Employment ban and ban lifting charges in UAE

The Ministry of Interior used to put an automatic six-month ban on expatriates if they cancelled their employment / residence visas or left their jobs. The decision to lift the immigration ban that came into effect on 21 st August 2005 has brought some relief to expatriate community. It would enable the people to return to UAE on a visit visa even if they got a labour ban. The main advantage of the new decision is that people can still come back and visit their friends and relatives. But expatriates who violated the country’s Immigration and Residence Laws would still face the entry ban.

Article 6 of the Cabinet Decree No. 18 of 2005 annulled Decree No. 30 of 2001 pertaining to the entry ban. The Cabinet also authorized the Ministry of Labour and Social Affairs to put together necessary regulations to implement the decision on the ban. Subsequently, iris scanning has also been stopped. Besides, the names of expatriates with cancelled visas will no longer be on the administrative lists nor will their passports be stamped with the ban. The ban to enter the UAE will only be applicable on expatriates who violate laws governing the entry and residence of foreigners. Such violators would face the entry ban administratively for a multitude of reasons and in line with existing laws and regulations.

Domestic help have been excluded ‘temporarily’ from the new decision and their case will undergo further scrutiny by the authorities. But, the Ministry of Labour and Social Affairs will not issue a new work permit to workers whose visas have been cancelled unless at least six months elapse after the cancellation date of the worker’s labour card. The decision came in Article No. 11 of a Ministerial Order Decision No. 826 issued on 11.9.2005 by the UAE Minister of Labour and Social Affairs. The six-month waiting period does not apply to government departments or free zones.

Applying for new work permit while banned

Khaleej Times reported 29 September 2010 that the Ministry of Labour (MOL) said that employers can start processing work permits for banned employees before the ban period is over to facilitate quicker issue of labour cards; it sounds a bit strange since our understanding was that the MOL automatically blocked any new applications until after the ban period had expired. Jassim Jamil, acting Director General, Work Relations Department at the MOL was quoted as saying "This system demonstrates the MoL’s commitment to grant the blacklisted worker the opportunity to search for another job. Likewise, the employer wishing to hire him can initiate a transaction for issuing a new work permit before the end of the ban duration to save time,”

1. Immigration Ban

An immigration ban means you cannot enter the UAE, whether as a visitor or for residency. Other bans can arise if you have been convicted of a criminal offence while in the UAE. Common offences that many expats get into trouble with are bad debts, bounced checks, drinking and driving, drunk in public, inappropriate relationships. Of course, more severe offences such as theft, violence, rape, murder etc will also result in an immigration ban but not so many expats indulge in these activities, and those that do are not usually so surprised to receive a ban.

An immigration ban can also arise if you have broken the rules related to immigration for example entering the country illegally, working without a work permit, absconding (leaving your job without informing your sponsor / employer), overstaying (this last one is not so likely to be a problem, just expensive when you get your overstaying fine).

Criminal offences usually result in a permanent ban and this is monitored via eye-scanning equipment at airports, so losing your passport and getting a new one won't get you back in to the country.

2. Employment Ban

An employment ban, labour ban, work permit ban are all different terms for the same thing i.e. you are not allowed to work in the UAE for a certain period of time.Note that this is an automatic ban on providing a work permit or labour card imposed by the Ministry of Labour (MOL).

Nothing is stamped in your passport but when a new employer hands in an application to the MOL, it will automatically be rejected if a ban is on your computer file. A 6 month labour ban does not affect permission to visit the UAE - you can still enter on a visit visa or tourist visa.

If you have a 1 year or permanent labor ban you might also be restricted from visiting the UAE - check with the immigration department first. A report in the Khaleej Times on 26 August 2010 offered some clarification, saying that those with a permanent work ban in the UAE could still enter on a visit visa - An expat worker who has a permanent ban from working in the country is eligible only for a visit visa, an official at the Ministry of Labour (MoL) said on weekly Open Day at the ministry in Abu Dhabi.

Ban lifting fee

There are some reports (in 2008-2009) that you may be able to pay a ban lifting fee of about 5000-6000 dhs. Other reports and comments indicate it is possible to lift a ban on payment of AED 500 per month of remaining contract duration if leaving before the end of a limited period contract. Official confirmation of a ban lifting fee not found so it could be variable depending on profession, nationality, company, mood of the official you're dealing with, wasta, which emirate. Although the MOL website does still have a document from 2007 outlining the fees and categories of qualifications that are exempt from a ban or can get a ban lifted. It seems to be related to previous ban information but might still apply. Don't count on it but if you have no other choice, it's worth trying.

No ban on sponsor transfer

It may be possible to avoid a ban, or lift a ban by paying a fee, if you transfer from one sponsor to another. This is different from cancelling your residence visa and work permit, then applying for a new visa and labour card. A transfer of your sponsorship will at least need a No Objection Certificate (NOC), possibly payment of a ban lifting fee, and might be restricted to certain occupations. Check with the labour department in the emirate you are working in.

1 year ban

A one year labour ban for Dubai, Abu Dhabi, and the rest of the UAE will usually be imposed under the following conditions

• expatriate workers leaving government jobs

• expatriate workers who break the terms of their labour contract and/or the labour law

• expats who lose a case with the UAE labour department against their employer, if they were on a temporary work permit because they had filed a complaint with the labour department (according to a Gulf News report 02 August 2009 and other follow-up media reports) possibly against workers who leave their job within one year of starting (at employer's request)?

6 month ban

A six month ban will be imposed on everyone automatically, unless they cop a one year ban, or fit into one of the exceptions below

No labour ban will be imposed on anyone in one of the following categories

• UAE citizens are not subject to any labour ban (or immigration ban for that matter)

• Expatriate workers moving to a government job will not receive a ban (don't confuse this with workers leaving a government job - they get a double whammy)

• Oil company employees

• Expat workers moving to another employer within the same free trade zone (not to a different free trade zone)

• Expats who have completed a fixed term contract and have given proper notice of not renewing it

• Expats who have completed 1 year of an unlimited contract AND get a No Objection Certificate (NOC) from the current employer. It may be a requirement that the new job has the same job title as the old job.

• Expats who are sponsored by their spouse for a residence visa (unless they breach the labour law in some way that brings down a ban).

• Expats who have worked for a company for more than 3 years on an unlimited contract? Unconfirmed. A Gulf News report 01 March 2009 stated that "The ban does not apply if the person has been working in the company for more than three years." Another Gulf News report ("Ask The Law" 12 February 2010) had a reply from Advocate Mohammad Ebrahim Al Shaiba of Al Bahar Advocates and Legal Consultants who said "... if his contract is for an unlimited period, he shall work with the employer for three years, then he may transfer to a new sponsor without the need to obtain a No Objection Certificate from the existing sponsor. This is the current applicable law in the Ministry of Labour..."

Where many expats get tripped up is when they work for more than a year but do not complete the full period of a fixed term contract. They can expect to get a ban even if the company provides them with an NOC.

Exceptions can be made but require a trip to the Ministry of Labour (MOL) to explain your situation and give them a good reason why the ban should not be imposed. A company going bankrupt, or the owner of the company doing a runner or dying are examples of what might prompt some leeway from the MOL. An employee getting into a fight with his or her boss, or not performing satisfactorily, is unlikely to be viewed with any sympathy, even if they claim their boss was being unfair.

If your boss really is being unfair or you have a legitimate complaint, your first step should be to file a complaint with the UAE Labour Department so that there is a documented record.

Other exemptions from employment ban

According to Article 63 of the "General Provision for the Entry Permits and Visas" legal document (as seen on DNRD website), "no new Entry Permit or Visa may be issued for employment except after the elapse of six months from the date of the last departure from the territories of the State", but the following categories of workers are exempted:

• Engineers

• Doctors, Pharmacists and Male Nurses

• Agricultural Guides

• Qualified Accountants and Auditors

• Administrative Employees holding university degrees

• Technicians operating on scientific, electronic instruments and laboratories

• Drivers licensed to drive heavy vehicles and buses, in case the transfer of sponsorship is to a similar party

• Workers in private oil companies when the transfer is between such companies

Unknown if this is current information (DNRD document is undated). Last checked 01 March 2009 but document appears to be more than a year old, so may have been superseded by changes to UAE visa rules in 2008.

Ban lifting fees in UAE

The UAE MOL website (as of September 2010) lists "Transfer of Sponsorship" fees information, with additional fees payable for workers who have not completed their contracts but wish to change jobs (of about AED 3,000-5,000). It's not clear if these fees are applicable only if the worker obtains a No Objection Certificate (NOC) from employer.

Fees are the same those that were implemented during 2006-2008 when workers were permitted to transfer to another employer. As usual in the UAE, nothing is clear. If you want to know about getting a ban, and whether or not you can pay a ban lifting fee, ask the UAE Ministry of Labour helpline. Then ask again the next day to see if you get the same answer.

Transfer of Sponsorship in UAE - Cabinet and Ministerial resolutions

COUNCIL OF MINISTERS’ RESOLUTION NO 30, FOR 2001, REGARDING TRANSFER OF SPONSORSHIP, CATEGORIES ALLOWED TO TRANSFER SPONSORSHIP, AND PERTINENT CONDITIONS

The Council of Ministers; After having reference to the Constitution; And to the Federal Law No 1, for 1972, on the functions of the Ministries and the powers of the Ministers, and the amending laws thereof;And to the Federal Law No 8 for 1980, on regulation of Labor relations, and the amending laws thereof; And to the Council of Ministers’ resolution No 17 for 1993, on converting visitor’s visa into employment visa;

And to the Council of Ministers’ resolution No 559/29 for 2001, on the transfer of sponsorship, the categories permitted to transfer their sponsorship, and the pertinent conditions; and based on the submission of the Minister of the Interior and the Minister of Labor and Social Affairs and the approval of the Council of Ministers;

RESOLVES AS FOLLOWS

ARTICLE ONE

First: Categories Permitted to Transfer Sponsorship:

1. Engineers.

2. Physicians, pharmacists, and nurses.

3. University and higher college teaching staff.

4. Legal, economic, financial and management experts and advisors holding post-graduate degrees.

5. Electronic information systems analyzers and programmers holding university degrees in these areas.

6. Specialists and technicians engaged in extraction and refining of oil and gas and related industries.

7. Sports coaches in the various sports and educational activities.

8. Specialists in marine and air navigation and in ship and plane pilotage.

9. Any other categories within the above mentioned rare specializations, to be mutually agreed between the Ministry of the Interior and the Ministry of Labor and Social Affairs.

Second: Conditions for Transfer of Sponsorship:

1. The laborer or employee must work with the new employer in the same occupation he was engaged in with the former employer.

2. The laborer or employee must have a valid residence permit affixed to his passport.

3. The laborer or employee must have worked for at least two years with his former employer.

4. The laborer or employee must obtain his sponsor’s consent to the transfer of his sponsorship after the lapse of two years.

5. If a UAE National or a GCC citizen cannot fill up the post registered as job seeker with the concerned authorities in the UAE.

Third: Notwithstanding the above conditions, transfer of sponsorship may be permitted in the following cases:

1. Transfer to another firm owned by the same firm owner(s).

2. Transfer from one branch to another in the same company or establishment, or from a com pany/establishment to another company/establishment owned by the same employer.

3. Transfer as a result of transfer of the company’s/establishment’s ownership to another company, establishment or individual.

Fourth: Without prejudice to the above provisions on transfer of sponsorship, the residence permit of those who can not meet the prescribed conditions for transfer of sponsorship shall be cancelled.Those shall not be issued new residence permit or entry visa except after the lapse of six months from the date of last departure from the UAE or after the lapse of the embargo period specified in the laws in force. The one-year embargo stamp shall continue to apply to household servants and related categories. The precondition of canceling the residence permit shall apply to the workers who have suit cases before the courts and do not meet the conditions of transfer of sponsorship.

Fifth: The Ministry of Labor and Social Affairs and the Ministry of the Interior, each in its respective area, and in coordination between them, shall issue an explanatory memorandum on the job categories for which transfer of sponsorship is permissible and the conditions applicable to transfer of sponsorship.

ARTICLE TWO

Any provisions contrary to this resolution shall be null and void.

ARTICLE THREE

The authorities concerned, each in its respective area, shall implement this resolution, which shall be published in the official Gazette and shall come into force on its date of issue. Issued in Abu Dhabi on the 3rd of Sh’aban 1422, corresponding to the 20th of October 2001.

Ministerial Resolution No. 123 for 2001,Amending Ministerial Resolution No 230 for 1997, on Transfer of Sponsorship

The Minister of Labor and Social Affairs; After having reference to Federal Law No. (1) For 1972, on the

functions of ministries and the responsibilities of ministers; And to the Federal Law No. (8) for 1980, on regulation of labor relations, and the amending laws thereof; And to the ministerial resolution No 230 for 1997 on rules of shifting of non-national labor from one employment to another and the procedures to be followed pending transfer of their sponsorship. And based on the submission of the Ministry’s Under-Secretary for the Labor Sector

Resolves as follows:

Article (1)It is a precondition for transfer of non-National labor from their present to another employer- pending ransfer of their sponsorship in the exceptional cases specified under clauses “C”, “D”, and “E” of Article 3 of the Ministerial Resolution No 230 for 1997- that the request for transfer of sponsorship be submitted within six months at most from the date on which the firm is closed down or declared bankrupt, liquidated or wound up by court ruling, or the employer dies and the firm is closed down as a result.

Article (2) This resolution shall take effect as of the date hereof and all concerned organizations shall implement it, each in its respective area.
MINISTERIAL DECISION NO. 565 FOR 2005, REGARDING THE RIGHTS OF WORKERS RENTED OUT TO OTHER COMPANIES
• After having reference to the Federal Law No.( 1) for 1972, on the functions of ministries and the responsibilities of ministers;
• And to the Federal Law No. (8) for 1980, on regulation of Labor relations, and the amending laws thereof;
Decides as follows:
Article 1 The working conditions offered to rented workers should be the same or better than those in the company renting out its workers.

Article 2 A rented worker’s term of service shall extend for a fixed period of time not exceeding 12 months.

Article 3A rented worker’s service with the new and original employers shall be considered uninterrupted term during which the worker will be entitled to his salary and other benefits as per the provisions of the Labor law.

Article 4 The application presented to the Ministry shall particularly indicate the starting date of renting out, type of work, location, duration and the salary in accordance with the forms specified by the competent undersecretary.

Article 5 Both the borrowing and original sponsors shall be responsible, together and separately for the workers’ rights according to the Labor law and the work contract.

Article 6 The service of a rented worker shall terminate upon the expiry of its period or one year after its commencement. Thereafter, his contract with the original employer shall remain valid without interruption.

Article 7 No commission, fees or any financial charges shall be imposed on a rented worker.

Article 8 In the event a conflict arises, the worker may place a complaint against the new and original employers, who shall be obliged to fulfill all ensuing rights entitled to the worker as per the provisions of the law and the work contract.

Article 9 It shall not be permissible to hire workers, allow their work with parties other than the original employer, or otherwise perform any act that contravenes the provisions of this decision.

Article 10 Without prejudice to any penalties provided in the law and the executive regulations, any firm that violates the provisions of this decision shall have to pay double official transaction fees for every application to the Ministry, and shall forfeit its eligibility for a license to bring in foreign workers to the country for at least six years from the date on which such double payment was made.

Article 11 The competent undersecretary shall issue decisions and measures in respect to the implementation of this decision in the best manner.
Article 12 This decision shall take effect as of the date of its issue and shall be published in the official gazette.
MINISTERIAL DECISION NO. 826 FOR 2005, REGARDING THE EXECUTIVE REGULATIONS
FOR LABOR SPONSORSHIP TRANSFER
The Minister of Labor and Social Affairs;
• After having reference to the Federal Law No.( 1) for 1972, on the functions of ministries and the responsibilities of ministers and the amending laws thereof;
• And to the Federal Law No. (6) for 1973, regarding expatriates’entry and residence and the amending laws thereof;
• And to the Cabinet Decision No. (3) for 1977 regarding the recruitment of expatriate workers;
• And to the Federal Law No. (8) for 1980, on regulation of Labor relations, and the amending laws thereof;
• And to the Cabinet Decision No. (18) for 2005 regarding sponsorship transfer and renting of sponsored workers and payable fees;
• And based on the submission presented by the undersecretary for Labor sector;  Decides as follows:
Article 1The transfer of workers’ sponsorship shall take place in compliance with conditions, rules and procedures stipulated in this decision.
Article 2 Expatriate workers can change their sponsorship under the following conditions:
1. The worker must have a valid residence visa stamped in his passport.
2. The worker must have valid Labor card.
3. It should be insured that the job for which the change of sponsorship is required cannot be filled by UAE nationals or GCC jobseekers registered with competent authorities
4. Workers shall have spent a specific period of time with their current sponsors. The period is calculated from the date the worker’s Labor card was issued and will be as follows for all categories:
a. One year for professionals with Masters and PhD degrees.They are allowed to transfer their sponsorship for unlimited number of times during their tenure in the UAE.
b. At least two years for workers with Bachelors degree or its equivalent. They are allowed to change their sponsorship twice during their stay in the country.
c. At least three years for other categories with lower qualifications. They are allowed to transfer their sponsorship only once during their tenure in the country.
d. The job to which the sponsorship transfer is required must comply with the qualifications and experience of the worker,as well as with the firm’s activity.
5. 5 The worker must get the consent of both the original and new sponsors.
Article 3The fees for sponsorship transfer shall be as follows: Type of Fee Value in Durham’s
             Category A Category B Category C
Approval of internal work permit for Masters and PhD holders
              1500             2500        3500
Approval of internal work permit for holders of Bachelors or equivalent
             3000              3500        4000
Approval of internal work permit for other Labor categories
            5000               5500        6000
Approval of internal work permit for workers above 60 years, including the issue of a one-year Labor card for all categories
            5000           5000             5000
Approval of internal work permit for workers moving within firms owned by the same sponsor
             500           500              500
Article 4 In the event of non-compliance with the period of service condition stipulated in Article (2) above, and upon the consent of the new sponsor, workers other than Masters and PhD holders can be exempted from this condition after spending at least one year in their job, provided they pay Dh 3,000 in addition to fees payable for sponsorship transfer.
Article 5 All Labor categories can be exempted from the condition of service period provided they pay Dh 3,000 in addition to fees payable for sponsorship transfer prescribed in Article (3) above , and without
spending one year period of service with their sponsors as stipulated in Article (4) above, under the following conditions:
1. if the company announces its bankruptcy, is closed down or liquidated as a result of a court ruling;
2. in the event the Ministry of Labor cancels the company’s licence (firm card);
3. if the ownership of a company has been transferred to another owner;
4. if a company has been merged or incorporated withinanother company;
5. if the company has been divided to heirs after its owner’s death or any other reason;
6. in case a stake of the company has been sold to another company; or,
7. If the company’s owner dies, leading to its closure.
Article 6 The Ministry may decide to transfer the sponsorship of all Labor categories without referring to the current sponsor or taking his consent,upon a request from the new sponsor, and without applying the condition of the service period or the minimum period of service provided inArticle (4), provided that fees payable for sponsorship transfer stated in Article (3) thereof, in addition to exemption fees are fully covered.
However, such decision should be specifically based on the following criteria:
1. If the current employer fails to pay salaries for three months or more according to reports presented by the Labor Inspection Department or Labor Relations Department of the ministry.
2. If ownership of a company has been transferred to another owner.
3. If the company is closed down administratively, by a court ruling or upon a report by the Labor Inspection Department
4. If it is proved by documents that the company’s owner has died,  leading to the closure of the company.
5. If workers file a complaint against their employers at the Ministry and their complaint is referred to the courts. In this case the courts may decide to grant workers permission to change sponsorship.
6. Any other cases approved by the Minister.

Article 7 According to the provisions of this decision و officials of Labor department are authorized to approve sponsorship transfer and exempt from the service period.

Article 8 Applications for sponsorship transfer shall be submitted in accordance with the following procedure:

1. The new sponsor or his representative must submit the transfer application to the local Labor office, along with required documents, whether through the normal post or the Ministry’s counter assigned for receiving transactions.
2. The required documents to be attached along with the sponsorship transfer transaction are as follows:
a. the application for sponsorship transfer according to the Ministry’s form;
b. a copy of the signature authorization form for each the current and new sponsor;
c. a copy of the worker’s passport and a copy of his Labor card; and
d. Copies of academic qualifications duly certified by competent authorities and evaluated by the Ministry of
Higher Education.
3. The concerned Ministry’s official scrutinizes the application for sponsorship transfer to ensure the correctness and accuracy of the attached documents, and make sure that they fulfill the conditions required. The transaction is then referred to the counter to be approved, rejected or returned to the applicant for further verification.
4. The new sponsor must pay the fees for sponsorship transfer and deposit the bank guarantee amount for each worker sponsored by him.
5. The company for which the sponsorship transfer is required must complete the procedure for registering the worker and submit the following documents:
a. the application for canceling the previous Labor card, which  must be certified by the former sponsor ( attached with sponsorship transfer consent);
b. an application for a new Labor card;
c. the old Labor card;
d. the bank guarantee, if required; and
e. Receipt of fees paid for sponsorship transfer.
6. The Ministry counter employee must enter the application data in the ministry’s computer system and ensure the availability of the above-mentioned documents.
Article 9 The new sponsor shall complete the procedure for sponsorship transfer, including the payment of fees and registration of the worker, within a maximum period of sixty (60) days from the date the ministry’s approval is received, and upon failure to do so the application will be cancelled.
Article 10 All Labor categories can be exempted from the provisions of clause (2) and clause (4) of Article (2) provided that the new sponsor pay Dh 500 for each worker, under the following circumstances:
1. If the transfer is from an establishment to another located in the same emirate and owned by the same person.
2. If the transfer is from an individual establishment or one of its branches to another branch in the same emirate.

3. If the transfer is from a company or one of its branches to another branch in the same emirate. In case of expired Labor cards, all fines and payable fees should be paid as a condition before the issuance of the approval of the sponsorship transfer.

Article 11 Notwithstanding sponsorship transfer cases provided in this decision, the Ministry is not allowed to issue new Labor permits to workers whose Labor contracts have been cancelled, before at least six months from the date the Labor card was cancelled.

Article 12 This decision shall take effect as of the date of its issue and shall be implemented by all concerned authorities.

MINISTERIAL DECISION NO. 18 FOR 2005, REGARDING  SPONSORSHIP TRANSFER AND RENTING OF SPONSORED WORKERS AND PAYABLE FEES

After having reference to the Constitution;And to the Federal Law No.(1) for 1972, on the functions of ministries and the responsibilities of ministers and the amended laws thereof; And to the Federal Law No. (6) for 1973, regarding expatriates’ entry and residence and the amending laws thereof; And to the Federal Law No. (8) for 1980, on regulation of Labor relations, and the amending laws thereof; And to the Cabinet Decision No. (30) for 2001 regarding sponsorship transfer and categories allowed to be transferred;

And to the decision No. (360) for 1997 by the Minister of Interior, issuing the Executive Regulations of Federal Law No. (6) for 1973, regarding expatriates’ entry and residence ; And to the Cabinet Decision No. (466/9) for 2005, setting a new system of sponsorship transfer for all labor categories and renting of construction workers and payable fees; And based on the submissions presented by the Minister of Labor and Social Affairs and approved by the Cabinet;Decides as follows:

Article 1Sponsorship may be transferred upon the approval of the Minister of Labor and Social Affairs or an authorized representative thereof, under the following conditions:
1. The worker must have a valid residence visa stamped in his passport.
2. It should be insured that the job for which the change of sponsorship is required cannot be filled by UAE nationals or GCC jobseekers registered with competent authorities.
3. Workers must have spent a specific period of time with their current sponsors, as shown below for each category
a. Al least one year for professionals with Masters and PhD  degrees. They are allowed to transfer their sponsorship for unlimited number of times during their stay in the UAE.
b. At least two years for workers with Bachelors degree or its equivalent. They are allowed to change their sponsorship twice during their stay in the country.
c. At least three years for other categories with lower qualifications. They are allowed to transfer their sponsorship only once during their stay in the country.
d. The job for which the change of sponsorship is required must comply with the qualifications and experience of the worker, as well as with the firm’s activity. However, the Minister of Labor and Social Affairs, or an authorized representative thereof, may exempt workers from the condition of service period against a fee of Dh 3,000 for each worker, along with the other payable fees as stipulated in Article (2) of this decision.
Article 2 The fees for sponsorship transfer shall be as follows:
1. Dh 1,500 for PhD and Master’s degree holders.
2. Dh 3,000 for holders of Bachelor’s degree or equivalent.
3. Dh 5,000 for other labor categories.
Article 3 The Minister of Labor and Social Affairs or an authorized representative thereof may decide to waive the service period condition stipulated in Article (1) therein to transfer the sponsorship of all Labor categories from an establishment to another one, if both establishments are owned by the same person and are located in the same emirate, provided that the sponsor pays Dh 500 for each worker. In case of sponsorship transfer from an emirate to another one, the sponsor must pay the fee stipulated in Article (2) therein.
Article 4 The Ministry of Labor and Social Affairs or an authorized representative thereof may allow the renting out of construction workers from a company to another provided that:
1. their number must not be less than twenty (20) workers;
2. the company requesting them must be in real need of Labor according to information available to the Ministry;
3. the current employer agrees to rent out these workers to the other employer;
4. the new company must submit an application to the Ministry indicating its commitment to pay the following fees:
• Dh 1500 for each worker in case the renting period does not exceed three (3) months.
• Dh 2000 for each worker in case the renting period exceeds three months up to six (6) months maximum.
• Dh 2500 for each worker in case the renting period exceeds six months up to nine (9) months maximum.
• Dh 3000 for each worker in case the renting period exceeds nine months up to one year maximum.
Any company failing to abide by these conditions shall have its fees doubled for every application to the Ministry and shall not be allowed to bring in new expatriate labor into the country before six months at least
from the date of paying the doubled transaction fees. The Ministry of Labor and Social Affairs shall issue necessary rules and measures for renting workers, in coordination with the Ministry of Interior.
Article 5
The Ministry of Labor and Social Affairs shall be authorized to draw up necessary rules and standards for the implementation of this decision.
Article 6
The Cabinet Decision No. (30) for 2001 regarding sponsorship transfer and categories allowed to be transferred shall be repealed.
Article 7 This decision shall take effect as of the date of its issue and shall be implemented by all concerned authorities.
Amending the Executive Regulation of Sponsorship Transfer The Minister of Labour and Social Affairs;
• After having reference to Federal Law no 1 for 1972, as amended, on the functions of the ministries and powers of the ministers;
• And to federal law no 8 for 1980, as amended, on regulation of work relations;
• And to the Cabinet Resolution no 18, for 2005, on transfer of sponsorship and seconding of employees, and the applicable fees;
• And to the Ministerial Decree no 826, for 2005, on the Executive regulation of sponsorship transfer;
• And based on the submission of the concerned Under Secretary of the Ministry; Resolves as follows
Article One Requests by employers for finalizing sponsor transfer registration procedures may be accepted after the lapse of the period for approval of sponsorship transfer, which is sixty days from the date of issue of the initial approval.
Article Two Approval of requests for extension of validity of sponsorship transfer shall be subject to the following conditions:
1. Payment of a fee of AED500 for an additional respite of ten days
from expiry of the sponsorship transfer validity date or the extension, and for each subsequent respite, subject to a maximum of three respites (30 days), for a fee of AED500 for each 10-day respite.
2. Procedures for sponsorship transfer shall be finalized after payment of the prescribed fees.
Article Three
This decree shall go into force as on 11.2.2006 and shall be strictly

The Legal System Of The U.A.E

Practitioner's designation

Advocate. Partnerships are permitted. A local advocate must sponsor any partnership.

Professional education

Candidates must be United Arab Emirates (UAE) nationals and possess a law degree from the College of Law of Al-Ain University or from a recognised Arab university. Arab lawyers with ten years' practice in another Arab country may also be admitted. Non-Arabs are now allowed to practise law in the UAE courts. Foreign law firms are permitted to establish offices but are not admitted as practitioners.

The law has recently been changed requiring practitioners to be exclusively UAE nationals. Arab lawyers who are at present licensed to practise must surrender their licence by the year 1996. However, they may still have the right of audience but in the name of a UAE practitioner.

Other professional designations

Notarial services and authentication are undertaken by the Clerk of Justice and the Registrar of Real Property, both of whom are employees of the Ministry of Justice. However, in the Emirates of Sharjah and Ras Al-Khaima these services are rendered by a Notary Public who is regulated by local laws.

In court

Separate admission must be obtained for each of the seven emirates of the federation. Advocates of 15 years' standing may be admitted to the Supreme Court.

History

The UAE is a federation established in 1971 and comprised of seven emirates namely: Abu Dhabi, Dubai, Sharjah, Ras Al-Khaima, Umm Al-Quwain, Ajman and Fujairah. The promulgation of substantive legislation is confined to the federal institutions, but local authorities may regulate local matters. Prior to establishing the UAE each of the seven emirates passed laws and regulations, including those establishing and regulating the judicial system. For example, Abu Dhabi promulgated a law in 1968 establishing and regulating the courts and Law Number 3 of 1970 dealt with procedures before the civil courts. Dubai promulgated a law establishing its courts in 1970 and Fujairah followed suit in 1969.Ajman, Sharjah, Ras Al-Khaima and Umm Al-Quwain established their courts by laws passed in 1971. Some of the local laws still continue to be in force and effect.

At the head of the federal judicial system is the Federal Supreme Court whose function and operations are stipulated in a particular federal law. The Constitution also provides for the establishment of lower federal courts. Each of the seven emirates, however, retains the right to choose either to participate in the federal legal system or to maintain its own local system. Four emirates (Abu Dhabi, Sharjah, Ajman and Fujairah) fused their local courts into the federal system. The remaining three (Dubai, Ras Al-Khaima and Umm Al-Quwain) maintain their own independent courts. These three emirates initially based their court system on a two-tier structure while on the federal level it is a three-tier system. The Emirate of Dubai, created a further tier by establishing a Court of Cassation in addition to its courts of first instance and appeal.

In the UAE establishment of civil and criminal courts resulted in diminishing the role of the Shari'a Courts. Nevertheless, the competence of the Shari'a Courts in some emirates, particularly Abu Dhabi, was later expanded to include in addition to matters of personal status, civil and commercial disputes as well as serious criminal offences. Therefore, in addition to the civil courts, each of the seven emirates maintains a parallel system of Shari'a Courts which is organised and supervised locally.

Language

The official language of all legal proceedings is Arabic.

Reading

Al-Baharna, HM. 'United Arab Emirates'. International Encyclopaedia of Comparative Law, Vol 1, 1973. Pages U53-57.

Amin, Dr SH. 'Legal Systems of the Gulf'. Lloyd's Maritime & Commercial Law Quarterly, February 1983. Pages 71-85.

Ballantyne, WM. Legal Development in Arabia. Graham & Trotman, London, 1980. 125 pages. ISBN 0 86010 167 3.

Mahmoud, Sabah. UAE Company Law and Practice. Medina Publishing, London, 1990. 230 pages. ISBN 1 873210 00 0.

Professional associations

Lawyers Society, c/o Ministry of Justice-Islamic Affairs (Awqaf), PO Box 753, Abu Dhabi, UAE. Tel: (2) 652 224. Fax: (2) 316 003.

Dubai Lawyers Society, c/o Court's Department, PO Box 4700, Dubai, UAE. Tel: (4) 285 151. Fax: (4) 624 099.

Enforcement of Foreign Judgments

by Sabah Al-Mukhtar, LLB, MA, Attorney-at-Law (practising in London)

The Federal UAE Code of Civil Procedures No 11 of 1992 ('CPC') contains the rules on conflict of laws and private international law provisions. The Civil Code No 5 of 1985 also contains rules on conflict of laws and private international law provisions (Articles 10-28). However, the CPC sets out the process to be followed for enforcement of foreign judgments, orders and instruments.

Article 235 of the CPCestablished the principle that foreign judgments, orders and instruments may be enforced in the UAE under the same preconditions attached to them in the country of origin. It also provides that the enforcement process is commenced by means of an application to be made to the court of first instance in whose jurisdiction the enforcement order is being sought.

The application made in this instance is the same as that of commencing an ordinary suite before the court. That involves all the normal formalities such as a statement of claim, registration, payment of fees, procuring a writ of summons.

Before the court makes the enforcement order it must be satisfied that a number of conditions are met. These, inter alia, include:

a. the UAE court did not itself have the competence or jurisdiction to hear the case and that the foreign court was the proper court having the locus standi under the law of the court;

b. the foreign court had the jurisdiction and competence to hear and decide the case;

c. the parties were properly served and represented in the hearing;

d. the judgment is based on the merits, in conformity with the lex fori and is final (res judicata); and

e. it was not contrary to UAE public policy or to a previous UAE court judgment.

Article 238 of the CPC provides that the provisions of the code in this regard will be subject to any treaty that the UAE is a signatory to. The UAE is a signatory to the regional Arab Judicial Treaty of 1983 (otherwise known as the Riyadh Treaty) to which the 21 Arab countries are signatories. The Treaty affords favourable treatment to decisions of the courts of the Arab member states by treating such judgments as domestic and are automatically recognised in the UAE.

How to get Labour Permit for a firm in UAE

Once the firm has got the license and a computer card the next step would be Labour Permit. The company would require an approval from MOL to get labourers skilled/unskilled to UAE.

B1-Group Labour Permit

Definition

It is a service provided by the Ministry to any firm wishing to bring in more than 50 workers without the need of giving individual details in the first stage. The company should give details of number of workers, nationality and the profession. After approval the company will be granted a period of six months to complete formalities for the approved group labour permit.

Implementation Stages

Stage 1: Approval of group permit

Stage 2: Submission of individual labour permits under an application called (approval for completing the group labour permit procedure)

Stage 1: Approval of group permit

1. Submission of an application mentioning nationality, profession, gender and number of people, along with the prescribed fees and required documents for the approval of group labour permit.

Application Form

Application for group labour permit

Conditions

• The company will present documents justifying the need for workers (e.g. list of projects, building permits, contracts, etc.)

• The company must have a clear track record free of any violations. Specifically, it must fulfill the following:

 No labour cards un-renewed for more than two months or labour permits un-renewed for more than six months

 The salary security reports need to be submitted (as per the requirement of the Ministry).

 Its record is free from persistent group labour disputes arising from unpaid wages, lack of suitable accommodation, or any other employer obligation stipulated by law.

It should not have employed illegal workers of any kind or if the trade license has not been renewed for two months then they should not have any workers employed in that firm.

• The other firms of the owner must not have on records any labour cards not renewed for 3 months or labour permits not renewed for 6 months or any violations registered against it.

• The authorized person should have a digital signature card

Documents Required

• A valid trade license.

• List of projects as per the contract should include the name of parties, subject, budget of the project, starting date, ending date and service / quality level.

• Copies of contracts, duly translated if in a foreign language, and attested according to Ministry’s regulations, if they are sub-contracts.

• Copies of building permits from the municipal authorities (if the firm is contracting company)

• Copies of ownership or lease agreement for office or workers’ accommodation (for existing workers)

• Copies of ownership or labour accommodation lease agreement (for workers to be imported as per group permit). It is required to indicate the number of rooms and whether they are suitable to accommodate the workers, together with photographic illustrations. In case no accommodation is available, the Ministry may, on approval by the Undersecretary or Assistant Undersecretary, accept an undertaking from employer to provide the same. After the final approval, the permit will be granted subject to the satisfactory report from the Inspection Department.

• List of company’s machinery and vehicles which can also includes transportation rental contracts mentioning the number of buses which need to be approved by the traffic Dept.

• Settlement of expired labour cards, labour permit and license of other firms owned by the applicant attested from Labour Establishment.

• A sketch drawing of firm’s site and workers’ accommodation, along with photos of the company and facilities.

• Company’s pay-roll for the last two months (excluding the month the application is filed and for the month preceding it).

Steps to Follow

1. Type the group permit application for submission, together with the fees and necessary documents (no application will be typed for group labour permit if the firm has any violations as per the records in the Ministry).

2. The application would be approved and attested by the Ministry with an undertaking letter stating that the owner /authorized person would submit all the required documents and abide to all the conditions necessary for the completion of group labour permit procedure.

3. If all the documents and conditions are fulfilled, the application is typed with following documents attached:

 An undertaking by the owner that he takes responsibility of fulfilling all conditions and documents required for group labour permit.

 A statement mentioning work details and percentage of worker.

4. Submit the application with required documents at the counter in the Inspection Department at the Ministry HQ in Abu Dhabi or Dubai or the concerned Labour office.

5. The application is vetted, scrutinized and checked for complete documents . The following documents need to be submitted:

 Statement mentioning work details and percentage of work.

 Copy of contracts (translated in Arabic) and attested as per the requirements of the Ministry in case of sub contract. Copy of building permit needs to be attached if it is a contracting company.

 Copies of ownership or labour accommodation lease agreement (for workers to be imported as per group permit). It is required to indicate the number of rooms whether there are suitable to accommodate the workers together along with photographic illustrations. In case no accommodation is available the Ministry may, on approval of Undersecretary or Assistant Undersecretary, accept an undertaking from the employer to provide the same on approval of group labour permit.

6. The applicant will be given a receipt for the submitted documents and it will mention that he will have to provide any other document if necessary (on request by the staff at Ministry counter).

7. Once all the documents are completed, the firm is notified for the date of inspection to assess the volume of work and ensure the firm’s compliance with inspection conditions. The Inspection Department will then submit its report.

8. The application will then be referred to the Permits Committee for processing and would be either approved or disapproved based on documents and the inspection report. The application then is referred to the Assistant Undersecretary for the final approval.

9. Following the final approval / disapproval the application is referred to the Permit Dept’s. Counter for issuing a letter of approval or apology incase of rejection. If approved the applicant is informed to pay the fees in one installment and to submit individual labour permit.

10. If the approval is subject to any conditions specified by the Inspection Department, the applicant needs to fulfill this condition (before the payment of fees is done).

Where to Apply?

All applications will be submitted to the Inspection Dept. at the Ministry HQ in Abu Dhabi or Dubai or the concerned Labour Office.

Fees

Documents Fees (in Dirham)

Group Labour Permit Application Category A Category B Category C

200/worker 200/worker 200/worker

Problems with real estate agent in Dubai

If there's breach of contract, buyer of flat can file a case

I purchased a flat in 2007 from a developer through a real estate broker and paid 50 per cent of its cost as the purchase agreement stipulated. Work on the flat was supposed to be completed by May 2010. To date, however, only 70 per cent of it has been done. This means that the project may be delayed for more than a year. The other problem is that the size of the flat, which was agreed in the purchase agreement, is now different. The purchase agreement stated that would be 2,000 square feet and the size of the current flat is just 1,500 square feet. 

Is there any possibility of terminating the contract due to the size difference, and especially since it’s not sufficient for my needs because I bought it for residential and business use? 

Regarding the problem of the delay, the agreement states that the maximum extension is only six months.

Is it possible to file a case against the developer and the real estate broker and how can it be proved that the developer has not met the agreed completion date?

The person writing may file a court case against the real estate broker and the developer to cancel the agreement and ask for the amount paid to be given back and also for appropriate compensation, due to the developer reneging on the agreed size. This is considered a breach of the contract. In addition, the fact that the developer has failed to hand over the flat is grounds for cancellation. Therefore, the person posing the question should hire a lawyer who can prove lack of commitment by the developer and violation of the purchase agreement.

Questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Bahar Advocates and Legal Consultants.