UAE cancels up to 1m work permits a year: official

New system linking Labour and Interior ministries to help firms save time and money

The UAE cancels up to 1 million work permits every year, a senior official of the country’s Ministry of Labour (MoL) revealed last week.
At a press conference in Dubai last week, Humaid bin Deemas, Assistant Undersecretary for Labour Affairs at the MoL, disclosed that around 800,000 to 1 million permits are cancelled every year and that a new system, which provides a unified platform to process visa and labour-related issues is in place now, helping employers save time and money.
The project to electronically link the MoL with the Ministry of Interior (MoI) has concluded, providing a unified platform to process visa and labour related issues, it was announced during the press conference.
The linkage has created a joint database for both the ministries, which will allow them to access each other’s files and information, as well as process and cancel visas electronically. The new system will also save employers some headache as they won’t have to fill two separate forms at both the ministries to apply for a labour permit, it was announced.
The new system requires applicant to file one form at MoL, which will then send it electronically to the MoI and process the documents.
The announcement was made during a press conference held in the Ministry of Labour in Dubai in the presence of Humaid bin Deemas, Assistant Undersecretary for Labour Affairs, and Colonel Saeed Salem Al Shamsi, Director-General of Residency and Foreign Affairs department of MoI, and Colonel Bakhit Saeed Al Suwaidi, Director Office of the Assistant Undersecretary of Residency and Foreign Affairs, and Saif Al Suwaidi, general coordinator of the project the MoL.
MoL has confirmed that the new system has undergone testing through a pilot project last November and has successfully issued 317,137 work permits. While, the issuance process has already started under the new system, the cancellation would be launched only in July.
Once operational, the system will allow cancellation of labour cards from any centre in the UAE or even at the airports, following payment of all fines due by the applicant.
The E-link will also require all the firms to have electronic signature card, work on which is currently under process.
Under a later phase of the project it would be mandatory for employers to have electronic signature cards, failure to have which would stall all the files of the applicants.
There are currently 140,000 firms who already have e-signature card and those who do not have will be given a grace period to be announced soon.

UAE Labour Law on gratuity and severance pay of employees

Limited contract:

According to UAE Labour Law, you are entitled to 21 days salary for every year of employment less than 5 years, and 30 days salary for each year of employment over 5 years, up to a maximum of 2 years’ salary. Limited contract holders shorter than 1 year not entitled for gratuity. If the employer dismissed you and revoked the contract without the reasons provided in the article (120),they shall compensate the worker by a pay of (3) months or the period remained from the contract , whichever is shorter … unless otherwise provided by the contract

Unlimited or indefinite contract holders

With  notice period specified in UAE Labour law (usually 30 days) then the amount is according to the following:

Employed for less than 1 year - no gratuity

Employed between 1-3 years - 7 days for each year of employment (1/3 of the limited contract amount)

Employed between 3-5 years - 14 days for each year of employment (2/3 of the limited contract amount)

If you employed longer than 5 years - 21 days for each year up to 5 years, and 30 days for each year after 5 years (same as for limited contract holders). Maximum limit is of 2 years’ worth of salary. 

Unless the employer has not fulfilled their obligations according to the UAE Labour Law, or the employer has assaulted the employee (Article 121 conditions for permission to leave employment without notice). You might have to file a case with the Ministry of Labour in the UAE to claim your gratuity in this case.

Gratuity is calculated on base salary only, any additional allowances are ignored. Employees who are entitled to a gratuity will have it calculated pro-rata for part-years of employment. It is common for employees in the UAE to be on a limited contract which is renewed repeatedly after completion of the fixed term. The gratuity applicable in this case should be that for a limited contract. But check carefully what your contract says.

If a contract specifies a possible notice period for terminating before completion, then it is still a limited contract and you might not be entitled to any gratuity if you do not complete the contract, even if you give the correct notice as specified in the contract. However, such contracts do usually include a clause to detail what gratuity will be paid in those circumstances, and those clauses should have legal validity.

Being required to give a period of notice of renewal or non-renewal of a fixed term contract does not make it an unlimited contract. It is still a limited contract, and the gratuity calculations for a limited contract should still apply. If an employer claims otherwise, contact the Ministry of Labour to at least ask for clarification, and possibly file a complaint.

Social Allowance: An additional allowance granted only to UAE Nationals

⚖️ Update on Performance-Based Salary Increments for Dubai Government Employees

This rewrite addresses the historical details of a specific, performance-based salary increment structure implemented under the now-obsolete Dubai Government Human Resources Law No. 27 of 2006.

I. Evolution of the Legal Framework

The primary takeaway is that the governing law has been updated:

• Superseded Law (Historical): Dubai Government Human Resources Law No. 27 of 2006.

• Current Law (In Force): Dubai Government Human Resources Management Law No. (8) of 2018.

The 2018 Law and subsequent regulations formally mandate the Performance Management System as the required basis for determining promotions, salary increments, and incentives, confirming the original article's core principle.

II. Current Increment Framework (2018 Law)

The current strategy maintains a direct link between an employee's annual performance rating and their financial rewards:

• Performance as Basis: The annual performance review grade is the primary factor determining eligibility for financial incentives, bonuses, and annual salary increments.

• Basic Salary Focus: Any approved increment is typically applied to the Basic Salary.

• Eligibility: Employees must generally meet minimum service requirements (e.g., six months to one year) to qualify for the performance review cycle and subsequent rewards.

• Variable Rates: The specific percentages (like the 7\% and 5\% mentioned previously) are not fixed annual policy. Actual increment percentages and bonus amounts are determined annually by the Executive Council of Dubai based on the government's financial performance and budgetary constraints.

The implementation and oversight of this performance management system remain under the authority of the Dubai Government Human Resources Department (DGHR).

Visa, ID to be linked in Ajman from June 1

Renewal or issuance of residence permits would be linked directly with ID card registration in Ajman from the June 1, the Emirates Identity Authority (EIDA) has announced.

The Gulf Today quoted a senior EIDA official making a statement to this effect.

In a statement, Abdul Aziz Al Maamari, director of Public Relations and Marketing, Eida, said this would mark the fifth stage of the operation in the Emirate.

The issuance of ID card would be subject to completing preventive medicine procedures, and the residence visas would be issued only if the applicant submits the ID registration documents are submitted along with other regular documents.

Al Maamari clarified that the registration receipt with the ID seal will be one of the main documents required by Ajman residents to obtain or renew residency permits.

For those residents whose permits will be issued or renewed in Ajman and who want to obtain an ID card, the official said that they should go to an authorised typing office in the Emirate, the customers will then need to go to the Preventive Medicine Centre in Ajman for medical examination before heading directly to the Eida’s Ajman Registration Centre.

Eida has already started linking ID card registration with residence issuance or renewal procedures through registration centres annexed or close to preventive medicine centers in UAQ, Fujairah, RAK, Dibba Al Hisn, Al Dhaid and the Western Region.

Resident Visa for your Parents - UAE Rules

Criteria for sponsering

UAE expatriates, holding valid resident visas having a minimum salary of AED 6,000 with accommodation or AED 7,000 without accommodation can get one year renewable resident visas for their parents or parents-in-law.

As per new regulations, you have to sponsor both your mother and father together and show proof that you are their sole provider and that there is no one to take care of them in your home country. However, if your parents are divorced or one is deceased, you should carry documentary proof, when visiting DNRD to obtain the entry permit visa, which is the first stage before you can apply for a residence visa. You also need to obtain a medical insurance policy for each parent with minimum coverage of AED 600 per year.

Documents required for entry visa

• Typed application form

• Original passport of sponsor

• Passport copy of parent/s & 1 photo

• Proof of relationship from your embassy/consulate attesting both relationship and that you are sole provider for your parent/s

• Copy of job contract for the sponsor or salary certificate from employer.

A new requirement is submission of DEWA bill and your tenancy contract showing you have adequate space in your house for your parents (minimum 2 bedroom apartment). You need to get your tenancy contract stamped by the Land Department, certifying it is minimum 2 bedroom. In case your tenancy contract does not mention that you have at least 2 bedrooms, then you need to get an affidavit from your landlord and submit this as well.

Procedure:

• Take the documents and go to General Directorate of Residency and Foreigners Affairs - Dubai. Submit along with a letter from your side appealing on humanitarian grounds for entry visa for your parent/s. Enclose copies of all above documents along with your contact numbers. The Approval Committee will either confirm or reject your application within two weeks. If approved, go to next step.

• Have a registered typist complete the form after paying the fees.

• Go to the residency section of DNRD and hand in the documents.

• Entry Permit will be sent by Empost usually within 48 hours, or if you have applied for urgent visa, then you should receive it from the counter in a few minutes.

Fees:

- AED 5,000 refundable deposit (keep receipt safely for renewal or reimbursement, as this is paid back only when the visa is cancelled or in case your parent dies)

- AED 110 application fee + typing centre fee (or pay AED 100 more for urgent application)

Convert entry visa to residence visa for parents

Once your parents enter the country with the entry visa, you must convert it to a residency visa no later than 60 days from the date of entry.

Documents required for residence visa

• Application form & 3 photos of parent

• Original passport of parent/s and sponsor

• Original entry permit

• Health card or medical insurance policy for parent/s

• Refundable deposit receipt

• Original job contract or salary certificate of the sponsor

Fees:

- AED 110 residency fees each year + typing centre fee

- AED 100 urgent application (optional)

- AED 10 Empost fees

Procedure:

• Do a health check up and obtain a medical card.

• Take the documents and go to the General Directorate of Residency and Foreigners Affairs - Dubai.

• Have one of the typists there complete the form for you after paying the fees.

• Go to the residency section and hand in the documents.

• The passport/s with the residency visa stamp will be sent to you through Empost.