Workers with valid labour card and residency visa can apply for temporary work permits in UAE

Earlier rule of mandatory completion of one year with an employer before requesting for a temporary work permit lifted

All workers with a valid labour card and residency visa can now apply for temporary work permits. The earlier rule which required workers to complete one year with an employer before applying for a work permit has been lifted, according to a report in 'Al Khaleej' newspaper.

However, the Ministry of Labour will issue permits only to those workers who meet the conditions stipulated by the ministry.

Eligibility criteria for obtaining a temporary work permit include a valid residency visa and labour card. Also, the application request must possess authorised signatures of both the current establishment and that of the seeker.

However, the ministry will also consider cases wherein the current employer has breached the contract with the employee; has not paid salary for more than 60days; or if the worker was not told of the planned closure of the firm; or if the company has stayed closed for more than two months.

In case of closure of company the worker is required to inform the ministry and obtain approval to that effect from the Department of Labour Inspection officials before applying for a temporary work permit.

The permit will be valid strictly only for a period of six months or until the validity of the labour card, which ever comes first.

Sacked without reason? ‘Redundancy’ not valid reason for dismissal: legal experts

Many employees in the UAE, especially when the economic crisis started eating into the profits of businesses in the country, were faced with a similar problem – sacked one day without any clue about what to do next.

Emirates 24 / 7 spoke with legal and employment experts on what an employee can do in such a situation.

In one of its employment bulletins, Clyde & Co highlights the rights of the employees upon termination (employment relations in the Dubai International Financial Centre other free zones in the UAE have their own rules).

The bulletin elaborates on the grounds when an employee can consider his dismissal as unfair. “Under the Labour Law, an employee will be deemed to have been arbitrarily dismissed if he was dismissed for a reason unconnected to the work. This implies that an employee may only be dismissed on grounds of performance or misconduct.”

“The concept of ‘redundancy’ is not recognised in the UAE and, therefore, strictly speaking is not a valid reason for dismissal under the Labour Law. However, the UAE Labour Courts have recognised the employer’s right to restructure their business,” it mentions.

“If the dismissal was unfair and the employee hasn't been paid his entitlements, then the employee should seek recourse through the Ministry of Labour's complaints process and the Labour courts, who, will take complaints seriously and rule in favour of an employee if he or she has been treated unfairly and unlawfully,” Sara Khoja Senior Associate, Employment and Incentives Group at Clyde & Co LLP, told this website.

According to Samir Kantaria, Partner, Head of Employment at Al Tamimi & Company, “If an employee has been dismissed for no clear reason then, depending on where he is employed (onshore UAE or free zones), he can file a complaint for arbitrary dismissal with the relevant authority (Ministry of Labour for onshore employees and the free zone authority for others). This would not apply in the DIFC which operates under a separate employment law. If the ministry or the free-zone are not able to settle the matter, it is likely that they will refer the matter to the courts for determination. If an employee has been found to be arbitrary dismissed, the law provides that he may be awarded up to a maximum of three month salary as compensation. Arbitrary dismissal is seen as a termination that is not related to performance.”

“It depends on the case: if someone has been fired on valid reason (for instance, low performance from his side, or financial problems of the company that needs to proceed to lay-offs, or mismanagement/fraud from his side, or abortion of the project he is working on etc), then there is nothing much to fight about," argues Konstantina Sakellariou, Partner, Marketing & Operations Director at Stanton Chase.

"Of course, if being laid off is part of an unfair internal process, based on internal politics, discrimination etc, then one may wish to fight back. In this case, the results may be ambiguous, still one may wish to fight back and ask the support of the legal system in the UAE and the respective authorities. Finally, one reason to fight about is to secure one’s rights when fired (if they are at risk and the company is not fulfilling its obligations based on the UAE law and the contractual agreement),” she adds.

Law of process

For those who have been given the pink slip may wish to look what all the Labour Law states. According to Clyde & Co, it contains an exhaustive list of circumstances in which the employer can dismiss an employee without notice (regardless of the type of contract in place). In all other circumstances the employee will be entitled to receive notice upon the termination of his employment.

If the employee thinks he has been treated unfairly then he/she has one-year from the alleged breach taking place, or the entitlement falling due, to raise a complaint. Thereafter his claim will be time barred, the law firm says.

“An employee must first complain to the Ministry of Labour or the relevant free zone authority (the Labour Department). The Labour Department will attempt to reach an amicable resolution, failing which the matter will be referred to the Labour Court.

“Proceedings in the Labour Court can be time consuming and it can take months to obtain an outcome (which parties often appeal). The Labour Courts are very stringent about the requirement for clear documentary evidence of a party’s case and no oral witness evidence will be considered.

“There is no formal conciliation mechanism in the UAE to resolve labour disputes or circumvent the submission of formal complaints. Once a dispute has reached the Labour Court, any settlement of the claim must be negotiated between the parties. The concept of ‘without prejudice’ discussions is not recognised in the UAE. Accordingly, settlement discussions must be approached very carefully.”

The legal route

The option of legal course can be considered but it is advisable to look for other ways to deal with the company one is working for, advise experts.

“There are some basic steps which can help reduce the risks of labour claims being raised, or at least place the employer in a stronger position to defend any claim raised. These include implementing comprehensive contracts of employment, having clear and consistently applied policies and procedures, and complying with the basic requirements of the Labour Law,” elaborates the employment bulletin of Clyde & Co.

“I would say this depends on intent. If one wants to stay on, then consult an employment lawyer if you cannot get the decision over-turned. If you want to move on, then it matters less. However, you should do your best to have positive references from all your previous employers,” said Hasnain Qazi, Middle East Business Manager, Huxley Associates

New UAE companies law expected to lift the foreign ownership ceiling from the current 49 per cent

Abu Dhabi: A new UAE companies law that is expected to lift the foreign ownership ceiling from the current 49 per cent in certain businesses could be introduced this year, Minister of Economy Sultan Bin Saeed Al Mansouri said.

"It could be any time this year. At the ministry level, our work is done," Al Mansouri told reporters yesterday on the sidelines of the 5th Annual GCC Regulators Summit. Al Mansouri said the ministry has finalised the draft and is waiting for approval from the UAE authorities concerned.

Experts say the introduction of the new companies law will help attract more foreign investments and give a boost to the local economy and employment.

The UAE Companies Law allows foreigners a maximum stake of 49 per cent in companies outside free zones.

However, foreigners are allowed 100 per cent in companies registered within the free zones. The new law will also make it mandatory for companies to create a general corporate governance framework.

The legislation is part of a move to modernise the UAE's company, foreign investment and industrial laws to boost transparency and investor confidence.

Separately, Al Mansouri in his speech at the regulators summit said that after the financial crisis regulators are assuming increasing roles to strengthen the financial sector.

"The regulatory role is under reform in many countries to touch all bases including systemic stability, micro prudential regulations, conduct of business and consumer protection," he said.

Preparedness

"Regulators need to be proactive by being prepared for adverse outcomes, and need to be reactive to the needs of the industry. The world is still learning from past experiences and evidence shows that the regulatory process is an evolving one," he added.

He said the GCC countries have distinctive regulatory needs since the financial sector in the GCC is developing at an unprecedented pace.

"Regulators need to tackle issues like introducing new instruments besides the pure longing of stocks of listed companies, improve mechanisms like delivery versus payment (DVP), auxiliary tools like security lending and borrowing, licensing new financial services like investment management and regulate existing practices like rating agencies, auditing firms and research and financial analysis services," he said.

New company law by end of 2011, says Al Mansouri UAE Minister of Economy

Abu Dhabi: A new company law is awaiting government approval, a top official said on Wednesday.

A draft Companies Law is with the government for consideration, Sultan Bin Saeed Al Mansouri, UAE Minister of Economy, told reporters on the sidelines of a conference in Abu Dhabi.

He said, it will go through a process of scrutiny and verification and ammendments till it is passed by the government.

“It could be issued before the end of this year,” he said.

UAE’s Commercial Companies Law allows foreigners a maximum of 49 per cent stake in companies outside free zones. However foreigners are allowed 100 per cent stake in companies registered within the free zones.

The move will help the UAE to attract more foreign investment that could boost local employment and help the economy grow, analyst say.

Per second billing approved for etisalat mobile subscribers

Etisalat, du working on common landline services and ending location monopoly: TRA chief

Etisalat will start charging mobile phone subscribers per second for calls, reported Arabic newspapers. Mohamed Nasser Al Ghanim, Director-General, Telecommunications Regulatory Authority (TRA), said etisalat has been given the approval to charge subscribers per second for the calls they make. This is to ensure healthy competition in UAE telecommunications market.

The TRA's role ends with giving approval for services, the price packages. The time of implementaion is up to the operator to decide, he added. Franchise rights are imposed by the Ministry of Finance and TRA does not have a say in that, Ghanim said.

According to latest estimates, etisalat has about 47,000 'distinguished subscriber's whom it charges per second for mobile phone calls.

Meanwhile, TRA will meet with representatives of etisalat and du separately to discuss strategic plans for the next three years, Ghanim said and added that both the telecom operators are curently working on offering common landline telephone and internet services. They are working towards opening terrestrial networks by the year-end and ending geographic monopoly, he said.“The two companies recently have begun testing systems, communications networks before starting to extend the area of operation to include all areas of the UAE,” said Ghanim.

"The TRA oversees direct negotiations between the two companies," he added.