59A7D41EB44EABC4F2C2B68D88211BF4 UAE Legal Insider – Laws, Rights & Career Hub

Wednesday, November 10, 2010

The Ministry of Labour take steps to prevent abuse of sponsorship system in UAE


Saqr Gobash Saeed Gobash, Minister of Labour-


Expats allowed to find jobs after contract ends
The Ministry of Labour will take steps to prevent abuse of the sponsorship system.In a statement to the Federal National Council yesterday, Saqr Gobash Saeed Gobash, Minister of Labour, defended the sponsorship system saying that it was legal and common in many countries, but under different names.
Admitting the existence of abuses of the system and illegal practices, Gobash pledged actions will be taken to stop these abuses and illegal practices.He was responding to a question raised by Yousuf Obaid Ali Al Nuaimi, a representative from Ras Al Khaimah, who called for free labour movement and cancellation of costly sponsorship system.Gobash said the labour ministry will soon issue a decision allowing workers, whose contracts ended, to join new jobs if the market is in real need of them.
Gobash said that the move approved by the Cabinet will address certain negative impacts of the sponsorship system for foreign workers.One day earlier, Al Nuaimi told Gulf News the sponsorship system for foreign workers must be scrapped within three to five years to stop misuse of the system and allow free movement of workers.
He added the existing labour sponsorship system, according to a study, costs the country about Dh50 billion a year to host more than four million foreign workers. The representative rejected the labour minister's statement, which he said fell short of answering many queries he raised.He demanded that the minister show up in person at a later session to address these issues.
The representative suggested that before abolishing the costly system, rules must be enforced to protect rights of workers and employers."Eventually, all foreign workers must be under the jurisdiction of one authority — the Ministry of Labour. Workers must be allowed to change jobs smoothly once a contract ends and no employer should be allowed to withhold workers' passports," Al Nuaimi said.
He added employers' rights must also be guaranteed, citing the right of every business to protect information it regarded as commercially sensitive.
According to an estimate, the average annual cost of hosting a worker is about Dh55,000.
Gobash, however, said the ministry will respect the contracts signed between workers and employers. ‘The ministry [of Labour] will not intervene between workers and employers during the period of these contracts, unless a party failed to abide by its obligations. After the job contract ends, each party to it will be free to determine the new relationship they wish to enter either with the same party or a third party. There will be no restrictions as long as no violation of the law is made."
Cost of workers in UAE
The minister also stressed commitment to guarantee any rights of the employers and restore the government's full control of the labour market.
The cost of a skilled worker is Dh144,000 and the cost of an unskilled worker is Dh33,000, according to Dr Mouawiya Al Awad, Director of the Institute for Social and Economic Research at Zayed University.The overall average annual administrative and recruitment costs per worker are estimated at Dh2,674. For skilled workers the cost is Dh3,404 while it is Dh2,296 for unskilled workers

Canadians entering UAE to apply for entry permits starting 2011 January 2

Abu Dhabi: Starting January 2, Canadians will have to obtain a pre-arranged visa to enter the UAE, official sources said yesterday, amid souring ties between the two countries.Visas will be required for tourism and business purposes but Canadians living in GCC countries can enter the UAE on their residence visa, an Interior Ministry official told Gulf News.The new requirement announced by the UAE's embassy in Ottawa comes amid an increasingly bitter spat centred on landing rights for UAE airlines.
The dispute has already cost Canada access to a military air base that is a crucial link in the supply line for its mission in Afghanistan.
Previously Canadians, like travellers from 34 countries including the United States and much of Europe, were able to obtain a visa on arrival to the UAE under a visa waiver system. More than 25,000 Canadians are living in the UAE, an official estimated.
The visa waiver policy will no longer apply to Canada because relations had dipped to a point where they were "neither healthy nor hopeful", the Associated Press quoted an official source in Abu Dhabi as saying. "The visa waivers are granted to countries with a special relationship ... built on economic and other areas of close and growing cooperation," the source said.
"The current status of relations with the government in Canada compared with other countries on the visa waiver programme is at a much lower level. ... It isn't fair to include it with countries with which we have a healthy and productive relationship."
Another official told Gulf News that the decision is in response to the Canadian government's insistence on visas for Emiratis wanting to travel to Canada. The UAE embassy in Ottawa was instructed to announce the decision to Canadian officials; he said.The official added that this decision has no negative impact on the bilateral relations between the two countries. The UAE has ratcheted up the pressure on Ottawa after failing to secure additional landing rights for Emirates and Etihad airlines.
UN Council setback
The UAE last month also moved to bar Canada from using the Mirage air base that was expected to play an important role in the drawdown of Canadian troops and equipment from Afghanistan.A UAE official told Gulf News earlier the UAE lobbied against Canada's bid for a non-permanent United Nations Security Council seat. Canada pulled out of the race after falling behind rivals in an early round of voting in what was seen as a significant setback for the G-7 economic power.— With additional inputs from Abdullah Rasheed, Abu Dhabi Editor and AP

Aviation dispute

•October 10: The UAE is disappointed that despite intensive negotiations over the last five years the UAE and Canada have been unable to arrive at an agreement on expanding the number of flights between the two countries.

•October 11: Canadians barred from military base, a crucial link in the supply line for its mission in Afghanistan.

•October 14: Official source announces UAE lobbied against Canada's bid to win a seat on the United Nations Security Council because of its anti-Arab policies.

•November 9: UAE cancels visa waiver policy for Canadians, in a tit for tat move.

Tuesday, November 9, 2010

UAE WPS Update: No More Grace Period, Penalties are Automatic

This article describes the initial implementation and mechanism of the Wages Protection System (WPS) in the UAE, primarily based on the Ministerial Resolution No. 788 of 2009.

While the fundamental purpose and mechanism of WPS remain the same—it is still an electronic system to ensure timely payment of wages—the deadlines, consequences, and specific penalties have been significantly updated and made much stricter since 2009, especially under the new Federal Decree-Law No. 33 of 2021 (the UAE Labour Law) and subsequent Ministerial Resolutions.

Here is the updated status, focusing on the current rules for late payment and penalties:

💰 UAE Wages Protection System (WPS): Mandatory Compliance & Strict Penalties

#WPS #WageProtection #MoHRE

The Wages Protection System (WPS) remains the mandatory electronic salary transfer system in the UAE private sector, ensuring workers receive their agreed-upon wages on time. The Ministry of Human Resources and Emiratisation (MoHRE), in coordination with the Central Bank of the UAE (CBUAE), strictly enforces this system.

Key Current Requirements & Deadlines

Requirement

2009 Rule (Article)

Current (2025) Rule (MoHRE/WPS)

Transfer Deadline

Within two weeks of the due date.

Wages must be paid via WPS within a maximum of 15 days from the due date specified in the employment contract.

Defining Late Payment

Delaying payment for more than one month of the due date.

Payment is considered delayed if not transferred within 15 days of the due date.

Compliance Exemption

Exemption periods based on the number of workers (100+, 15-99, etc.).

No general exemptions. WPS coverage is mandatory for all private sector companies registered with MoHRE, regardless of size.

🛑 Current Consequences and Penalties for WPS Violations

The consequences for non-compliance are much faster and more severe today than the 2009 penalty of simply denying new work permits. Penalties are now automated and escalate rapidly:

Delay/Violation Type

Current MoHRE Action/Penalty

17 Days Delay

Automatic Suspension of New Work Permits: The company is immediately blocked from hiring new employees.

30 Days Delay (or More)

Legal Escalation and Further Bans: * The Public Prosecution may be notified for further legal action (for companies with 50+ workers). * The ban on new work permits may extend to all companies owned by the same partners (for repeat violators).

60 Days Delay (Worker Right)

If a worker's salary is delayed for 60 days or more, the employee has the legal right to terminate their contract immediately and join a new employer without being penalized or banned, and is entitled to full end-of-service dues and compensation.

Failing to Register in WPS

Companies not registered in WPS may face fines starting from AED 5,000 per worker.

Fines for Non-Payment/Delay

Administrative fines start from AED 1,000 per employee (up to AED 20,000 maximum fine).

Repeat Violators

Companies that repeatedly violate WPS rules may face downgrade to the lowest classification (Category 3), which impacts their ability to conduct business with government entities.

Note on Expenses

The rule stated in the 2009 article remains absolutely firm: The employer is responsible for all expenses incurred upon joining WPS (bank fees, service charges, etc.). Employers are strictly prohibited from deducting any WPS-related costs from workers' wages.

 

 

Monday, November 8, 2010

Sponsoring Your Parents for a UAE Residence Visa

If you are an expatriate resident looking to bring your parents or parents-in-law to live with you long-term in the UAE, the process involves a specific multi-step legal framework. A long-term residence visa is entirely distinct from a standard tourist or visit visa—it grants your parents legal residency status, allowing them access to local bank accounts, utilities, and resident healthcare perks.

The residency process is structured into two main steps: first, securing an entry permit for them to land in the country, and second, converting that permit into a valid residence visa once they are physically inside the UAE.

📋 Rules & Financial Requirements

The UAE government enforces strict baseline criteria to ensure sponsors can comfortably provide for elderly dependents.

  • The Both-Parents Rule: You must sponsor both your mother and father together. The immigration authority will not allow you to sponsor only one parent unless you provide officially attested legal documentation proving that one parent has passed away or that they are legally divorced.

  • The Sole-Provider Mandate: You must prove that you are your parents' primary caregiver and sole financial support system. If they have other children living with them or supporting them in their home country, getting approval will be highly challenging.

  • Minimum Salary Caps: Financial thresholds are strictly evaluated by immigration departments:

    • The Standard Route: The baseline salary threshold typically hovers around AED 20,000 per month to sponsor parents under normal family residency channels.

    • The Humanitarian Route: In Dubai, the General Directorate of Residency and Foreigners Affairs (GDRFA) offers a special pathway through Amer centers for sponsors earning a minimum of AED 10,000 per month, subject to case-by-case committee approval.

  • Housing Limitations: You must hold a registered tenancy contract (such as Ejari in Dubai) proving you have adequate living space. To house parents, your accommodation must be a minimum of a two-bedroom apartment.

  • Refundable Security Deposit: Sponsors must lodge a refundable security deposit of approximately AED 5,000 per parent with the immigration authority. This money is held securely and released only if the visa is eventually cancelled or converted without outstanding fines.

  • Visa Validity: Parent residency visas are strictly limited to one year at a time and must be renewed annually.

  • Employment Strictness: This sponsorship is strictly for a residency visa. Sponsored parents are not legally permitted to work or seek employment in the UAE.

🗂️ Complete Document Checklist

Before visiting a typing center or submitting your application online, make sure you have gathered and fully attested the following items:

  • Sponsor’s Documents: Your original passport with a valid UAE residence visa, your original Emirates ID, a fresh salary certificate (for government/freezone workers) or an active labor contract (for private sector workers), and your registered Ejari tenancy contract.

  • Parents’ Documents: Clear passport copies valid for at least 6 months and recent passport-sized photographs taken against a plain white background.

  • Proof of Relationship: An official birth certificate proving your relationship to your parents. If you are sponsoring your parents-in-law, you must also provide your spouse’s attested birth certificate and your official marriage certificate.

  • The Sole-Supporter Affidavit: A formal dependency letter or affidavit attested by your home country's embassy or consulate, verifying that you are their sole financial provider.

  • Comprehensive Health Insurance: A valid health insurance policy meeting the local regulatory minimums. Because healthcare costs scale with age, buying a compliant premium plan for your parents is mandatory.

🔏 Crucial Attestation Warning: All foreign-issued relationship certificates and dependency letters must undergo a three-stage legalization process: the Ministry of Foreign Affairs in your home country, the UAE Embassy in your home country, and finally, the UAE Ministry of Foreign Affairs (MOFA) inside the Emirates, translated legally into Arabic.

🔄 The Step-by-Step Residency Process

                      ┌──────────────────────────────┐
                      │    Step 1: Entry Permit      │
                      └──────────────┬───────────────┘
                                     │
                                     ▼
                      ┌──────────────────────────────┐
                      │    Step 2: In-Country        │
                      │      Status Change           │
                      └──────────────┬───────────────┘
                                     │
                                     ▼
                      ┌──────────────────────────────┐
                      │   Step 3: Medical Screening  │
                      └──────────────┬───────────────┘
                                     │
                                     ▼
                      ┌──────────────────────────────┐
                      │   Step 4: Emirates ID        │
                      │        & Biometrics          │
                      └──────────────┬───────────────┘
                                     │
                                     ▼
                      ┌──────────────────────────────┐
                      │   Step 5: Visa Stamping      │
                      └──────────────────────────────┘

1. Securing the Entry Permit

Submit your complete document file via the GDRFA portal, the ICP app, or an authorized Amer center. The application files are reviewed by an approval committee to verify financial dependency. Once cleared, an electronic entry permit is generated. If your parents are outside the country, you can email them this permit. If they are already inside the UAE on a visit visa, you must process an In-Country Status Change to move them onto the residency file without making them exit the border.

2. Medical Fitness Screening

Within the legal 60-day grace period following their arrival or status change, your parents must visit an approved government medical fitness center. They will undergo a standard physical examination, a blood test, and a chest X-ray.

3. Emirates ID & Biometrics Registration

Once the medical fitness certificate is cleared, file their official Emirates ID applications. If your parents have never held a UAE resident identity card before, you will need to book an appointment at an ICP center for them to complete their biometric data capture (fingerprints and eye scans).

4. Final Visa Stamping

Lodge your refundable security deposits at the typing center or portal, upload the cleared medical reports, the insurance policies, and the completed Emirates ID forms. The immigration authority will finalize the application, issue their digital residency visas, and dispatch their physical Emirates ID cards via courier within a few business days.

🔄 Annual Visa Renewal

Because parent residence visas expire every 12 months, you must initiate the renewal process within the specified grace window before expiration to avoid overstay charges.

To renew, take your passport, your parents' passports, their updated health insurance policies, a fresh salary certificate, and your active Ejari contract to an Amer center or submit online. Your parents must clear their annual medical fitness screening again, after which the new one-year residency term will be approved and stamped.

#UAEParentVisa #DubaiResidency #FamilySponsorship #GDRFA #AmerCentre #UAEPass #EjariDubai

Sponsoring Parents in UAE - Ministry denies visa policy has changed

The Ministry of Interior has denied rumours that it has stopped issuing visas to the immediate relatives of expatriate residents. Major General Nasser Al Awadi Al Menhali, Director-General of the Naturalisation and Residency Department, told that visas are still being issued to immediate family members, and especially to parents.

He added that a husband has the right to sponsor his wife, parents and in-laws. Wives in turn have the right to sponsor their husbands, parents and in-laws. Parents have the right to sponsor their children if they are under the age of 21. The ministry takes into consideration humanitarian and social imperatives and sometimes issues visas to children above the age of 21 who want to visit their families or continue their education.

A local Arabic-language newspaper reported yesterday that the Naturalisation and Residency Department had stopped issuing visas to parents of residents, but continued to issue them to husbands, wives and children. The report prompted panicked expatriates to call newspapers and residency department offices.

Al Menhali said there had been no change in the UAE's naturalisation and residency laws. Applicants are required to deposit a guarantee of Dh5,000, in addition to the visa application fee