59A7D41EB44EABC4F2C2B68D88211BF4 U.A.E Visa Rules and Procedures-Law updates -free legal advice: 2015

Wednesday, December 30, 2015

U.A.E Employers Face 14-day deadline to complete Labour contracts from 1st of January 2016

Starting January 1, 2016 ,U.A.E labor department insisting employers  bound to present approved labour contracts within two weeks of workers arriving in the country to join for work.
During a meeting held in Abu Dhabi on Tuesday, which was attended by 300 employers and government representatives, Humaid bin Deemas Al Suwaidi, Assistant Undersecretary for Labour Affairs, said: "Employers face a 14-day deadline to complete signature procedures following the workers' entry into the UAE. If the worker complains of any delays, then the ministry allows him to search for a new offer."
"The new measures implement three new decrees issued by Labour Minister Saqr Ghobash Saeed Ghobash recently with regard to regulating the labour market," he added.
The ministry has also relaxed its rule regarding the mandatory medical report to be submitted with a job contract.
After the new laws come into effect in the new year, the ministry will not issue new work permits to overseas workers or renew current residents' work permits if the employer does not present a unified signed contract. It will accept contracts which would be signed electronically by both parties regardless of the location of the workers or contracts with fingerprints, in specific cases.
Referring to the renewal of contracts, Al Suwaidi said that the signature grants workers free will to renew the contract or simply choose to end the relation and find a better offer or move back home.

This, Al Suwaidi said, would end misunderstanding between both parties.The move has been welcomed by companies and employees alike.

Three stages for hiring

The new procedures of recruiting foreign workers from outside the country for a two-year work visa will be in three stages.

Firstly, the employer applies for quota regardless of the number of workers recruited, the second demands handing over a printed offer letter containing a comprehensive description of their rights, duties, terms and conditions, through Tas'heel service centres or through the 'MoLApp' smartphone application.

"Secondly, employers should electronically sign a job offer, send it to the worker regardless of their location," Al Suwaidi said.

The job offer should then be either signed or fingerprinted as required.

The offer will be in both Arabic and English in addition to a third language that the worker understands, which can be available on the ministry's website.

"Each worker can review their work contract through the ministry's website after registering on it using their passport number, nationality and their transaction number as each has its own code," Al Suwaidi said.

During the work permit extraction stage, employers attach the signed offer letter by the worker for the initial approval.

The ministry then works on reviewing the application to make sure it meets all the requirements and then issues the permit, which allows the worker to come work in the country under a work permit.

Al Suwaidi also said that the electronic system will not allow new job offers for workers during the initial approval stages and replacing work permits will be treated according to specific procedures under issuing new work permit measurements.

"It's not mandatory to include medical report with job offers, especially that today we are electronic linked with the Residency and Foreigners Affairs, which does not issue workers a residence visa with medical report," he added.

Monday, December 28, 2015

U.A.E Revoke Six Month Labour Ban from January 2016

Effective from January 2016, there will be no six months ban if services are terminated in mutual agreement between the employer and employee. UAE Ministry of Labor has confirmed that the ban of six months will be cancelled beginning January if the work permit and employment are terminated in mutual agreement.The Ministry of Labour said that beginning January 2016, it will revoke the six months ban rule, if employee and employer opt for mutual termination of work permit.
The new rule is part of the new resolutions issued by Labour Minister Saqr Ghobash Saeed Ghobash in September.However, workers in grade IV and V who have not completed six months with the first job are exempted from this rule, he added
According to the Ministry, employees will be allowed new work permits to join another facility immediately, even if the employee has not completed two years at the first facility.
The ministry has completed procedures for implementation of the resolutions beginning next year, the report added.
Humaid Rashid bin Dimas Al Suwaidi, Assistant Undersecretary at Ministry of Labour, told Al Bayan that under the new resolution, employees who end their service in agreement with the establishments and cancel their work permits will be allowed to move to other establishments, even if they have not completed two years at the workplace.
However, workers in levels IV and V who have not completed six months with the first facility are exempted from this rule, he added.
Al Suwaidi said that currently workers who terminate their service through consensus and have completed two years are also not allowed to move to another facility immediately. They are allowed to join another job only after a period of six months from the date of cancellation of the work permit, he added.
As per the new resolution No. 766 of 2015 workers will be granted new work permits immediately beginning January, explained Al Suwaidi and added that this is so as long as both the parties fulfill the conditions agreed upon in the labour contract signed between them.

Al Suwaidi confirmed that the new Ministry rule aims to attract and retain talent, and is in line with the strategic goal of the government to being a knowledge-based economy attracting global talent.
He said the ministry aims to promote workers from within the country rather than bringing them from abroad, especially people with expertise.
Al Suwaidi said last year 340,000 workers who ended their service at one job could not get new work permits because they had not completed two years and the labour market thus could not benefit from experiences and skills.
 

Sunday, December 27, 2015

Parent Visa In U.A.E,Sponsor Require Dh 20000 salary

Expatriates earning less than Dh 20,000 salary cant sponsor their parents on residence visas in the UAE.
The new ruling requires applicants to provide evidence of either having a minimum salary of Dh 20,000 or a monthly pay of Dh 19,000 plus a two-bedroom accommodation. 

Old Rule :

(UAE expatriates, holding valid resident visas having a minimum salary of AED 6,000 with accommodation or AED 7,000 without accommodation can get one year renewable resident visas for their parents or parents-in-law.
As per new regulations, you have to sponsor both your mother and father together and show proof that you are their sole provider and that there is no one to take care of them in your home country. However, if your parents are divorced or one is deceased, you should carry documentary proof, when visiting DNRD to obtain the entry permit visa, which is the first stage before you can apply for a residence visa. You also need to obtain a medical insurance policy for each parent with minimum coverage of AED 600 per year.)

Documents required for entry visa
• Typed application form
• Original passport of sponsor
• Passport copy of parent/s & 1 photo
• Proof of relationship from your embassy/consulate attesting both relationship and that you are sole provider for your parent/s
• Copy of job contract for the sponsor or salary certificate from employer.

A new requirement is submission of DEWA bill and your tenancy contract showing you have adequate space in your house for your parents (minimum 2 bedroom apartment). You need to get your tenancy contract stamped by the Land Department, certifying it is minimum 2 bedroom. In case your tenancy contract does not mention that you have at least 2 bedrooms, then you need to get an affidavit from your landlord and submit this as well.

Procedure:

• Take the documents and go to General Directorate of Residency and Foreigners Affairs - Dubai. Submit along with a letter from your side appealing on humanitarian grounds for entry visa for your parent/s. Enclose copies of all above documents along with your contact numbers. The Approval Committee will either confirm or reject your application within two weeks. If approved, go to next step.
• Have a registered typist complete the form after paying the fees.
• Go to the residency section of DNRD and hand in the documents.
• Entry Permit will be sent by Empost usually within 48 hours, or if you have applied for urgent visa, then you should receive it from the counter in a few minutes.
Fees:
  • AED 20000/ refundable deposit (keep receipt safely for renewal or reimbursement, as this is paid back only when the visa is cancelled or in case your parent dies)
  • AED 110 application fee + typing centre fee (or pay AED 100 more for urgent application)
  • Convert entry visa to residence visa for parents
  • Once your parents enter the country with the entry visa, you must convert it to a residency visa no later than 60 days from the date of entry.

Documents required for residence visa
• Application form & 3 photos of parent
• Original passport of parent/s and sponsor
• Original entry permit
• Health card or medical insurance policy for parent/s
• Refundable deposit receipt
• Original job contract or salary certificate of the sponsor

Procedure:
• Do a health check up and obtain a medical card.
• Take the documents and go to the General Directorate of Residency and Foreigners Affairs - Dubai.
• Have one of the typists there complete the form for you after paying the fees.
• Go to the residency section and hand in the documents.
• The passport/s with the residency visa stamp will be sent to you through Empost

Friday, December 25, 2015

Dubai Public Private Participation Law –PPP Law- Attract more private investment in 2016

Dubai New PPP Law draw more private investment into infrastructure projects in 2016, through the law, Dubai will be able to invite private companies and investors to finance and operate assets that otherwise would have been funded by government budgets.

With oil prices dipping below US$40 a barrel this month, the time to rely on private sector money may be more urgent that ever before not only for the UAE but for all Arabian Gulf countries.

With the IMF warning that some regional economies could use up their financial buffers within five years as they face a combined fiscal deficit exceeding $700 billion between 2015 and 2019, the incentive to go for PPP is urgent. Even Kuwait has revamped its PPP law to try to attract more investors to its slew of projects.

“In a high oil price environment, there was limited incentive for the regional governments to use PPP structures outside of the traditional power and water sectors,” says Dubai-based Mario Salameh, the head of project finance MENA at HSBC bank. “We will be watching closely for signs that the mood is changing given the lower oil price environment and the additional pressure this brings when developing and funding infrastructure projects.”

Dubai’s new PPP law excludes the power and water sector, which has its own legislation. Dubai Electricity and Water Authority has awarded few IPP projects, the latest being the $1.8bn Hassyan clean coal power project in October 2015.

The law covering public-private partnerships is due to be introduced on November 19, and will allow the emirate to tap private sector funding for key projects such as the expansion of Al Maktoum International Airport and the extension to the Dubai Metro Red Line from Nakhel  Harbour and Towers to the Expo 2020 site.

However, as regional economies face increasing budgetary pressures resulting from the weaker price of oil, public sector clients are increasingly turning to private finance to help pay for projects.

The consortia bidding to build the extension to the Dubai Metro Red Line will be able to use public-private partnership (PPP) models as part of their bids, according to Dubai Roads & Transport Authority’s chief engineer for rail operations, Shahrin bin Abdol Salam.

The new Dubai law will remove the need for project-specific legislation for entities and for the government to act as guarantor for projects, as has been the case with the limited private finance rules that currently cover the power and water sector.

It will allow any government entity to use PPPs to develop infrastructure so long as they meet certain conditions.

For instance, all projects worth more than Dh200 million will need to form a special purpose vehicle (SPV) overseen by a committee containing a project CEO and a representative from the Department of Finance, although projects over Dh500m will still need the approval of the Supreme Committee.

However, supplementary regulations are also needed to determine whether SPVs can be based in free zones and offer foreign investors stakes of more than 49 per cent.

The first project to use PPP funding will be the new Union Square station plaza containing a number of towers that are set to be built above the existing Dubai Metro station.
The introduction of a new PPP law in Dubai follows on from the implementation of similar regulations in Kuwait and Bahrain.

Sunday, December 20, 2015

Abu Dhabi’s new Real Eastate law Effective from January 2016

The much awaited new real estate law – No. (3) of 2015 Regulating Real Estate Sector in the Emirate of Abu Dhabi – has now been published, and will take effect as of January 2016. This law is mostly good news for the average person, but as with anything, we will have to see how it is implemented. Here are 10 the most interesting bits from the new regulation for residential buyers and sellers in the emirate’s investment zones:

It had been anticipated that this law would introduce some sort of rent cap or calculator as there has been much speculation as to how it might work. However, if it is coming it isn’t in this law, so rents will continue to be set by landlords as the market will allow.

Abu Dhabi’s Department of Municipal Affairs (DMA) has been tasked with regulating the real estate sector. The DMA’s responsibilities will include implementing the law, issuing licences, controlling escrow accounts and cancelling real estate projects. The DMA will now essentially perform the same function as RERA in Dubai. Let us hope its regulations (when published) come with some real teeth to dissuade the sharp practices that are still common in the emirate.

The law prohibits developers from collecting registration fees from investors and only allows developers to charge administrative fees, which must first be approved by the DMA. This means that the existing customary 2 per cent registration fee applicable on resales would be abolished.

• Owners associations to be created

The new owners associations will have constitutions, legal status, hold title to common property and be responsible for the property’s repair and maintenance. The new law even states that owners associations will have the right to apply to the courts for an order to sell the unit of an owner who hasn’t paid their services charges.

• Off-plan sales

A developer will now not be allowed to sell units off-plan unless it proves that it owns a real estate right over the project land and that it has opened an escrow account for the development. There will also be a requirement for a “disclosure statement” to be attached to the sale and purchase agreement that provides prescribed information on the development to ensure that purchasers are informed of all the relevant facts before buying.

• Escrow accounts will be set up for off-plan sales

One of the requirements for the sale and marketing of off-plan units will now include that the developer has set up an escrow account. The proceeds from off-plan sales will need to be paid into this account and only taken out in stages to fund construction. Given the restrictions on withdrawals, the developer will effectively have to self-fund (or obtain finance) for the first 20 per cent of construction works. These accounts also apply to existing projects as well, unless the building has reached at least 70 per cent completion.

• Right to terminate an off-plan purchase

Off-plan buyers can terminate their purchase of the unit in the case of “substantial prejudice”. Certain examples are given in the law, such as substantial changes the specifications contained in the unit SPA or delivery of a unit that is unusable due to fundamental defects in construction.

• Compensation for delayed projects

The DMA may fine developers to compensate purchasers where the developer is delayed beyond six months. Importantly, this may apply to existing developments depending on the stage of completion. The new law also includes provisions for the cancellation of projects or appointment of a new developer where there is significant delay.

• Building liability for developers

There will now be a 10-year liability for developers relating to fundamental structural building defects. It means developers will be legally responsible to fix any defects that manifest 10 years after handover and this will also include a one-year defects liability period

Three UAE labour Decrees to be effective from January 2016

The Ministry of Labour _ Dubai November 19th, 2015 H.E. Saqr Ghobash, Minister of Labour, said “The three new decrees, to start beginning of next year, meet wise leadership guidance are consistent with the Constitution and labour market requirements, they also promote the transition to the knowledge based economy as well as compatibility with international labour standards."
Ghobash confirmed that the stability the “Labour market is a reflection of the stability of the working relationship between both parties, something which is expected to be reinforced by those decisions that would establish a better relationship between the employer and workers due to transparency of the unified contracts. Also enable workers to shift to other firms at any time preserving their rights, all in accordance to regulations set forth, which enhances the UAE labour market mobility and flexibility."
The Minister of Labour put forth his statement while meeting over 300 ministry employees and legal scholars to review and discuss the upcoming decrees, in the presence of Mubarak Saeed Al Dhahiri, MoL Undersecretary and Humaid bin Deemas Al Suwaidi, Assistant Undersecretary for Labour Affairs and Dr. Omar Al-Nuaimi Assistant Undersecretary for Policy and Strategy.
"Files highlighting Labour Rights by the Human Rights watch is one of the most vital issues of concern, urging us to provide them protection and rights preservation, and so following the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai to be the ‘Number One’ Nation globally, maintaining rights is definitely a core value, hence, three new decrees coming up," Ghobash said.
"The three resolutions came after building a strong economy and adds to legislations accomplished by the ministry over the past couple of years to reach a stabile labour market to achieve the UAE 2021 vision of creating a stable labour market and a productive workforce to promote a competitive knowledge-based economy that revolves around UAE citizens, including an emphasis on providing better protection to workers' rights and ensure while insuring employers, whom welcomed the new decrees, interests are being kept and maintained,” he said.
The minister praised govt. employees capabilities and contributions to institutional development and expressed his confidence in their ability to properly implement the new decisions to achieve marked objectives. Similarly, efforts by legal scholars had not gone unnoticed, the ministry stated that they handle labor disputes fairly and work endlessly to find amicable solutions to preserve their rights.
On the sidelines of the meeting, a workshop was held by his excellency Humaid bin Deemas Al Suwaidi, Assistant Undersecretary for Labour Affairs, to explain texts of each of the three new decrees and implementation procedures.
Following on inquiries Legal Counsel Karem Abdul Latif together with Mohammed Mubarak Director of Labour Relations Office in Dubai replied to all concerns questioned.
The first decree requires employee signature preceding a contract renewal to obtain a new work permit, something which will be hereby terminate procedures currently implemented to renew work permits after only receiving a notification through the employer stating that both ends agreed to renew the contract, stating all privileges and requirements enclosed in the contract to be renewed.
Workers, under the new procedures, shall enjoy better options of either accepting to renew the contract according to marked privileges and stipulated requirements in the new contract, or amend these privileges and conditions upon agreement by both parties, which actively contributes to promoting a strong working relationship, or on the other hand enable employees to completely end the relationship search for alternatives or return back home.
The second decree, points six cases of labour contract termination for fixed-term contracts and four cases for non-term contracts.
Additionally, the third decree regards terms and conditions of granting a new work permit to worker who choose to end a working relationship through four cases to issue a permit if the contract between both ends was a fixed-term contract and three cases for non-term ones, something which promotes flexible mobility and maintains labour market competencies and exchange experiences internally.

Friday, December 11, 2015

U.A.E Should Introduce valued-added tax -Vat

UAE is one of the richest countries in the GCC, it has been the most aggressive in reforming its finances to save money. three month back it cut state gasoline subsidies, allowing prices paid by consumers to rise, and in January Abu Dhabi reduced electricity and water subsidies.
The International Monetary Fund has suggested the UAE consider imposing VAT at a 5 percent rate, a 10 percent corporate income tax, and a 15 percent excise tax on automobiles.
After the recent fuel price deregulation reforms, Younis Haji Al Khouri, undersecretary at the UAE Ministry of Finance, revealed earlier this week that the GCC states have agreed on key issues for implementing VAT in the region.
The International Monetary Fund (IMF), among other international bodies, has been advising the UAE and the rest of the GCC countries to introduce taxation among several options for the government to strengthen their revenue base in order to minimise dependence on the fluctuating global oil price.The 'low' rate of VAT as advised by the IMF is being generally seen as at or around 5 per cent.
“VAT is generally viewed as the most stable revenue source, which has the least detrimental effects on investments,” states the IMF.“In such a macro-fiscal environment as in the UAE, a low rate, for example 5 per cent, VAT could be considered,” it notes.
Even as the IMF maintains that the UAE economy is resilient to low oil prices and sluggish global growth thanks to its fiscal buffers and safe haven status, the agency is suggesting the government to undertake additional reforms to boost its finances.Primary among those suggestions are imposing a value-added tax, imposing an excise duty on the sale of automobiles, as well as a decrease in the corporate income tax levels but applying it to a much broader base.
 5% VAT, 15% tax on cars: IMF advice to UAE
With agreements having been reached by members of the GCC on certain aspects of the VAT systems, the big question now is ‘when’ and not ‘if’ VAT will be implemented, and, importantly, by which country (or countries) first.

What is VAT, how much may be imposed


The IMF maintains that VAT, which is a kind of consumption tax that the end-customer pays while purchasing a product, “would serve well as a low rate-broad base tax.” It is important that there is an adequate lead time to allow companies to prepare their systems, train staff and staff up for the introduction of the VAT regime. Finance ministries will similarly need to staff up and implement sophisticated IT systems to deal with VAT collection and taxpayer monitoring and audits.  A typical VAT implementation period would be 18 to 24 months – so the timeline for implementation may be 2018 or latest 2019

“A broad-based consumption tax such as VAT would raise revenue proceeds at a low efficiency cost. At the same time, its equity implications would be relatively insignificant in such a macro-fiscal environment as in the UAE, where taxes are minimal and government expenditures are financed by oil revenue,” the IMF notes.

However, while the initial VAT rate may be ‘low,’ experts maintain that a gradual increase over time or even a higher introductory tax rate cannot be completely ruled out. Nevertheless, VAT will give a “significant and positive boost” to the tax administration, the IMF says.

VAT: What will be exempted

The multilateral agreements among GCC states appear to be those which are designed, primarily, to ensure that certain social-economic distortions often associated with VAT are minimised, says Deloitte. In particular, removing VAT from food products (94 items have been identified), healthcare and education would appear to reflect a broad desire to ensure that these vital household expenditure items are not directly impacted by a VAT in the GCC, the consultancy states.

 


Businesse or consumers - who will shoulder the burden of tax?

The impact of the new tax/es on corporates and end users will not be huge, believe experts, and VAT’s impact on business should only be compliance-related, they say.

“The introduction of VAT is likely to result in increased administrative and compliance burdens as well as additional costs. Accounting and other IT systems will also be required to be able to deal with the additional demands created by new VAT laws and regulations. Companies entering into medium to long term contracts will need to look carefully at their commercial terms and conditions to ensure that the introduction of a VAT regime is provided for,” says EY’s Sexton.

“Businesses play a vital role in the success of a VAT system; in essence they play the role of tax collector, charging, collecting and then remitting the sums collected to the tax authority at the appropriate time. In many cases businesses do not suffer an additional tax cost associated with VAT – in theory, the tax is one on consumption, not on businesses,” adds Deloitte’s Halstead.

“That being said, there is an administrative burden that businesses will have to bear and to that end proper preparation is key. For example, we have a simple checklist for businesses that highlights over [50] questions that need to be answered positively in order for a business to be ready. Businesses may also have to take the cash-flow impact of VAT into their day to day activities – an issue of particular importance for those involved in major projects with tight margins,” he notes.

“For individuals there will be cost inflation on products and services purchased,” EY’s Sexton says.

“Individuals are the ones that generally bear the cost (partially or wholly) of a VAT. At a low rate, the impact on consumers is likely to be relatively benign and of course businesses may themselves mitigate the impact further by absorbing some of the VAT charge into existing profit margins,” adds Deloitte’s Halstead.

“Importantly, there are clear signals from the GCC that they are attempting to tackle some of the potentially regressive aspects of the tax by removing the VAT charge from certain food items, healthcare and educational services. These is good news for those spending heavily on those items,” he notes.

Corporate income tax plus VAT?

In addition, analysts maintain that even as the IMF has suggested a broadening of corporate tax base in the UAE to include local firms (currently, a corporate income tax of 20 per cent is levied only on foreign banks in Dubai), logistics of implementation would suggest that this may not happen simultaneously with the introduction of VAT.

“It is unlikely that VAT and corporate tax would be introduced simultaneously in the UAE – introduction of both these tax regimes represents a major challenge for any country, and with the UAE having no pre-existing taxpayer database, there is much to achieve in coming years and many challenges to be overcome,” says Sexton.

Deloitte’s Halstead agrees that it is unlikely, but is quick to add that such a move should not be completely ruled out.

“Although the corporate tax regime in the UAE is relatively limited at this time we can foresee certain structural challenges associated with any extensive broadening of the existing corporate tax base or any rate increases. Nevertheless, that is not to say that such a measure should be necessarily ruled out absolutely,” he says.

“Indeed, many corporates generating profits in the UAE may well be paying tax on those earnings back ‘home’ wherever that may be; capturing a portion of that tax here in the UAE might not actually increase their overall global tax burden at all and there is of course international pressure to extend corporate tax bases in countries with traditional low tax regimes,” he adds.

“One other aspect worth highlighting is that simultaneous introduction of two taxes requires the alignment and delivery of two programmes of related but different implementation paths, whereas separation might reduce the overall risk,” Halstead claims.

“Looking beyond the UAE there have been examples of the expansion of corporate taxes although in most cases that is against the background of an already extensive corporate tax regime that has been in place for many years,” he explains.

Current tax structure in UAE

As of now, the UAE’s tax structure as stated by the IMF report is as follows:

 * A corporate income tax of 20 per cent is levied on foreign banks in Dubai;

 * A local municipal property tax of 5 per cent of the rental value;

 * A 10 per cent local hotel tax on hotel services;

 * The GCC’s common external tariff (a general rate of 5 per cent, 50 per cent on alcohol, and 100 per cent on tobacco) applied locally;

 * Select fees on government services (applied by the federal and Dubai governments).

In addition, the IMF noted earlier this year in August that taxing passenger cars may also be under consideration to boost UAE government revenues. “Excises on passenger vehicles could also be considered for raising non-oil revenue,” it maintains.

“Automobiles impose a number of costs on society. These costs include direct costs such as the cost of maintaining and expanding a network of roads, and indirect costs such as productivity losses due to traffic jams and health costs because of increased pollution,” it explains.

“Imposing an excise tax on automobiles would shift costs associated with the usage of automobiles to the owners. Ad valorem tax of 15 per cent would yield 0.6 per cent of non-hydrocarbon GDP,” the IMF states, adding that “gains from excises on tobacco and alcohol would be insignificant”.

Broader base for corporate income tax

According to the agency, a corporate income tax with broader coverage but lower rates would raise additional revenue and would be seen as more equitable by foreign investors.

It suggests halving the corporate income tax rate from the current 20 per cent but applying it to all non-free zone entities.

“The tax rate could be lowered to 10 per cent from the current 20 per cent and the coverage could be broadened by including all companies (foreign, domestic, GCC) except for those located in free economic zones. In addition, a broadened corporate income tax, if applied to unincorporated companies, could provide some progressivity in taxation and would lessen the need to introduce a general income tax on individuals,” it notes.

“This measure is estimated to yield 4.1 per cent of non-hydrocarbon GDP,” the IMF reckons.

Tuesday, October 27, 2015

New measures for work permits in UAE, signature of employees for contract renewal and new work permits

The Ministry of Labour has announced new measures to renew work permits, previously known as labour cards, as well as expired contracts, by early next year.

Speaking about the new requirements, Humaid Bin Deemas Al Suwaidi, Assistant Under-Secretary for Labour Affairs, said from the beginning of next year, new decrees will require “clear signature” of employees for contract renewal and the issuing of new work permits, which will put an end to the current work permit renewal procedures which simply follow a notification from employers.

He explained, “Workers, under the new procedures, will enjoy better options of either accepting renewal of the contract according to marked privileges and stipulated requirements in the new contract, or amend these privileges and conditions upon agreement by both parties, which actively contributes to promoting a strong working relationship. It will also enable employees to completely end the relationship, search for alternatives, or return back home.”

“Based on studies, the new decrees will end labour disputes caused by unjust labour contract submissions made by employers without referring to the labourers themselves, and getting final approval before issuing a new work permit,” he said.

Saqr Bin Ghobash Saeed Ghobash, Minister of Labour, said that the three decrees come within the framework of developing legislation to regulate the labour market, confirming that the MoL is moving to a new phase based on establishing and promoting a balanced and productive business relationship between both sides, based on transparency.

The MoL is currently preparing to implement the new decisions on schedule as an effort to ease procedures between employers and workers, particularly in relation to work offers that employees agree upon, whether outside or inside the country, and ensure the highlighting of wages and breaks, as well as other rights and duties.

Al Suwaidi went on to say that the ministry had conducted a study examining the hiring processes in private enterprises, and took into account, through its new decrees, the active measures taken to issue a contract in the preferred language of labourers prior to their signature. This he said, will help “overcome any difficulties that both ends may encounter through several employment channels, including employment agencies or by dispatching company representatives to the targeted country or even through employment websites.”

The new decrees are interrelated and frame the relationship between both sides, starting by enabling the worker to review an offer before travelling abroad then signing the new unified contract with the employer upon entry, from which point a contractual relationship is recorded into the ministry’s database highlighting all rights and obligations as per the contract.

If the worker is in the UAE, the worker must duly sign the employment offer, as stipulated by the decree, before the employer applies for tentative approval to employ the worker.

Friday, October 2, 2015

Terminating employees- New UAE labour law

The UAE intends to enforce a new labour law at the start of 2016 to better regulate the relationship between employers and workers and curb violations to ensure both parties will get their rights.The new law includes three main rules governing labour contracts for workers from abroad, terminating contracts between the employers and workers and the issuance of a new work permit to a resident worker.

“These rules will take the labour market to a new stage based on a strong and balanced relationship between all parties and on agreement and transparency in contracting to guarantee the rights of all parties,” Labour Minister Saqr Gobash said.

The first rule in the law, published by the Dubai-based Arabic language daily ‘Emarat Al Youm’, requires the employer to issue a “clear and detailed” contract for the foreign workers to be brought from abroad, including all duties and rights for the two parties, job terms and other requirements in a language understood by the worker.
The contract must be signed by the worker before it is submitted to the labour ministry for the issuance of a work permit, which must not be altered at any stage.

“The same measures apply to workers who reside in the UAE. In this case, the employer must also get the worker’s signature,” it said.

Contract termination

The second rule, which governs contract termination, includes an agreement by the employer and the worker to end their two-year contract.

Another case includes a decision by the employer to terminate the contract before it expires.
In this case, the employer must give at least one month notice to the worker and pay the worker all dues during that period. “The notice period must also not exceed three months and must be agreed by both parties,” it said.

The new rule also governs cases in which the employer or the worker terminates the contract without abiding by the legal procedures.

Another case involves a decision by the employer to terminate the worker’s services for committing offences including assaulting or insulting the employer.

Regarding unspecified contracts, the employer seeking to terminate a worker’s contract must also give a notice of not less than one month and not exceeding three months.

“In all contract termination cases, any party has the right to go to court to seek compensation and any other rights,” it said.

Under the new rule, the work contract is considered null if the employer is found to have violated the law including failure to pay the worker for two months.

In case a worker could not start his job because of the closure of the company, the labour ministry will send inspectors to check the company’s status before issuing a decision within two months.

As for cases considered by the labour court at the ministry, it will issue a final decision forcing the employer to pay the worker two months’ salary or to compensate him for service termination or depriving workers from end of service benefits.

New job contracts


The new rules also cover new job contracts to workers whose contracts have expired or terminated by an agreement between the employer and the worker provided the worker has completed at last six months with his employer.

According to ‘Emarat Al Youm’, the new law specified three cases involving termination of work contracts.

They include agreement by both parties provided the worker has spent at least six months with the employer, termination of the contract by either party for some reason, and termination of the contract by the employer without reason.

The new law allows the issuance of a new work permit in cases where the employer is found to have violated his commitments, including failure to pay workers for two months, a complaint by the worker that he is not able to start his job because of the company’s closure, and a labour dispute at the ministry’s court.

Ministerial decisions 764, 765 and 766 aim to improve labour relations based on sponsorship.

Tuesday, September 29, 2015

New UAE labour rules effective on January 1, 2016

The new rules were unveiled on Monday by Minister of Labour, Saqr Ghobash to build upon the latest decisions to the labour policy initiative in 2011 regarding labour mobility.Sweeping new rules by the Ministry of Labour will forge a stronger relationship between employers and workers and enhance the labour market across the country by ensuring transparency and encouraging more flexible labour mobility for workers.
The three new rules cover application of ministry-approved contracts, conditions for terminating employees and labour permits to work for new employers

Ministerial Decrees 764, 765 and 766 pave the way for improved labour relations by securing more stable practices governed by regulations that protect workers who are legally sponsored to enter the UAE, the ministry said. “The new rules will also bring greater transparency, clarity and tighter monitoring of labour contract conditions and ensure both employer and employee enter into fully voluntary relationships,” a statement said. The decrees will see the creation of a new unified, standard labour contract.

Three decrees' objectives:

The primary purpose of the decrees is to delink sponsorship and labour relations: the former serves to secure legal entry and temporary residence in the UAE, while the latter is governed by an employment contract the terms of which are compliant with national labour legislation and regulation.
This purpose is achieved by:
  •     Ensuring the transparency of the contracting process in the country of origin;
  •     Ensuring non-substitution of the contract terms post arrival in the UAE;
  •     Defining due processes for terminating labour relations;
  •     Spelling out the rules and conditions for granting a worker whose labour relation has ended a new work permit.
  Highlights of Ministerial Decree (764 ) of 2015 on Ministry of Labour-Approved Standard Employment Contracts
  •     Standard employment offer/contract: terms, rights and obligations;
  •     Informed consent;
  •     Non-substitutionof labour contract;
  •     Filing the offer for eventual capture as a legal contract;
  •     Termination clause;
  •     Commitments by the employer.
    Highlights of Ministerial decree (765) of 2015 on Rules and Conditions for the Termination of Employment Relations

Any employment relation may be terminated, by either party, subject to a due process. One party or the other cannot be made to involuntarily continue the relation. A relation is terminated:

    By mutual consent, at any time
    By one party or the other, subject to certain considerations of notice and/or identification
    A relation is considered to be terminated if:

    - If employer does not meet its contractual obligation to worker;
    - If employer ceases to empower worker to perform his/her employment duties without; complying with due process;
    - If  a worker absconds, without complying with due termination process.

While a relation cannot be sustained except by mutual consent, the way it is terminated has a direct bearing on the status of the worker after termination (the granting or declining of a new work permit)

Highlights of Ministerial Decree (766) of 2015 on Rules and Conditions for granting a permit to a worker for employment by a new employer

    Sets the conditions for granting a new work permit to a worker whose labour relation with an employer has ended as a function of the manner the relation was terminated
    
    Notably ascertains that the power to determine the status of the worker whose employment has ended is a public authority

Saturday, July 25, 2015

Buckscapital- UAE based Crowdfunding platform pre-launch website at Kochi

Buckscapital.com UAE based crowdfunding platform pre-launched its website before a group of media at Kochi. The functioning of the crowdfunding starts August middle of this year from UAE. Initially the activities limited to UAE, GCC countries and India. The entrepreneurs and investors can register their interest www.buckscapital.com


What is Crowdfunding?

 Crowdfunding is raising funds from multiple investors through a web-based platform or social networking site for a specific project, business venture or social cause. Crowdfunding is "the" alternative method for entrepreneurs, creative thinkers, and non-profits to get funding. In its basic form, it is the pooling together of small amounts of money from a group of people that share your passion and that you interact with online using social media. Everyone can use it without going to the banks or VCs, and the likelihood of getting funded is significantly higher.

There are four basic types of crowdfunding: Donation, Rewards, Debt and Equity. Each type is based on what the investor receives in return for funding a campaign.
 Donation -In this model, individuals make a financial contribution to a project without any expectations of financial benefits.
 Rewards - The investor receives a reward or perk in return for pledging. Common rewards include a thank you note, a branded t-shirt, or the product being funded (i.e., a pre- sale of the product).
Debt - Often called Peer-to-Peer (P2P) or Peer-to-Business Lending. The investor gives money in the form of a loan and receives profit in return.

Equity - The investor receives ownership in the company in return for their investment.
Buckscapital help the entrepreneurs to get the exposure for their projects and  potential investors to have a profitable platform for investment . Through this international crowdfunding platform, buckscapital.com aim to reform the global entrepreneurial environs by providing the wide network of investors and entrepreneurs. Buckscapital tries to build up a new standard of excellence in capital market, stands for your strong base for everlasting success.