Salary proof must to rent an apartment in Dubai

Tenents will have to provide a statement of income from their employer to landlords before leasing a property in Dubai.
Dubai Land Department (DLD) has now included an income statement in the list of documents that a tenant requires for renting an apartment in the emirate.
The other documents required are:
•A copy of your passport
•A copy of your residency UAE visa
•A signed application for tenancy with all information provided
•A security deposit (usually around equivalent of 4 weeks rent) this is refundable when you exit the property providing it is returned to the owner in the same condition when you entered the property.
•The rent sometimes is negotiable but usually four cheques – the first being three months rent cheque, which is dated now, and the following postdated for 3 monthly intervals. The rent is paid in advance in Dubai.
The DLD advises tenants to use only a registered broker/agent, adding newcomers should study the location area maps, have a good look at the differing prices, factor traffic and commuting to work, consider the surrounding amenities, and take a drive around the areas before contacting an agent.

Agents are required to have an agreement with their client (tenant) as the latter pays five per cent fee to the former. The fee is paid at the time of signing a lease contract.
The department also makes it very clear that tenants have no right to alter, damage, change the interior or exterior of the property without express written permission form the owner.
“The days are gone when an irresponsible tenant leaves a property dirty, with their rubbish and unfit for occupation,” it states.
Maintain the property
The property will need to be left in the same condition, as is handed over to the tenant with the tenant and landlord signing an “Entry Condition Report.” This ensures protection to the tenant against the claim of a landlord for damage or condition of a property, which was present before the tenant’s occupation.
Upon leaving the property, an “Exit Condition Report” is completed by the tenant and landlord (or landlord’s agent) and the both reports must match.
“It is a good idea to take some photographs of any damage which your concerned about to ensure you are not blamed for damage, have the landlord or landlord’s agent sign these immediately to protect yourself,” the department counsels.
The DLD website further states a new standard form for rentals and property management will be issued in coming months and shall be available only for registered brokers.

‘Rental Increase Calculator’ on the Dubai Land Department-operated portal to help Tenants

Dubai: Tenants in Dubai can have an instant update on where they stand vis-à-vis the new rental decree by inputting their lease details into the ‘Rental Increase Calculator’ on the Dubai Land Department-operated portal. Doing so will let you know immediately whether you are liable to pay a higher rental during the lease renewal and how much landlords are eligible to demand as per the strict range set by the decree.

The average rentals for all the key residential neighbourhoods are provided, which will be updated to ensure they are in sync with the prevailing asking rates. It will also tell you that the landlord has no right to demand an increase in the current renewal if what you are paying now is within 10 per cent of the average rental for that area. What the decree does is lessen the imbalance in the tenant-landlord relationship, which in this market has historically weighed in favour of the latter.

“This decree will further boost the real estate sector by introducing great deal of transparency and clarity to the tenant-owner relationship which will pay off to all stakeholders involved,” said Tanzeel Gader, CEO of Flash Properties.

Also, just as important going forward, Dubai also does not want to be saddled with a reputation of being a costly place to do business from. The latest semi-annual report from CBRE places the emirate’s commercial realty as being the 23rd most expensive in the world.

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If the increases continue, and it will as the buzz gets heavier with all the Expo 2020 preparatory works, Dubai wants to make sure that it will be confined to set ranges that can also be monitored. This is why the decree is as much about Dubai residential space as it will be about its expanding commercial realty.

His Highness Sheikh Mohammed issues new decree on Dubai rental increases

In his capacity as the Ruler of Dubai, Vice-President and Prime Minister of the UAE, His Highness Sheikh Mohammed bin Rashid Al Maktoum has issued Decree No. 43 of 2013 concerning the percentages of maximum property rent increase that are allowed upon the renewal of tenancy contracts.

The Decree states that there should not be any rent increase if the rent of the property unit is less than 10 per cent of the average rent of a similar property in the same residential area. If the rent value is between 11 and 20 per cent less than the average rent of a similar property, the maximum rent increase shall be equal to 5 per cent of the rent value.

Additionally, if the rental value of a unit is between 21 and 30 per cent less than the average rent of a similar unit, the maximum rent increase shall be equal to 10 per cent of the rental value.

If the rental value of a property is between 31 and 40 per cent less than the average rental of a similar property, the maximum rent increase shall be equal to 15 per cent of the rental value. A maximum rent increase of 20 per cent is applicable if the rental value of a property unit is less than 40 per cent or more of the average rent of a similar unit.

The Decree applies to landlords from the public and private sectors in the emirate of Dubai including private development areas and free zones.

Article III of the Decree states that the average similar rental value of the property is determined by the Real Estate Regulatory Agency's (Rera) rent index.

The Decree is effective from the date of issuance and shall be published in the Official Gazette.

Annual leave not taken to be paid in cash if employee leaves company -Dubai court issues new ruling.

The Dubai Court of Cassation has established a new legal principle with regards entitlement of annual leave balance of employees.

Employees are entitled to avail cash allowance for balance of annul leave only on two conditions:

First, if the office required the employee to work during his annual leave and could not carry forward the balance leave to the following year.

Secondly, if the employee is required to leave the workplace after the notice period or if the employer terminated the worker without giving the leave due to him.

The court also ruled that the end-of-service gratuity mentioned in the fixed-term contract should be paid fully to the worker if he decides to resign after completing five years in service.

Similarly, employees whose service at least more than one year at the time of resignation are entitled to a-third of end-of-the-service benefits.

The court issued the principles in a case where the employee did not receive vacation allowance as the person had left work without serving a notice period.

A director of a company filed a lawsuit in the labour court in Dubai against his company, demanding the firm pay him dues of Dh765,000 – which included his annual leave allowance for the last two years and end-of-service gratuity.

The court ruled that the employee is eligible for cash allowance for balance annual leave for the last two years and that the person is eligible to receive the full amount of the end-of-service gratuity as he spent 6 years and 4 months in service at the company.

Earlier, the Court of First Instance had dismissed the case and the plaintiff appealed before the Court of Appeal, which ruled in his favour. The Appeals Court ordered the company to pay him Dh347,000 – in cash allowance for annual leave and full end-of-service gratuity.

The company then challenged the ruling before the Court of Cassation.

The court based its ruling to the provisions of Articles 78 and 79 of the Federal Labour Law No. 8 of 1980.

The court said in the reasons for its judgment that the employer had failed to prove that the plaintiff got his dues.

Dubai Health Authority announces mandatory health insurance cover roll-out plan

Dubai: Companies of varying sizes were issued deadlines on Tuesday by the Dubai Health Authority (DHA) to meet mandatory health insurance coverage laws starting in 2014.

Following a meeting between the DHA and health insurance companies in Dubai on Tuesday, a new timetable offers deadlines for three categories of companies based upon the number of employees on their payroll — larger companies with wider profit margins will be required to ensure complete insurance coverage sooner while smaller companies will have until mid-2016 to meet the call.

Companies with more than 1,000 employees, for example, must insure all of its workers by October 2014.

The new Health Insurance Law was approved by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

Eisa Al Maidour, director-general of the DHA, said in a statement on Tuesday that the “health insurance mandate will provide a significant boost to the health insurance industry, it will attract investment in the health care sector and will generate healthy competition between providers as well as health facilities. This only means further improvement in the quality of health services as well as more health care options and competitive premium prices. The mandate will benefit all the stakeholders concerned — this includes insurance providers, health care facilities and most importantly, patients.

Aim of the law.Timetable offers deadlines for three types of companies based on the number of employees on their payroll
The new Health Insurance Law was approved by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
Aim of the law
Our aim is to provide everyone in Dubai with access to essential health cover and to empower them by providing them with the right to choose their health provider within the private or public sector,” Al Maidour said.

According to the new timetable’s Phase 1, companies with more than 1,000 employees will be required by the end of October 2014 to “ensure every employee/dependent has insurance coverage by the stipulated deadline.”

In the second phase of the plan, companies with 100-999 employees must implement full health insurance coverage by July 2016.

Under a third phase, companies with less than 100 employees have until June 2016 to arrange for complete insurance coverage.

The DHA timetable demands that spouses and dependents as well as domestic workers must also be fully insured for basic health coverage by June 2016.

Visa renewal

When it goes into force, the new law will ensure that no work or residence visa will be renewed without a health insurance cover.

David Hedley, CEO of Mediclinic Middle East which runs the Mediclinic City and Welcare Hospitals, said earlier that this “is a giant leap forward for Dubai as everyone will have access to affordable and quality health care. I congratulate the government on its bold step and I am confident the insurance system will be implemented successfully.”

Dr Ahyam Refaat, founder of health care consultant Accumed PM, said in an earlier interview that the “long-awaited legislation is a step in the right direction. It will add to Dubai’s growth and public health and safety.”

Insurers need DHA permit

Meanwhile, the DHA said it will soon be issuing a list of approved health insurers who have applied for and received a permit to offer services in Dubai.

All health care providers will need to obtain a health insurance permit so that they are eligible to provide insurance cover in Dubai, Al Maidour said.

“In order to ensure we have the very best insurance companies on board, the DHA has laid out a set of criteria that all insurance companies need to adhere to, so that they are eligible to receive a health insurance permit, which is mandatory for companies that want to provide a health cover to anyone in Dubai.”

Dr Haider Al Yousuf, director of health, said: “Insurance companies interested in providing the essential health benefits [EHB] package to resident employees with salaries below Dh4,000 will have to undergo further qualifying criteria to ascertain their ability to provide an insurance package at an affordable rate. The premium for this package will range between Dh500-700 per person per year.”

He added that the package will cover all essential health services. “This package will cover emergency care, access to general physician [GP]/family physicians, referral to specialists, tests and investigations, surgical procedures and maternity care. All the necessary health requirements will be covered by this package. Therefore, once the mandatory health insurance is rolled out, people across the board will see the immediate benefits of the system.”

Cost for employers

Al Yousuf said that for employers, this will provide a minimum impact in terms of cost. “On average, health insurance costs 1.5 per cent of the monthly salary. For example, if an employer pays Dh10,000 per month in salaries, if he adds Dh150 per month, it covers the cost of health insurance. This is a minimum impact, adequate benefit plan; clearly, the benefits outweigh the minimum costs involved. The scheme protects both employers and employees from unforeseen health care costs that can arise out of an illness or an emergency.”

He said that as per the law, companies are liable to cover their employees only but the DHA encourages companies to cover the dependents of their employees as well. “It is a known fact that covering dependents of employees directly leads to greater employee satisfaction and better productivity.”

Health insurance made mandatory for all citizens in Dubai

The long-anticipated health insurance law of Dubai has been approved. From next year, health insurance will be mandatory for all citizens, residents and visitors to Dubai.

His Highness Sheikh Mohammad bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, yesterday approved the Health Insurance Law which stipulates rules and regulations for all parties involved in provision and implementation of health insurance in the emirate.

The fundamental basis of the law is to ensure that every national, resident and visitor in Dubai has essential health insurance coverage and access to essential health services.

“The law is fundamental to ensure smooth delivery of essential health insurance to everyone living in the Emirate, which roughly means over three million people, including nationals and residents with Dubai visas,” said Issa Al Maidoor, Director General of the Dubai Health Authority (DHA).

“It will not be possible to be in the emirate without health insurance. Residents will not get a visa without health insurance,” he added.The law stipulates the roles and responsibilities of all the stakeholders involved in the provision and implementation of health insurance.

While the government will be responsible for health insurance of UAE national, employers will be responsible for all their employees. Domestic workers will not be excluded from this scheme, the DHA emphasised.

Spouses of residents in Dubai must be insured by the sponsor of the spouse and not by the employer of the sponsor.  Visitors to Dubai will get health insurance upon entering the country.  Two million people are currently not insured, according to DHA estimates.

“We would like to thank Sheikh Mohammed and we are committed to fulfill his vision and ensure that every individual in Dubai has access to essential health coverage. Health insurance is a form of security and it is important for every individual to know that if he needs access to healthcare, it is easily available,” said Al Maidoor.Essential health coverage means insurance that ensures access to basic healthcare. At the same time, it should not put a burden on the employer, explained Haidar Al Yousuf, Director of Health Funding at the DHA.

Although emergency  and surgical services and maternity care will be included in the basic package, dentistry will not be on the list of essential health care services. “It is a smartly designed package, providing for basic services. Obviously, it does not include luxury services like cosmetic treatment. It provides the patient with basic needs,” Al Yousuf said.

Preventive health care, which has been the blind spot of health insurance, is not part of the basic package, but this is likely to change with the introduction of this law.

“We definitely encourage more and more preventive care to be provided by insurance companies. As the insurance market becomes more mature, companies are expected to stay with insurance companies longer. Insurance companies may then feel comfortable to provide preventive benefits,” said Al Yousuf.

Insurance companies will be permitted to offer competitive packages, with an expected average price tag of Dh600. Companies may also offer varying co-payment possibilities.  However, there is a minimum requirement for the co-payment cap, explains Al Yousuf.

“The co-payment cap is the maximum amount that the patient pays out of the pocket. Anything above this amount should be paid by the insurance company. The minimum requirements of this cap have been made clear to the insurance companies. Currently, there are more than 40 insurance companies approved by the DHA, and the details of the basic packages have already been communicated with these companies. They will be announcing their packages soon,” the DHA said.

Sustainable health care

The health insurance law rests on two pillars. Apart from providing residents with access to basic healthcare, it develops an effective and sustainable health financing system, says the DHA .

“Depending on the insurance companies’ policies, health care will be available at public as well as private hospitals. Public hospitals will act as private hospitals in providing health care to insured patients. The idea is that patients are not bound by financial considerations when selecting the health care of their choice. They will be able to select the services they find most attractive,” explained Al Yousuf.

“We looked at some of the worlds’ best practices and some regionally applied systems. Of course we want the best health care system. What is unique about this law is that it does not only provide access to health care services, but it also ensures quality of these services.

“All parties will be encouraged to perform slightly better, and the results of this will be published. This transparency will guarantee that the focus of health care is on quality, and not only on price,” he added.

The law will go into effect 60 days after signing of the law, but the implementation is expected to be done over a period of two and a half years in phases.  All parties will be expected to comply with the law within a year.

Though details of insurance responsibilities are to be announced to the public soon, some highlights were announced by the DHA on Tuesday.

Residents

For residents in Dubai, the law stipulates the responsibility of the employer to provide with the minimum of a basic health insurance package based on their current health insurance policy.

In doing so, the company must bear the full costs of the procedure and these costs may not be deducted from the beneficiaries.  It is expected that of the total amount spent on salaries, 1.5 per cent will be spent on the insurance scheme providing the basic health insurance coverage, explained Al Yousuf.

As the insurance coverage is linked to residency, companies are obliged to show sufficient evidence of insurance coverage when residence visa are to be renewed.

The insurance contract may not always cover the same period as the residency period. If it happens that due to this the employee is not covered by health insurance and medical treatment is required, the company must bear the full costs of the healthcare services provided.

UAE nationals

UAE nationals will receive insurance cards to replace the existing Dubai Health Authority (DHA) health cards that provide coverage for healthcare services and preventive care. “They will continue to have access to all current healthcare services provided by the DHA and various private healthcare providers,” said Al Yousuf.

Visitors

On entering Dubai, the visitor will be required to purchase health insurance. “The costs of this health insurance package will be very low, covering only emergency cases,” said Al Yousuf.

The costs of this health insurance coverage will be included in the costs of a visa, explained Al Maidoor. “We do not want to duplicate the procedure, we want to simplify it,” he said.

Violations

Violators of the Health Insurance Law  will be fined a minimum of Dh500 and a maximum of Dh150,000. If the violator repeats the violation in the same year, the fine will be doubled, although the fine may not exceed Dh50,000.  In addition to the fine, the DHA may issue a warning and suspend the company’s health insurance activities within the emirate for not more than two years, or cancel the health insurance permit. The violation may also result in civil or criminal cases.

Complete your property transaction in Dubai within 12 minutes-Developers get authority from Land department

Dubai developers will now be able to register property transactions and complete them in mere 12 minutes compared to seven days required previously.Dubai Land Department (DLD) tweeted, saying, “The LD has granted developers the authority to register property transactions. However, the department will carry the auditing process and issue the contracts.”

The department added: “Now your transaction can be completed in just 12 minutes instead of 7 days.”

According to DLD, it has successfully achieved a “new” record in saving the client’s effort and time, achieving its objective of offering client satisfaction, transparent transactions and internationally premium real estate services.Real estate agents say these are primary market transactions between the first purchaser and developer.

Already in July, DLD had launched “registration trustees” service for the secondary market sales, allowing customers to complete transactions outside official working hours through licensed legal offices. The service, however, costs Dh4,000 per transaction.

The department also got a pat on its back when World Bank’s 2013 Doing Business Index ranked it has the fourth best in the world for ease of real estate and property registration. A year back, it was placed at number 12 globally by the same index.

DLD Director-General Sultan Butti bin Mejren said in September that total property transactions crossed Dh162 billion in the first nine months of 2013 compared to Dh90bn same period last year.

Dubai raised registration fee from 2 per cent to 4 per cent of the property value from October 6 aimed at eliminating speculators and controlling price volatility.

Abu Dhabi scraps five per cent rent cap

Abu Dhabi has removed the annual five per cent cap on rent increases, according to a resolution issued on Thursday.
The resolution issued by the Abu Dhabi Executive Council annuls the yearly rent increase and rent contract extensions from November 10, a WAM report said.
Analysts say the rents will now be determined by the market forces and the location and the neighbourhood of the buildings.
The change in rental laws comes as the property market in the capital has picked up pace.

Rental Dispute Settlement Centre operational today in Dubai

Sultan Butti bin Mejren, Director General, DLD

The Rental Dispute Settlement Centre, the judicial arm of the Dubai Land Department (DLD), begins operations today.

Established by Decree No 26, 2013, issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE and Ruler of Dubai, the settlement centre will be based at the department’s head office.Working hours will be 7:30am to 2:30pm and then from 4:30pm, according to the DLD.
Promising speedier resolutions to property disagreements, Sultan Butti bin Mejren, Director General, DLD, said, in a statement, "The opening of the new rental disputes settlement centre is a move aimed at delivering an improved level of services to DLD’s clients.“It will allow us to address disputes occurring from real estate issues in a timely and professional manner consistent with the department’s highest standards.”

“We have already recruited 48 legal experts for the centre,” he had said.The settlement centre has to resolve most of disputes in a maximum of 30 days.

According to the Article 16 of the decree, all committees will have to judge all rental lawsuits within a period not exceeding 30 days from the date of referral of the case to them.The deadline may, however, be extended in accordance with the rules and procedures adopted by the chairman of the Centre in this regard.

Free zones included
The settlement centre will handle all disputes arising between leaseholders and tenants located in the emirate, including its free zones.

Either party is able to file a claim with the centre and can request temporary judgments or interim relief.

They can also appeal decisions made by the centre, which implements its judgments on disputes. Judge Abdul Qader Mousa has been appointed as head of the centre.

"The Rental Disputes Settlement Centre will provide transparent resolution services that have been designed to help all parties to work and live in Dubai in an environment governed by clear rules,” said Mejren.

10 committees

In September, Mejren had said that the centre will have 10 committees, out of which eight will be committees for cases of first instances, and two for appeal.
Earlier judgments passed by Dubai Municipality Rent Committee were final and could not be appealed. The settlement centre allows an appeal only in cases where the value is over Dh100,000.In other cases, all judgments are considered final and not subject to appeal.

Fees

No fee details were given, but Mejren had said earlier the centre will charge 3.5 per cent of the annual rent as fees, similar to the fee charged by Dubai Municipality Rent Committee.

“The fee will remain the same as charged earlier by the Rent Committee for a few months until the centre revises it, if need may be.”
The settlement centre’s scope of practice does not cover rental disputes arising within Dubai’s free zones, which have their own judicial committees, or special courts, to adjudicate in such matters.

Moreover, its authority does not extend to disputes arising from contract leasing, as well as those arising from long-term leases covered by the provisions of Decree No 7 for the year 2006, which pertains to real estate registration in Dubai.

New residence visa rules in UAE -Dh20,000 salary must to sponsor parents

The new ruling requires applicants to provide evidence of either having a minumum salary of Dh20,000 or a monthly pay of Dh19,000 plus a two-bedroom accommodation. The development has left many long-term residents here at their wits’ end.
Earlier rules
According to earlier rules (in place until a few weeks ago), someone able to provide proof of a monthly salary of Dh10,000 or Dh9,000 per month plus accommodation should have been able to sponsor either set of parents on a permanent basis
The minimum salary seems to be the only clause updated by the Ministry of Interior’s General Directorate of Residency and Foreigners Affairs in the new list of pre-requisites for those seeking to obtain long-term stay for their parents under ‘Humanitarian Cases’.
A Dubai Naturalisation and Residency Department (DNRD) official confirmed this .
Residents wanting to sponsor their parents must also furnish proof that they are living in a an apartment that has a minumum of two bedrooms.The tenancy contract should be officially attested. Similarly, the labour contract bearing proof of salary must be attested by the Ministry of Labour.
An applicant must also pay a deposit of Dh2,000 per parent after seeking approval for sponsorship from the special committee that handles such cases.As in the past, expats must also provide documents to prove that their parents are entirely dependent on them and that there is no one to take care of them back home.

This has to be certified by a letter from the embassy or consulate of the applicant’s home country.It’s not immediately clear how the new rule will impact expats whose parents are already in the UAE on residence visas.

Get Dubai immigration token sitting at home - The General Directorate of Residency and Foreigners Affairs – Dubai and Du signed MOU

No more do you have to wait in long queues at the Department of Immigration and Naturalisation in Dubai as 'smart queuing' will become a reality.

The General Directorate of Residency and Foreigners Affairs – Dubai and Du signed a Memorandum of Understanding (MoU) during the Gitex Technology Week 2013, to develop a smart app, among other areas, to simply a visit to the Directorate.
Smart queuing will be realised through time slots that can be booked by people who plan to visit the Directorate.
In order to get a token, you must select the purpose for which you plan to visit the Department, explained an official. Based on the number of people who have booked a time slot before you, you will be given a timeslot during which you are expected to visit the Department.
The timeslot can only be given on the same day of the request, and a new smart queue will be formed every day.
"This means you should be able to come to the Department on the same day, otherwise you should not book the time slot," said the official.

"We already have a queuing system in place, but the app enables customers to get a token for the queue online," explains Colonel Khalid Nasser Al Razooqi, General Director of the E-services Sector.

"The estimated time slot is based on the calculation of the average time each request is handled with. This is different for each service required, but it is never longer than 3 minutes."

Apart from the token, a general list of requirements will be provided based on the request, which will help customers prepare better for their visit to the Department.

The same information is available on the website, and customers can call the customer service desk to inquire about the required documents if they are not sure, said the Colonel.

“We are proud to support the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, by making the General Directorate of Residency and Foreigners Affairs – Dubai a smart establishment, with full m-government accessibility for everyone within the UAE,” said Major General Al Marri, Director of General Directorate of Residency and Foreigners Affairs – Dubai.

“Through this collaboration, we aim to make our customers’ interactions even more streamlined, by rolling out various features that will add to their experience in a positive way.”

Expatriates with traffic fines cannot leave UAE

 Expatriates who have committed road offences will not be allowed to leave the UAE unless they pay all their traffic fines in line with new Interior Ministry measures.

The ministry said the new rules would be later expanded to cover all other financial obligations by expatriates seeking to cancel their visa and leave the country.

“We have linked procedures to cancel visas for expatriates with the payment of all their traffic fines.This step is intended to ensure departing expatriates will pay all their financial dues to the state,” said Brigadier Rashid Sultan Al Khadr, Director, Legal Affairs Department at the Interior Ministry.

“This is just a first step as it affects only individuals who apply for visa cancellation and must now pay their traffic fines. The ministry is also considering expanding this experience in the near future so all visa and immigration procedures will be linked to payment of all dues, including traffic, civil defence and other fees,” he told the Dubai-based Arabic language daily Emarat Al Youm.

Khadr said the computer systems of the traffic police have already been linked to those in all immigration departments in the UAE.“This means no application for visa cancellation by expatriates will be approved and they will not be allowed to leave the UAE unless they pay all their traffic fines.”

He said the new measures are part of an overall plan designed to cope with what he described as “the new developments and changes”, adding they would help bolster security for people and protect the country’s rights.

According to Emarat Al Youm, drivers in the UAE committed around 1.95 million traffic offences in the first quarter of 2013.

Emirates ID cards to replace labour cards from next year

 “The move is part of plans to fast-track four million transactions — one million applications for new work permits, another million for renewal of these permits, a third million applications for new job contract and a million for renewing job contract every year — so that any transaction will take maximum 48 hours to complete instead of a minimum of 15 days at present,” said Humaid Bin Deemas Al Suwaidi, Assistant Undersecretary for Labour Affairs, told a news conference.

Al Suwaidi added plans for re-engineering of transactions, which will have no impact on fees, would ease the lives of more than four million workers in 250,000 private companies across the country, allowing workers and employers to obtain work permits and job contracts online and saving time and effort.

“The move will mean that an employer will submit only a job contract signed by both the worker and the employer to obtain a work permit online, in keeping with plans to make the UAE one of the world’s top five governments by 2021,” Al Suwaidi said.

Once labour cards are scrapped, millions of dirhams of penalties levied for failing to obtain, renew or cancel these cards, will be waived.

Government fees account for more than 57 per cent of the UAE budget revenues

The Labour Ministry is the third largest revenue generator after the ministries of Finance and Interior, with revenues for this year are put at more than Dh3.5 billion.

It is also planned that the Emirates ID will also replace all other identification cards for the residents such as driving licence and health insurance card.

Al Suwaidi said that pushing towards a smart government would mean a customer-centred departments which provide efficient services.

Al Suwaidi encouraged workers, companies and other stakeholders to share their proposals an views on how to improve quality and efficiency of services being offered at present.

“We’ve received proposals to get away with job contracts, but these contract will only be developed within the framework of the labour law, others proposed a one-stop shop so that firms would deal with only the Interior Ministry to have their work permits, job contracts and residence visa completed in one step,” Al Suwaidi said.

Stressing that all these proposals and others will be addressed, Al Suwaidi vowed no effort will be saved to meet expectations of nearly 13 sectors and 2,000 professions in the private sector companies.

A one-year ban is currently being imposed on anyone who obtains a labour card with a company they are not really working for. A Dh1,000 fine is also being imposed for failing to obtain or renew labour cards after 60 days from the date the worker enters the country or from the date of the expiration of the labour card is for each month of delay or part thereof.

Abu Dhabi: As Emirates ID registration of all foreign workers in the country has been completed, work permits, better known as labour cards, will be scrapped and replaced by the Emirates ID in the first quarter of next year, said a senior Ministry of Labour official yesterday.

Dubai visit visa on your mobile-- DNRD

Dubai’s Naturalisation and Residency Department (DNRD) says its mobile application will soon enable residents to apply for a visa using their mobile phones.

Major-General Mohammed Ahmed Al Marri, Director-General of the Directorate told  that certain services of the DNRD have been operational on the e- platform for quite a while now.

Col Khalid Nasser Al Razouqi, Assistant Director-General of e-Service at DNRD who conducted the briefing about the new mobile application said the app is being implemented in two phases.

In the first phase, users will only be allowed to renew and cancel visas.

The second phase will incorporate more extensive services like incorporating the complete visa application process through the mobile app and thereby totally avoiding the typing centre.

The  app is being developed by Emartech. ‘Naqadi’ the payment gateway built and managed by Emartech will be incorporated into the application to manage visa payments and other fees and charges of DNRD.

According to Al Razouqi the application should be completely up and running incorporating all features by the end of next year.

Health card, insurance mandatory to obtain UAE residence visa

A valid health card or valid health insurance is a prerequisite to obtain a residence visa in the UAE.

The Ministry of Health confirmed that newcomers to the UAE are obliged to have a valid health card or a valid health insurance in order to get a residence visa, reported Al Ittihad newspaper.

The ministry, in a circular sent to all departments of preventive medicine and registration centres, urged them to inform applicants to pay fees for health card or health insurance in order to complete the transaction.

The MoH circular No 1001 of 2013 stressed on the non-issuance of health fitness certificates without the health card or health insurance.

The circular also stressed that no health card or health fitness certificates can be issued without verifying the fee receipt.

Al Ittihad reported that the ministry took this step following manipulation by some companies in the Northern Emirates, which obtained health fitness certificates for workers without issuing them health cards, in order to save money

Property investors will be able to save Dh30,000 plus in court fees - New Dubai committee to settle property dispute for free.

“The committee will aim to resolves disputes and issue refunds to investors by auctioning the project,” said Sultan Butti Bin Mejren, Director General, DLD.
“People who generally pay over Dh30,000 in court fees will not have to pay anything. The committee will work free of charge,” he added.
No details were shared how investors could file their claims and the time taken to resolve the disputes.
Emirates 24l7 reported that developers had started putting notices of project cancellations, a move that has gained pace after the government set up a committee to liquidate and settle claims on cancelled projects.
The notices being published are as per the regulation set by Dubai’s Real Estate Regulatory Agency (Rera).
The notices generally give claimants two weeks' time from the first date of publishing of the notice to submit their claims with Rera’s liquidation department. Claimants are asked to provide property reservation form, original property agreement, passport copy and original payment receipts.
In July, the Dubai government issued Decree No. (21) of 2013 setting up a special legal committee for the liquidation of cancelled property projects and the settlement of rights disputes related to such projects.
Rera said earlier it would not release in public the list of cancelled projects, but stated investors in cancelled projects are notified through email.
As per Dubai government’s bond prospectus issued in 2012, 217 projects have been cancelled as of May 31, 2011.
Rera data reveals that 187 projects have been completed since the beginning of 2009; 253 projects are on hold; 232 projects are likely to be completed in due course.
Each of these 253 registered projects is likely to qualify for either the Tayseer or the Tanmia initiative, the bond prospectus said.
In its August newsletter, UAE-based Hadef & Partners law firm said: “It appears Decree 21 will create greater certainty, and a faster and more inexpensive process for aggrieved purchasers to make claims.
"However, given that the decree applies only to projects that have been cancelled by Rera, it is too soon to assess with any accuracy how dramatic the impact of Decree 21 will be in the property market.”

Property investors will be able to save Dh30,000 plus in court fees as the Dubai Land Department (DLD) will set up a new settlement committee from next week to resolve disputes.

Dubai property registration fee doubled to 4% from october 6th

Dubai Sharjah Ajman Abu dhabi Properties: Dubai property registration fee doubled to 4% from...: The Dubai The Dubai Land Department (DLD) on Sunday announced the doubling of the property registration fee to 4 per cent of the control from 2 per cent earlier.

The new registration fees covers all property transactions in the emirate of Dubai except for the industrial sector, including warehouses.

The new fee structure will start to be implemented from October 6, 2013.

DLD Director-General Sultan Butti bin Mejren said: "The move is aimed to stop quick transactions (flipping) which are unhealthy for the market and result in sudden price increases. “The decision has come at the right time… the market has matured and investor confidence is growing. The move in not likely to have any negative impact."

Mejren pointed out that 110 countries in the world had higher property registration rates than Dubai, citing United Kingdom, which charges 4-10 per cent, France 8 per cent and India 7.3 per cent.

As per the decree, the fee will be split 2 per cent each between the buyer and seller. Although the previous law did specify one per cent each for the seller and buyer, in practice the buyer always paid the two per cent.  Mortgage registration fees remain same at 0.25 per cent of the mortgage value to encourage end-users.

No rollback

Asked if the department would consider delaying the implementation, Mejren asserted in no way the decision would be rolled out.

“The mechanism to issue laws in Dubai has evolved. We took almost three months to finalise the decision and I was been reviewed by the financial and legal department and even by investors. The law has been issued and is being executed. There is no way it will be revised.” Although the government hopes to slow down the price rise and discourage flippers, some experts believe this will not discourage genuine buyers because the price increases are based on real demand in Dubai property and not flipping.

Expatriate residents in UAE to pay Dh500 for health cards from Spetember

Dubai – Expatriate residents will have to pay a fee of Dh500 for issuing and renewing their health cards that will enable them to receive medical treatment at government hospitals and facilities across the UAE.

The move is in line with the Cabinet resolution, issued by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

The decision provides for levying Dh500 for issuing and renewing health cards for expats of all ages. It will come into force on September 30, the Ministry of Health announced today. Earlier, the health card issuance or renewal fee was Dh300.

Shaikh Mohammad has issued resolution No 18 for 2013 concerning the fees of health cards and curative and diagnostic services for non-nationals.

According to the resolution, an additional fee of Dh300 will be charged for the issue of a health card in lieu of a lost one.

Article No 3 of the decision stipulates that the fees will be levied against curative and diagnostic services provided by the Ministry of Health to expats holding health cards. These fees will be doubled for those who do not hold ministry-issued health cards.

Non-Muslim UAE expats advised to write will or face family disputes

Abu Dhabi/Dubai: Non-Muslims living in the UAE should make a will in case of death or undergo time-consuming procedures to ensure that the inheritance scheme is implemented according to their own country’s laws, experts said.
Failure to do so may result in family disputes, according to a report by the Ministry of Interior’s monthly publication, 999 Magazine.Only about 10-20 per cent of expat residents in the UAE have taken legal steps towards asset distribution, according to the report.

Sources confirmed that a comprehensive will ensures that a person’s possessions are distributed according to his wishes in the event of death. “Oftentimes the family of the deceased can obtain official documents from their country of origin asking that distribution of assets be done according to their country of citizenship,” said Emirati lawyer Hussain Al Jaziri.

In Islam, the rules of inheritance are made clear and oftentimes there is no need for a will. However, Muslims can write a will in which they can give out only one third of their property to non-family members, including charity organisations and the less fortunate.

Additionally, Lt Col Awad Saleh Al Kindi, editor-in-chief of 999, said: “There’s a need for residents to be aware of the inheritance rules in the country. This is important to preserve peace and harmony within the family, which forms the basic unit of our society.”

For non-Muslim expatriates who don’t have a will, there is a likelihood that Sharia law or forced rules on inheritors will apply. The court may also decide on who takes care of the surviving children upon the untimely death of the parent/s. If the expatriate has assets outside the UAE, he could lose a huge proportion of his inheritance to excessive taxes.

“If you want the right money in the right hands at the right time, the starting point is a properly executed last will and testament, without which your dependants may be in dire straits for some considerable time before assets are released,” Steve Gregory, managing partner at Holborn Assets, told Gulf News.

“Worse, without a statement about guardians for the children, courts have no reason to follow what might seem reasonable, and may make decisions that leave children with grandparents or others whom the parents may never have wanted.”

Gregory explained that a valid will is required in every jurisdiction where there are assets. So, someone with properties in the UK and France and bank accounts in the Isle of Man and UAE, already has four jurisdictions for his executors to deal with.

If a non-expatriate Muslim in the UAE has assets in the country and abroad, Gregory said it is advisable to get an international will or a similar document from their home country.

Andrew Prince at Acuma Independent Financial Advice explained that Sharia inheritance provisions are a form of forced heirship which is used in a number of countries, including France. “However, unlike France, in the UAE, the Sharia provisions will tend to pass a much greater share of the estate to the male bloodline. The female spouse, for example, may only receive one eighth of the estate held in the UAE,” he said.

“Additionally, your surviving family will have the extra problem that your Dubai, Abu Dhabi or UAE-based assets are likely to be frozen while the local legal system works through the process of assessing debts that need paying from your estate. The delay might be a couple of years or so getting all these matters dealt with,” he added.
    By Nada Al Taher, Staff Reporter and Cleofe Maceda, Senior Reporter Gulf News

Can a boss check your personal e-mail? UAE Law

A British professional living in Dubai found out that his boss was reading his personal e-mails. He, inadvertently, saved the password to his email on his office computer, giving access to all his correspondence - whether personal, financial or professional - to his boss.

When he discovered this, the matter was taken up with the HR and the boss had to apologise to him before the team.

In an office, work email is probably your employer’s property, not yours. Most people also access their personal emails from the office computer. If they do so, all personal emails on a company-owned computer, phone or other device, may be available on the company’s server and can be accessed if somebody in command wants to.

Eid Al Fitr holiday announced in UAE

Federal government offices in the UAE will be closed from Wednesday, August 7, corresponding to Ramadan 29 and will reopen on the fourth day of the month of Shawal in celebration of Eid Al Fitr.

Shawal 4 falls on Sunday, August 11, if Eid begins on Thursday, August 8.

Work in the government will resume on Monday, August 12, if the start of the new lunar month of Shawal is not confirmed by Ramadan 29 and subsequently Ramadan completes 30 days.

The announcement was made on Tuesday by the Federal Authority of Human Resources.

Dubai property buyers' protection law Tanweer is ready and waiting for final approval

The Real Estate Investor Protection law, or ‘Tanweer’, as it is called now, is ready and awaiting clearance from higher authorities“Tanweer is ready we are just waiting for final approvals from higher authorities,” said Majida Ali Rashid, Chairwoman of the Real Estate Investment and Promotion Centre, Dubai Land Department.
“Tanweer is the first of its kind regionally and globally, the senior management has devoted considerable time and efforts in discussing its provisions with a large segment of workers in the real estate market and with consulting and legal firms to draft legal articles to reach the ambitions of the emirate in protecting investors,” Majida said.

She added: “This law will take full, complete and accurate inter legislative laws and regulations issued between 2003 and 2008 to ensure optimal application of those laws and legislations.”
Law allows full refund

In June 2012, the draft of investor protection law was released to get suggestions from industry participants.

The draft allows investors to get full refund if the developer fails to complete or handover a property within a certain timeframe or deliberately defrauds an investor or alters the specifications of the unit without obtaining requisite permission.

Investors can also claim compensation for breach of any warranty or undertaking contained in the contract for sale by the seller and the broker, misrepresentation by the developer or investor or broker, and specification in violation of the contract for sale after obtaining an expert’s report to that effect.

Can I leave my free zone job in UAE without penalty?

I joined a company under Jebel Ali Free Zone Authority (JAFZA) seven months back. The contract states that if an employee leaves within one year of joining, he has to reimburse the cost of visa and other expenses incurred by the company on him. I am now considering taking up a job with a company outside JAFZA. Kindly advise whether the company can enforce the terms of the contract and also if they would be entitled to put a ban on me.

In respect to the article in your contract which states that "if an employee leaves within one year of joining, he has to reimburse the cost of visa and other expenses incurred by the company on him", it is considered void and contrary to the Labour Law. But in this case, the employer is entitled to claim the compensation for the employee's violation of the labour contract, as the labour contracts in Free Zones like JAFZA are usually limited to two years.

Therefore, if the reader revokes the contract prematurely, then the company in this case has the right to claim ... compensation as he terminated the labour contract prematurely, and the amount of compensation varies between a maximum of Dh1,500 and Dh2,000.

Such an amount shall be determined according to the employee's position as well as salary.

The employer has the right to ask JAFZA to put a work ban for a year as such a work ban is applicable for JAFZA only.

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

One-year ban for false work permits:UAE Labour ministry

A one-year ban will be imposed on anyone who obtains a labour card with a company they are not really working for, said a senior Ministry of Labour official.
According to Humaid Bin Deemas Al Suwaidi, Assistant Undersecretary for Labour Affairs, the ministry is determined to overcome the problem of false labour ties between sponsors and workers.

Al Suwaidi said the ministry is moving forward with the implementation of measures to reduce such practices. He said the failure of the employer to cancel or renew a labour card for a worker may be considered a deception.
“The ministry is investigating all companies who are asking the ministry to reduce fines on labour cards,” he said.
“We also check if this specific establishment is really operating effectively and the number of the workers sponsored by this company and also if the company is abiding by the labour law,” he said.

He said if all conditions required by the ministry are applicable the ministry may reduce the fine, especially if it is proved that the employer is not aware of the procedures necessary to issue or renew labour cards.

“It cannot be flexible if is shown that there is no real working relationship between the employer and the worker,” he said.
He said in such cases fines will be imposed on such companies and no new work permits will be issued to such companies until all issues are settled with the ministry.

He said the fine imposed for delaying issuing or renewing labour cards after 60 days from the date the worker enters the country or from the date of the expiration of the labour card is Dh1,000 for each month of delay or part thereof.

He said the Ministry of Labour last year referred to the public prosecution 297 companies proved to be closed and which had many workers still on their sponsorship.

He added that last year 950,000 labour cards were issued by the ministry to various companies in the country.Workers who obtain false work permits from any company will not be allowed to work here for one year, he added.

Failure to pay workers' salary for two months or more can affect all companies under same owner - UAE Ministry of Labour

The Ministry of Labour has begun applying new procedures for issuing work permits.

This came within the implementation of a decree issued by the Minister of Labour, Saqr Ghobash, through which he re-regulated the procedures adopted.

New procedures will also be in place for opening records for business owners whose companies commit five types of violations.

The violations include failing to pay workers' salary for two months or more - taking into account the period during which the wages were stopped being paid and the number of workers affected by the violation.

These procedures will also be applied on companies owned by partners of the violating company.

The new procedures are based on a mechanism of notifying the concerned business owner of the committed violation.

It also grants business owners a grace period to settle the violation before their other businesses can be suspended, taking into account the imposed sanctions of the violating institution in accordance with the relating decrees.

Suspension of the other institutions includes preventing them from getting any type of work permits, whether for recruiting full or part-time workers or transferring labourers.

Other violations include failing to pay administrative claims of the ministry for months from the due date, not renewing or applying for work permits of workers for four months from his/her entry to the country or the date of joining the company.

Abu Dhabi tenancy contract must for residency visa from Abu Dhabi

A tenancy contract from Abu Dhabi is now a must when applying or renewing residency visas in the emirate.

In response to a resident’s query, who wished not to be named, on whether the residency visa of his family could be renewed with a tenancy contract issued from Dubai, the Abu Dhabi Government Contact Centre said: “Be informed that you can’t apply for the visa with tenancy contract issued from Dubai.”

When contacted, the call centre executive, reiterated: “You cannot apply for a residency visa or any visa with a tenancy contract issued from any other emirate except Abu Dhabi. You also need to get it attested by the Abu Dhabi Municipality.”

Last year, it was made mandatory across the UAE that expatriates applying for or renewing residence visa were required to produce a valid tenancy contract in the emirate they resided. Moreover, attested contracts from any other emirate were accepted in Abu Dhabi for residency visa renewal.

In September, the Secretariat General of the Executive Council had said that Abu Dhabi government employees would be required to live inside the capital within a year. The decision was made to ensure the safety of employees commuting long distances, often in bad weather conditions, the council said.

This website had reported in May that Abu Dhabi government owned companies were sending reminders to their staff, asking them to relocate to the capital before September or lose out on their housing allowance. Company circular states

,  “Staff currently living outside the emirate of Abu Dhabi will have a one-year grace period from September 2012 to relocate to the emirate in order to be eligible for housing allowance after September 2013. Those who wish to remain resident outside Abu Dhabi beyond September, 2013 will not be entitled to any housing allowance.”

UAE labour protection for expats

The UAE provides an attractive environment for foreign workers of 200 different nationalities, adopting comprehensive strategies to protect their rights and improve both their working and living conditions.

In this context, and as part of its commitment to improve the standards of workers' accommodation in line with international standards, the UAE has approved the Manual of the General Criteria for Workers' Accommodation.

Accommodation for workers

The decision emphasises employers' responsibilities to provide workers with accommodation commensurate with international labour standards.

Each facility operating in the country has to upgrade its workers' accommodation conditions to comply with these standards.

In implementation of this decision, Abu Dhabi has invested about Dh20bn ($5.4bn) in 23 workers "cities" which are capable of providing accommodation for 385,000 workers.

These complexes have been built in line with the new manual which stipulates that all accommodation must include its own medical clinic equipped with full services, parking, yards, walkways, mini-market, green spaces and playgrounds.

Freedom of movement in labour market

Other innovations in the efforts to protect workers' rights are aimed at introducing greater flexibility and freedom of movement in the labour market, and establishing a balanced contractual relationship between employer and worker.

At the same time, access to effective legal remedies in the event of a labour dispute have been vastly improved. In particular, the Ministry of Labour (MoL) has set up a collective labour disputes committee, with representatives of workers and employers in each labour office.

The committees must issue a decision on a dispute within two weeks of referral. Their decisions can be challenged before an appeal court within 30 days of issuance.

According to the UAE Minister of Labour, Saqr Ghobash of more than four million people employed in the private sector, only 20,000 are Emirati, and 65 per cent of those work in banking.

Working hours

The mandatory midday break for labourers who work in the sun during the summer months began on 15th June, 2013, for the ninth consecutive year. The three-month midday break rule will be strictly enforced until 15th September, 2013.

Companies will have to give a two-and-a-half hour break from 12.30pm to 3pm for all labourers who work in the open air, such as on construction sites.

The Ministerial decision also states that daily working hours must not exceed eight hours per day or night shift, and that overtime should be paid to those working additional hoursin a 24-hour period, as per Federal Law No. 08 of 1980.

Ministry inspectors hold workshops before and during the ban period to create awareness of the rules, and also make regular visits to ensure compliance by both the employers and workers.

The Ministry of Labour orders all employers to put up signs in Arabic and other languages about the banned hours, while in the case of daily exemptions (see below), employers must ensure there is enough cold water for all workers.

Work which has to continue non-stop for technical reasons is exempt from the ban, but employers are still required to provide facilities to cater for the health and safety of workers; including access to first aid supplies and cold water.

Companies which violate the midday summer break will face penalties which include having the classification of their firms downgraded by the Ministry, and a fine of Dh15,000 for each violation.

Wage Protection System

In yet another significant stride in this regard, the MoL has launched  the Wages Protection System (WPS) to safeguard payment of workers' wages via transfers through selected financial institutions. These transfers will be regulated by the government.

Furthermore, foreign workers are guaranteed the right to send their savings to their home nation  and in 2012, approximately Dh70.46 billion was remitted overseas for the benefit of workers’ families.

The UAE MoL has introduced a comprehensive range of protection measures covering both pre- and post-departure needs of workers, beginning in their country of origin (for instance, protecting workers from illegal recruiters and setting up a contract validation system), continuing after their arrival in the country (through measures like curbing abuse and non-payment of wages), and on their return and re-integration to their home country.

The UAE Labour Minister, Saqr Ghobash, has discussed a number of issues related to the regulation of the labour market in the UAE in separate meetings with Brent Wilton, Deputy Secretary-General, International Organisation of Employers, and William Lacy Swing, Director-General of the International Organisation for Migration (IOM).

Discussions covered the measures applied by the Ministry in terms of controlling and regulating the work of private employment agencies in order to minimise any negative practices that might be carried out by them.

‘Abu Dhabi Dialogue’

The officials hailed the role played by the UAE and its initiatives to improve the management of temporary contractual work cycles, particularly the ‘Abu Dhabi Dialogue’ initiative and the subsequent meetings of the countries which are sending and receiving labourers.

The second Ministerial Consultations of ‘Abu Dhabi Dialogue   2" was held in Manila from 17th  to 19th  April, 2012.

Representatives from 20 countries took part in the meeting, six of them being the labour-receiving countries of UAE, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait, in addition to eleven labour-sending countries: Afghanistan, Bangladesh, China, India, Indonesia, Nepal, Pakistan, Philippines, Sri Lanka, Thailand and Vietnam, as well as representatives from Malaysia, Singapore and Korea as observers.

The meeting concluded with the Manila Communique, which adopted the Framework of Regional Collaboration, 2012 for the Abu Dhabi Dialogue, and supported its guidelines for voluntary initiatives, and increased collaboration and partnerships to ensure the welfare and protection of contract workers.

The closing session of the meeting included a brief presentation on the latest electronic ratification system on labour contracts which aims to protect labour rights in the UAE.

Labour Mobility-Enabler for Sustainable Development

The UAE hosted an international conference on ‘Labour Mobility-Enabler for Sustainable Development’ in May, 2013.

The conference was organised by the Ministry of Labour, the Ministry of Foreign Affairs, the ECSSR and the National Qualifications Authority, in partnership with the Executive Office of the Council of Ministers of Labour in the GCC, the Government of Sweden which holds the chairmanship of the Global Forum on Migration and Development, the International Organisation for Migration (IOM) and the World Bank.

The UN Secretary-General's Special Representative for Migration and Development also participated at the conference.

The conference, held under the patronage of Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, saw 150 experts, government officials and international researchers and executives discussing the subject of cross-border movement of labour and its impact on development.

In his speech at the conference, which was read out by Saqr Ghobash, the Minister of Labour, Sheikh Mansour said, "The UAE and GCC states are concerned over contributions to international efforts to upgrade the relationship between immigration and development, as well as investing knowledge in the development policies which are related to the movement of workforce across borders on national levels, and within the framework of regional and international cooperation."

"The GCC hosts more than 15 million expatriate labourers, who are contributing to the development of our national economies.

“The workers are also benefiting from the available job opportunities in upgrading their qualifications, increasing their incomes, and improving their standard of living.

"In this regard, we should point out that our country, despite the repercussions of the global economic crisis, has created almost one million job opportunities for expatriates in the past four years. This has contributed to alleviating unemployment at the regional level."

He noted that, "The GCC is the third biggest regional organisation in terms of financial remittances by expatriates, estimated to be around $80 billion in 2012, in which the UAE share constituted 24 per cent."

The UAE won membership of the Board of Directors of the Arab Labour Organisation (ALO) after earning the confidence of delegates to the 39th Arab Labour Conference, held in Cairo in April 2012.  The UAE has also gained membership of the Financial Control Authority of the ALO.

‘Absher’

In 2012 and 2013, the UAE pushed much harder for Emiratisation. President His Highness Sheikh Khalifa bin Zayed Al Nahyan launched the ‘Absher’ initiative in November 2012, to promote the participation by Emiratis in the job market.

Meanwhile, His Highness Sheikh Mohammad bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has labelled 2013 as Emiratisation Year.

The ‘Absher’ initiative is a unique and valuable enterprise that serves the interests of the nation’s youth and provides them with means of stability and a dignified life.

Later, the MoL announced the registration of 2,200 Emiratis working in the private sector for its discounts and special offers programme, a part of the Absher initiative. Absher cards have been distributed, allowing them access to services provided by 23 governmental and private bodies.

In January 2012, Saqr Ghobash, launched phase 1 of the Labour Market Data System (LMDS) in the country.

The launch of Phase 1 also saw the signing of Memoranda of Understanding with the Federal Council for Demographic Structure, the National Centre for Statistics, the National Human Resources Recruitment and Development Authority (Tanmia),  the Abu Dhabi Employment Council (Tawteen), the Abu Dhabi Statistics Centre and the Pension Fund of Abu Dhabi.

The ministry also announced that private sector companies participating in the programme will be offered advantages, such as giving them priority for the completion of forms in services provided by the Ministry in Abu Dhabi, Dubai and other emirates.

New born baby need a visa in UAE

You must apply for a residency visa for a new-born baby within 120 days of his/her birth. If you fail to do this the child will not be allowed to leave the UAE and the legal guardian must pay an AED100 fine for each day over the 120 day period.

Documents Required:

• Application form

• Original passport for the baby (if the baby was added to one of his parent’s passport, take that one)

• Original + a copy of the baby’s birth certificate (must be attested by the Ministry of Foreign Affairs - Dubai office. Tel: 04-2221144)

• 3 passport sized photos of the baby

• Original + a copy of the attested marriage certificate

• Passport copy of sponsor.

• Copy of job contract for the sponsor or a salary certificate

Procedure:

• Go to a certified typing office and have them complete the form for you after paying the fees.

• Go to the residency section at the GDRFA  (Toll free 800-5111), and hand in the documents.

• The passport with the residency visa will be sent to you through a courier service.

Fees:

- AED 100 residence fees for each year.

- AED 115 adding fees.

 

UAE Federal laws give consumers right to get purchased product exchanged within 3 months

‘Goods once sold will not be taken back or exchanged’ is no longer the norm in the UAE, thanks to the efforts of the government to protect the rights of consumers, according to lawyer Abdullah Da’aives.

The UAE has both legislation to protect the rights of consumers and bodies competent to receive consumer complaints against dealers and take action to resolve them.

Abdullah Da’aives said this during the “Good Morning Dubai” programme broadcast on the Sama Dubai channel.

He pointed out that UAE federal laws give consumers the right to get a purchased product exchanged within three months in the case of consumer goods and six months in the case of durables.

The laws give buyers the right to seek compensation if the purchased product is damaged and the seller fails to repair or replace it, he added.The lawyer said buyers must keep the purchase invoice and certificate of warranty to ensure that their rights are protected.

If the buyer fails to resolve the matter with the seller, he can approach the Consumer Protection Department in the Ministry of Economy.

He said consumers must assert their rights if a defect is found in any purchased product instead of simply buying a new one.He added that informing the authorities may help prevent harm to other buyers, particularly in pharmaceutical and cosmetic products because authorities have the right to confiscateall similar products in the market, especially if they are past their expiry date.

The lawyer also stressed the need to activate a recent decision of the Ministry of Economy to ‘Arabise’ purchase invoices since there are many consumers who do not know the English language in which most bills are currently made.

UAE labour bans still enforced — but workers can apply for lifting

Dubai: People working in the UAE can still be banned for up to a year if they try to change jobs, a Ministry of Labour official has said.
The ban can be implemented even when an employee quits his or her job after two years of service.
It can be lifted, however, if the new employer offers the candidate a better position than the existing one and a salary that suits the person’s qualification, according to a scale set by the ministry.
There are still questions about the circumstances in which an employment ban can be enforced when a resident decides to quit their job with a view to securing employment with a new company, but officials say there are exceptions which allow bans to be lifted.
The rules and regulations that stipulate when a ban can be imposed and enforced depend on a number of legal thresholds.
Traditionally, the Ministry of Labour can automatically impose a ban when an employer terminates an unlimited labour contract before completing one year of service.
As a general rule, a labour ban is still “imposed on all expatriate employees in the UAE who are working in the private sector when they want to change from one employer to another if they left the current employer without having completed a minimum of two years service,” a ministry of labour official said. “An employment ban, labour ban, work permit ban are used for the same thing which means one will not be allowed to perform any kind of work in the UAE for a certain period of time and these are imposed for six months, one year, or there could be life ban.”
The official said a one-year ban may be imposed at the request of a sponsor if a worker resigns before the completion of a limited period contract.

A permanent ban could also be given to absconding employees or those who violate the labour law.

But there are exceptions to the rules.
Residents can move to another company if the employee remains under the same UAE sponsor or if the employee has a higher level of education to fulfil a position that is needed within the country.

“Employees who have been slapped with a six-month labour ban for breaking their contracts before the expiry of two years can work for a new company, provided they hold at least a high school diploma and have been offered a good position and salary by the new company.”

He said employees working in the UAE who receive a six-month labour ban for breaking an employment contract within two years can have the ban lifted if the employee is changing job for the companies under the same sponsor.

If the employee has a NOC (No Objection Certificate) from the current sponsor then he or she will be able to move to another company under a different sponsor, the official said.

The minimum salary in a new position is Dh5,000 for high school diploma holders, Dh7,000 for post-secondary school diploma holders, and Dh12,000 for Bachelor degree holders.

No fee will be imposed for lifting the labour ban when these conditions are met, according to a senior administrator at the ministry.

“We are still imposing the six-month labour ban on employees who quit their jobs before completing two years of service, but the ban can be lifted if the new employer offers the candidate a higher position and a salary equal or above the salary set by the minister against his or her qualifications,” he said.

The ministry said that if the employee has violated the contract in any way, then irrespective of resignation or termination, a ban can be enforced.

Women sponsored by family

A six-month ban imposed by the Ministry of Labour on people who fail to complete the period of employment stipulated under labour rules also applies to working women sponsored by their family members.

An official from the ministry said women seeking to change their jobs or leave work before completing the contractual obligation of two years with their employer would automatically attract the ban.

The official said the ban would take effect the moment a woman under the sponsorship of her husband or father cancels her labour card.

He said the mandatory six-month labour ban applies to both men and women, even if individuals are sponsored by family members, and is calculated from the date an employee’s labour card is cancelled at the Ministry of Labour.

“This is an administrative ban, meaning that a block is inserted into the ministry’s computer system preventing an application for labour approval being processed against [the] banned person’s name and passport number,” he said.

The ban cannot be lifted by paying a fine.

Complaints

Some workers have complained that the Ministry of Labour is still seeking approval from sponsors if they wish to change their jobs after two years.

Those affected point to the ministry’s earlier reforms to the labour law which did away with the need for a sponsor’s approval for employees who have been with their sponsors for two continuous years. The workers complained that they were being banned for one year for failing to secure such approval.

The labour rules, which were implemented in 2011 by the Ministry of Labour, allowed workers to switch jobs at the end of their employment contracts without the need for a no-objection certificate.

But a legal consultant at the Ministry of Labour clarified the rules and said expatriate workers would still receive a one-year ban if they failed to get their sponsor’s consent before changing jobs.

“No one is allowed to switch jobs even if they complete many years in their [current job], without the consent of their sponsor,” he said.

He also said the new law allows workers to change employment in cases such as when the company employing them has closed down and no longer exists.

“But those workers will be given one-year ban if they do not file a complaint at the Ministry in less than two months after the [closure] of their company.”

End-of-service benefits in UAE 'must be based' on 'last' salary

Companies operating in the UAE must give their outgoing employees end of service benefits on the basis of their last monthly salary and firms which fail to do so are violating the law, the Ministry of Labour has said.

The Ministry was responding to a complaint by an Arab female doctor who was sacked by her private employing medical company and given end of service allowances that include the monthly salary she was paid when she first joined work.

In her letter to the Ministry during an open-day review of public complaints and applications in Abu Dhabi on Monday, the doctor said her first salary was far below the wage she was getting in the following years after she was given massive pay rises.

“Companies calculating the end of service benefits on the basis of the worker’s first salary listed in the job contract despite changes in that salary are involved in an illegal practice,” the Ministry said in its response.

“Such benefits must be based on the last monthly salary paid to the worker, who should prove this by producing the last salary statement.”

The Ministry asked the doctor to contact its enquiry section to be informed on the legal measures she will take against her employers to force them to pay all her dues.

The pension scheme for Indian workers will be launched soon in the UAE

The UAE launch of a pension scheme being implemented by the Indian Ministry of Overseas Affairs was delayed due to certain technical reasons,
Now the [Indian] ministry has engaged two Indian banks — Bank of Baroda and State Bank of Travancore — to implement the scheme, M.K Lokesh, Indian Ambassador to the UAE, told

The banks have already approached the UAE Central Bank for necessary approval and the scheme will be launched soon, he said.
s Gulf News reported in July 2012, the Government of India planned to open a centre in Dubai to enrol thousands of Indian expatriate workers in its ambitious Pension and Life Insurance Fund (PLIF).

The voluntary scheme offering three important benefits will help skilled and unskilled workers to save money for their old age, to have financial means when they go back home and a life insurance cover for Rs100,000 (Dh6,600) during their work abroad.
About 65 per cent of more than two million Indians in the UAE are blue collar workers.
Workers between the age of 18 and 50 who hold Emigration Clearance Required (ECR) passports are eligible to enrol in the scheme. India issues ECR passports to those who have not passed a school leaving exam (Grade 10).
About 17,602 Indians availed of the recent amnesty declared by the UAE for illegal workers, the envoy said.

A total of 7,923 Indians left the UAE and 9,679 regularised their status according to figures given by the UAE authorities to the Indian Embassy.
Nearly 62,000 illegal workers had availed of the two-month-long amnesty from December 2, 2012 to February 2 this year according to the UAE authorities, which have not revealed nationality-wise figures of beneficiaries. More than 800,000 illegal residents availed of three similar amnesties between 1996 and 2007.

The embassy is still waiting for the approval from the UAE authorities to implement an online attestation of job contracts of Indian workers coming to the UAE , with Emigration Clearance Required – ECR category passports, he said. It will streamline the attestation of job contracts of ECR category workers by preventing fake contracts. The number of workers under ECR category coming to the UAE has witnessed a slight increase during the past four years, he said. Their number dropped from 349,000 in 2008 to 120,000 in 2009. Then it was 130,000 in 2010, 138,000 in 2011 and 141,000 in 2012, the envoy said.
Benefits:

Workers joining the pension scheme will get three benefits – a lump sum amount from the resettlement and rehabilitation fund when they go back home, monthly old age pension after the age of 60 and a free of cost life insurance cover during their stay abroad.

The workers under Emigration Clearance Required category [those who have not passed matriculation] have to open a bank account and co-contribute a minimum Rs4,000 (Dh 244) per annum towards the resettlement and rehabilitation fund.

The Indian Government will provide a contribution of up to Rs2,000 (Dh132) per year for male workers and Rs3,000 (Dh198) per year for women workers for up to either five years or until the worker returns home, whichever is earlier.

A worker contributing a minimum of Rs4,000 (Dh 244) per annum for at least five years towards this fund, could get at least Rs30,000 (Dh1,980) after going back home, according to the Ministry of Overseas Indian Affairs. The money from the fund will be invested in mutual funds so the benefit may go up depending on the profits earned from mutual funds.

The old age pension fund requires a contribution of between Rs1,000 (Dh66) and Rs12,000 (Dh792) per annum. They will derive corresponding benefits when they go back home and during their old age.

The worker will get a monthly pension when he/she is 60 years old. The amount of monthly pension depends on the amount deposited in the pension fund. The worker will get at least 9 to 10 per cent profit based on current estimates.

In this case also, the benefit may go up in proportion to the profits from the mutual funds, according to the Indian ministry.