"I'm a Funding Strategist and Legal Expert specializing in project funding across the UAE and Saudi Arabia. As the Founder of Bucks Capital & FinMaag, I help clients secure international capital via Venture Capital, Debt Finance, and Real Estate. My legal background (Calicut Law College Alumnus) ensures every deal is robust and legally sound."
Friday, November 26, 2010
Employment Ban in UAE- Frequently asked Questions
"Mohandas Kattungal, BA LLB As a Funding Strategist and Legal Expert, I specialize in navigating the complex landscapes of project funding across the UAE and Saudi Arabia. I am the Founder of Bucks Capital & FinMaag, where I advise clients on securing international capital through Venture Capital, Debt Finance, and Real Estate mechanisms. My background as a Calicut Law College Alumnus ensures a robust, legally sound approach to every deal.
Sunday, November 21, 2010
Termination of Unlimited Employment Contract in UAE- Frequently asked questions
"Mohandas Kattungal, BA LLB As a Funding Strategist and Legal Expert, I specialize in navigating the complex landscapes of project funding across the UAE and Saudi Arabia. I am the Founder of Bucks Capital & FinMaag, where I advise clients on securing international capital through Venture Capital, Debt Finance, and Real Estate mechanisms. My background as a Calicut Law College Alumnus ensures a robust, legally sound approach to every deal.
Monday, November 15, 2010
Employment Contract Termination: No More Penalty for Early Resignation Under New UAE Law"
The new Federal Decree-Law No. 33 of 2021 (the UAE Labour Law) fundamentally changed the rules for terminating fixed-term contracts (the replacement for limited contracts), particularly eliminating the statutory financial penalties for early termination.
🚫 New UAE Law: Termination of Employment Contract (2025 Update)
The new UAE Labour Law (Federal Decree-Law No. 33 of 2021)
has replaced the concept of "unjust dismissal" compensation and the
automatic financial penalty for resigning early from a limited contract. The
system now focuses entirely on the Notice Period.
1. Contract Type: Fixed-Term is the Standard (Article 8)
|
Old Law (Articles 115, 116) |
Current Law (Article 8) |
|
Limited Contracts and Unlimited Contracts
were the two types. |
All new contracts must be Fixed-Term (maximum 3
years, renewable). |
|
Termination required penalties for non-compliance. |
Termination is achieved by serving the mandatory Notice
Period (30-90 days). |
2. Employer Termination (Replaced Old Article 115)
The concept of a maximum 3-month statutory compensation for
"unjust dismissal" under Article 115 is gone.
|
Old Law Rule (Article 115) |
Current Law Rule (Article 43 & 47) |
|
Compensation: If dismissed without reason (and not
Article 120), the worker received up to 3 months' total salary (or the
remaining contract period, whichever is shorter). |
Compensation: Compensation for unfair or arbitrary
dismissal is NO LONGER capped at 3 months. The amount is determined by
the court, taking into account the employee's nature of work, duration of
service, and the damage incurred, but the law no longer specifies the 3-month
cap. |
|
Notice: Limited Contracts had no mandatory notice
period for employer termination. |
Notice: The employer must provide the worker with a
minimum of 30 days' notice for early termination, up to 90 days if
stipulated in the contract. |
3. Employee Resignation (Replaced Old Article 116)
The requirement for the employee to compensate the employer
with 45 days' pay (or half of the last 3 months' remuneration) for
resigning early from a limited contract is ABOLISHED.
|
Old Law Rule (Article 116) |
Current Law Rule (Article 43 & 45) |
|
Penalty: Employee paid a compensation penalty of up
to 45 days' remuneration for early resignation. |
Penalty: NO STATUTORY PENALTY. The
employee's obligation is solely to give the employer the contractually
agreed-upon written notice (min 30 days, max 90 days). |
|
Compensation Basis: Compensation was calculated on Total
Remuneration (including allowances). |
Final Dues: Compensation is generally calculated
based on Total Remuneration, but the focus is on payment in lieu of
notice (if notice is not served), not a penalty fee. |
4. Compensation for Personal Circumstances
|
Old Law Rule (Question 10) |
Current Law Rule (Article 43) |
|
Resignation for personal matters (new job/family
issues) required compensation to the employer. |
Resignation for personal matters (new job/family
issues) ONLY requires the serving of the notice period. Compensation to
the employer for contract breakage is eliminated, provided the notice is
served. |
Conclusion
The new law shifts the focus from financial penalties to contractual
commitment via the notice period. If an employee or employer terminates the
contract and serves the full notice period correctly, there is no compensation
due to the other party (except for end-of-service gratuity and final salary).
If they fail to serve notice, the compensating party pays the remuneration
(Total Salary) for the remaining notice period.
"Mohandas Kattungal, BA LLB As a Funding Strategist and Legal Expert, I specialize in navigating the complex landscapes of project funding across the UAE and Saudi Arabia. I am the Founder of Bucks Capital & FinMaag, where I advise clients on securing international capital through Venture Capital, Debt Finance, and Real Estate mechanisms. My background as a Calicut Law College Alumnus ensures a robust, legally sound approach to every deal.
Termination of Employment Contract in UAE – Frequently asked Questions
"Mohandas Kattungal, BA LLB As a Funding Strategist and Legal Expert, I specialize in navigating the complex landscapes of project funding across the UAE and Saudi Arabia. I am the Founder of Bucks Capital & FinMaag, where I advise clients on securing international capital through Venture Capital, Debt Finance, and Real Estate mechanisms. My background as a Calicut Law College Alumnus ensures a robust, legally sound approach to every deal.
Wednesday, November 10, 2010
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.
"Mohandas Kattungal, BA LLB As a Funding Strategist and Legal Expert, I specialize in navigating the complex landscapes of project funding across the UAE and Saudi Arabia. I am the Founder of Bucks Capital & FinMaag, where I advise clients on securing international capital through Venture Capital, Debt Finance, and Real Estate mechanisms. My background as a Calicut Law College Alumnus ensures a robust, legally sound approach to every deal.
Canadians entering UAE to apply for entry permits starting 2011 January 2
"Mohandas Kattungal, BA LLB As a Funding Strategist and Legal Expert, I specialize in navigating the complex landscapes of project funding across the UAE and Saudi Arabia. I am the Founder of Bucks Capital & FinMaag, where I advise clients on securing international capital through Venture Capital, Debt Finance, and Real Estate mechanisms. My background as a Calicut Law College Alumnus ensures a robust, legally sound approach to every deal.
Tuesday, November 9, 2010
UAE WPS Update: No More Grace Period, Penalties are Automatic
This article describes the
initial implementation and mechanism of the Wages Protection System (WPS)
in the UAE, primarily based on the Ministerial Resolution No. 788 of 2009.
While the fundamental purpose
and mechanism of WPS remain the same—it is still an electronic system to ensure
timely payment of wages—the deadlines, consequences, and specific penalties
have been significantly updated and made much stricter since 2009,
especially under the new Federal Decree-Law No. 33 of 2021 (the UAE Labour Law)
and subsequent Ministerial Resolutions.
Here is the updated status,
focusing on the current rules for late payment and penalties:
💰 UAE Wages Protection System
(WPS): Mandatory Compliance & Strict Penalties
#WPS #WageProtection #MoHRE
The Wages Protection System
(WPS) remains the mandatory electronic salary transfer system in the UAE
private sector, ensuring workers receive their agreed-upon wages on time. The
Ministry of Human Resources and Emiratisation (MoHRE), in coordination
with the Central Bank of the UAE (CBUAE), strictly enforces this system.
Key Current Requirements &
Deadlines
|
Requirement |
2009 Rule (Article) |
Current (2025) Rule
(MoHRE/WPS) |
|
Transfer Deadline |
Within two weeks of
the due date. |
Wages must be paid via WPS
within a maximum of 15 days from the due date specified in the
employment contract. |
|
Defining Late Payment |
Delaying payment for more
than one month of the due date. |
Payment is considered delayed
if not transferred within 15 days of the due date. |
|
Compliance Exemption |
Exemption periods based on
the number of workers (100+, 15-99, etc.). |
No general exemptions. WPS
coverage is mandatory for all private sector companies registered with MoHRE,
regardless of size. |
🛑 Current Consequences and
Penalties for WPS Violations
The consequences for
non-compliance are much faster and more severe today than the 2009 penalty of
simply denying new work permits. Penalties are now automated and escalate
rapidly:
|
Delay/Violation Type |
Current MoHRE
Action/Penalty |
|
17 Days Delay |
Automatic Suspension of New
Work Permits: The company is immediately blocked from
hiring new employees. |
|
30 Days Delay (or More) |
Legal Escalation and Further
Bans: * The Public Prosecution may be notified for further
legal action (for companies with 50+ workers). * The ban on new work permits
may extend to all companies owned by the same partners (for repeat
violators). |
|
60 Days Delay (Worker Right) |
If a worker's salary is
delayed for 60 days or more, the employee has the legal right to terminate
their contract immediately and join a new employer without being
penalized or banned, and is entitled to full end-of-service dues and
compensation. |
|
Failing to Register in WPS |
Companies not registered in
WPS may face fines starting from AED 5,000 per worker. |
|
Fines for Non-Payment/Delay |
Administrative fines start
from AED 1,000 per employee (up to AED 20,000 maximum fine). |
|
Repeat Violators |
Companies that repeatedly
violate WPS rules may face downgrade to the lowest classification
(Category 3), which impacts their ability to conduct business with government
entities. |
Note on Expenses
The rule stated in the 2009
article remains absolutely firm: The employer is responsible for all
expenses incurred upon joining WPS (bank fees, service charges, etc.).
Employers are strictly prohibited from deducting any WPS-related costs from
workers' wages.
"Mohandas Kattungal, BA LLB As a Funding Strategist and Legal Expert, I specialize in navigating the complex landscapes of project funding across the UAE and Saudi Arabia. I am the Founder of Bucks Capital & FinMaag, where I advise clients on securing international capital through Venture Capital, Debt Finance, and Real Estate mechanisms. My background as a Calicut Law College Alumnus ensures a robust, legally sound approach to every deal.
Monday, November 8, 2010
Sponsering Your Parents - UAE visa Rules
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.
"Mohandas Kattungal, BA LLB As a Funding Strategist and Legal Expert, I specialize in navigating the complex landscapes of project funding across the UAE and Saudi Arabia. I am the Founder of Bucks Capital & FinMaag, where I advise clients on securing international capital through Venture Capital, Debt Finance, and Real Estate mechanisms. My background as a Calicut Law College Alumnus ensures a robust, legally sound approach to every deal.
Sponsoring Parents in UAE - Ministry denies visa policy has changed
"Mohandas Kattungal, BA LLB As a Funding Strategist and Legal Expert, I specialize in navigating the complex landscapes of project funding across the UAE and Saudi Arabia. I am the Founder of Bucks Capital & FinMaag, where I advise clients on securing international capital through Venture Capital, Debt Finance, and Real Estate mechanisms. My background as a Calicut Law College Alumnus ensures a robust, legally sound approach to every deal.
Monday, November 1, 2010
Labour Ministry issues fresh warning to dormant firms
"Mohandas Kattungal, BA LLB As a Funding Strategist and Legal Expert, I specialize in navigating the complex landscapes of project funding across the UAE and Saudi Arabia. I am the Founder of Bucks Capital & FinMaag, where I advise clients on securing international capital through Venture Capital, Debt Finance, and Real Estate mechanisms. My background as a Calicut Law College Alumnus ensures a robust, legally sound approach to every deal.


