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

Tuesday, July 19, 2016

Low-income workers get free housing in U.A.E

 Free housing must be provided to workers who earn less than Dh2,000 a month from December on-wards, the UAE Ministry of Human Resources and Emiratisation announced 18th July  2016

Companies across the nation with more than 50 workers must comply with the ruling, which was issued by Saqr Ghobash, UAE Minister for Human Resources and Emiratisation. He warned that regular inspections visits would be undertaken by the ministry to ensure compliance, and that legal action will be pursued against firms that fail to adhere to the regulation.

“Experts spent several months studying the living conditions of low-skill workers. The decision comes after these recent studies into the labour market,” said Ghobash.

Accommodation for workers in companies employing more than 500 people has been regulated by the ministry since 2014. The applicable standards cover details such as the location of the accommodation, the provision of hygiene and medical facilities, and the availability of safety equipment and protocol.

Low-income workers welcomed the new decree, saying that paying rent is often a massive drain on meagre incomes.

Shajal, who earns about Dh1,000 and sends Dh700 of it home to support his family, said secure accommodation is a boon.

B.K., an Indian painter, also lives in a dedicated labour accommodation facility in Abu Dhabi’s Musaffah area.

“I am thankful for this accommodation as it is very difficult to find a room, especially because of the high rents. For example, sharing a room can set you back about Dh500, which is half my monthly income,” he explained.

Raj Praveen, a division manager at National Trading and Pharmaceutical Establishment, a trading company, said that many of the firm’s 2,000 workers live in accommodation located in Dubai’s Sonapur area.

“These workers earn very little, and having to pay rent makes things even more difficult for them. This ministry decree will therefore provide much relief,” he said.

“We provide both food and accommodation for our low-skill workers, and we believe that it improves their productivity and morale,” Rajpraveen added.

As reported by Gulf News, the minister had announced in January that companies which fail to provide labour accommodation short of international standards and requirements will not be granted new work permits.

“We want to ensure that labourers are not cheated of their rights, and that their living conditions are comfortable, sanitary and humane,” he had said.

Monday, July 18, 2016

Bounced cheque can lead to freeze tenant's account in Dubai

The Rental Disputes Centre (RDC), the judicial arm of the Dubai Land Department (DLD), and the UAE Central Bank have signed an agreement that allows for freezing of the bank account of a tenant if his/her rent cheque bounce.“After the judgment is passed by the RDC, it will be informed to the Central Bank, which will pass the information to the banks. It could also lead to blocking of tenant’s bank account,” a DLD spokesperson said.

“This process will now take two days instead of 60,” the spokesperson added.

In a statement, the DLD said the aim of the MoU, signed by RDC Director Abdulqader Musa Mohammed and UAE Central Bank’s Assistant Governor for Banking Supervision, Saeed Abdullah Al Hamiz, was to create an electronic framework of cooperation to facilitate the implementation of decisions and judgments.

The proposals will speed up procedures and reduce transaction time from six months to two working days following the transition from paper-based to electronic systems. Both parties agreed to establish a platform utilising the UAE Central Bank’s existing Customer Information Request (CIR) system.

As per the agreement, the Central Bank will direct queries submitted by the RDC to enable the efficient execution of judicial committee decisions and judgments. These verdicts will be directly implemented by the banks, which will also provide immediate responses to enquiries.

RDC’s Mohammed said: “This move is consistent with our ongoing efforts to improve upon existing frameworks of cooperation with official bodies, with the aim of improving government procedures and promoting cooperation between all institutions.

“It is expected that this MoU will pave the way towards promoting transparency for all property transactions and procedures, benefiting all parties and guaranteeing the protection of their rights.”

The number of RDC judgments to be implemented for 2016 stands at 2,630, all of which will all now be rapidly implemented by the effective system set in motion as an outcome of this MoU, he added.

UAE Central Bank’s Al Hamiz emphasised the vital role that the RDC plays in supporting the stability of the national markets and in upholding transparency, providing greater peace of mind and ensuring a higher level of security for all parties involved in property contracts.

“The CIR system at the Central Bank has safeguarded stability across many of Dubai’s industry sectors and we are certain that this will also be the case for our cooperation with the RDC and DLD. Our plan will help the emirate’s real estate sector by maintaining the rights of all parties, ensuring justice through the fair and efficient application of the provisions of UAE law,” he said.

Friday, July 15, 2016

Ministry of Finance withhold July salaries of employees with incomplete Emirates ID details

 Pursuant to Circular No. 03 for 2016, issued on 3rd April, 2016, regarding the uploading of employee Emirates ID numbers in the Federal Financial System, an essential reference for all financial transactions and procedures at the national level, the Ministry of Finance, MoF, has announced that it will begin implementation of the circular, and will withhold July salaries of employees with incomplete or inaccurate national ID details.

The Ministry of Finance urged ministries and federal entities to ensure the completion of uploading the Emirates ID number, from the issuance date of the circular.

The Emirate ID number is an essential reference to speed up all government transactions for all federal government employees.

Mariam Mohammed Al Amiri, Assistant Under-Secretary for the Management of Financial Resources, stressed the need for all ministries and federal entities to ensure the completion of uploading the required data in the system. Having the correct data for all government employees in ministries and federal entities will facilitate transactions, and follow up on their requests in a fast and accurate manner.

Al Amiri also highlighted the link between the Emirate ID number and a number of significant federal government projects.

The Ministry had previously announced that all ministries and federal entities linked to the federal financial system must enter or correct the Emirates ID numbers for all of their employees, and those that adopt their own financial systems must complete the national ID details.

Thursday, June 23, 2016

Unified Labour Contract for Employees in Dubai’s Free Zones

Employees in all the free zones of Dubai will have a unified employment contract under a new proposal discussed by a higher body.Chaired by Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Free Zone (DFZ) Council, the meeting debated unifying of labour contracts for workers in these hubs in accordance with the labour laws of the UAE.

Sheikh Ahmed directed the Council members to put together a sample contract for working within the free zone areas. Starting January 1, 2016, the UAE implemented new labour contract that standardizes employment terms.

The Dubai Free Zone Council was established in April 2015 to develop and qualify Dubai’s free zones to attract investments and establish an advanced investment environment that contributes to promoting industry, commerce, tourism and the services sectors in Dubai.The Council comprises senior officials of the various free zones in Dubai as well as the Director General of Dubai Municipality and the Director-General of State Security in Dubai.

Ease of Company Transfer

The Dubai Free Zone Council approved a decision to facilitate the transfer of companies among the free zones in the emirate of Dubai.
A company that is looking to relocate to a new free zone can now transfer its complete registration and record to the new hub without having to cancel its outstanding registration and/or liquidating the business. This will give companies wishing to relocate to a more appropriate environment in Dubai the necessary financial and administrative stability to do so.

Following in-depth research and analysis of various measures within the UAE and abroad, the legal committee has developed a framework that will allow seamless transfer of companies between free zones, as directed by Sheikh Ahmed bin Saeed Al Maktoum.

Preventing Double Taxation

The members of the Dubai Free Zone Council also underlined the need to cooperate with the Ministry of Finance (MoF) in abiding with the international agreements signed by the UAE with regard to preventing double taxation.

The Council committed to providing the Ministry with necessary information and data to improve the classification of the UAE - as per the standards of the Global Forum on Transparency and Exchange of Information.

For its part, the Ministry of Finance presented the UAE’s obligations in the prevention of double taxation. Till date, the UAE has ratified 97 agreements for the prevention of double taxation and four agreements for the exchange of information for tax purposes.  The Council discussed ways to attract more investments through identifying appropriate solutions to some of the challenges highlighted in the feedback received on the UAE’s free zones.