Skilled workers can enter multiple employer contract in the UAE

Skilled workers, both Emirati and expatriates, can now enter a multiple employer contracts after obtaining approval of the Ministry of Human Resources and Emiratisation, according to a new ministerial decision.

Under the decision signed by Naser Bin Thani Al Hameli, Minister of Human Resource and Emiratisation, companies can recruit skilled workers — holder of university degree or higher and those who completed their diploma in any field — from inside the country of overseas under part-time contracts, which allow these workers to take several part-time jobs without approval of the original or other employers. The new system is implemented alongside with the existing system which allows employers and workers to establish a normal business relationship under fixed-term or indefinite contracts.

Al Hameli said the new system will enhance the flexibility of the labour market and meet the needs of the employers from the existing labour market and thus reduce dependence on labour being imported from outside the country. Under the new part-time contract, workers will put less than the usual eight hours a day or less than 48 hours per week and must receive a weekly rest of not less than one day.

Al Hameli said the "part-time contract" will reduce the operational costs of employers who recruit workers from inside the UAE.

He added the system contributes to attracting and retaining the skills and expertise to enhance the productivity of the labour market in the country.The part-time contracts are limited only to specialised professions that require a high degree of scientific, technical and administrative skills and a minimum university qualification as well as  technical jobs that require mental, scientific and technical as well as practical and supervisory skills of workers who completed their two or three year diploma in any field, according to Al Hameli.

Al Hameli stressed that "the part-time contract is subject to the same rules and penalties applicable to the regular employment contracts, either fixed-term or non-fixed-term, out of keenness to protect the rights of the parties to the employment relationship."

The original employer shall bear the fees levied by the ministry when contracting with a worker under the part-time job contract.

The reduced fees for skilled labour shall be between  Dh150 and Dh2000 according to the category in which the establishment falls within the classification system of companies.

The original employer shall also bear the employee's annual leave, the end of service benefits and any other financial obligations in proportion to the number of actual working hours and the amount of the wage paid by the worker.

The decision obliges each employer to provide the worker with the requirements and working environment stipulated in the ministry's regulations.

According to the decision, the employer may not require the worker to work more than the hours agreed upon without the written consent of the worker. The employer may not prevent the worker from working in a similar facility to his company under the non-competition clause or for disclosure of the secrets of the work unless a court ruling has been issued to this effect.

The resolution states that a part-time contract may not be converted into a regular contract until after the end of the part-time employment contract, so that each party may freely contract with the model it accepts.

Labour Ban and U.A.E Ministerial Decree 766 Rules for Work Permit

Ministerial Decree 766 of 2015 sets out new rules on work permits with result easing of labor bans .Rules and Conditions for granting a permit to a worker for employment by a new employer as per Decree 766

As per Ministerial Decree 766 and effective from January 2016 a new work permit will be issued and hence no labour ban arises in the following circumstances (applicability to each type of contract illustrated in the relevant columns). Clearly the changes provide for a more fluid labour market and greater employee mobility. The circumstances in which labour bans can be issued are so radically.

No	Circumstances	Limited Contract	Un-Limited Contract
1	The contract has expired and not renewed	No Ban
2	Either party unilaterally terminates the employment relationship after the expiry of the first fixed term contract provided that: a)     The terminating party gives notice to the other party as per the MOL Contract; b)     The terminating party continues to honor the contractual obligations for the duration of the notice period; and c)     The terminating party indemnifies the other party in the amount that was agreed to in the MOL Contract. This provision  appears to have been written purely with intention of addressing where an employee resigns during the term of the contract (as otherwise an employee would not be entitled to a new work permit if the employer was in breach of (b) which does not appear to be the intention of the legislation).	No Ban
Our Ban3	Either party unilaterally terminates the employment relationship provided that: a)     The terminating party gives notice to the other party as per the MOL Contract; b)     The terminating party continues to honour the contractual obligations for the duration of the notice period; and c)     The employee has completed a period of no less than six months (if the employee has a high school diploma or higher the 6 month period is waived).		No Ban
4	The parties mutually agree to terminate the contract during the course of its term, provided the employee has completed a period of no less than six months (if the employee has a high school diploma or higher the 6 month period is waived).	No Ban	No Ban
5	Where the employment is terminated by the employer through no fault of the employee; provided the employee has completed a period of no less than six months (again if the employee has a high school diploma or higher the 6 month period is waived).	No Ban	No Ban
6	Where the employer has failed to meet his legal or contractual obligations, including but not limited to when the employer fails to pay the employee’s wages for more than 60 days.	No Ban	No Ban
7	Where the employer is shutting down	No Ban	No Ban
8	Where the labour court provides a final ruling in favor of the employee that attests that is entitled to: ·         Accrued wages for no less than two months of work ·         Arbitrary or early termination compensation, or ·         Any other entitlements that the employer has abstained from granting including end-of-service gratuity.	No Ban	No Ban

The new changes certainly add transparency and clarity for U.A.E Labour Law on issues such as offer letters and termination provisions. The greater workplace mobility provisions are likely to have an immediate impact on the labour market and it will reflect in U.A.E economy

The main beneficiaries of the changes will be blue collar workers and those recruited from aboard by unscrupulous companies offering terms and conditions that are not then honoured in the UAE.

Tas’heel -Online Goverment system for labour related process in UAE

Tas’heel is an online government system designed to simplify all labour related processes, improve output volume and increase efficiency. It allows companies and typing centers to make online transactions and payments to MOL, encouraging a paperless environment. Through Tas’heel, companies do not have to worry about physically submitting payments or documents Receive new labour card and mission labour card application

Transactions- Receive modify or lost labour card application
- National new labour card application
- Sponsorship transfer (express)
- Company License Renewal
- Relative Sponsor Work Permit
- Modify Work Permit
- Replacement of Work Permit
- Nawakas Scanning Document
- Cancel New Labour Card Application
- Online Cancellation
- Salary Certificate

Labour Card
Receive New Labour Card and Mission Labour Card Application: This application is used when attempting to apply for a Labour Card or a Mission Card for the first time. An employee can only be eligible for this application if he/she obtained their Labour Contract as well as their Medical Fitness test. This service can be accessed using the Transaction Number. For the normal new labor card must be submitted through TASHEEL system within 60days of entry otherwise penalty will be given by MOL.
For Mission Work permit it is valid for 3 month and must be submitted through TASHEEL system within 1 week from the date of his entry, otherwise fine will be 500 for each 10days delayed of submission.

Receive Modify or Lost Labor Card Application: This application is used when a modification is made to an employees’ nationality, salary or occupation. It is also used to replace a lost Labour Card. For Modification: A letter from the company is required with the old contract as well as the new contract stating modification in the new contract
For Lost Labor Cards: A letter from the police is required stating that the employee has misplaced his/her Labour Card and officially reported it to the authorities.

This service can be accessed using the Transaction Number.
National New Labour Card Application: This application is only applicable for U.A.E Nationals applying for a Labour Card for the first time. An employee can only be eligible for this application if he/she obtained their Labour Contract as well as their Medical Fitness test. This service can be accessed using the Transaction Number.
Sponsorship Transfer: This application is used when an employee is transferring to another job and must in turn transfer their sponsorship status. To complete the process, the employee must obtain the cancellation (signed by previous employer & employees) as well as the new contract (signed by the new employer and employee). This service can be accessed using the Transaction Number.

NOTE: After scanning the application correctly the PRO must submit the following documents at MOL:
The receipt from TASHEEL system.
The original cancellation signed by both parties
Computer card for the old company
Two contract copy from the application

Establishments
Company License Renewal: This application is used to renew a Company Trade License. This service can be accessed using the Company Code and License Number.

Work Permit
Relative Sponsor Work Permit: This application is used when a sponsored relative(wife/family members) is seeking a work permit and is required to provide no objection documents from the sponsor in order to proceed with the application. This service can be accessed using the Transaction Number.

NOTE: The following must be verified before entering the application into the system, otherwise the application will rejected:
The passport of the sponsored relative as well as the sponsor must be valid for at least 6 months
The residency of the sponsored relative as well as the sponsor must be valid for at least 1 month
The age of the sponsored relative seeking a work permit must at least be 21 years of age

Modify Work Permit: This application is used to amend information in the work permit such as name, nationality, passport number, etc. This service can be accessed using the Transaction Number.
Replacement of Work Permit: This application is used by the employing company who decide replacing a current employee on a valid work permit with a new employee using the same work permit without incurring additional or new charges. A work permit is valid for 60 days and can be extended for a maximum of 30 additional days. The replacement process can take place only if the work permit is valid. This service can be accessed using the Transaction Number. Create Temporary Work Permit: a person who holds residence visa at another company or family sponsorship. It will be valid for 6 months after getting the approval from MOL. The cause of this application will be depends upon the category of the company.

Miscellaneous
Nawakas Scanning Documents: Nawakas means ‘missing’ and this application refers to missing one (1) or more documents from the requirements submitted for Labour Card and Work Permit applications. This service can be accessed using the Transaction Number.
Cancel New Labor Application: This application is used when employee information is entered incorrectly in the Labour Contract Application and requires rectification. The incorrect application must be cancelled using this service after which the system will require an hour to update itself. Once this is done a New Labour application must be entered and submitted. This service can be accessed using the Transaction Number.
Online Cancellation: This application is used when an employer seeks to cancel the labour card and contract of an employee (who no longer reports to the employer). The cancellation can be signed electronically or manually depending on whether the company has an electronic signature. Signatures that are manually applied tend to get processed more efficiently and take less time. This service can be accessed using the Transaction Number.
Salary Certificate: This application is used when the Ministry of Labour requests from a company the salary certificate of a specific employee.

Cancel work permits and Labour cards UAE establishments directly approach Tas'heel centres

Establishments wishing to cancel work permits and labour cards need to directly approach Tas'heel centres

Abu Dhabi: Establishments wishing to cancel work permits and labour cards need to directly approach Tas'heel centres directly, as the Ministry of Labour will no longer provide this service starting on Sunday.Tas'heel is an online government system designed to simplify all labour-related processes.

According to Humaid Bin Deemas, Undersecretary at the Ministry of Labour, this step comes to save the time and effort of customers by providing the services, from typing application to cancelling of cards, at one stop, without having to visit the Labour Ministry offices.Bin Deemas called on establishments to present their requests directly to the 25 ‘Tas'heel' service centres in Dubai, Sharjah, Ajman, Fujairah, Ras Al Khaimah, Umm Al Quwain and Al Ain City.

In Abu Dhabi, establishments can apply through typing centres linked with the Tas'heel system.He pointed out that the ministry's offices will stop receiving requests for cancellation beginning on Sunday.

Bin Deemas said owners of establishments, who have the e-signature, may avail of this service starting on Sunday. However, those who do not have their e-signature have until September to get it, as manual applications will only be accepted until the end of September.

He said after the establishment owners cancel labour cards at the Tas'heel centres, the data will be sent electronically to the Labour Ministry. The Labour Ministry will then send the data to the Residency and Foreigners Affairs Departments.Bin Deemas said this service will benefit more than 280,000 establishments registered with the ministry and which carry out more than one million different cancellation transactions.

He also noted that the e-link project includes linking about 20 key services between the ministries of Labour and the Interior. the new procedure allows the owners of the joint system to facilitate the completion of the procedures for cancellation round the clock, seven days a week.

The Ministries of Labour and Interior will jointly implement the electronic cancellation service for labour cards, with effect from Sunday.The move comes in line with the first phase of the electronic link between the two ministries to boost the strategic partnership and achieve qualitative shift in exchange of data and information.

In accordance with this service, applicant firms seeking cancellation of work permits and labour cards will apply to the Tas'heel service centres set up for this purpose.