Labour rights under husband's sponsorship in UAE

My wife has been working in a company for almost three years under a limited period contract that expires after six months. She is on my sponsorship and has a work permit. My questions are: Can my wife resign immediately or does she need to give one-month notice to the company as per the law? If the company does not accept her resignation, will the Ministry of Labour impose a ban on her although she is under my sponsorship? What are my wife’s rights for end-of-service gratuity in accordance with the labour law?

The questioner’s wife is working on a contract for a limited period and if the contract is terminated pre-term, she will lose her labour rights except the right related to leaves only. Also, the wife might be requested to compensate the employer an amount equivalent to a salary for 45 days if the employer proves that he suffered a loss or was affected by such behaviour. Finally, the employer might request the Ministry of Labour to impose a one-year ban on the wife due to this violation even if the wife is not under the company’s sponsorship.

Questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Bahar Advocates and Legal Consultants.

Dubai Court of Cassation clarifies terms for suing employee for joining competition

The Dubai Court of Cassation has ruled that that an employer has the right to seek compensation from an employee who breaches the terms of contract by joining a competitor, within two years of leaving office.
However, the court, while dismissing a case filed against an employee, observed that the employer should prove claims of damage caused by the action with clear evidence.
The pronouncements came during the hearings of a case in which a company sought Dh100,000 in compensation from one of his former employees for breaching the terms of contract by joining the company’s competitor.
The lawsuit was filed against a woman, a computer programmer, by a shipping company, which claimed that the defendant damaged the prospects of her former employer by joining its competitor and sharing the company’s internal secrets with her new employer.
The Court of First Instance, which first heard the dismissed it for lack of evidence of any damage caused by the employee’s actions, which prompted the plaintiff to appeal the verdict before the Court of Cassation.
The Court of Appeal upheld the ruling, but the company appealed the verdict once again before the Court of Cassation, which made the above observations.
The Court of Cassation rejected the company's appeal and based its ruling on the text of Article 127 of the law regulating labor relations.
The court said: “Although the employee had violated the non-competition clause mentioned in the contract, however, the breach did not result in harm to the company.”
The court added that the case documents are free from any evidence of damage to the company and hence, the plaintiff’s claims are not right.

Property must be worth Dh1m for UAE's new 3-year real estate visa

Details surrounding the new three-year real estate visa announced by the UAE government last week are flying in thick and fast.The visa will not be available to investors in land, but will allow property investors to sponsor their families and stay in the UAE for three years without leaving, according to senior government officials.Major General Nasser Bin Al Awadi Al Menhali, assistant undersecretary for Naturalisation, Residence and Ports Affairs, told Gulf News that the full details of the law would be made public soon.

It is still unclear if the visa provides investors all the usual benefits of a residence visa, such as enabling them to open bank accounts and apply for local driving licences.While this website on Monday spoke to a source who claimed to be in the know as to what was discussed at these meetings before announcing the decision, no official statement has been forthcoming so far. Until now.

An official quoted in press reports today has stated that the value of the property will have to be Dh1million for an investor to sponsor his/her family and stay in the UAE for three years without leaving, after getting the visa. source had said that: “A number of proposals were discussed at the meeting with ministry officials and one of the proposals was to restrict stay of the property owner to nine or 10 months in a year. However, the final regulation is yet to be drafted.”

However, Gulf News on Tuesday quoted Major-General Nasser bin Al Awadi Al Menhali, Assistant Undersecretary for Naturalisation, Residence and Ports Affairs, as saying that those with property worth more than a Dh1m will be allowed to stay for three years on the new visa.

“Investors can have access to banking services through their international bank accounts. However, it is not yet clear if they can avail of regular benefits of a residence visa holder such as open bank accounts and seek local driving licences,” the paper quoted Menhali as saying.Again, this website’s source had said that access to a number of services - such as applying for a local driving licence, personal loans and getting admission to schools – was also discussed at the meeting.

“The longer duration was requested to allow investors, who want their children to attend schools, have enough time. Generally, schools have long summer holidays and Eid vacation. So, we though, nine or 10 months is sufficient,” the source said.

Sultan Butti bin Mejren, Director-General of Dubai Land Department was quoted by Gulf News as saying that the Dubai Land Department will check the value of properties to see if owners qualify for the extended visa scheme.The UAE Federal government on June 28 announced it was extending visa for real estate investors from six months to three years.

This website had reported then that the discussion about extension of the property visa was held about a month-and-a-half ago and a number of issues were discussed.Sultan Butti Bin Mejren, Director-General of the Dubai Land Department, said his department would be involved in checking the value of properties to see if owners qualify for visas."As soon as the bylaws are issued, the link between the two departments will be activated to check the real value of the property as well as the transaction that will alert the system of the transaction," Bin Mejren said.

Al Menhali added: "The aim of this law is not full residence in the UAE but to give more flexibility and make it easy for the investors to stay and move in and out of the UAE to manage and watch over their properties."

UAE bans credit card surcharge from July 1

Ministry of Economy has warned retailers in the UAE to stop charging fees on credit cards from July 1. Sultan bin Saeed Al Mansoori, Minister of Economy and Chairman of the Supreme Committee for Consumer Protection, headed the second meeting of the committee for 2011 which passed resolution prohibiting retailers from imposing charges on credit card usage as commission.
The committee also agreed on liberalising trade of 15 new products including detergents and washing powders, dairy products and juices, drinking water, livestock, feed, fats and oils, and the list will be sent to the cabinet for approval.
This is strategic to reduce monopoly and exploitation, and will enhance market competitiveness,” said Al Mansoori.
The committee reviewed a report on the advertisements for fast food outlets, and recommended that awareness measures must be initiated to ensure that customers are not misled by catchy advertising and resort to unhealthy eating, especially of junk food.
The committee also reviewed a report on the status of the Call Centre in the Consumer Protection Department, and another on the difference between the prices of key food items sold at cooperative societies and major retail outlets.
The committee discussed the Electronic System for Goods Monitoring which is expected to be operational during the second half of 2011. Currently, the ministry is undertaking a pilot phase with some commodities and the results will be generalised for other goods. The new system works through electronic links between the major trading centres and UAE customs ports, and can monitor the prices of 200 commodities on a daily basis.
The committee discussed a report on the increase of prices at gas stations and recommended to open channels of communication between the Ministry of Economy and all petrol stations with the participation of representatives from economic departments to identify the reasons for rise in price.
The committee was briefed on a proposal to reduce rental fees at retail outlets and cooperative societies. The committee recommended the distribution of marketing margins equally between retail outlets and consumers

Tas’heel -Online Goverment system for labour related process in UAE

Tas’heel is an online government system designed to simplify all labour related processes, improve output volume and increase efficiency. It allows companies and typing centers to make online transactions and payments to MOL, encouraging a paperless environment. Through Tas’heel, companies do not have to worry about physically submitting payments or documents Receive new labour card and mission labour card application

Transactions- Receive modify or lost labour card application
- National new labour card application
- Sponsorship transfer (express)
- Company License Renewal
- Relative Sponsor Work Permit
- Modify Work Permit
- Replacement of Work Permit
- Nawakas Scanning Document
- Cancel New Labour Card Application
- Online Cancellation
- Salary Certificate

Labour Card
Receive New Labour Card and Mission Labour Card Application: This application is used when attempting to apply for a Labour Card or a Mission Card for the first time. An employee can only be eligible for this application if he/she obtained their Labour Contract as well as their Medical Fitness test. This service can be accessed using the Transaction Number. For the normal new labor card must be submitted through TASHEEL system within 60days of entry otherwise penalty will be given by MOL.
For Mission Work permit it is valid for 3 month and must be submitted through TASHEEL system within 1 week from the date of his entry, otherwise fine will be 500 for each 10days delayed of submission.

Receive Modify or Lost Labor Card Application: This application is used when a modification is made to an employees’ nationality, salary or occupation. It is also used to replace a lost Labour Card. For Modification: A letter from the company is required with the old contract as well as the new contract stating modification in the new contract
For Lost Labor Cards: A letter from the police is required stating that the employee has misplaced his/her Labour Card and officially reported it to the authorities.

This service can be accessed using the Transaction Number.
National New Labour Card Application: This application is only applicable for U.A.E Nationals applying for a Labour Card for the first time. An employee can only be eligible for this application if he/she obtained their Labour Contract as well as their Medical Fitness test. This service can be accessed using the Transaction Number.
Sponsorship Transfer: This application is used when an employee is transferring to another job and must in turn transfer their sponsorship status. To complete the process, the employee must obtain the cancellation (signed by previous employer & employees) as well as the new contract (signed by the new employer and employee). This service can be accessed using the Transaction Number.

NOTE: After scanning the application correctly the PRO must submit the following documents at MOL:
The receipt from TASHEEL system.
The original cancellation signed by both parties
Computer card for the old company
Two contract copy from the application

Establishments
Company License Renewal: This application is used to renew a Company Trade License. This service can be accessed using the Company Code and License Number.

Work Permit
Relative Sponsor Work Permit: This application is used when a sponsored relative(wife/family members) is seeking a work permit and is required to provide no objection documents from the sponsor in order to proceed with the application. This service can be accessed using the Transaction Number.

NOTE: The following must be verified before entering the application into the system, otherwise the application will rejected:
The passport of the sponsored relative as well as the sponsor must be valid for at least 6 months
The residency of the sponsored relative as well as the sponsor must be valid for at least 1 month
The age of the sponsored relative seeking a work permit must at least be 21 years of age

Modify Work Permit: This application is used to amend information in the work permit such as name, nationality, passport number, etc. This service can be accessed using the Transaction Number.
Replacement of Work Permit: This application is used by the employing company who decide replacing a current employee on a valid work permit with a new employee using the same work permit without incurring additional or new charges. A work permit is valid for 60 days and can be extended for a maximum of 30 additional days. The replacement process can take place only if the work permit is valid. This service can be accessed using the Transaction Number. Create Temporary Work Permit: a person who holds residence visa at another company or family sponsorship. It will be valid for 6 months after getting the approval from MOL. The cause of this application will be depends upon the category of the company.

Miscellaneous
Nawakas Scanning Documents: Nawakas means ‘missing’ and this application refers to missing one (1) or more documents from the requirements submitted for Labour Card and Work Permit applications. This service can be accessed using the Transaction Number.
Cancel New Labor Application: This application is used when employee information is entered incorrectly in the Labour Contract Application and requires rectification. The incorrect application must be cancelled using this service after which the system will require an hour to update itself. Once this is done a New Labour application must be entered and submitted. This service can be accessed using the Transaction Number.
Online Cancellation: This application is used when an employer seeks to cancel the labour card and contract of an employee (who no longer reports to the employer). The cancellation can be signed electronically or manually depending on whether the company has an electronic signature. Signatures that are manually applied tend to get processed more efficiently and take less time. This service can be accessed using the Transaction Number.
Salary Certificate: This application is used when the Ministry of Labour requests from a company the salary certificate of a specific employee.