59A7D41EB44EABC4F2C2B68D88211BF4 UAE Labour Law and Career Updates 2026: Frequently asked Questions UAE Labour Law
Showing posts with label Frequently asked Questions UAE Labour Law. Show all posts
Showing posts with label Frequently asked Questions UAE Labour Law. Show all posts

Friday, April 10, 2026

How to File a Labour Complaint in the UAE (2026): MoHRE Process Guide

The UAE employment landscape has undergone a significant transformation. With the full implementation of Federal Decree-Law No. 9 of 2024 (amending the 2021 Labour Law), the dispute resolution system is now faster, more powerful, and carries much higher stakes.

Whether you are an employer or an employee, navigating these changes correctly is essential to avoid new, heavy penalties and ensure a fair resolution.

1. Filing a Labour Complaint: The Primary Channels

In 2026, the Ministry of Human Resources and Emiratisation (MoHRE) is the mandatory first step for all private-sector disputes.

  • Digital Platforms: File through the official MoHRE website or the MoHRE/Tawajud App.
  • Service Centres: Visit Tasheel or Tawjeeh centers for guided filing.
  • Direct Contact: Call the toll-free number 800 84 (Labour Claims & Advisory Centre).

The "Binding Decision" Rule (Claims ≤ AED 50,000)

Under the 2024 amendments, MoHRE has been granted quasi-judicial powers to resolve smaller disputes without needing a courtroom:

  • Final Binding Decision: If the claim value is AED 50,000 or less, or if a party breaches a prior MoHRE-mediated settlement, MoHRE can issue a final decision.
  • Writ of Execution: This decision has the power of a court judgment. It can be enforced immediately by court bailiffs.
  • Appeals: Either party can appeal a MoHRE binding decision directly to the Court of First Instance (not the Court of Appeal) within 15 working days. The court must then resolve the case within 30 working days.
  • Claims > AED 50,000: If mediation fails within 14 days, MoHRE refers the case to the Labour Court.

2. When to Involve the Dubai Police

Reporting to the police should be reserved for criminal elements. Standard contract disputes (like unpaid overtime) must go through MoHRE first. Involvement of the police is necessary for:

  • Physical/Mental Abuse: Threats, violence, or severe workplace harassment.
  • Sexual Harassment: Report to the police or the Anti-Cybercrime Unit (if it involves digital communication).
  • Document Theft: While passport withholding is a MoHRE violation, physical theft of personal documents can be reported as a criminal act.
  • How to Report: Call 999 for emergencies or use the Dubai Police App (e-crime section) for non-emergencies.

3. Summary Dismissal (Article 44)

Termination without notice is strictly regulated. To be legally valid under Article 44, an employer must cite one of these grounds:

  1. Forgery: Using a false identity or submitted fake documents/certificates.
  2. Material Loss: Errors causing quantifiable damage (Employer must notify MoHRE within 7 working days of the error).
  3. Performance Failure: Requires a written investigation and two (2) formal warning letters.
  4. Safety Violations: Breaching documented safety measures (provided they were displayed in a visible place).
  5. Confidentiality: Disclosing secrets leading to material loss or personal gain.
  6. Assault or Intoxication: Violence at work or being under the influence during working hours.
  7. Unauthorized Absence: Missing >20 non-consecutive days or >7 consecutive days annually.
  8. Abuse of Position: Exploiting a professional role for personal profit (A key 2025/2026 enforcement focus).
  9. Unauthorized Work: Joining another firm without a valid MoHRE permit.
  10. Final Court Judgment: Being convicted of a crime involving honor or honesty.

4. End-of-Service: The Dual System

UAE employers in 2026 generally choose between two systems for gratuity:

Feature

Traditional Gratuity

Alternative Savings Scheme

Model

Defined Benefit (Lump sum at end)

Defined Contribution (Monthly)

Funding

21 days/yr (1–5 yrs); 30 days/yr (5+ yrs)

5.83% (1–5 yrs); 8.33% (5+ yrs)

Security

Company's internal books

External "Ring-fenced" Fund (Insolvency-proof)

Investment

None

Employee chooses risk profile (Capital-guaranteed vs. Growth)

5. Critical Compliance Checklist for 2026

  • AED 1 Million Fines: Penalties for illegal employment, "Fake Emiratization," or closing a business without settling dues now range from AED 100,000 to AED 1,000,000.
  • Statute of Limitations: You now have two years (extended from one) from the date of termination to file a legal claim.
  • The 14-Day Rule: All final settlements and EOSB payments must be paid within 14 calendar days of the last working day.
  • Wages During Dispute: In some cases, MoHRE can order an employer to continue paying an employee's salary for up to two months while a dispute is being settled. https://lnkd.in/dnEBnKtT

⚠️ Before You File – Read This.”

  • Filing too late reduces success
  • Lack of evidence weakens the case
  • Wrong jurisdiction (free zone vs mainland)

💼 What Happens After Filing”

  • Mediation (2–4 weeks typical)
  • If unresolved → Labour Court
  • No fees for small claims (under threshold) 

Disclaimer: This article is for informational purposes only. As a Senior Consultant, I recommend seeking professional legal counsel for high-value claims or complex compliance audits.

 ⚠️ Disclaimer: This post is for general informational purposes only and not legal advice. For specific guidance, please consult a UAE legal professional.

Sunday, March 30, 2025

UAE Work Permits: Your Guide to All 13 Types and Opportunities

 Let's provide comprehensive details for each of the 13 UAE work permit types, aligning with UAE labor law and Ministry of Human Resources and Emiratisation (MOHRE) regulations.

Understanding the UAE Labor Law and Work Permits

The UAE Labor Law, regulated by MOHRE, is designed to protect the rights of both employers and employees while fostering a productive and balanced work environment. Work permits are essential for legal employment in the private sector, ensuring that all workers are documented and their rights are safeguarded.

Here's a detailed look at the 13 work permit types:

1. Standard Work Permit (Employment Visa)

  • Purpose: This is the most common work permit, allowing UAE-based companies to recruit employees from outside the UAE.
  • Process:

v  The employer applies for an entry permit from MOHRE.

v  The employee enters the UAE on the entry permit.

v  The employer proceeds with medical tests and Emirates ID application.

v  MOHRE issues the work permit.

v  The employer then applies for the employee's residence visa.

  • Responsibilities: The employer is responsible for all visa, work permit, and residence documentation.
  • Target: For companies seeking to bring in foreign talent for long-term employment.
  • Key Consideration: This permit is the foundation for most expat employment in the UAE.

2. Transfer Work Permit (Change of Employer Permit)

  • Purpose: Enable expat workers already residing in the UAE to switch jobs without leaving the country.
  • Process:
    • The new employer applies for a transfer work permit from MOHRE.
    • The employee's current employer must approve the transfer (subject to contract terms and labor law).
    • MOHRE reviews and approves the transfer.
    • The new employer processes the necessary documentation.
  • Target: Expat workers within the UAE looking for new employment opportunities.
  • Key Consideration: This permit is subject to regulations regarding contract termination and potential bans.

3. Work Permit for Resident Visa by Family (Family Sponsored Visa)

  • Purpose: To allow individuals sponsored by family members (spouse, parents) residing in the UAE to work.
  • Process:
    • The employer applies for a work permit from MOHRE.
    • The applicant must have a valid family-sponsored residence visa.
    • MOHRE issues the work permit.
  • Target: Individuals on family sponsorship seeking employment without employer-provided visa sponsorship.
  • Key Consideration: This permit simplifies the process for those already legally residing in the UAE through family ties.

4. Temporary Work Permits

  • Purpose: Granted for short-term projects or specific tasks with a limited duration.
  • Process:
    • The employer applies for a temporary work permit from MOHRE, specifying the project's duration.
    • MOHRE approves the permit based on the project's requirements.
  • Target: Companies needing workers for short-term projects or seasonal work.
  • Key Consideration: These permits offer flexibility for projects with defined timelines.

5. One-Mission Permit

  • Purpose: Issued to recruit a worker from abroad for a specific, short-term project or task.
  • Process:
    • The employer applies to MOHRE, detailing the specific mission.
    • MOHRE then approves the permit based on the provided details.
  • Target: Companies requiring specialized foreign workers for a single, time limited task.
  • Key Consideration: Differs from temporary work permits by its focus on a single, specific mission.

6. Part-Time Work Permit

  • Purpose: Allows employers to hire workers under part-time contracts with reduced working hours or days.
  • Process:
    • The employer applies for a part-time work permit from MOHRE, specifying the part-time contract details.
    • Employees can work for multiple employers with MOHRE approval.
  • Target: Individuals seeking flexible work arrangements and employers needing part-time staff.
  • Key Consideration: This permit provides flexibility for both employers and employees.

7. Juvenile Work Permit

  • Purpose: Enable teenagers aged 15-18 to work under specific regulations.
  • Process:
    • The employer applies for a juvenile work permit from MOHRE.
    • Parental or guardian consent is required.
    • Working hours and job types are restricted to ensure safety and well-being.
  • Target: Teenagers seeking part-time or summer employment.
  • Key Consideration: Strict regulations are in place to protect young workers.

8. Student Training, Employment Permit

  • Purpose: Designed for students aged 15 and above already residing in the UAE for training and work experiences.
  • Process:
    • Educational institutions and employers coordinate the application to MOHRE.
    • Specific regulations and conditions are enforced to ensure a suitable training and work environment.
  • Target: Students seeking practical experience alongside their education.
  • Key Consideration: This permit focuses on combining education with work experience.

9. UAE, GCC National Work Permit

  • Purpose: Facilitate employment for Emirati and Gulf Cooperation Council (GCC) citizens.
  • Process:
    • Simplified procedures are in place for UAE and GCC Nationals.
  • Target: Emirati and other GCC citizens working in the UAE private sector.
  • Key Consideration: This permit reflects the priority given to local and regional talent within the UAE workforce.

10. Golden Visa Work Permit

  • Purpose: Required for Golden Visa holders seeking employment with UAE-based companies.
  • Process:
    • The Golden Visa holder applies for a work permit through the normal channels.
    • Having the Golden visa simplifies some procedures.
  • Target: Golden Visa holders aiming to work in the UAE.
  • Key Consideration: The Golden Visa provides long-term residency, and this permit facilitates employment for those holders.

11. National Trainee Permit

  • Purpose: Granted to companies registered with MOHRE that wish to train Emirati citizens with approved scientific qualifications.
  • Process:
    • Companies apply to MOHRE, providing details of the training program.
    • MOHRE approves the training program and issues the permit.
  • Target: Companies engaged in training Emirati citizens.
  • Key Consideration: This permit supports the UAE's Emiratization goals.

12. Freelance Permit

  • Purpose: Issued to self-sponsored foreigners providing services or tasks to individuals or companies without a specific employer or employment contract.
  • Process:
    • The applicant obtains a freelance permit from relevant free zone authorities or other approved entities.
    • This permit allows them to work independently.
  • Target: Freelancers, consultants, and independent contractors.
  • Key Consideration: This permit provides legal recognition for self-employed professionals.

13. Private Teacher Work Permit

  • Purpose: To allow qualified professionals to offer private tuition legally in the UAE.
  • Process:
    • The applicant applies for a permit through relevant authorities.
    • This two-year permit is issued free of charge.
  • Target: Qualified professionals wishing to provide private tuition.
  • Key Consideration: This permit legitimizes and regulates private tutoring services.

These detailed descriptions provide a comprehensive understanding of the 13 work permit options in the UAE, highlighting their purposes, processes, and key considerations. 

Sunday, March 16, 2025

UAE Labour Law 2026: The Definitive Guide to Terminations, Fines, and Gratuity

The UAE employment landscape has undergone its most significant shift in decades. With the full implementation of Federal Decree-Law No. 9 of 2024 and the 2025/2026 amendments to the 2021 Labour Law, both employers and employees must navigate a stricter, more transparent regulatory environment.

1. Termination Without Prior Notice (Article 44)

Under the current law, an employer may terminate an employee summarily (without notice) only under specific grounds of gross misconduct.

The 10 Grounds for Summary Dismissal:

  1. False Identity/Forgery: Submitting forged documents or assuming a false identity.
  2. Material Loss: Committing an error causing quantifiable financial loss (Employer must notify MoHRE within 7 working days).
  3. Safety Violations: Breaching written safety instructions despite being aware of them.
  4. Failure of Duties: Failing to perform basic tasks (Requires a written investigation and two (2) written warnings).
  5. Disclosure of Secrets: Sharing confidential intellectual property that leads to material loss or personal gain.
  6. Public Morals/Substance Abuse: Being intoxicated or committing immoral acts at the workplace.
  7. Assault: Physical or verbal assault against colleagues or management.
  8. Absence: Being absent without excuse for >20 non-consecutive days or >7 consecutive days in a year.
  9. Abuse of Position: Exploiting a professional role for personal profit (2025 Amendment).
  10. Unauthorized Employment: Working for another establishment without a legal permit (2025 Amendment).

Note on Suspension (Article 40): An employer may suspend an employee for up to 30 days during an investigation at half-pay. If found innocent, the employee must be reinstated with full back pay.

2. End-of-Service Benefits: The Dual System

As of 2026, the UAE operates two co-existing systems for terminal benefits. Employers can either stick to the traditional model or opt into the new investment-based scheme.

The Traditional Gratuity System

  • Eligibility: Minimum 1 year of continuous service.
  • Calculation: Based on Basic Salary only.
    • 1–5 Years: 21 days' basic salary per year.
    • 5+ Years: 30 days' basic salary for each additional year.
  • Cap: Total gratuity cannot exceed two years' basic salary.
  • Dismissal Rights: Even if terminated under Article 44, the employee retains their right to accrued gratuity.

The New Alternative Savings Scheme

Instead of a lump sum, employers can choose to pay monthly contributions into regulated investment funds (Cabinet Resolution No. 96 of 2023).

How the Savings Scheme differs from Traditional Gratuity:

  • Payment Model: Traditional is a lump sum at the end; the Savings Scheme is a fixed monthly payment (5.83% for <5 years service; 8.33% for >5 years).
  • Funding: Traditional is "unfunded" (on the company books); the Savings Scheme is "funded" and "ring-fenced" in external accounts, protecting it from company insolvency.
  • Growth: Traditional is a static calculation; the Savings Scheme allows the fund to grow through professional investment returns.
  • Employee Control: In the Savings Scheme, employees can choose their risk profile (Sharia-compliant, Capital Guaranteed, etc.) and add voluntary top-ups of up to 25% of their salary.
  • Portability: The Savings Scheme allows employees to keep their fund invested or move it when changing jobs, rather than receiving a one-time payout.

3. Key Compliance Shifts (2024–2026)

  • Dh1 Million Fines: Under Article 60 (Amended), fines for illegal employment, fictitious Emiratization, or closing a business without settling dues now range from Dh100,000 to Dh1,000,000.
  • Statute of Limitations: The window to file a labor claim has been extended to two years from the date of termination (Article 54).
  • Small Claims Resolution: Disputes valued at Dh50,000 or less are now settled by MoHRE or the Court of First Instance with no further right to appeal, ensuring rapid justice for minor claims.
  • 14-Day Settlement: All dues (gratuity, leave salary, etc.) must be paid within 14 calendar days of termination.

Conclusion

The 2026 UAE labour environment prioritises worker protection and employer accountability. Whether you are managing a "Bankable Deal Folder" for a new project or auditing your existing HR records, staying aligned with these amendments is critical to avoiding the new, heavy penalties.

Disclaimer: This article provides a general overview and should not be construed as legal advice. Consult a qualified UAE legal expert for specific cases.

#UAELabourLaw #UAEGratuity #EmploymentLaw2026 #MoHRE #DubaiBusiness #LegalCompliance #HRUAE

 

Thursday, March 13, 2025

UAE Labour Law Update: Termination Without Notice and Suspension (2026 Revision)

 

You are fired

This document outlines the provisions related to termination without notice and suspension under Federal Decree-Law No. 33 of 2021 (the "UAE Labour Law"), as significantly amended by Federal Decree-Law No. 9 of 2024 (effective late 2024/early 2025). These changes apply to all private sector establishments in the UAE (excluding DIFC and ADGM).

Termination Without Prior Notice (Article 44)

Article 44 remains the definitive list of "gross misconduct" grounds for summary dismissal. However, recent amendments have introduced stricter procedural burdens and specific new grounds.

  1. False Identity/Forgery: Assuming a false identity or submitting forged certificates. #Fraud #Forgery
  2. Material Loss/Damage: Committing an error resulting in material losses or deliberate damage. Requirement: The employee must admit to the error, and the employer must notify the Ministry (MOHRE) within seven (7) working days. #MOHRE #Damage
  3. Violation of Safety Rules: Violating the establishment's safety measures, provided the rules were documented and known. #WorkplaceSafety #Compliance
  4. Failure to Perform Duties: Failing to fulfil contractual duties. Strict Requirement: Termination is only valid after a written investigation and two (2) written warning letters. #WarningLetter
  5. Disclosure of Secrets: Disclosing industrial or intellectual property secrets resulting in material loss, loss of opportunity, or personal gain. #IntellectualProperty
  6. Public Morals/Substance Abuse: Committing acts against public morals or being under the influence of narcotics/alcohol at work. #WorkplaceEthics
  7. Assault: Physical, verbal, or other assault against the employer, manager, or colleagues. #WorkplaceViolence
  8. Unauthorised Absence: Absence without justification for more than 20 non-consecutive days in a year, or more than 7 consecutive days. #Attendance
  9. Abuse of Position (2025 Update): Exploiting the job role to obtain personal gains, profits, or illegal advantages. #Ethics #AbuseOfPower
  10. Unauthorized Employment (2025 Update): Joining another establishment or working for a third party without adhering to MoHRE legal procedures (e.g., without a valid part-time permit). #WorkPermit

⚖️ Comparative Analysis: Key Changes in 2025-2026

1. Retention of Gratuity (The Biggest Shift)

Unlike the pre-2021 law, an employee terminated under Article 44 cannot be deprived of their end-of-service gratuity. This remains a core protection in the current legal framework. #Gratuity

2. Escalated Fines (2024 Amendment)

Under the new Decree-Law No. 9 of 2024, if a dismissal is found to be procedurally flawed or based on "Fake Emiratization" or fraudulent practices, employers face fines ranging from Dh100,000 to Dh1,000,000. #LegalCompliance

3. Extended Statute of Limitations

Claims related to the termination of employment now have a two-year filing window from the date of termination (Article 54). This is an extension from the previous one-year limit, giving parties more time for legal recourse. #LegalRights

4. Finality in Small Claims

Labor disputes valued at Dh50,000 or less are now settled with finality by the Court of First Instance (or MoHRE in specific cases), with no further right to appeal, streamlining the resolution process for most standard terminations. #DisputeResolution

Suspension (Article 40)

Article 40 governs the temporary removal of an employee during a pending investigation.

  • Disciplinary Suspension: An employer may suspend an employee for up to 30 days for an internal investigation, during which the employee receives half-pay.
  • Criminal Suspension: If the employee is accused of a crime related to work, they are suspended without pay from the date the authorities are notified. If acquitted, they must be reinstated with full back pay for the suspension period. #EmployeeSuspension

Disclaimer:

This document provides a general overview and should not be construed as legal advice. Given the 2024-2026 updates and the steep increase in penalties (up to Dh1M), employers and employees are strongly advised to seek professional legal counsel. #LegalAdvice #UAEBusiness

 

Tuesday, March 11, 2025

DIFC Courts Jurisdiction: New Dubai Law Streamlines Operations & Dispute Resolution

Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai
 Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai has enacted Law No. (2) of 2025, a significant legislative development aimed at strengthening the Dubai International Financial Centre (DIFC) Courts. This new law comprehensively regulates the judicial and administrative structure of the DIFC Courts, redefining their jurisdictions and operational procedures.  

Enhanced Independence and Structure:

The law reaffirms the independent status of the DIFC Courts, encompassing the Court of Appeal, the Courts of First Instance, and the Small Claims Court.

These courts are mandated to exercise their duties and jurisdictions autonomously, adhering to the provisions of Law No. (2) of 2025, the broader DIFC legal framework, and the courts' established rules.  

Appointment and Authority:

A key aspect of the new law is the detailed specification of mechanisms for appointing the President and Director of the DIFC Courts. This includes outlining their respective jurisdictions and responsibilities and ensuring a clear and efficient leadership structure.

Introducing a Mediation Services Centre for Amicable Dispute Resolution:

Recognizing the importance of alternative dispute resolution, Law No. (2) of 2025 mandates the establishment of a dedicated Mediation Services Centre within the DIFC Courts. This center will provide a platform for parties to engage in mediated negotiations, facilitated by registered mediators, to achieve amicable settlements. The Centre’s President will determine its operating system, jurisdiction, and procedural guidelines. This addition underscores the DIFC Courts’ commitment to offering diverse and effective dispute resolution options.  

Exclusive Jurisdiction Clarified:

The new law explicitly defines the DIFC Courts’ exclusive jurisdiction, granting them the authority to hear and adjudicate civil, commercial, and labor claims and lawsuits involving the Centre’s bodies or institutions. This ensures a specialized and efficient handling of disputes within the DIFC ecosystem.  

Comprehensive Procedural Framework:

Law No. (2) of 2025 provides a detailed framework covering various aspects of litigation, including:

  • Powers of the DIFC Courts: Clearly outlining the scope of judicial authority.
  • Litigation Procedures: Standardizing processes for filing and conducting lawsuits.
  • Evidence: Defining rules for the admissibility and presentation of evidence.
  • Urgent Matters: Establishing procedures for expedited handling of time-sensitive cases.
  • Enforcement: Streamlining the process of enforcing court judgments.
  • Exemption from Pledge for Compensation: Addressing financial aspects related to litigation.
  • Technical Defects and Procedural Errors: Defining how such issues are handled.
  • Statute of Limitations: Setting time limits for legal actions.

Repeal of Previous Legislation:

This new law supersedes Centre Law No. (10) of 2004 and Law No. (12) of 2004, which previously governed the DIFC Courts. Any conflicting provisions in other existing legislation are also repealed, ensuring a unified and updated legal framework.  

Impact and Significance:

Law No. (2) of 2025 represents a significant step in enhancing the efficiency, independence, and effectiveness of the DIFC Courts. By providing a comprehensive and modern legal framework, Dubai aims to solidify the DIFC’s position as a leading international financial center with a robust and reliable judicial system.

Monday, August 12, 2024

UAE Labour Law Update: Understanding the New Dh1 Million Fines and Compliance Shifts

 The UAE labor landscape has undergone a significant transformation with the issuance of Federal Decree-Law No. 9 of 2024. This decree introduces pivotal amendments to the existing Federal Decree-Law No. 33 of 2021, signaling a "zero-tolerance" approach toward fraudulent labor practices and non-compliance.

For business consultants and legal professionals, these changes require immediate attention—particularly regarding the steep escalation in financial penalties.

1. The Dh1 Million Threshold: Stricter Penalties (Article 60)

The most striking update is the amendment to Article 60, which significantly raises the ceiling for fines. Violations that previously carried more modest penalties now face a range between Dh100,000 and Dh1,000,000.

Key offenses triggering these fines include:

  • Illegal Employment: Hiring workers without valid work permits or bringing workers to the UAE and failing to provide an actual job.
  • Unsettled Business Closures: Shutting down operations without fulfilling all legal entitlements and worker rights.
  • Juvenile Violations: Employing minors (under 15) or breaching the specific safety and hour regulations for juvenile workers.

2. A Crackdown on Fictitious Emiratization

The new decree codifies strict criminal and financial consequences for "Fake Emiratization." Under the amended law, hiring a UAE national in a nominal role without actual work responsibilities is a serious offense.

  • The Penalty: Fines between Dh100,000 and Dh1,000,000.
  • The Multiplier Effect: Crucially, this fine is applied per worker. If a firm is found to have five fictitious roles, the financial liability could scale to Dh5 million.
  • Criminal Oversight: Criminal proceedings for these cases can now only be initiated by the Ministry of Human Resources and Emiratization (MoHRE) or its authorized representative.

3. Streamlined Dispute Resolution (Article 54)

The amendments aim to reduce the backlog in the judicial system by making the Court of First Instance the final authority for specific disputes.

  • Decisions regarding claims valued at less than Dh50,000 are now final at this level and cannot be appealed to the Court of Appeal.
  • This shift emphasizes efficiency and provides quicker closure for small-to-medium labor claims.

4. Extension of the Statute of Limitations

In a move that offers more protection to employees, the window for filing labor-related lawsuits has been expanded. Under the amended Article 54, claims related to the termination of an employment relationship must now be filed within two years of the termination date (previously one year).

5. Settlement Options: A Path to Compliance

The law now provides a mechanism for employers to resolve disputes before they escalate to a final court judgment. The MoHRE can negotiate a settlement if the employer:

  1. Pays 50% of the minimum fine (effectively Dh50,000 per violation).
  2. Reimburses all government incentives or financial benefits (such as those from the Nafis program) obtained through fraudulent practices.

Strategic Takeaways for Businesses

The 2024 amendments represent a shift toward a more transparent and competitive labor market. To mitigate risk, firms should:

  • Conduct Compliance Audits: Ensure every individual on the payroll has a valid permit and an active job description.
  • Review Emiratization Records: Confirm that all UAE nationals are performing genuine, documented tasks.
  • Update Termination Procedures: Given the two-year filing window, maintaining impeccable records of final settlements and entitlement waivers is now more critical than ever.

 

Monday, May 20, 2024

5 Important Common Questions the U.A.E Resident Needs to Know the Answers

 1)Question: I have a residency visa in the UAE, but I am still waiting for my Emirates ID card. I would like to know if I can travel out of the country without an identity card.

U.A.E Residents

Answer: You can travel out of the UAE without the Emirates ID card as long as your residency visa has been issued. UAE immigration will be able to see your visa status electronically.

It is advisable to bring a copy of your Emirates ID card application form with you in case immigration asks for proof that you have applied for the ID. You can also show them the online application status if available.

2)Paternity leave in U.AE is it possible to add this leave to my annual leave?

Answer: Yes, you may be able to add your paternity leave to your annual leave in the UAE. Cabinet Decision No. 1/2022 allows combining parental leave with annual leave

Paternity leave in the UAE is for 5 working days for both private and public sectors. This leave applies to fathers employed by both private and public sectors and can be taken any time within the first 6 months of the child's birth.

Here are some things to keep in mind:

  • Approval needed: While regulations allow it, you will still need to get approval from your employer to combine your paternity leave with your annual leave.
  • Notice period: Make sure to notify your employer well in advance about your intention to use both your paternity leave and annual leave together.
  • Documentation: You will need to provide proof of your child's birth to avail of paternity leave.

3) I have an offshore bank account – will I have to close this account when I move to the U.A.E

Answer? No, you generally do not have to close your offshore bank account when moving to the UAE. The UAE does not restrict residents from having offshore bank accounts.

However, it's important to be aware of UAE regulations regarding reporting foreign income. You may be required to disclose your offshore accounts and any income earned on them to the UAE authorities.

4) Is it possible to sponsor my mother-in-law and father in law in U.A.E?

5) Is it possible to take a Resident visa from GCC countries for a U.A.E  resident without canceling a U.A.E visa?

Yes, it is possible to sponsor your mother-in-law and father-in-law for residency in the UAE, under the Parent Residence Visa program. There have been some recent changes to the eligibility criteria, so here's what you need to know:

  • Minimum Salary: You will need to meet a minimum monthly salary threshold to be eligible. This amount is higher than what's required for sponsoring a spouse or child.
  • Financial Support: You no longer need to be the sole financial support for your parents-in-law, as was previously required. However, you will still need to demonstrate sufficient income to cover their living expenses.
  • Sponsored Together: You cannot sponsor just one parent-in-law. The application needs to be for both of them.

 No, it is generally not possible to hold a resident visa from another GCC country while being a resident of the UAE. UAE residency visas are typically tied to employment or sponsorship within the UAE.

If you are considering working in another GCC country, you would likely need to apply for a work visa in that country. This would likely cancel your UAE residency visa.

Here's why:

·       Tied to Sponsorship: UAE residency visas are linked to your employer or sponsor in the UAE. Having a residency visa in another GCC country would indicate sponsorship or employment outside the UAE, which would conflict with your UAE visa.

·       Specific Country Requirements: Each GCC country has its own immigration regulations. To obtain residency in another GCC country, you would need to meet their specific requirements, which would likely involve canceling your UAE visa.