59A7D41EB44EABC4F2C2B68D88211BF4 UAE INSIDER - BUSINESS | LAW | CAREERS | INVESTMENT

Tuesday, June 14, 2011

Dh100,000 fine for credit card surcharge

Ministry of Economy decided to impose fines up to Dh100,000 on commercial facilities and outlets that impose a surcharge on consumers using credit cards, reported 'Emarat Al Youm' newspaper.

“The decision is in line with the new amendments to the Consumer Protection Act approved by the Council of Ministers,” said Dr Hachim Al Nuaimi, Director, Department of Consumer Protection, MoE.

He was speaking at a meeting with representatives of economic departments and local municipalities on Monday, which was convened to to implement decisions of the Supreme Committee for Consumer Protection.

The decision curently applies to purchases of goods by individuals; it will be extended to different kinds of services later, he added.

Al Nuaimi said commercial foundations and retail outlets charging extra on credit cards will be fined between Dh5,000 and Dh100,000, in accordance with the Consumer Protection Act as well as taking into account factors determining the value of the violation and the number of times the party has erred.

The meeting agreed to form working groups to discuss the mechanisms of implementation of the resolution and to increase customer awareness.

Al Nuaimi urged consumers to defend their rights and file complaints when they see violations of their rights.

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.”

Monday, June 13, 2011

UAE Moves Closer to Long-Term Retirement Security for Expatriates

The idea of providing retirement and pension-style benefits for expatriate workers in the UAE has evolved significantly over the past decade. What was once a policy discussion has now become a practical reality through the UAE's Alternative End-of-Service Benefits (EOSB) Savings Scheme.

Traditionally, expatriate employees in the UAE were entitled only to an End-of-Service Gratuity payment upon completion of their employment. However, the UAE Government has introduced a modern savings and investment-based framework that allows employers to contribute regularly to approved investment funds on behalf of employees, creating a more sustainable long-term financial security system. (MOHRE)

What Has Changed?

Under the Alternative End-of-Service Benefits Savings Scheme, employers can make monthly contributions to regulated investment funds rather than relying solely on a lump-sum gratuity payment at the end of employment. The accumulated contributions, along with potential investment returns, belong to the employee and can grow over time. (Gratuity Calculator UAE)

The scheme aims to:

• Enhance financial security for expatriate workers.
• Protect employees from risks associated with unpaid gratuity obligations.
• Encourage long-term savings and wealth creation.
• Improve labour market competitiveness and talent retention.
• Provide employees with access to regulated investment options, including Sharia-compliant funds. (MOHRE)

Current Position in 2026

The UAE still does not operate a traditional state pension system for expatriates similar to those available for UAE nationals. However, the EOSB Savings Scheme represents a major step toward a portable retirement savings model for foreign workers. The Ministry of Human Resources and Emiratisation (MoHRE) continues to refine and expand the framework following consultations with employers, employees, and investment fund managers. (Gulf News)

Why It Matters

For millions of expatriates living and working in the UAE, the new savings-based approach provides greater transparency, improved protection of employment benefits, and an opportunity to build long-term retirement wealth while working in the country. Financial experts believe such reforms will strengthen the UAE's position as one of the world's most attractive destinations for skilled professionals and global talent. (MOHRE)

The UAE's labour market reforms demonstrate a clear commitment to creating a modern, sustainable, and internationally competitive employment environment that benefits both employers and employees.

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Thursday, June 9, 2011

UAE Residency and Labour Rules: Comprehensive 2026 Regulatory Update

1. Job Transitions & The Elimination of the "NOC"

  • The New Rule: Under current MoHRE regulations, the historic concept of a mandatory six-month employment ban for simply resigning has been fully abolished. Private sector employees operate under fixed-term contracts (up to 3 years, renewable).

  • Notice and Probation Protocols: Employees can transition to a new employer without requiring a No Objection Certificate (NOC), provided they fulfill the notice period stipulated in their contract (typically 30 to 90 days).

  • Resigning During Probation: If an employee wishes to switch jobs during their 6-month probation period, they must provide at least 30 days' written notice. Crucially, the new employer must contractually compensate the original employer for the worker's recruitment and visa costs. Transitioning directly into a government or semi-government position remains entirely unrestricted.

2. Sponsoring Parents or Parents-in-Law

  • The Financial Threshold: The standard monthly salary requirement to sponsor parents or parents-in-law has been escalated to AED 20,000.

  • Humanitarian Appeals: For residents earning between AED 8,000 and AED 15,000, the ICP maintains a dedicated "Humanitarian Exception" committee. This allows residents to petition for parental sponsorship on a case-by-case basis by demonstrating financial solvency, clean bank statements, and adequate housing.

  • Accommodation Metric: The sponsor must provide certified proof of suitable housing, which routinely requires a minimum of a 2-bedroom apartment to ensure adequate living space for the family.

3. Maximum Stay Outside the UAE & Golden Visa Exemptions

  • Standard Residency Holders: The traditional rule remains fully active: if a standard residence visa holder stays outside the UAE for more than 180 continuous days (6 months), their residency visa is automatically canceled. To return, they must apply for a fresh entry permit.

  • The Golden Visa Shield: In stark contrast, Golden Visa holders are completely exempt from this rule. They can remain outside the UAE for any duration of time without impacting the validity of their 10-year residency status.

4. Sponsoring a Single Parent (Mother Only)

  • The Joint Sponsorship Mandate: The law dictates that a resident must sponsor both parents together to prevent the splitting of families.

  • Single Parent Exceptions: To sponsor a mother individually, the sponsor must present legal, fully attested documentation proving why joint sponsorship is impossible. This requires:

    • An officially attested Death Certificate (if the father is deceased).

    • An officially attested Divorce Certificate or legal separation decree.

    • A certified dependency affidavit validated by the home country's consulate and the UAE Ministry of Foreign Affairs (MoFA), proving the sponsor is her sole financial lifeline.

  • The Financial Structure: A refundable security deposit ranging from AED 2,500 to AED 5,000 per parent must be deposited with immigration authorities. The visa is issued for a renewable 1-year duration and requires comprehensive, senior-specific health insurance coverage.

5. Medical Fitness Screenings & Communicable Diseases

  • New Entry vs. Renewal: For all new residency applications, individuals over the age of 18 must pass a mandatory medical fitness screening encompassing HIV, Syphilis, and Hepatitis B (for designated professional categories), alongside chest X-rays for Tuberculosis (TB).

  • Hepatitis B & Un-Arrested TB: For standard residency renewals, Hepatitis B screening is entirely omitted unless the individual works in high-risk sectors (e.g., healthcare workers, food handlers, or nannies). However, the discovery of active pulmonary Tuberculosis at any stage remains an automatic ground for visa rejection, quarantine, and repatriation under strict public health mandates.

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