Sunday, January 3, 2016

Labour Ban Free Rules Now Effective in UAE

The new Ministry of Labour (MoL) rules regarding employment contracts, termination and work permits will come into force starting January 2016. 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.As per the new rules, a six-month labour ban will not be imposed on an employee, if he/she and the employer opt for mutual termination of job contract. 
The new rules have been designed to reinforce a "balanced and productive" relationship between employers and employees.They take into consideration the consent between the two parties; flexibility of movement in the labour market; and meeting the needs of employers to hire workers from within the country and abroad.

As per the new rules related to standard labour contracts, employers should apply for a quota from the MoL. The offer letter should contain a detailed description of the job offered as well as rights and duties of each party. This is to be made through a Tas'heel center. If the worker is in the UAE, he/she must sign the employment offer before the employer applies for a tentative approval to employ him/her.

A standard MoL contract has to be signed by the worker before it can be presented to the MoL for registration. No alteration or substitution of terms may be made unless it benefits the worker. After the offer letter is signed , employers must enclose it with the application to obtain an approval to issue a work permit. After the worker enters the country, he/she needs to sign the contract within 14 days.

Limited period contracts
  •  Terms of the contract has expired and not been renewed
  •  Employee and employers mutually terminate the contract, provided the worker has completed a period of six months
  •  Employer initiates the termination of the employment contract
Unlimited period contracts
  •  The two parties mutually terminate contract, provided worker has completed 6 months
  •  One of the parties acts to terminate the contract and notifies the other party
  •  The employer terminates the contract for reasons other than non-compliance by the worker