Etisalat and Du limit access to BlackBerry service Next week

DUBAI, United Arab Emirates (AP) — Emirati authorities seeking greater control over smartphone data are pushing ahead with plans to impose tighter restrictions on the most tough-to-monitor BlackBerry service next week, according to a senior telecom executive.

The proposed new rules, outlined earlier this month, have renewed questions about how far the United Arab Emirates is willing to go in allowing highly secure communications within its borders.The Gulf Arab federation threatened a far more sweeping ban on BlackBerry email and other services last year, but reversed that decision shortly before it would have taken effect.

Osman Sultan, chief executive of the telecommunications firm Du, told reporters Monday the latest policy ordered by regulators will go into effect May 1. He said he doesn't expect the shift to cause problems for customers, who will still have access to email, Web browsing and instant messaging.

Under the new policies, Du and its rival Etisalat — both majority owned by the government — are required to limit access to the Blackberry Enterprise Server to companies with 20 user accounts or more. That system provides the most secure communication on the handheld devices and is used by many international companies and government agencies.

Other users would need to rely on a less-secure system known as the BlackBerry Internet Service that experts say could be easier for authorities to monitor. Unlike the more secure BES system, which routes encrypted data through company servers abroad, the BIS system runs over the regular Internet.

"I don't see any reason for frustration for customers," Sultan said. "You can still access your corporate email via BIS. ... I don't see what really is the issue."

Shortly after details of its latest planned restrictions became public, the Telecommunications Regulatory Authority issued a brief statement reassuring BlackBerry users that all services would continue for both individuals and business customers. That prompted speculation it might roll back plans to limit the higher-security service.

It has not commented further on the matter since. It did not respond to a request for clarification Monday.But Sultan's comments suggest the restrictions are still moving ahead."The rule is still this rule," he said.

Research in Motion Ltd., the Canadian company that makes BlackBerrys, has previously said it is in contact with the regulator and understands that the rules could apply to other smartphone makers but aim to avoid affecting "legitimate enterprise customers." A spokeswoman said the company had nothing more to add Monday.

The UAE's smartphone policies have been closely watched since last summer when it threatened to shut off BlackBerry data services partly because of security concerns. It backed off the plan in October.

Critics saw the effort as a way to more closely monitor political activism in the federation. Although the UAE has seen none of the widespread unrest roiling other parts of the Arab world, authorities have detained at least four activists calling for democratic reforms in recent weeks.

In 2009, Du's rival Etisalat was caught instructing unwitting BlackBerry customers to download spy software that could allow outsiders to peer inside. It misled users by describing the software as a required service upgrade.

Dubai Government amends DIFC Law - provide greater legal clarity and transparency

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has issued Law No (7) of 2011, which includes amendments to a number of articles in Law No (9) of 2004 ('Original Law') that established the Dubai International Financial Centre (DIFC) as the first Financial Free Zone in the UAE.

Over the past seven years, DIFC has become the financial and business gateway between regional emerging markets and the international markets.

The amendments to the law provide greater legal clarity and transparency, and provide stronger support to DIFC's drive to become a global financial centre, complying with the highest levels of good governance and best practices.

Law No (7) of 2011, which incorporates the first ever amendments made to the Original Law, was enacted on the 4th of April, and published on Thursday, April 21, 2011, in the Official Gazette in both Arabic and English. It is in force with immediate effect. The new law comes as part of the Government of Dubai's ongoing strategic commitment to diversify the emirate's economy by supporting the growth of the banking and financial services sector through DIFC. The new law results from a consultative and collaborative process between the three DIFC bodies - the DIFC Authority (DIFCA), the Dubai Financial Services Authority (DFSA), and the DIFC Courts - and various Dubai government bodies, including the Legal Affairs Department of the Government of Dubai.

Following the Dubai Government's review of governance structures, the new law provides for the creation of a Higher Board comprising representatives of the three DIFC bodies. This Higher Board will be presided over by the DIFC President, Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, and will be invited to meet at least twice a year. The DIFC Higher Board will ensure that the three DIFC bodies operate in harmony and unity of purpose by strengthening the levels of coordination without affecting their independence.

Ahmed Humaid Al Tayer, Governor of DIFC said: "The amendments to Law (9) provide greater legal clarity and improve the corporate governance of DIFC. These changes further strengthen DIFC's legal and financial infrastructure as a whole, and reinforce the Government's commitment to the independence of each of the Centre's bodies. This is an important step forward in the growth of DIFC as a global financial hub and complements the Centre's continuous efforts to develop its services and increase its contribution to the UAE's economy." The new law includes a new article that defines the manner of appointment and the role of the Governor of DIFC. The Governor is appointed by the Ruler of Dubai upon the proposal of the DIFC President for a four year term that may be renewed.

The new law also clarifies the application of all Dubai laws to DIFC including governmental, financial and legal arrangements. This clarification creates many opportunities for future collaboration between DIFC and other government bodies, fostering cooperation and open dialogue thus enhancing the growth of banking and financial services, ancillary services and commercial and financial activities and strengthens its role in the region.

DIFCA-related amendments: Changes to the Original Law include a number of provisions that are specific to DIFCA. These confirm DIFCA's independence and put into place a corporate structure of a Board, CEO and executive body. The precise duties and powers of the Board and the executive have been defined, where the Board will be responsible to the DIFC President for the functions of DIFCA.

The new law also provides specific provisions clarifying that DIFCA is now responsible for establishing, regulating and developing the Centre's payment systems. DIFCA will coordinate with the Central Bank of the UAE in regulating, supervising, operating and using wholesale, large-value payment systems, including a multi-country, multi-currency Real Time Gross Settlement System, allowing the clearing and settlement of payments in foreign currencies in the DIFC.

David Eldon, Chairman of DIFCA said; "The new law will assist DIFC's continuous evolution and underlines its position as one of the world's top international financial centres. By emphasising the Centre's independence, the new law assures companies looking to establish a presence in the region that DIFC offers both a modern infrastructure and a world-class business environment." DFSA-related amendments: A DFSA-related article in the new law clarifies the roles and powers of the DFSA's Board and CEO, reinforcing the autonomy and authority of the DFSA's board.

The Chairman of the DFSA Board of Directors, Abdullah M Saleh, commented; "DFSA welcomes the new law as a further positive step in the development of the Centre. DFSA will continue its commitment to protect the integrity of DIFC and to realise the vision its Sheikh Maktoum. " DIFC Courts-related amendments: The amendments made to DIFC Courts-related provisions further reinforce the Government of Dubai's commitment to the independence of DIFC Courts, by guaranteeing its funding and authorising the Chief Justice to determine the Courts' rules, procedures, staffing and operation.

Michael Hwang, Chief Justice of DIFC Courts, said; "The revisions to the law further reinforce the autonomy and independence of DIFC Courts. A fair, efficient and transparent judicial system operating independently is a critical component of DIFC's offering as a world-class financial centre. We remain committed to uphold the laws of DIFC to the highest international standards, and the new law supports this commitment."

Six months out of country for Labour Card cancellation in UAE

Companies must submit proof of absence along with documents of due settlement.

UAE employees who stay outside the Emirates for more than six months can have their labour cards cancelled. This was revealed at the weekly labour ministry meeting, according to 'Al Ittihad' newspaper.

The ministry officials refused to accept an employer's request to cancel an Arab's labour card who has been outside the country for only five months.

The company was asked to wait for another month and then submit the proof of the worker's absence to the department of naturalisation and residency along with documents to prove settlement of all his dues. Only then can the employer apply for cancellation of the worker's labour card.

Contract amendment

Addressing another case, ministry officials clarified that companies can amend contracts - change names of professions or salaries - only in the presence of the employees concerned. Else it will be considered a violation of labour rights.

Temporary work permit

Issuance of temporary work permits would depend on the type of labour dispute and would be considered by the ministry only once the case has been referred to the labour court. Once the terms and conditions as stipulated by the labour laws are adhered to, the ministry reserves the right to issue temporary work permits without the approval of employers. Similarly, the worker in dispute, need not necessarily have a residence visa provided it is proved that the case has been referred from the labour court.

Job transfer

Workers under three skill levels can end their contract without an agreement with the employer even before completing two years. They include employees who have a bachelor's degree and earns a minimum Dh12,000; or diploma holders with Dh7,000 monthly salary; and those who possess secondary school certificate earning Dh5,000.

Meanwhile, officials approved a request of a company to hire as director a Brit who has no university degree but holds a certificate from a institute which he attended for three years after high school.

Explaining its decision, the labour committee, including Khalil Khouri, Director of work permits, and Saleh Al Jabri, Director of the Unit of facilities in Abu Dhabi, said in this case the employee has 10 years experience in the same job at the headquarters of the company in his country.

ID cards to be delivered through post offices

Dubai: National identity cards are not being delivered to residents' homes or offices despite payment of the courier charges.

The Emirates Identity Authority (Eida) said lack of courier services has forced it to distribute the cards through post offices in various emirates.

In focus: ID card

However, Empost on Wednesday announced that it has stopped accepting new cards from Eida since January 27 to clear the backlog of cards.

Officials said they were processing an average of 10,000 cards daily. "The two courier companies engaged by us have certain limitations in handling that many cards a day, Dr Ali Mohammad Al Khoury, Director-General of Eida, told Gulf News on Wednesday.

The lack of courier service companies which can deliver huge volumes of National ID cards in the country had forced Eida to distribute the cards through post offices, Al Khoury said.

"We are printing more than 10,000 cards a day and the two courier service companies engaged by us have certain limitation to handle that many cards a day," he said.

"That prompted us to engage Emirates Post to distribute cards through its post offices across the country," he said. Empost has been delivering the cards since 2007 and Aramex courier company started delivering them recently.

The official was responding to complaints raised by Gulf News readers who said that they were asked to collect their cards from the post offices despite paying courier charges when they applied for the card. They said they were surprised to receive a message from Emirates Post, saying, "Please pick up your National ID card from [a particular post office]."

Large volumes

Despite communication with the several other courier companies in the country, Emirates ID could not find one which could deliver huge volumes of ID cards, Al Khoury said. Two other companies which came forward had limited capacity, he said. Al Khoury explained that Emirates ID does not save money by distributing the cards through post offices.

The official said out of Dh70 extra charges paid by the applicant, Emirates ID receives about Dh10 towards courier charges which is paid to the Emirates Post.

He said the rest of the Dh60 goes into typing, envelopes and packaging. Courier companies charge more than Dh10 which is paid by Emirates ID, not by the applicant, the official said.

Asked about the request from the applicants to get the cards distributed through the nearest post offices, he said all such requests would be taken up with Emirates Post. Meanwhile, a meeting of Higher Management Committee of Emirates ID lauded the positive response of the citizens to the registration process.

Dr Al Khoury who chaired the meeting, called on Emiratis to register before the final grace period expires by June 30.

Temporary stop to clear backlog

Empost, the express courier company delivering the ID cards since 2007, has stopped accepting the new ID cards from the Emirates ID since January 27 to clear the backlog of cards, Sultan Al Medfa, CEO of Empost told Gulf News.

Due to huge volumes of cards printed by the Emirates ID, Empost had a large number of cards, awaiting delivery, he said. Al Medfa said Empost will take new cards from Emirates ID after clearing the backlog.

He said many people are not aware that Empost and Emirates Post are two different organisations.

Visa renewal : Emirates ID card to be linked

Abu Dhabi: The national ID card registration will be linked with residence visa issuance and renewal in Western Region in Abu Dhabi from Sunday, the Emirates Identity Authority (Emirates ID) announced on Tuesday.

The preventive medicine centres (PMC) conducting visa medical tests at Madinat Zayed, Sila and Delma will start linking the process with ID card registration from April 24. The PMC in Ghaythi will link the medical test with ID card registration on May 1.

In focus: All you need to know about the ID card

This will require all expatriates in the Western Region residents to apply for the ID card before applying for or renewing their visas, said a statement issued by Emirates ID. A resident's visa application form should have the Emirates ID's seal, as proof of registration.

Residents can visit authorised typing centre to fill out the application form and pay the fee, complete the visa medical test at a PMC and then visit the Emirates ID registration centre to complete the registration process.

This has already been implemented in Umm Al Quwain, Fujairah and Ras Al Khaimah as part of Emirates ID's 2010-'13 strategy to enrol all expatriates in the country as part of process to procure a residence visa.

Apart from expanding the linking process emirate-wise, Emirates ID has started linking the visa medical tests and ID card registration at small preventive medical centres across the country, a senior official told Gulf News recently. This is to expedite the linking process, Dr. Ali Al Khoury, Director-General of Emirates ID, said.

Dh12,000 annual fine for labour card violations

Employers violating labour card rules will now be fined Dh12,000 per year. Earlier, companies were fined Dh5,000 for each year of delay in renewing labour cards, according to a top official of the Labour Ministry.

Humaid bin Dimas, Assisstant Undersecretary, Ministry of Labour, while addressing the weekly meeting said there were about 60,000 expired labour cards of the total four million cards as per 2010 statistics. This means about 5.1 per cent employees do not have a valid labour card, 'Al Khaleej' newspaper quoted Bin Dimas as saying.

Labour Ministry will not accept requests of fine exemptions for non-renewal of labour cards, he stressed. After the installtion of the new electronic system in order to reduce the time taken to issue a card to a mere 10minutes, the ministry had given companies 60 days to clear the backlog, the official explained.

The imposition of fines is to improve employer-employee relationship, he added.

Bin Dimas said: "While earlier the fines imposed on violations was about Dh5,000 for each year of delay, the same has been increased to Dh1,000 for each month of delay, which means Dh12,000 per year."

It would be difficult to handle absconders if they do not have a valid labour card. Bin Dimas urged companies to adopt the WPS system and renew labour cards on time.

There are about 120,000 small companies from a total of 160,000 firms registered with the ministry system.

The absolute prohibition of an employee working for a competitor is a restriction of his liberty- Dubai court of Cassation

If an employee chooses to work for a rival firm after the end-of-service period, the employer need not necessarily impose an absolute ban on the person. "The absolute prohibition of an employee from working for a competitor is a restriction of his liberty, ruled the court.

Alternatively, the ban can be specific only to the extent of protecting an employer's interests. For instance, a ban can be imposed if certain issues can be proved such as the person's inside knowledge of the company secrets, or the adverse effects on the employer due to the crucial time an employee left the company, etc. These should be mentioned under 'non-competition' section of the contract terms.

The new legal principle was pronounced when a case came up for hearing with regards to an employer requesting the court seeking Dh5million compensation from an ex-employee as he left the company to work for a competitor. The move was against the contract signed by both the parties, which states that he cannot work for a competitor before the lapse of two years from the end of the working relationship, said the plaintiff (the company owner).

The plaintiff said in his petition that the defendant worked as the Director-General in his company. He then quit and worked for a competitor before completing two years.

This was in violation of the contract between them, the plaintiff claimed.

He said the company faced a loss of about half a million dirhams as well as faced delays in a project because of the defandant's acts and sought Dh5m compensation from him.

The Court of First Instance dismissed the case but the plaintiff moved the Court of Appeals which upheld the lower court's ruling. Later the company owner moved the Court of Cassation.

The Court of Cassation, in turn, ruled the documents proved that the defendant had moved to the new company with the knowledge and consent of the owner (plaintiff) of the company, which meant that the company waived the "non-competition" condition included within their employment contract.

The court also refused to accept allegations that the defandant caused the company losses in one of its projects because there were no documents to prove the same.

The court added that it was clear all the company's contracts and project correspondence was made under the provisions of the owner of the company and its director of marketing which meant it is not serious.

Failure to pay wages considered arbitrary termination - Dubai Cassation Court

A case at the Dubai Cassation Court has resulted in six new principles - all favouring workers – governing labour relations.

Under its ruling, the court has decided that failing to pay wages is considered an arbitrary termination of service and entailed compensation.Also, salaries are not considered as cleared by the court unless the employer submits the relevant documents.

The ruling also found that even if the employer fails to take or finish the necessary procedures for employment, the worker still has rights and an employer’s obligations to workers should be fulfilled.

It also found that the worker’s uninterrupted service to the employer or his legal successor was considered continuous since the joining date, even if the two parties had more than one labour contract.

And lastly, the evidence of court-appointed experts can also be subject to evaluation before being used in sentencing. The court–appointed experts should meet the parties in dispute and failing to submit documents does not invalidate an expert’s report.

The six principles were issued on the wake of a case been brought to the Cassation Court.An employee had asked a company to pay him Dh3.7m he claimed that he was entitled to.

The employee had requested the payment of D450,000 in unpaid salaries and Dh50,000 for a month’s notice, Dh150,000 compensation for arbitrary termination of service, Dh88,000 for end of services, Dh3 million in commission entitlements, and Dh3,000 for a return air ticket.

Based on the report of an expert assigned by the Court of First Instance, the court had ordered the company to pay the plaintiff Dh3.4m and to provide an air ticket should he not find another job.

The Appeal Court has reduced the sentenced amount to Dh1.8 million, as the employee lost his right in claiming some of the commissions because of a lapse of over a year following the due date.

The company had appealed the sentence to the Cassation Court, which has turned down the appeal and upheld the sentence of the Appeal Court, ordering it to pay Dh1.8m to the plaintiff.

The Cassation Court has based in its sentence and principles on Articles No.1 and 58 of the Labour Law.

workers entitled to end fixed contract if companies shut down or end operations before the expiry of employment contracts-Dubai Court of Cassation

Companies that shut down and end operations before the expiry of employment contracts signed between them and workers is legally entitled to end working relationship, without considering it as arbitrary termination, ruled Dubai Court of Cassation.

The Court confirmed “the non-availability of the grounds provided for in Article 120 of the Labour Code, does not take away the right of employers to terminate the contract of fixed-term with his employees as long as they have the justification for such decision".

The Article 120 of Labour Code specifies cases wherein employers may terminate employment relationship with workers, in cases such as the latter not passing probationary period or violating instructions of work safety, or disclosing secrets of work, or if they involve in any crime, etc.

The Court of Cassation was hearing the appeal of a verdict of a case involving an Executive Director of a Dubai free zone company.

The plaintiff asked the court to oblige the company where he worked to pay him Dh493,000 (Dh150,000 as six months' salary; Dh170,000 compensation for unfair termination; Dh13,000 transportation allowance; Dh50,000 as housing allowance).

He also requested Dh5,000 half-annual allowance; Dh10,000 in tickets; Dh35,000 as end-of-service benefits; Dh26,000 instead of warning; Dh14,000 equivalent to the period of 17 days from the last month for working before being fired.

He said in his lawsuit that he had joined the company on a fixed-term contract for two years, at a monthly salary of Dh25,000 but was surprised with the decision of dismissing him after six months.

The Court of First Instance earlier ruled to dismiss the case. Later the Court of Appeal upheld the ruling of the Court of First Instance. However, the plaintiff did not accept either ruling and challenged the same before the Court of Cassation.

The Court of Cassation, in turn, accepted one request on the appellant - that of Dh14,000 for working for a period of 17 days - and rejected the other requests. The court said the appellant is eligible to receive Dh14,000.

Firm can terminate fixed-term contract with justifiable reasons-Dubai Court of Cassation

Court rejects employee's request for compensation from firm for ending 2-year contract before time

Companies that shut down and end operations before the expiry of employment contracts signed between them and workers is legally entitled to end working relationship, without considering it as arbitrary termination, ruled Dubai Court of Cassation.

The Court confirmed “the non-availability of the grounds provided for in Article 120 of the Labour Code, does not take away the right of employers to terminate the contract of fixed-term with his employees as long as they have the justification for such decision".

The Article 120 of Labour Code specifies cases wherein employers may terminate employment relationship with workers, in cases such as the latter not passing probationary period or violating instructions of work safety, or disclosing secrets of work, or if they involve in any crime, etc.

The Court of Cassation was hearing the appeal of a verdict of a case involving an Executive Director of a Dubai free zone company.

The plaintiff asked the court to oblige the company where he worked to pay him Dh493,000 (Dh150,000 as six months' salary; Dh170,000 compensation for unfair termination; Dh13,000 transportation allowance; Dh50,000 as housing allowance).

He also requested Dh5,000 half-annual allowance; Dh10,000 in tickets; Dh35,000 as end-of-service benefits; Dh26,000 instead of warning; Dh14,000 equivalent to the period of 17 days from the last month for working before being fired.

He said in his lawsuit that he had joined the company on a fixed-term contract for two years, at a monthly salary of Dh25,000 but was surprised with the decision of dismissing him after six months.

The Court of First Instance earlier ruled to dismiss the case. Later the Court of Appeal upheld the ruling of the Court of First Instance. However, the plaintiff did not accept either ruling and challenged the same before the Court of Cassation.The Court of Cassation, in turn, accepted one request on the appellant - that of Dh14,000 for working for a period of 17 days - and rejected the other requests. The court said the appellant is eligible to receive Dh14,000.

By Mohammed Al Sadafy