The new federal law concerning the protection of consumers will be enforced in the third quarter

The UAE is on the verge of enforcing tough penalties involving fines of up to Dh1 million against dealers trying to manipulate the market by raising prices of consumer products without prior official permission.

The Ministry of Economy said the new regulations, which have been approved by the federal cabinet, would be enforced in the third quarter of this year and warned traders against any manipulation attempts.

In a statement carried by local Arabic newspapers, the ministry said it would not allow dealers to manipulate or control consumers and ruled out any move by the higher committee for the consumer’s protection to approve requests by suppliers to raise the prices of some products this year.

The ministry said its anti-manipulation actions had ensured market stability, adding that prices of consumer products in the UAE are the lowest in the Gulf despite the absence of subsidies enforced in other Gulf nations.

“The new federal law concerning the protection of consumers will be enforced in the third quarter…it involves increasing the penalty ceiling to Dh1 million after it was endorsed by the cabinet,” economy minister Sultan Al Mansouri said.

“The UAE will not allow traders to manipulate consumers at will….the government will continue to intervene in consumer prices to ensure maximum protection for the consumers in the country.”

Mansouri said the ministry’s higher committee for consumer’s protection is considered “the frontline” in the defence of consumers, adding that it would not approve any new price increases without “strong and convincing reasons.”

“The committee normally carries out a comprehensive study into any request for prices increases…this study involves the reasons for this increase, the price level in the country of origin, prices in neighbouring countries and the profit margin…I don’t think we will approve any price rise this year,” he said.

According to Emirat Al Youm newspaper, the new law increases the maximum penalty against violating dealers to Dh1 million from Dh100,000 and the minimum fine to Dh100,000 from Dh10,000.

'Thousands' of visa scams uncovered by Interior Ministry

The Ministry of Labour has unearthed ‘thousands’ of cases of visa fraud by owners of certain establishments applying for residence visas for individuals without labour cards, senior ministry officials have said.

According to Humaid bin Deemas, Undersecretary of the Ministry of Labour, three such cases have been unearthed during the past two weeks. He said the owner of a facility which has only 30 work permits (labour visas) tried to issue 130 visas from the Residency and Foreign Affairs Department.
“The electronic link between the ministries of Labor and Interior detects and prevents these cases of forgery, and will allow us to say ‘goodbye’ to the visa traders,” he said.
Bin Deemas made the announcement on the sidelines of an event to mark the conclusion of the first phase of the electronic link between the two ministries.
Colonel Saeed Salem Al Shamsi, General Manager of the Residency & Foreign Affairs Department at the Ministry of Interior, said: “The ministry discovered thousands of cases of fraud that were carried out by the owners of facilities in which they requested residence visas for persons who do not have labour cards.”
He added that the linking will prevent all such fraud and will also identify companies that are violating the laws of residence and labour by recruiting absconding workers.
Bin Deemas explained that the electronic link allows a company owner to send request for and receive visas electronically.
It also allows cancellation of the labor card and the facility to deport the same day – provided that the owner of the facility has electronic signature card, the worker shouldn’t have any fines, and also that the employer would have paid all the dues of the worker, said Bin Deemas.
He added that with the completion of the second phase of the project which is in implementation currently, the reports of absconding workers will be included in the database, helping authorities in establishing if a particular is still within the UAE or has left the country.
It will also allow the Ministry of the Interior to control any fraud carried out by the owner of an establishment with so-called visas traders.
Bin Deemas pointed out that some employers were applying false documents to the Residency & Foreign Affairs Department declaring abolition of work permits to workers they already have and at the same time applying for visas for other people.
He noted that the electronic link between the ministries of Labour and the Interior will make it impossible to pass any of these cases.
The electronic link will also save time and effort for applicants and reduce the number of applicants at the ministries of Labour and the Interior.

Common driving licence syatem for all GCC

The GCC countries have agreed to a common driving licence system at a conference that took place Sunday in Abu Dhabi.

The three-day conference of directors of traffic departments from the GCC countries is being held to address common challenges, policies and procedures related to traffic issues.

"The UAE presented a proposal for a unified driving licence system. An agreement was reached to implement the suggestion of having a common driving licence for vehicles, including motorcycles, construction vehicles and private cars," Gaith Al Za'abi, director-general of traffic coordination at the Ministry of Interior, said.

"Further discussions will address other types of vehicles, including age and other relevant issues," Al Za'abi added.

The conference will also talk about the possibility of implementing a suggestion made by Oman for a unified form for driving licences containing sufficient background and security information to minimise fraud. "The agreed to procedures will be sent to the ministries of interior for a final approval," he said.

The UAE has also presented a proposal for an electronic web service or an electronic gate that links traffic data across the GCC countries.

"Some 70 per cent of the traffic exchange data among the GCC countries is related to fines. The e-gate will make this data exchange easier and accessible to the public. GCC residents can check online and pay traffic fines committed in any other country," Al Za'abi said.

Success rate

The directors agreed to hold the "GCC Traffic Week" at the same time yearly. They also assessed the success rate of previous traffic campaigns and agreed to maintain the successful ones. In the UAE the Emirates ID will soon be linked to the traffic department as well as the immigration and naturalisation department.

"With this linkage renewing residency means having to pay all outstanding fines or vehicle related fees such as registration, insurance, renting etc," Brigadier Hussain Al Harthy, director of traffic and patrols at Abu Dhabi Police, said.

Enforcing the speed limit helped reduce traffic accidents, according to Al Harthy. "Our procedures have helped reduce fatalities to 10 per 100,000 residents," Al Harthy said.

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.