The draft Companies Law approved by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai

Passing the new companies law, Shaikh Mohammed said move shows the government’s approach to enhance the flexibility and the strength of the national economy to keep pace with global economic changes so as to maintain a steady and balanced growth pattern in all economic sectors in the country.

The new companies’ law is passed as part of the government’s strategic approach to give greater flexibility to set up various types of companies and strengthen corporate governance of joint stock companies. It lays down a general framework for the governance of public companies to guarantee the rights of all shareholders and to ensure transparency and disclosure of financial data as well as the efficiency and integrity of the Board of Directors.

The cabinet also passed an order restructuring the National Authority for Qualifications under the chairmanship of Labour Minister Saqr bin Ghobash Saeed Ghobash and five officials representing various government departments as its members.

The cabinet also passed a law regulating the work of experts in the courts of law in the country. The cabinet also ratified a number of international agreements and budgets of some federal agencies. 

The new companies law is widely expected to  allow foreigners or foreign companies to own 100 per cent of their businesses in the UAE in some sectors. It has been under consideration for several years now

Under the prevailing law, foreign ownership of businesses in the UAE is limited to a maximum 49 per cent as nationals own 51 per cent. The current 49-51-equity law is applicable to all nationalities except those from within the GCC countries. At present, foreigners are given full business ownership rights in free zones across the UAE.

Also in the pipeline is legislation aimed at protecting foreign investments in the UAE.

Analysts believe that such bold reforms will help attract foreign direct investments and big multinationals to the UAE mainland instead of to certain free zones where they are currently confined.

The proposed law on foreign investment will address a key investor concern about protection against contract disputes and other legal issues.

It will further enhance the UAE’s position in the global competitiveness ranking by the World Economic Forum, analysts said. 

 Sultan Al Mansouri, Minister of Economy, said the new companies' law issued by the cabinet today contributes to enhance the competitiveness of the national economy at all local, regional and international levels as well as enhance the performance of the business environment and investment climate in the UAE.

The Minister pointed to the importance of being a new law that keep pace with local and global economic developments and supports the economic openness and diversification policies. He also praised the remarkable cooperation of all federal agencies, local and private sector that have had a major role in expressing opinions and observations that enhanced it content and effectiveness to comply with different needs and economic requirements of the UAE. 

The new law provisions of the law are stated as follow: Develop a general framework for corporate governance that contributes to protecting the rights of shareholders and to achieve transparency and disclosure of financial data and the efficiency and integrity of the Board of Directors.

Entrusted to the Registrar of Companies at the Ministry of Economy to the task of supervising the record of brand names for different types of companies that are registered in any emirate, in order to avoid repetition among them.

Did not identify minimum capital for the companies with limited liability.

Allow the Cabinet to issue a resolution specifying the forms of businesses, activities or groups that may increase the share of foreign partner for 49% of the capital of the company and so may not reduce the ratio after the issuance of that resolution.

Authorized the shares for public subscription on the basis of the price of the security by one of the companies specialized in this field.

Unify standards and accounting principles, which the company must comply with when preparing interim and annual accounts and when determining the distributable profits.

Authorized exception to the priority right to subscribe into new shares to shareholders in the following cases: A. Allocating a proportion of the company's shares to its employees. 

B. Entering a strategic partner in the company.

C. Capitalization of the debt.

12. Allows the co-founders of the public shareholding company to the subscription in shares of not less than (30%) and not more than (70%) of the capital of the company. The new law also reduced the length of time spent in founding companies.

Labour ban still making life tough for workers seeking to change jobs in UAE

Ministry consultant says new rules apply to companies that have closed down or no longer exist
Dubai: Workers have complained that the Ministry of Labour is still asking for approval from sponsors if workers wish to change jobs after two years.

Affected workers pointed to the ministry's earlier reforms to the labour law which did away with the need for a sponsor's approval for employees who have been with their sponsors for two continuous years. The workers complained that they were being slapped with one-year ban for failing to secure such approval.

The labour rules, which were implemented early this year by the Ministry of Labour, allow workers to switch jobs at the end of their employment contracts without the need for a no-objection certificate.

However, Hussain Hussain, a legal consultant at the Ministry of Labour clarified the new rules and said expatriate workers would still receive a one-year ban if they failed to get their sponsor's consent before changing employment.

"No one is allowed to switch jobs even if they complete many years in their [current job], without the consent of their sponsor," Hussain said.

He also said the new law allows workers to change employment in cases such as when the company employing them has closed down and no longer exists.

"But those workers will be given one-year ban if they do not file a complaint at the Ministry in less than two months after the [closure] of their company."

Ahmad Tajul Deen an Indian, employed in Dubai said he been with the same company for six years before the manager fled the country.
"My colleagues and I went to complain at the ministry after we lost hope that the manager would come back," he said.
"That happened three months [after the manager] left the country. The ministry stamped a one-year ban on each worker in the company."
Ameer, an Afghani PRO for a company in Sharjah, said that he went to apply for a visa for a new employee for his company.
Proof of cancellation

"I was told that the approval of the previous employer is required and the previous employer should show at the ministry that the visa has been cancelled, otherwise a one-year ban will be [slapped on] the worker," he said.

He said the ministry had not changed any rules and added that workers still needed approval of the sponsor to change jobs.


    January 1, 2011: New rules allow expatriate workers to seek new employment without a no-objection certificate
    The worker should have served out a two-year contract with the company.
    A worker with an expired contract can obtain a new work permit and shift to another employer without the passing of the six-month period and consent of his sponsor.
    The resolution says new employment permit will only be granted to the worker after the end of his work relationship amicably with his employer.

Dubai to enforce Dh50, 000 fines to end menace of illegal maids- Maids convicted first time deported for a year; Repeat offenders will get jail

Domestic help must be sponsored by their recruiters, according to a top DNRD (Department of Naturalisation and Residency Dubai) official.

Similarly, employers hiring workers who are not on their sponsorships will face Dh50,000 fine, he added.

Judge Ali Humaid bin Khatam, Head, Court of Naturalisation and Residency, said at least 70 per cent cases pending with the departments prosecution involves those of housemaids.

Some of them are also believed to have entered the country illegally and a few others have been overstaying their visa periods.

Out of the 3,478 defendants brought to trial between June and October this year, 2,434 were housemaids. About 1,217 people are on trail for recruiting 'absconding maids', said Bin Khatam.

First-time offenders including absconders will be fined and deported for a year after serving their jail terms. They can return to seek work in the emirate. However, repeated offenders will be permanently deported from the country and can return only with a special permission from the Ministry of Interior.

Citing cases that appeared before the prosecution, Bin Khatam said one case involved an Arab woman who allegedly accused her maid of stealing. Investigations revealed she had hired the help illegally and that she was not under her sponsorship. Therefore, if convicted, the Arab woman would be fined Dh50,000 while the maid would be deported after serving jail term.

Similarly a European was fined Dh50,000 for recruiting an 'illegal' maid who inturn was impriosoned for one month and later deported, he added.

However, there are also cases wherein househelps are exploited by their owners.

Balcony barbecue’ fine fixed at Dh500 --Trakhees Commences Campaign for Misuse of Balconies and Damage to Buildings Facades

Trakhees Community Conformance Division (CCD), Department of Planning & Development – aims to maintain the aesthetic appearance of residential compounds in particular and of Dubai in general. To ensure the commitment of residents in adhering to the rules and regulations applicable within its jurisdiction, CCD has undertaken a comprehensive community-based awareness campaign among all users of these complexes which includes a range of awareness-raising posters and brochures in five languages: Arabic, English, Hindi, Urdu, and Chinese, all containing the following instructions: 

• - Do not install satellite dishes on the facades of buildings and balconies
• - Do not use balconies as places of storage for any purpose other than seasonal furniture
• - Do not shake or hang sheets, clothes or curtains or rugs or mops or laundry on balconies or railings of homes
• - Do not light barbecues on balconies of apartments

The aim of the campaign is to raise awareness in all segments of society, among residents or visitors of these complexes by reaching them in their place of residence. The outcome will be to preserve upscale appearance, which is characteristic of the Emirate of Dubai by reducing the off-putting appearances which adversely impact the overall aesthetics. The fine for misusing your balcony or damaging the façade of the building in Trakhees-supervised residential communities will be Dh500 per offence.

In a statement the authority said initially officers would be warning residents not to misuse their balconies, set up barbecues, or fix any satellite dishes, and those failing to follow the rules will be fined Dh500.

Areas under Trakhees’ supervision, as per Degree No 22, includes, but not limited to Palm Jumeirah, Jumeirah Heights Jumeirah Village, Jumeirah Lakes Tower, Jebel Ali Downtown, International City, Discovery Gardens.

Last week Community Conformance Division (CCD), Department of Planning & Development of Trakhees has informed residents not to fix satellite dishes on the facades or balconies of their buildings; not to use balconies as places of storage for any purpose other than seasonal furniture pieces; not to hang sheets, clothes or curtains or rugs or mops or laundry on balconies or railings of homes and not to have barbecues in their balconies.

Public and private sector to be closed from December 1-3

The Ministries and public institutions will close on Thursday, December 01, 2011, and resume on Sunday, December 4, according to the circular issued on Friday by Humaid Al Qattami, Minister of Education and Chairman of the Federal Authority for Government Human Resources.

According to the circular, the Islamic New Hijri Year 1433 holiday has been moved to Thursday, December 1, as it coincides with the National Day holiday from December 2  to December 3, 2011.

Al Qattami congratulated President His Highness Sheikh Khalifa bin Zayed Al Nahyan; His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai; Members of Supreme Council, Their Highnesses Rulers of emirates, UAE people, Arab and Muslim countries, on advent of the new Hijri Year and UAE National Day anniversary.

Holidays for private sector

Next Thursday,  December 1, 2011 will be a paid holiday for all workers of the UAE's private sector to mark the Islamic New Hijri Year 1433, the Ministry of Labour said in a statement.

The New Hijri year holiday was moved by the Ministry to next Thursday - December 1.

Next Saturday December 3, 2011 was also announced by the Ministry as a paid holiday for all workers of the UAE's private sector in celebration of the 40th anniversary of the UAE's National Day, according to the Ministry's statement.

The Ministry extended greetings and best wishes to President His Highness Sheikh Khalifa bin Zayed Al Nahyan, His HIghness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai; Members of Supreme Council, Their Highnesses the Rulers of the emirates, the UAE People and Arab and Muslim countries, on advent of the new Hijri Year and the occasion of the UAE national day.

Bank holiday

Banks will close their branches on Thursday, December 1, 2011, to mark the 40th anniversary of the UAE National Day as well as the New Islamic Hijri year, the Central Bank of the UAE announced in a notice.

"Banks are required to ensure that their ATMs are properly stocked with cash at all times," the Central Bank's notice said