

The committee — chaired by Major-General Khalil Dawood Badran, Director-General, Finance and Services, Abu Dhabi Police — is of the opinion the step will not impose additional burden on the national treasury.

It also emerges from a study conducted by financial controller Khalil Mohmaad Saleh, which finds other countries using the method to good effect, so long as rules and regulations are followed.

As per the proposal, these specialised companies shall undertake to conduct all visa formalities, including medical tests, retinal scan and processing entry visas, subject to the approval and supervision of the UAE embassy concerned.

UAE residents are happy with the proposal. “I wanted to invite my 10 year old nephew to Abu Dhabi,” Romanian national Daniela Deaconu said. “The Immigration office here gave a list of documents that included proof of relationship.” She said such matters could be better verified in her home country.

“It will be easy and helpful,” Dubai-based Pakistani Kamran Syed said. “The sponsors will not have to bother about documentation and processing.”

Visa and residency procedures for the students enrolling in the Universitys in Ajman

To issue a residency visa for students enrolled in the University, they are required to present the following documents:

A clear copy of the passport sealed by the Deanship of Admission and Registration. The Passport validity must not be less than 6 months,

A recent colored photo,

Visa issuance fees of 135 AED(in normal cases),

Residency visa cannot not be issued for Palestinian students holding Egyptian documents.

To issue a residency visa for students upon entering the State by means of a University sponsored visa, they must present themselves at the Direction of Public Relations directly after arriving to the State; and are required to submit the following documents:

The original passport of less than 6 months validity,

The original residency visa specifying the date of entry,

The results of a medical examination issued by the Department of Preventive Medicine at the Ministry of Health,

The results of fingerprinting issued by the Police General Department in Ajman

2 recent colored photos,

Residency fees of 150 AED(this procedures takes 10 working days and is valid for one year only),

A letter of no reliabilities delivered by the Department of Finance at the University, for receiving the passport.

To issue a residency visa for students by transferring of sponsorship from family to the University, they are required to present the following:

The original passport of a validity not less than 6 months,

Application of transfer of sponsorship at the Department of Naturalization and Residency, signed and sealed by the former sponsor,

A notification to concerned parties issued by the Deanship of Admission and Registration at the University, addressed to the Naturalization and Residency Department in Ajman, to prove that the student will continue their studies,

The results of a medical examination issued by the Department of Preventive Medicine at the Ministry of Health,

The results of fingerprinting delivered by the Police General Department of Ajman,

2 recent colored photos,

Residency issuance fees of 150 AED(the procedure takes a 10-day work, and is valid for one year only),

A letter of no reliabilities delivered by the Department of Finance at the University, for receiving the passport

To renew students' university sponsored residency, students are required to supply the following:

The original passport of a validity not less than 6 months

A notification to concerned parties issued by the Deanship of Admission and Registration at the university, addressed to the Naturalization and Residency Department in Ajman, to show that the student will continue their studies,

The results of a medical examination issued by the Department of Preventive Medicine at the Ministry of Health,

The results of fingerprinting issued by the Police General Department in Ajman,

2 recent colored photos,

Residency issuance fees of 150 AED,(this procedure takes a 10-day work, and is valid for one year only),

A letter of no reliabilities delivered by the Department of Finance at the University, for receiving the passport.

To issue a residency visa for the students by the transfer of sponsorship from their family to the University, they are required to present the following:

The original passport of a validity not less than 6 months,

Application of transfer of sponsorship at the Department of Naturalization and Residency, signed and sealed by the former sponsor,

A notification to the concerned parties issued by the Deanship of Admission and Registration at the university, addressed to the Naturalization and Residency Department in Ajman, to show that students will continue their studies,

The results of a medical examination issued by the Department of Preventive Medicine at the Ministry of Health,

The results of fingerprinting delivered by the Police General Department of Ajman,

2 recent colored photos,

Residency issuance fees of 150 AED,(this procedure takes a 10-day work, and is valid for one year only),

A letter of no reliabilities delivered by the Department of Finance at the University, for receiving the passport.

To cancel the students university sponsored residency, they are required to furnish the following:

The original passport,

A letter of no reliabilities issued by the Finance Management and Training Center at the University,

A 35 AED fee for printing the application form of cancellation (the cancellation period takes at least two working days),

A student whose residency is cancelled is given 30 days to leave the State if, and only if, the residency is valid at the time of cancellation,

In the case of the expiry of a student's residency at the time of cancellation, the student is to pay a fine resulting from the delay, submit a leave declaration after paying a tax of 100 AED, and leave the State on the same day of cancellation,

To transfer the students' sponsorship from the university to their working party, they are required to supply the following:

First - in the case of the transfer of sponsorship to a government working party:

The original passport of a validity of less than 6 months,

A letter of no reliabilities issued by the Finance Management at the University,

An application of transfer of sponsorship at the Department of Naturalization and Residency, signed and sealed by the new sponsor and the University,

A copy of the labor ID of the new sponsor "credit signature" of the Department of Naturalization and Residency; and payment of 35 AED for printing the cancellation form.

Second- in the case of sponsorship transfer to a non-governmental working party, the following applies:

In accordance with the laws in effect in the State, students shall not transfer their sponsorship to a private working party, except in case of cancellation of his/her residency from the sponsoring of the University and the issuance of a new employment visa on the sponsorship of the new sponsor.

Sponsoring wife and children in Sharjah

Husband has to sponsor himself and a company cannot sponsor dependent.
Requirement
Marriage certificate/birth certificate for children
Education certificate
These documents are to be attested by the concerned Consulate
Thereafter obtain attestation from the UAE Ministry of Foreign Affairs Salary Certificate from the sponsor.
Purchase an immigration file and type all the necessary information in it.
Type all the necessary visa forms and attach
Passport copy of the person/s for whom the visa is being requested
2 Photographs each
All attested certificate copies
Salary certificate
Original and copy of the Passport of Husband
All necessary forms typed and signed by Husband
Visa should be ready within 10 days.
After entering the U.A.E. follow the steps of Visa Stamping
No medical test is required for children below 16 years of age
VISA Stamping
All should obtain medical card prior to stamping visa in the Passport.
Medical card can be obtained from the Ministry of Health office.
Passport copy, 3 photographs and Dhs. 300/- required.
Passport photocopy,
photocopy of the entry permit,
4 photographs are to be submitted to the Medical Authorities for the medical test.
For government department's medical tests will be normally done only in the afternoons from 4 to 6 hr.
The medical test is free for government employees.
The certificate will be ready after 3 days.
The following documents are to be submitted to the Immigration Authorities within 28 days after entering the UAE.
Original Passport
Original Entry Permit
Original medical certificate
7-Passport size photographs Dhs. 300/-(residence visa fee)
Duly filled in security form (only in Arabic)
Residence visa forms duly signed and sealed by the sponsor
Normally the Residence visa will be stamped in the Passport within 10 days valid for 3 years

Industrial and commercial properties in Dubai to be freehold

Decree allows UAE citizens to own industrial and commercial properties with full freehold legal status.UAE nationals will now be able to own industrial and commercial properties, granted by Dubai's government, with full freehold legal status and get title deeds registered through the Dubai Land Department.

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, in his capacity as Ruler of Dubai, on Monday issued a decree regulating ownership of industrial and commercial plots granted to UAE nationals.

The decree allows every citizen who has been granted an industrial or commercial plot to apply to the Land and Properties Department to obtain a title deed with freehold status for the plot by registering it under his name.

Ownership

The decree also allows ownership of industrial or commercial land which previously changed hands but was not registered with the department.The move comes in line with the procedures to activate property and commercial sectors which are vital to Dubai's economy.

As per the decree the UAE nationals will be able to freely own these properties and act on them legally. These lands were earlier restricted to some extent by government regulations.

The Dubai government had granted thousands of plots to UAE nationals for commercial use.Emirati owners will have to pay 30 per cent of the value of the property to the Land Department as an ownership transfer and registration fee.The 30 per cent value of the land will be determined by the department on the date of transfer of ownership.

Investor confidence

Analysts say the decree will help boost confidence among investors as it opens up industrial and commercial plots for investment.

"Clearly, this has the potential to significantly change the real estate sector in the emirate," Blair Hugkull, managing director of Jones Lang LaSalle Middle East, told Gulf News.

For some time, Dubai's property sector remained too focused on residential property. This decree could change that.

"The previous real estate laws have helped Dubai in attracting foreign capital. However, since the residential property market currently has enough supplies, the new decree will help investors shift focus to industrial and commercial properties — that will help job creation," he said.

Transfer of Visa from one company to another company

Transfer of visa is possible only to Government sector

Transfer form is available in typing center.
If the Labor department is involved type the labor department required form also.
Obtain the signature of the present sponsor on it.
Submit the original documents and Passport to the new sponsor for signature and seal.
Approach the present sponsor and get the visa cancelled with out the ban.
Follow the steps for Visa Stamping
All should obtain medical card prior to stamping visa in the Passport.
Medical card can be obtained from the Ministry of Health office.
Passport copy, 3 photographs and Dhs. 300/- required.
Passport photocopy,
photocopy of the entry permit,
4 photographs are to be submitted to the Medical Authorities for the medical test.
For government department's medical tests will be normally done only in the afternoons from 4 to 6 hr.
The medical test is free for government employees.
The certificate will be ready after 3 days.
The following documents are to be submitted to the Immigration Authorities within 28 days after entering the UAE.
Original Passport
Original Entry Permit
Original medical certificate
7-Passport size photographs Dhs. 300/-(residence visa fee)
Duly filled in security form (only in Arabic)
Residence visa forms duly signed and sealed by the sponsor
Normally the Residence visa will be stamped in the Passport within 10 days valid for 3 years

New property law extends protection for home buyers

A new decree by Dubai Executive Council will provide more protection to home buyers as well as increasing the Land Department's (DLD) role as mediator in property disputes.

Law firm Hadef & Partners, which has reviewed a copy of the decree, released a brief summary of the regulations awaiting formal publication in the Official Gazette.

According to the statement, a buyer can request the courts to cancel a contract if the developer "significantly changes" the agreed specifications, or refuses to deliver the unit without any "justifiable reason".

Home buyers can also seek legal action if developers do not bind payments to construction-based milestones approved by the DLD, or the unit is proved unstable due to “major structural defects”.

“The regulations whilst providing some much needed clarity over many issues also throws up some interesting characteristics such as reinforcing the wide degree of power and discretion the DLD holds in respect of projects,” Hadef & Partners said in a statement.

Under the regulations, which govern off-plan property sales in Dubai, the DLD is able to cancel a project if the developer does not begin construction without “justifiable cause” or because of “gross negligence”.

If the developer is “not serious” about the project or declares itself bankrupt the DLD can also cancel the project.

The regulations also prevent developers from selling off-plan units before taking possession, which includes actual control of the land.

“It is also still not clear how the DLD will approach situations where a purported termination of a purchaser is met with resistance and/or whether the DLD will remove an interest in the interim register without a court order where a legitimate dispute has arisen,” the statement said.

“Further clarity may also be needed where a bankruptcy event occurs as to how exactly the interim registered interests will be treated as far as priority is concerned in the bankruptcy situation.”

UAE eyes foreign ownership law by year-end - econ min

The UAE will review rules governing foreign ownership of companies in the next month and implement a new law by the end of this year, economy minister Sultan Bin Saeed Al Mansouri said on Tuesday.

"The law should be submitted to the cabinet within a month," he said on the sidelines of a conference. "Our expectation is that the law would come out by 2010."

Under current regulations, business owners from all nationalities except from within the six GCC states must have a local majority partner. Exceptions apply in free zones such as Jebel Ali Free Zone and Dubai Internet city, where 100 percent foreign ownershThe new regulations have been in the pipeline for several years and are aimed at increasing foreign investment as restrictions on full ownership were considered a key reason for holding back investment and stifling competition.

The UAE, the world's third-largest oil exporter, has been striving to diversify its economy away from a dependence on energy exports by pouring windfall oil revenues into real estate, financial services and infrastructure.

Mansouri said in September the law was in its final stages and would include a rule stipulating a minimum capital of 200-300 million dirham ($54-$82 million). The new law is in line with recommendations made by the World Trade Organisation (WTO).

Dubai, the commercial hub of the seven members of the United Arab Emirates, has long sought to position itself as an international tourism and financial centre, luring businesses to its free zones with promises of tax-free earnings.

The global financial crisis put the brakes on a six-year oil-fuelled economic boom in the Gulf Arab region with Dubai hit the hardest after its real estate sector crashed in 2009.

Meanwhile, Al Mansouri said that growth in the UAE economy will rebound in 2010 to 3.2 percent from 1.3 percent in 2009. Mansouri was speaking in Dubai at a tea industry event.

The ministry recently said it expected GDP growth of 2.5-3.0 percent in 2010. (Reuters)

Dubai Labour Law Article 122 -Employer may dismiss a worker without notice

An employer may dismiss a worker without notice, provided that the dismissal is in writing, based on valid grounds and handed to the worker, if and only if the worker:
1. assumes a false identity or nationality or submits forged certificates or documents
2. is engaged on probation and is dismissed during or at the end of the probationary period

3. Commits a fault resulting in substantial material loss to the employer, provided that the latter notifies the labour department of the incident within one week of his becoming aware of its occurrence
4. Disobeys instructions on the safety of work or workplace, provided that such instructions are in writing and posted at a conspicuous place.

5. defaults on his basic duties under the contract and fails to redress such default despite a written interrogation and a warning that he will be dismissed if such default is repeated
6. reveals any confidential information of his employer
7. Is found in a state of drunkenness or under the influence of a narcotic drug during working hours
8. Assaults the employer, the manager in charge or any of his workmates during working hours
9. Absents himself from work without a valid reason for more than 20 non-successive days in one single year, or for more than seven successive days.
 or
10. Starts a work stoppage, or instigates or participates in such acts.
Save for in the case cited in item (2) of this Law, the worker’s employment permit shall be cancelled and he shall be banned from working within the State for at least one year in implementation of Article 16 of this Law.

Find out Visa validity of your Dubai visit visa, resident visa online

You can find out your visa status ,validity and resident application status etc online using General Directorate of Residency and Foreigners Affairs - Dubai web site. Please click the web site url
https://www.ednrd.ae/portal/pls/portal/INIMM_DB.DBPK_VISAVALIDITY.Query_VisaValidity


 Please note that Extension for Tourist Visa can only be applied online IF there is NO overstaying sponsored person on the Establishment

Transit Visa - Dubai

Transit passengers stopping at Dubai International Airport for a minimum of 8 hours and meeting the certain conditions mentioned below are eligible for obtaining a 96-hour transit visa. These conditions are as follow:

Airlines sponsored only (prior arrangements maybe required)

Applications should have confirmed onward booking to the 3rd destination

For transit passengers or those holding special permits, or for visit or mission, the passport or the document must be valid for at least three months

Citizens of the following countries are not eligible for the 96 hours visa on arrival:

Somalia, Afghanistan, Iraq, Niger, and Yemen.

The transit visas for passengers arriving at Dubai International Airport can be arranged by Emirates Airline for its passengers or by Marhaba Services for those travelling on other airlines. Marhaba Services Tel: 00971 4 2162657; 2164629  email:  marhaba@emirates.co

Dubai Labour law- Workers' rights and limited contracts

Question ---- I worked at a company for more than three years on a contract for limited period. One month ago, I submitted my resignation after I received another job opportunity. But the employer did not allow me to join the new firm. He refused to give me my end-of-service gratuity. He then deducted 45 days’ salary for breaking the limited contract. He said the Labour Law does not entitle me to any end-of-service amount and that he may prevent me from transferring to another sponsor. Please clarify my right as per the law, and whether I am not entitled to any compensation, and whether I may not transfer to a new company. Note that I have been with the current employer for more than three years, and that in accordance with the Labour Law I am not required to obtain a no-objection certificate for transfer of sponsorship. Please advise. Many thanks.
Answer

I would like to clarify to the questioner that the Labour Law does not entitle a worker who was working under contract for limited period to claim end-of-service if the worker himself broke the contract. But the worker shall compensate the employer an amount equivalent to 45 days’ salary if the employer can prove the damages. The worker is, as per the Labour Law, entitled only to due pay, which the worker did not obtain. As for a transfer to a new sponsor, the employer might request the Ministry of Labour to impose a one-year ban on the questioner on grounds that the questioner broke the employment contract, which is for a limited period, and which caused damages to the employer. Therefore, I advise the questioner to seek to resolve this matter amicably with the employer so that he can transfer to a new sponsor.

Questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Bahar Advocates and Legal Consultants
Please note we are adding few frequently asked questions to avoid the confusion of the parties
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.