New entry visa system implemented in UAE

A new entry visa system aimed at attracting qualified and talented professionals to the UAE was approved by the Cabinet on Sunday.

Sheikh Mohammed bin Rashid, Vice President, Prime Minister and Ruler of Dubai, said the scheme would be carried out in phases, starting with tourism, health and education visas.

The second phase will involve reaching out to talent in the fields of medicine, science and research, among others.

Sheikh Mohammed ordered the setting up of specialised committees to prioritise these sectors and put forward a plan to attract regional and global talent.

A dynamic lifestyle, practical financing policies and a full-fledged infrastructure are some of the benefits offered to professionals and multinational companies in the UAE.

"Future prosperity lies in the creative minds of our people. Investing in people is an investment in our economy and success," Sheikh Mohammed said.

"The UAE is a country of vast opportunity. We aim to provide a tolerant environment that can nurture potential and support outstanding talent."

The new visa system will be implemented in several phases. The first phase will include issuing entry visas for tourism, medical treatment and education. The second one will see the issuance of entry visas to attract innovative and inspirational entrepreneurs and exceptional experts in medical, scientific, research, technological and cultural domains.

Shaikh Mohammad issued instructions to set up special committees to determine the most important sectors that will be designated for the issuance of visas. The committee will develop a plan to draw in the most important and exceptional skilled individuals, regional as well as global.

The new visa system will give a big boost to tourism, health and education sectors by enhancing the UAE’s competitive excellence on the global stage. The conducive environment and lifestyle, as well as financial facilities and sophisticated infrastructure, are the most important factors to lure extraordinary competencies and high skills. The system will offer new facilities for international companies to shift their headquarters to this country.

No Need to Reimburse Visa Expense to Employer in U.A.E

As per U.A.E Labour Law, an employee seeks to terminate his employment contract, the employer shall not be legally entitled to receive from the employee, any amount of money against the cost of visa incurred by the employer.

It may also be noted that there are no laws which prescribe that an employee should reimburse the employer towards the visa expenses. Rather it shall be deemed to be in contravention of Article 60 of the Federal Law No 8 of 1980 Re: Regulation of Labour Relations which states:

No amount of money may be deducted from a worker's wage in respect of private claims, except in the following cases:

1) Repayment of loans or money advances paid to the worker in excess of his entitlements, provided that the amount deducted in this case shall not exceed 10 per cent of his wage.

2) Contributions that the workers are required by law to make from their wages, towards social security and insurance schemes.

3) The worker's contributions to a provident fund or repayment of loans due thereto.

4) Contributions towards any welfare scheme or in respect of any other privileges or services provided by the employer and approved by the labour department.

5) Fines imposed upon the worker for any offence he commits.

6) Any debt exacted in execution of a court ruling, provided, however, that the deduction made in execution thereof should not exceed one-quarter of the wage due to the worker. Where there are several debts or creditors, the maximum deduction shall be half the worker's wage, which shall be divided pro rata among the creditors, after payment of any legal alimony to the extent of one quarter of the worker's wage."

Changes in Residence Visa Medical Test in U.A.E

The UAE Ministry of Health and Prevention (MOHAP) held a press conference to explain the amendments approved by the Council of Ministers regarding the system of residency screening medical fitness.

A senior official from the Ministry explained that the health card requirement for a medical examination for expats has been cancelled.

“In line with our national efforts to develop a system of legislation that will protect the community from diseases and as part of the initiative to update the Medical Fitness Examinations…, the health card requirement for a medical examination for expatriates has been canceled,” said Dr. Hussein Abdul Rahman Rand, Assistant Undersecretary, MOHAP, who presided over the press conference with Dr. Nada Marzouki, Director of the Department of Preventive Medicine.

“After getting the fitness certificate, a person should apply to get either a health card or a health insurance,” said Dr. Rand, adding that “a screening for Hepatitis B and Hepatitis C will be conducted for workers in health facilities in order to preserve their health due to their constant interaction with patients.”
Dr. Rand, pointed out that this decision, which has been implemented across preventive medicine centers since February, is in line with recent developments being pursued within the medical field in an effort to update legislation, control the spread of communicable diseases and facilitate residential procedures.

In 2015, 460,904 persons were screened for fitness in the Ministry of Health and Prevention.

Dr. Rand emphasised the Ministry’s commitment to protect the community in light of the increasing number of expats arriving to the UAE as a result of the economic boom, which has led to updating the preventive procedures and regulations to preserve community health

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.
 

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.

UAE Ministry of Labour stipulates salary for graduates in private sector not less than Dh12,000

A minimum salary rule will be applied by the Ministry of Labour to three categories of employees, provided they have a secondary school certificate or a higher educational certificate, local Arabic daily Al Khaleej has reported.

Ministry officials said the private sector workers are grouped into five skilled labour categories, adding that employees of the first category should be university graduates and should receive a minimum monthly salary of Dh12,000.

The second category include technicians who should receive not less than Dh7,000, while the third are skillful labourers who must be paid at least Dh5,000, provided they have a secondary school certificate.

According to the report, the latest ministry regulations followed requests by a number of   employees wishing to change their jobs for higher salary and other reasons.

The report states that many of the applications were rejected because they did not meet the necessary conditions. The Ministry has also said it had agreed on bringing labour from outside the UAE as long as all labour conditions are met.

The report quoted the ministry as saying it will not give new labour permits to employees in case the salary they will receive in the new company is less than what the ministry has previously decided.

In such a case, they will have approval six months after the cancellation of the old labour card.

To be given a labour permit, the qualifications of the employees should suit the nature of the job, it said.

End of service benefit should be calculated basis of total salary -Dubai Court

A worker’s end of service benefit should be calculated with respect to his total salary and not just the basic payment, according to a new ruling by the Dubai Court of Cassation.The decision comes in a case where an employee sought dues of up to Dh159,000 from his employer, which was rejected by the Court of First Instance and later overturned another court.

However, there was no indication from the court whether this was a precedent or only a ruling for this particular case.
Accusing the company of his arbitrary suspension, the employee in his lawsuit demands three months’ salary as compensation for sacking him without notice, Dh11,000 as salary of the last month he worked, Dh22,000 as leave allowance and ticket to his home country and Dh82,000 as his end of service gratuity.
The plaintiff also claimed in the lawsuit that he worked in the company as a Director of Advertising and Editor of a magazine owned by the company.
However, Court of First Instance in its judgment rejected his lawsuit and ordered the employer to pay a total amount of Dh54,000 to the employee.
The employee appealed against the verdict to the Court of Appeal which ordered the employer to pay the value of a return ticket to the complainant’s home country in addition to the amount ordered by the earlier court.
The prosecution also appealed against the ruling on the basis that the end of service benefit of the employee was calculated only on according to the basic salary of worker, which it said was against the labour law.
The Court of Cassation accepted the appeal and directed the case to the Court of Appeal asking for a new panel judges to look into the case.
The Court of Cassation observed: "The pay in accordance with the provisions of Article I of the Labor Law includes all that a worker receives as emolument, whether in cash or in kind, hence the gratuity should be calculated according to the entire amount received by a worker, including his monthly commission.”

Private sector workers sacked during their probation period must leave the UAE

Private sector workers sacked during their probation period must leave the UAE after obtaining their dues from the employer as they are not exempt from the one-year job ban under the new law, according to the ministry of labour.

The ministry outlines this rule during its open-day meeting held every week to consider complaints from workers or their employers in line with new work laws introduced early this year to regulate the controversial ban period.

During the meeting on Monday, an expatriate female public relations employee and several other workers from the same company complained that they have just been sacked a few months after they were appointed and asked the ministry to allow them to shift to another firm and exempt them from the one-year ban.

“The ministry made clear that in case the probation period of those workers is six months and their services have been terminated during that period, then they must get their dues and leave the UAE,” Alittihad newspaper said.

“But if the probation period is set at three months in their job contract, this means they have completed their probation and they will be allowed to move to another company without having a ban since the employer violated the job contract.”

Dubai government plans to offer pensions to expats

The Dubai government is evaluating plans to give pensions to foreign workers, based on suggestions by World Bank on how to improve employment laws including staff benefits, UAE daily The National reported on Sunday

 Representatives of the UAE and the ILO have also discussed the establishment of a pension fund for expatriate workers so that the Government can guarantee that workers receive end-of-service benefits.

"The employer would have to pay regularly to a fund supervised by a Government entity," said Maurizio Bussi, the deputy regional director for Arab States at the International Labour Organization (ILO).

"This especially indicates that the UAE is not looking for short-term labour contracts," said Azeem Ibrahim, an economic adviser to the government of Pakistan. "This sends a message that their contributions will be valued."

Nasser Munder, the Filipino labour attaché in Abu Dhabi, said a pension fund for the expatriate workforce would guarantee that workers receive their end-of-service benefits from their employers.

"Workers have said they often find it difficult to get their full and final settlement from their employers at the end of their contract," he said

"We are providing technical assistance in the area of employment policy. It covers the areas of expatriate benefit treatment including pensions," the paper quoted a senior World Bank official in the region as saying.

"There's a lot of experience globally on pension schemes including some that pertain to portable pension schemes, which could be applied to expatriate labour," the official added.

Dubai employers do not provide pensions for expatriates. Financial experts say the prospect of offering pensions could help to woo more foreign workers to the emirate as well as encourage them to stay longer in the country, the paper reported.

A possibility of converting the end-of-service gratuity system into pensions is also being considered, the paper cited an informed source.

Under a federal law dating back more than three decades, companies have to provide only end-of-service gratuities to employees who have completed one or more years of service, the report said.                                                                                             

The new federal law concerning the protection of consumers will be enforced in the third quarter

The UAE is on the verge of enforcing tough penalties involving fines of up to Dh1 million against dealers trying to manipulate the market by raising prices of consumer products without prior official permission.

The Ministry of Economy said the new regulations, which have been approved by the federal cabinet, would be enforced in the third quarter of this year and warned traders against any manipulation attempts.

In a statement carried by local Arabic newspapers, the ministry said it would not allow dealers to manipulate or control consumers and ruled out any move by the higher committee for the consumer’s protection to approve requests by suppliers to raise the prices of some products this year.

The ministry said its anti-manipulation actions had ensured market stability, adding that prices of consumer products in the UAE are the lowest in the Gulf despite the absence of subsidies enforced in other Gulf nations.

“The new federal law concerning the protection of consumers will be enforced in the third quarter…it involves increasing the penalty ceiling to Dh1 million after it was endorsed by the cabinet,” economy minister Sultan Al Mansouri said.

“The UAE will not allow traders to manipulate consumers at will….the government will continue to intervene in consumer prices to ensure maximum protection for the consumers in the country.”

Mansouri said the ministry’s higher committee for consumer’s protection is considered “the frontline” in the defence of consumers, adding that it would not approve any new price increases without “strong and convincing reasons.”

“The committee normally carries out a comprehensive study into any request for prices increases…this study involves the reasons for this increase, the price level in the country of origin, prices in neighbouring countries and the profit margin…I don’t think we will approve any price rise this year,” he said.

According to Emirat Al Youm newspaper, the new law increases the maximum penalty against violating dealers to Dh1 million from Dh100,000 and the minimum fine to Dh100,000 from Dh10,000.

UAE cancels up to 1m work permits a year: official

New system linking Labour and Interior ministries to help firms save time and money

The UAE cancels up to 1 million work permits every year, a senior official of the country’s Ministry of Labour (MoL) revealed last week.
At a press conference in Dubai last week, Humaid bin Deemas, Assistant Undersecretary for Labour Affairs at the MoL, disclosed that around 800,000 to 1 million permits are cancelled every year and that a new system, which provides a unified platform to process visa and labour-related issues is in place now, helping employers save time and money.
The project to electronically link the MoL with the Ministry of Interior (MoI) has concluded, providing a unified platform to process visa and labour related issues, it was announced during the press conference.
The linkage has created a joint database for both the ministries, which will allow them to access each other’s files and information, as well as process and cancel visas electronically. The new system will also save employers some headache as they won’t have to fill two separate forms at both the ministries to apply for a labour permit, it was announced.
The new system requires applicant to file one form at MoL, which will then send it electronically to the MoI and process the documents.
The announcement was made during a press conference held in the Ministry of Labour in Dubai in the presence of Humaid bin Deemas, Assistant Undersecretary for Labour Affairs, and Colonel Saeed Salem Al Shamsi, Director-General of Residency and Foreign Affairs department of MoI, and Colonel Bakhit Saeed Al Suwaidi, Director Office of the Assistant Undersecretary of Residency and Foreign Affairs, and Saif Al Suwaidi, general coordinator of the project the MoL.
MoL has confirmed that the new system has undergone testing through a pilot project last November and has successfully issued 317,137 work permits. While, the issuance process has already started under the new system, the cancellation would be launched only in July.
Once operational, the system will allow cancellation of labour cards from any centre in the UAE or even at the airports, following payment of all fines due by the applicant.
The E-link will also require all the firms to have electronic signature card, work on which is currently under process.
Under a later phase of the project it would be mandatory for employers to have electronic signature cards, failure to have which would stall all the files of the applicants.
There are currently 140,000 firms who already have e-signature card and those who do not have will be given a grace period to be announced soon.

Banned workers must leave UAE:Ministry of Labour

Pvt sector staff must exit even if they hold valid residence visa; Dh50,000 fine for firms hiring banned workers.Private sector workers who get a one-year ban by their employers must leave the country even if their residence visa has not expired, according to the Ministry of Labour.

Clarifying rules governing expatriate workers who are not exempted from the job ban, the ministry said those who stay in the UAE after they get the ban are considered violators of the immigration law.

“Those workers who get a ban and stay in the UAE are violating immigration laws as this means they are staying without a job,” said Humaid bin Dimas Al Suwaidi, Assistant Undersecretary.

“Expatriate workers who come to the UAE enter on a work visa, which allows them to get residence…any violation by the worker of the job contract means he will be banned from work and this will deprive him from residence even if it still valid.”

Quoted by the semi-official daily 'Al Ittihad', Suwaidi said companies which employ a banned worker would be fined Dh50,000.

During the ministry’s weekly “open-day” on Thursday, Suwaidi said he had rejected a request by a company to hire a banned expatriate labourer, adding that worker is now offending immigration laws and must leave the UAE.

Six months out of country for Labour Card cancellation in UAE

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

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

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

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

Contract amendment

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

Temporary work permit

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

Job transfer

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

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

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

Workers with valid labour card and residency visa can apply for temporary work permits in UAE

Earlier rule of mandatory completion of one year with an employer before requesting for a temporary work permit lifted

All workers with a valid labour card and residency visa can now apply for temporary work permits. The earlier rule which required workers to complete one year with an employer before applying for a work permit has been lifted, according to a report in 'Al Khaleej' newspaper.

However, the Ministry of Labour will issue permits only to those workers who meet the conditions stipulated by the ministry.

Eligibility criteria for obtaining a temporary work permit include a valid residency visa and labour card. Also, the application request must possess authorised signatures of both the current establishment and that of the seeker.

However, the ministry will also consider cases wherein the current employer has breached the contract with the employee; has not paid salary for more than 60days; or if the worker was not told of the planned closure of the firm; or if the company has stayed closed for more than two months.

In case of closure of company the worker is required to inform the ministry and obtain approval to that effect from the Department of Labour Inspection officials before applying for a temporary work permit.

The permit will be valid strictly only for a period of six months or until the validity of the labour card, which ever comes first.

In UAE six-month employment ban is still very much in force

Ministry says new law only makes job shift more flexible as it turns down several requests.New rules enforced by the UAE at the start of 2011 allowing workers to shift to another job still include a six-month ban on those who do not fully abide by the specified terms, the ministry of labour has said.

In a statement carried by the Arabic language daily Alkhaleej on Sunday, the ministry said it turned down applications in January by many workers who had left their employers and wanted to move to another sponsor because they failed to justify their move.

“Those workers mentioned some mistakes committed by their employers but they did not comply with the new cabinet decision nor did they know the measures that govern such a decision or the terms needed to be met in order to get consent by the ministry for their shifting to another employer,” it said.

The statement said the ministry found that those workers had quit their jobs without any real reason, trying to benefit from the new job transfer measures without clearly understanding them.

“This prompted the ministry to impose a six-month ban on them because an exemption of this ban will be granted only under the new regulations…the six-month ban is still in force but the new decision was introduced only to add some flexibility to job transfer under certain conditions and rules which should be enforced by the ministry of laour without any exception,” it said.

“Such condition must mainly include that the work contract between the employee and the employer should be terminated with the consent of both parties and the worker has competed at least two years in the job with that employer.”

But the ministry said such a condition could be excluded in case the employer breaks terms of the contract or fails to pay workers their wages for at least 60 days. Workers can also apply for transfer in case their establishment has shut down.

“Another case involves a court suit against the employer by the employee provided the court issues a sentence in favour of the employee…in any case, the worker should not quit the job without any reason or justification as this will result in a six-month ban.”

60-day work permits for first-time workers in UAE

Ministry of Labour has announced that new workers can now come to the UAE on work permits valid for 60 days, provided they are above 18 years of age and posses a passport valid for more than six months. Most importantly, the rule is applicable only to those who have never worked in the UAE before.Such work permits can be extended six times provided the fee and bank guarantee are paid before each expiry date. Expired work permits will incur a fine of Dh500 for every 10 days from the date of original expiry or the extended expiry date.

And in case of non-payment of fees and bank guarantee within 60 days, the permit will be automatically cancelled.UAE citizens and GCC nationals cannot apply under this permit.

Similarly, companies bringing such workers must possess a valid licence and the person in charge must possess the authority to have an electronic signature.Tasheel centres are authorised to issue such work permits

UAE Ministry of Labour approve requests for temporary work permits without employer’s consent

The Ministry of Labour will approve requests for temporary work permits without the consent of the former employer, as long as the residence visa and labour card of the applicant is valid.The ministry’s latest ruling came in reference to labour cases referred to it by the courts, according to a report in Al Khaleej newspaper.

The Ministry of Labor stated that it has received requests from workers for temporary work permits.

The ministry statement said, “The labourers confirmed in their applications that they are working for a private construction company and the project was stopped due to circumstances involving the company.“So they wanted to work, for a limited time, for another company till the conditions of their original company improved.”

According to the employment contract they were not allowed to work for anywhere else for the term of their contract - two years.However, the ministry granted temporary work permits because the company is not paying them wages on a monthly basis.

The ministry, however, requires that the workers submit documents proving that the current establishment has not paid the wages for two months or more, based on a report of the Office of Protection of Wages, or the Labour Relations department.

The fees for the UAE ID card become the responsibility of the sponsor

Sponsors set to pay for employees' ID cards,ID to be linked to government services from April

Employers in the UAE will have to pay fees for the issuance of national identity cards for their employees when the ID is linked to residence in the country, according to the Emirates Identity Authority (EIA).

The national ID, an ambitious project launched by the UAE to ensure comprehensive data for its people, is expected to be linked to government services from April, two months ahead of the deadline for registration.

“The fees for the issuance of the ID card will automatically become the responsibility of the sponsor once it is linked to residence and after the enforcement of the unified application form,” EIA director general Ali Alkhouri told the semi official Arabic language daily Alittihah.

He said some major private sector firms in the UAE, including Al-Jaber Group, had already agreed to pay ID fees for their employees.

“As from April, government services to the public will be linked to registration and obtaining the ID card…during that period, we will work to link the ID electronically with six government establishments including the ministries of interior, labour, education, health, justice and higher education,” Khouri said.

Speaking at a seminar organized by Alittihad, Khouri urged citizens from the other members of the six-nation Gulf Cooperation Council (GCC) to obtain the national ID card, warning that any delay could block their interests in the UAE.

He revealed plans to re-design ID registration centres with the aim of expanding their handling capacity to ensure all people in the UAE are registered on time.

He said the project would be completed within the first half of 2011, adding that the capacity of some centres would be more than doubled.“For example, the registration lines at Barsha centre in Dubai will be increased from six to 25 in February,” he said.

UAE employee dies outside country entitled to receive Gratuity

UAE employees happen to die outside the country, then their families are entitled to receive financial dues including gratuity. If UAE employees happen to die outside the country, then their families are entitled to receive financial dues including gratuity, according to the Ministry of Labour. Labour card cancellation effective upon receipt of death certificate or lapses automatically after six months

In the weekly session, while addressing labour issues, Khalil Khouri, Director of Work Permits, Labour Ministry, said: "If any person were to die outside the UAE, while being legally employed in the Emirates, then the financial dues of the deceased as per the employment contract should be handed over to the family."

"Similarly, the labour card of the deceased will be cancelled once the death certificate - duly attested by both the embassy of the country where the person died as well as the Ministry of Foreign Affairs - is presented.

Alternatively, the labour card will be automatically cancelled after six months as per labour laws," Khouri was quoted as saying by 'Al Khaleej' newspaper.

Answering a labour transfer query, Khouri said employees can be transferred to another facility, if the company they were working for is closed. But in uch cases, the ministry should be notified of the closure of the company within two months. Following which, the Inspection Department will study the complaint and, if need be, punishment procedures intiated against the owner.

Meanwhile, Khouri rejectd the request of an administrative manager who wanted to transfer to another company on the grounds that he had not completed two years with his current employer and he earned a salary of Dh12,000 as specified under the 'skill level 1 category'.

He added that salaries recorded in employment permits cannot be revised.

Dh12k salary for degree holder’s applies to only Category I firms UAE Labour Ministry

Dh12k salary for degree holder’s part of new company classification policy,UAE Labour Ministry clarifies that amendment applies to only Category I firms under the new system

The UAE Ministry of Labour has clarified that new labour law amendments due to be implemented in July this year are aimed at easier categorisation of companies operating in the country.The new amendments, one of which states degree-holders must be paid a minimum of Dh12,000 per month, however, come as requirements if the company aims to be included under Category I.

A top official at the Ministry of Labour told this website that companies will be classified into three categories [I, II and III], according to skill levels of employees and Emiratisation ratio.

For enterprises to be included under Category I, 20 per cent or more of their total staff must fall under skill levels 1 (degree-holders), 2 (diploma holders) and 3 (unskilled workers).

The salary of employees (both citizens and expatriates) under skill level 1 [holders of Bachelor’s degree or higher] should not be less than Dh12,000, according to the new Labour Ministry resolution.

Salary for diploma holders should not be less than Dh7,000 and for those who fall under skill level 3 should be paid a minimum of Dh5,000 per month.

Minister of Labour Saqr Ghobash said that all establishments should aim to become Category I firms.

Proportion of Emiratis included across the three skill levels should not be less than 15 per cent of total staff strength. It is mandatory for national employees to be registered with one of the public bodies or government funds such as a pension and social security scheme, and avail retirement benefits at the UAE level or at the individual emirate level.

Private sector establishments that make it to the top category can avail several benefits including a waiver in visa deposit fees and bank guarantees, among others. However, if they fail to adhere to the rules, companies will be demoted to the lower categories, said a ministry official.

Category I private sector companies, which do not meet the abovementioned guidelines will be demoted to Category II.

According to Council of Ministers' Decision No 26 of 2010, companies included under Category I will be exempted from paying guarantees on deposits. According to Article V of the Ministerial Resolution, companies listed under Categories II and III must pay bank guarantees.

Category II firms will be further sub-divided into three levels – A, B and C. Firms listed under Category II (A) will be obliged to pay Dh3,000 bank guarantee for each worker, with a maximum of Dh1.5million.

Facilities under Category II (B) will pay a bank guarantee of Dh3,000 for each worker but with a maximum of Dh3m. And companies classified in the Category II (C) will pay bank guarantee of Dh3,000 for each worker with a maximum of Dh5m.

Similarly, establishments under Category III are entitled to pay a bank guarantee of Dh3,000 for each worker with a maximum of Dh10m.

However, the ministry has exempted industrial projects licensed by the Ministry of Economy, as well as companies and institutions under Federal or local government from paying bank guarantees.

Non-profit organisations, cooperative associations, national associations under the supervision of the Ministry of Social Affairs are also exempted from bank guarantee payments.

Similarly, projects approved by the Ministry of Finance need not pay bank guarantee.

No ‘fictitious Emiratisation’

Minister of Labour Saqr Ghobash said once the new categorisation comes in place, it will give establishments an opportunity to enhance their workplace functions and take advantage of the various benefits that await them.

The recommended classification structure has taken into account the current market condition, Emiratisation requirement, salaries and other expenses such as housing etc. whereas the ministry was earlier focusing only on the workplace aspect.

Such requirements are bound to open up more jobs for nationals and will do away with “fictitious Emiratisation”, Ghobash added.Category I should be the aim of all establishments, he said.

Once categorised, no going back

Meanwhile, Humaid bin Dimas, Assistant Undersecretary of the Ministry of Labour, was quoted by Al Khaleej newspaper as saying in one of the weekly labour meetings that once the establishments are upgraded to Category I, they cannot reduce salaries of employees. If any such incident comes to light, the company will be downgraded.

Bin Dimas also urged companies to adopt WPS [wages protection system] and transfer salaries to banks. The new amendments also include a two-year validity of labour cards and reduced fee for labour transfer, he added.