Are you Hiring Domestic Help in the U.A.E? Don't Miss These Important Laws

 There haven't been sweeping changes to UAE law regarding domestic workers in the past decade, but there have been some important developments that provide greater protections:

House maid in work

• Ministry of Labour (MoL) Resolution No. 788 of 2017: This resolution mandated standard employment contracts for domestic workers. These contracts outline working hours, rest days, minimum salary, and other key terms [Source: MoHRE UAE website].
• Federal Law No. 6 of 2017 بشأن العمل (Law on Work): This broader law, enacted in 2017, applies to most workers in the UAE, including domestic workers to a certain extent. It offers protections like limitations on working hours, overtime pay, and annual leave,

• Working Hours: The contract should specify the daily and weekly working hours for your domestic worker. This ensures they have designated rest periods outside of their scheduled duties.
• Days Off: The contract should also outline the number of guaranteed rest days per week. This is typically one day, but it can be negotiated.

Here's what these points mean for appointments:

• Scheduling Appointments: Since working hours are defined, you should schedule non-urgent appointments for your domestic worker outside of their work hours or on their designated rest day.
• Accompanying Appointments: If the appointment requires your domestic worker's presence during their work hours or rest day, it's best to discuss it beforehand and potentially offer them compensation for their time.

Here are some additional UAE labor laws to be aware of:

• Annual Leave: Domestic workers are entitled to annual leave, which should be stipulated in the contract. If an appointment falls within their leave period, there wouldn't be any legal issues.
• Sick Leave: The contract should also outline sick leave provisions. If your domestic worker has a doctor's appointment due to illness and it falls within their working hours, you should be flexible and understanding.

Resources for further information:

• Ministry of Human Resources and Emiratization (MoHRE): https://mohap.gov.ae/ provides information on domestic worker regulations.
• MoHRE Resolution No. 788 of 2017: You can find details about the standard employment contract on the MoHRE website or through legal resources.

Breaches of contracts and fines are legal issues that can arise when dealing with domestic workers in the UAE. Here's a breakdown:

Breach of Contract:

• This occurs when a party in a contract fails to fulfill their obligations as outlined in the agreement.
• In the context of domestic workers, a breach could happen from either side:
• Employer: Not paying the agreed-upon salary, exceeding working hours without proper compensation, or failing to provide proper accommodation and meals as stipulated in the contract.
• Domestic Worker: Abandoning the job without notice, neglecting duties, or working for another employer without permission.

Fines for Breach:

• Fines for breaches of contract aren't explicitly mentioned in UAE law for domestic workers.
• However, the Ministry of Labour (MoL) plays a role in resolving disputes.
• Here are some potential consequences of a breach:
• Financial Compensation: The non-breaching party may be entitled to claim compensation for damages caused by the breach.
• Contract Termination: A material breach (serious violation) could lead to termination of the contract by either party.
• MoL Intervention: The MoL can mediate disputes and potentially impose administrative penalties on the breaching party.

Important Note:

• Specific consequences will depend on the severity of the breach and the terms outlined in the contract.

"How can I sponsor Homemade in the United Arab Emirates?"

There are a few things to consider before sponsoring a housemaid in the UAE, including eligibility requirements and the application process. Here's a breakdown:

Eligibility (Sponsor):

• Hold a valid UAE residency visa.
• Minimum monthly income requirements vary by emirate (Dubai requires AED 6,000 or AED 5,000 with accommodation provided).
• Not a bachelor (applies in some emirates).
• Have suitable accommodation (minimum two bedrooms in some emirates).

Documents (Typical):

• Visa application form.
• Affidavit of non-relationship (if maid is from your country).
• Passports and visas (yours and the maid's).
• Passport photos (yours and the maid's).
• Proof of income (salary certificate, bank statements).
• Labor contract copy.
• Health insurance card (yours).
• Tenancy contract (minimum two bedrooms in some emirates).
• Maid's medical fitness certificate (from their home country).

Process (General):

1. Understand Eligibility: Research the specific requirements for your emirate.
2. Gather Documents: Compile all necessary documents for yourself and the maid.
3. Apply for Employment Permit: Submit the application and documents to the relevant government department (e.g., Tadbeer service centers).
4. Pay Fees: There will be associated fees for processing the visa and other documents.
5. Medical Test: The maid will likely require a medical test in the UAE.
6. Visa Issuance: Once approved, the maid will receive a visa and work permit.

Additional Tips:

• Consider using a PRO (PRO stands for Public Relations Officer) service company to help navigate the process.
• Be sure to establish a clear employment contract outlining work duties, salary, benefits, and expectations.
• Familiarize yourself with UAE labor laws regarding domestic workers.

Remember, these are general guidelines. It's advisable to check with the relevant government department in your emirate for the most current information and any specific requirements.

Here are some resources for further exploration:

• MoHRE UAE website: https://mohap.gov.ae/ offers information on domestic worker regulations and dispute resolution processes.
• Legal Consultation: If you face a potential breach of contract situation, consider consulting a lawyer specializing in UAE labor law. They can advise you on your rights and potential courses of action.

 

The UAE's New Bankruptcy Law: What You Need to Know

 The UAE's new Bankruptcy Law isn't a specific section within another law. It's a standalone law called Federal Law No. 51 of 2023 on Financial Restructuring and Bankruptcy

. It repeals the previous bankruptcy law (Federal Law No. 9 of 2016) and introduces a completely new framework for dealing with financial insolvency in the UAE.

This new law comes into effect on May 1, 2024. Here are some key areas the law focuses on:

Key Features

• Scope: The law applies to most companies, individual traders, and licensed professional firms in the UAE, with some exceptions like free zone companies.
• New Definitions: The law clarifies and expands on key terms like "debtor's assets" and introduces new ones like "related party."
• Dedicated Bankruptcy Court: A new court will handle all bankruptcy-related matters. Decisions from this court are immediately enforceable.
• Preventive Settlement: This new option allows businesses in trouble to propose a plan to repay creditors under court supervision while continuing to operate.
• Increased Management Liability: Directors, managers, and others responsible for a company's finances can be held personally liable for bankruptcy if they act negligently.
• Claw Back: The law allows unwinding certain transactions made before bankruptcy to protect creditors.
• New Bankruptcy Department: This department will handle applications and other administrative tasks related to bankruptcy proceedings.
• Timing: Debtors and creditors have specific timeframes to file applications under the new law.
• Setting Off Debts and Enforcement of Security: The law clarifies rules on offsetting debts and allows secured creditors to enforce their rights under court supervision.
• Trustee and Controller Appointments: The court will appoint a trustee or controller to manage the debtor's assets during bankruptcy or preventive settlement.

Benefits of the New Law

• More Business-Friendly: The new procedures aim to be more efficient and user-friendly for businesses facing financial challenges.
• Stronger Creditor Protections: The law strengthens creditor rights and simplifies enforcement procedures.
• Increased Transparency: Clearer rules and a dedicated court should improve transparency in bankruptcy proceedings.
• Enhanced Accountability: Potential personal liability for management may encourage more responsible business practices.

The procedure to apply for bankruptcy in the UAE: depends on whether you are the debtor (the company or person filing for bankruptcy) or a creditor. Here's a breakdown for both:

For Debtors:

Timing: You must submit your application to the Bankruptcy Department no later than 60 days from the date you stopped making payments or became aware of your inability to pay debts.

Application: The Bankruptcy Law outlines the required information for the application, including details about your financial situation, assets, and creditors.

Preventive Settlement (Optional): You can propose a restructuring plan under court supervision to repay creditors while remaining operational. Submit the plan with your application.

Court Decision: The Bankruptcy Court will review your application and decide whether to initiate bankruptcy proceedings or approve your preventive settlement proposal (if applicable).

For Creditors:

Eligibility: You can initiate bankruptcy proceedings against a debtor if they owe you an "unconditional, undisputed and payable" debt and haven't repaid it within 30 days of a written notice demanding payment.

Application: Submit a bankruptcy application to the Bankruptcy Department with details about the debt owed to you by the debtor.

Court Decision: The Bankruptcy Court will review your application and decide whether to initiate bankruptcy proceedings.

Additional Points:

A dedicated Bankruptcy Department receives and registers applications.

Any UAE regulatory authority can also apply to initiate bankruptcy proceedings against a debtor under their supervision.

Multiple applications might be combined into a single action.

The Bankruptcy Law details the process for appointing a trustee or controller to manage the debtor's assets during bankruptcy or preventive settlement.

Important Resources:

While this is a general outline, the actual application process can be complex. Here are some resources for further information:

Full Text of the Law (Arabic): You can find the official legal text of Federal Law No. 51 of 2023 on Financial Restructuring and Bankruptcy on a legal information website ([invalid URL removed] *This site is in Arabic).

Consulting a Lawyer: It's highly recommended to consult with a lawyer specializing in UAE bankruptcy law for specific guidance on your situation and navigating the application process.

 Companies and individuals operating in the UAE should familiarize themselves with the new law to understand their rights and obligations in case of financial difficulties. Further regulations are expected to be issued soon to provide more details on the law's implementation.

 Liability of Directors and Senior Management:

The new UAE Bankruptcy Law introduces stricter liability for directors, senior management, and anyone responsible for a company's actual management (including those in charge of liquidation). Here's a breakdown of the key points:

Potential Liability:

The Bankruptcy Court can hold these individuals liable for prescribed acts committed within two years before the company's cessation of payment.

These acts could include mismanagement, negligence, or actions that significantly contributed to the company's financial difficulties.

Basis for Liability:

The individuals can be required to pay an amount proportional to their mistakes, which will be used to repay the company's debts.

For example, if the court finds their actions led to a situation where the company's assets are insufficient to cover at least 20% of its debts, they may be held liable for that portion.

Avoiding Liability:

These individuals can defend themselves by demonstrating they took all reasonable precautionary measures to prevent losses or documented their objections to any actions deemed harmful to the company.

Additional Points:

There's a two-year limitation period from the bankruptcy judgment to initiate proceedings against these individuals.

The law aims to encourage responsible management practices by holding senior figures accountable for their actions.

It's important to note:

This is a simplified explanation. The Bankruptcy Law goes into more detail about specific actions and the process for holding individuals liable.

Consulting a lawyer specializing in UAE bankruptcy law is highly recommended if you have any concerns about potential liability.

Setting Off Debts and Enforcement of Security:

The new UAE Bankruptcy Law introduces some key changes regarding setting off debts and enforcement of security interests in bankruptcy proceedings. Here's a breakdown:

Setting Off Debts:

General Rule: In line with the previous law, the Bankruptcy Law generally prohibits setting off debts after the decision to initiate bankruptcy proceedings has begun. This means a company cannot use money owed to them by a creditor to reduce their own debt to that creditor once bankruptcy starts.

Exceptions: There are a few exceptions where setting off debts might still be allowed:

Approved Restructuring Plan or Proposal: If a court-approved restructuring plan or preventive settlement proposal allows it, then setting off debts might be permitted.

Court Decision: The Bankruptcy Court can grant permission for setting off debts upon a motion from a trustee or creditor, under specific circumstances.

Enforcement of Security:

Secured Creditors: The law offers some relief to secured creditors (creditors with a claim on specific assets of the debtor as collateral for a loan).

Court Approval for Enforcement: Secured creditors can, with permission from the Bankruptcy Court, initiate enforcement proceedings against the secured assets even if bankruptcy proceedings have already begun.

Sale Through Trustee: However, the sale of the secured asset will be made through the trustee appointed by the court during bankruptcy, ensuring a controlled and transparent process. This eliminates the need for separate enforcement proceedings outside the bankruptcy framework.

Key Takeaways:

Setting off debts after bankruptcy generally isn't allowed unless specifically permitted by a court-approved restructuring plan or the Bankruptcy Court itself.

Secured creditors have a clearer path to enforce their claims on secured assets during bankruptcy proceedings, but the sale will be managed by the court-appointed trustee.

Additional Points:

The Bankruptcy Law references Federal Law No. 10 of 2018 on Netting for matters not addressed in the Bankruptcy Law related to setting off debts. It's recommended to consult this law for a more comprehensive understanding of netting provisions.

Please note: This is a general summary, and you should consult with a legal professional for specific advice.

The U.A.E is booming and 178,000 New job opportunities In Abu Dhabi

Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi l,

 Are you a job seeker? Abu Dhabi expects to create 178,000 jobs in the tourism sector over the next years.

Abu Dhabi gears up fo

r a tourism boom! Under the leadership of Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, the Abu Dhabi Executive Council has approved a groundbreaking strategy for the tourism sector. This ambitious plan, aptly named the Abu Dhabi Tourism Sector Strategy 2030, sets the stage for the emirate to become a global tourism powerhouse.

The United Arab Emirates (UAE) is buzzing with exciting developments, and Abu Dhabi is leading the charge in its tourism sector. Get ready for sunshine, adventure, and a wealth of career prospects! The Abu Dhabi Tourism Strategy 2030 is setting an ambitious goal: to create a staggering 178,000 new jobs in tourism over the next six years.

This translates to a phenomenal opportunity for anyone seeking a dynamic and rewarding career path. Here's a deeper dive into what this boom signifies:

A Surge in Tourism: Abu Dhabi is aiming to attract a whopping 39.3 million tourists annually by 2030. This influx will fuel the need for a skilled and passionate workforce across various tourism segments.

Job Diversity: The opportunities extend far beyond hotels, restaurants, and travel agencies (although these sectors will undoubtedly experience growth). The boom will also create a ripple effect, generating a significant number of indirect and induced jobs in:

Transportation: Taxis, ride-sharing services, tour bus operators – all will be in high demand to keep tourists moving.

Construction: With an increase in tourists comes the need for new hotels, resorts, and infrastructure projects, creating jobs in construction and related fields.

Retail: As tourist spending increases, the retail sector will flourish, opening doors for exciting sales and customer service roles.

Calling All Ambitious Individuals!

Are you a hospitality professional yearning for a new challenge? Perhaps you dream of a career in cultural tourism or adventure travel? Maybe your skills lie in marketing, event management, or technology – all valuable assets in a thriving tourism industry.

This surge in Abu Dhabi tourism presents a golden opportunity to leverage your existing skills or even explore a new career path. With such a diverse range of industries experiencing growth, there's sure to be a perfect fit for your talents and aspirations.

How to Get Involved:

Department of Culture and Tourism Abu Dhabi: Bookmark this website ([Department of Culture and Tourism Abu Dhabi careers ON careers.dctabudhabi.ae]) for the latest job postings and explore any upcoming job fairs or initiatives related to the tourism boom.

Job Search Websites: Explore job boards in the UAE dedicated to the tourism and hospitality sectors. Popular options include Bayt.com and Indeed.

Here are some resources to help you explore further:

• Department of Culture and Tourism Abu Dhabi: They might have information about upcoming job fairs or specific initiatives related to the tourism boom.
• Job Search Websites: Look for job boards in the UAE that specialize in tourism or hospitality. Some popular options include Bayt.com and Indeed.
• The bigger picture: The Abu Dhabi Tourism Sector Strategy 2030 aims to create a total of 178,000 jobs in the tourism sector by 2030.
• Timeline: This translates to roughly 29,667 new jobs created annually on average over the next six years.

 By aligning your skills and interests with the projected growth areas, you can position yourself for a successful and fulfilling career in Abu Dhabi's dynamic tourism industry. So, pack your bags, unleash your potential, and get ready to be part of something truly remarkable! 

FDI & Venture Capital: New Wave of Investment Powering the U.A.E & GCC's Future

 Venture capital (VC) is a growing but evolving area for fund flow within the GCC countries. Here's a breakdown of the current landscape:

Rise of VC:

• Traditionally, GCC economies relied on oil revenue and sovereign wealth funds for investments. However, there's a growing recognition of the importance of fostering innovation and entrepreneurship.
• As a result, VC activity in the GCC has been on the rise in recent years, with governments launching initiatives and funds dedicated to supporting startups.

Current State:

• Despite the growth, the VC ecosystem in the GCC is still considered nascent compared to more mature markets like the US or Europe.
• The total value of VC deals in the GCC remains smaller compared to other regions.

Challenges:

• Limited availability of experienced VC firms and investors: The talent pool for managing and evaluating VC investments is still developing.
• Regulatory hurdles: Complexities in regulations and legal frameworks can make it challenging for startups to raise funds and operate effectively.
• Risk aversion: Traditionally, investors in the region have been more risk-averse, which can limit investment in high-growth but inherently riskier startups.

Government Initiatives:

• GCC governments are actively working to address these challenges by:
• Setting up VC funds: Governments are creating their own funds to invest directly in startups.
• Launching incubators and accelerators: Providing infrastructure and support for early-stage startups.
• Simplifying regulations: Streamlining business registration and other legal processes for startups.

Focus Areas:

• VC investments in the GCC tend to concentrate on specific sectors aligned with diversification goals:
• Fintech: Financial technology startups are a significant area of interest.
• E-commerce: The growing online retail sector attracts VC investment.
• Cleantech & Sustainability: Investments are directed towards renewable energy and environmental solutions.
• Logistics & Transportation: Startups offering innovative solutions in these areas are gaining traction.

The Future:

• With continued government support and increasing interest from private investors, the VC ecosystem in the GCC is expected to mature in the coming years.
• This will likely lead to a greater flow of funds through VC investments, fostering innovation and creating new opportunities for startups in the region.

Additional Notes:

• Some of the most active VC firms in the GCC include Mubadala Ventures (UAE), Saudi Aramco Ventures (Saudi Arabia), and Qatar Development Bank (Qatar).
• There's also a growing trend of international VC firms entering the GCC market, recognizing its potential for growth.

Overall, the flow of funds through VC in the GCC is on an upward trajectory, although there's still room for further development. This trend holds promise for fostering a more dynamic and entrepreneurial economy within the region.

FDI is flowing to U.A.E&GCC countries in a somewhat uneven manner, with some key trends:

Focus Sectors:

• Traditionally, FDI has gravitated towards the hydrocarbon sector (oil & gas), which is the historical backbone of the GCC economies. However, with a growing focus on diversification, there's a shift towards other sectors:
• Tourism and Hospitality: As GCC countries develop their tourism infrastructure and offerings, FDI is flowing into hotels, resorts, and leisure facilities.
• Logistics and Infrastructure: Investments are being made in ports, airports, and transportation networks to improve regional connectivity.
• Renewable Energy: With a move towards sustainable energy sources, FDI is targeting solar, wind, and other renewable energy projects.
• Manufacturing: To diversify away from oil dependence, GCC countries are attracting FDI in manufacturing sectors like chemicals, pharmaceuticals, and food processing.

Source Countries:

• The major sources of FDI into the GCC include:
• Western Countries: The United States, United Kingdom, and European nations continue to be significant investors, particularly in technology, finance, and infrastructure.
• Asian Countries: China, India, and Japan are increasingly investing in the region, especially in energy and infrastructure projects.
• Other GCC Countries: There's a growing trend of intra-regional investment within the GCC, with countries like the UAE investing in neighboring states.

Government Initiatives:

• GCC governments are actively trying to attract FDI by:
• Relaxing regulations: Simplifying business registration procedures and foreign ownership rules.
• Creating Free Zones: Offering tax breaks and other incentives in designated investment zones.
• Improving Infrastructure: Investing in transportation, communication networks, and utilities to create a more attractive business environment.

Challenges:

Despite these efforts, some challenges remain:

• Bureaucracy: While streamlining regulations is ongoing, some investors may still find navigating procedures cumbersome.
• Geopolitical Uncertainty: Regional instability can deter some foreign investors.
• Skilled Labor Shortages: The availability of skilled labor can be a concern for certain industries.

Overall, the GCC countries are actively working to attract FDI as a tool for economic diversification and growth. By offering incentives, focusing on strategic sectors, and improving the business environment, they aim to become more attractive destinations for foreign investment.

FDI to all U.A.E&GCC countries details

Here's a breakdown of Foreign Direct Investment (FDI) inflows to the GCC countries:

Overall Trend:

• There was an 18% decline in total FDI inflows to the GCC region in 2022 compared to 2021, dropping from USD 45 billion to USD 37 billion.
• This decrease reflects a global trend of declining FDI.

Individual Country Performance:

• United Arab Emirates (UAE): In contrast to the regional trend, the UAE saw a 10% increase in FDI inflows, reaching a record USD23 billion in 2022. This constitutes nearly 60% of the total FDI received by the GCC countries.
• Saudi Arabia: FDI inflows fell significantly by almost 60% in 2022, dropping to USD 7.9 billion from USD 19.3 billion a year earlier.
• Other GCC Countries: The remaining GCC states witnessed a mixed bag of results.
• Bahrain: Inflows increased by 10% to USD1.95 billion.
• Kuwait: Inflows surged by 34% to USD758 million.
• Oman: Inflows dipped by 8% to USD3.72 billion.
• Qatar: Inflows plummeted by 107% to a regional low of USD76 million.