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Tuesday, February 7, 2012

Dubai maids’ salaries double even as family incomes stagnate

Despite the financial woes of many residents in Dubai since the economic slowdown began in 2009, salaries of maids in the city have doubled.

Residents of the city complain that there have been no hikes in the past few years but the situation is very different in their homes.

The asking rates of maids these days are much higher than what is set by their respective consulates.

Recommended salaries for Indian maids is Dh1,100 as advised by the Indian Embassy, while new regulations from the Philippines say the minimum salary should be Dh1,400.

As per the Sri Lankan embassy, the minimum salary for Sri Lankan maids is Dh825.

However, the reality is different say residents.

Maids in New Dubai are far more expensive than this and nearly all of them ask for a hike every year, complain residents.

“I have more than doubled my maid’s salary in the last four years. While recession has seen us cut back costs on a lot of things, this is one cost that has escalated year-on-year,” Charlene Saldanha, an Indian resident living in the popular The Springs area told .

“The average cost of a maid in my household per annum is around Dh30,000. This includes the salary, the visa fee, medical costs, food, toiletries and airfare to home country,” she added.

Besides this, getting a maid from an agency adds to the overall burden. “The costs involved in hiring a new maid are exorbitant. The agency fee or the cost of finding a new maid, the cost of bringing her here, and to top it all, the fee we have to pay to the government, make it a huge burden.

“In the case of an existing maid, the government fee, medical and the increase in salary to retain the maid per annum are equally huge. So, all this takes a toll on the family income that has not seen any increase since [2009] recession,” she said.

“I got a maid from Sri Lanka in 2009 for Dh700. Since then I’ve never got a pay hike and lost my job once. I was lucky enough that I found another one in three months’ time. I’ve changed my child’s school so that I save on the fee but my maid’s salary has gone up to Dh1,400, exactly a 100 per cent jump,” said another resident.

Popular forums are full of residents complaining that they don’t know how much of a hike would be termed fair enough.

Many believe that the problem is more acute where both the spouses work and have a child at home. Residents also claim that an increase in salary does not result into better work.

“High salary does not always equate to better performance. I have learned the hard way with this one. I believe it's better to pay a housemaid at a fair/reasonable monthly salary ranging between Dh 1,500-1,800 a month based on experience.

“Obviously, one has to pay more if they have worked for you longer, have many children, larger houses, if the maids drive, etc. If they work hard, put in extra hours and babysit, then pay them a little bonus each month.

“I do this with my maid and she is so thrilled. I reward her hard work when I can. In other words, compensate extra work and initiative in that month. This prevents them from getting too comfortable in a base salary and gives them a reason to work hard,” writes a resident on the forum.

Another point of contention is that Western expats in the city pay their maids a lot more than other expats, which sets the market trend.

“Please bear in mind that Dh2,000 or even Dh1,500 is not the market rate. [It is much less]. These are salaries paid mostly by Western expats and the majority of the UAE population is not Western expats,” companied a pink-bunny on the forum.

“I pay significantly more than Dh2,000. However, at the time of renewing the contract she started telling me about her friends who earn Dh4,000. I made it very clear that I was not interested in what her friends earned.

“I did not think it was anyone else's business what she earned and that was between her and me. I don’t think she should be going round discussing it. She knew and I knew that she was earning well over market rate. If she wasn't satisfied and wanted to look for other work I would be disappointed but would support her. The issue has never been raised again,” wrote another resident on the site.

Gratuity should be calculated on basic salary

End-of-service gratuity should be calculated on the basis of the basic salary as per the employment contract signed between the employer and employee, the Ministry of Labour said.

According to the ministry, if the basic salary is not clearly stated in the employment contract, gratuity should be calculated on the basis of the last salary paid to the employee, as quoted by Dubai-based Arabic daily newspaper Emarat Al Youm.

Humaid bin Dimas, Executive Director for Labour Affairs, said “the basic wage in the employment contract should be written with the consent of the employee.”

Bin Dimas said end of service gratuity should be calculated on the basis of gross salary if the employment contract is not clear about basic salary.

The ministry expressed its view in response to demands of employees in private firms to calculate end of service gratuity on the basis of the total, rather than basic, salary.

Bin Dimas said: “When an employee signs an employment contract, he implicitly accepts the amount fixed in the contract as the basis for calculating end-of-service gratuity.”

Employees of private companies requested the Ministry of Labour to pass a law calling for calculating end of service gratuity on the basis of total salary because employers often keep basic salary low to take unfair advantage of the law while paying gratuity.

Some said it would be fair if the basic wage is calculated at 60 per cent of total salary.

Rami, who works in an insurance company with a total monthly salary of Dh7,000 said his basic wage in the employment contract is Dh700.

He said he was forced to sign the contract because there was no other alternative.”

Rami urged the MoL to specify 60 per cent of the total salary as the minimum basic salary, especially as the law requires the employee to work for five years in the same company to get gratuity of one month’s basic salary for each year worked.

Mohammed Wanoos, who works in a contracting company, said the UAE regulations allows the worker to stay an extra month after the end of the employment contract, but asked how he could live for a month when the gratuity is enough for only a few days.

Wanoos urged the Ministry of Labour to calculate the end of service benefits on the basis of total salary or determine the ratio of basic wage to full salary.

He said he got Dh1,500 as end-of-service gratuity after he worked for three years in the same company despite a total salary of about Dh7,000 a month.

Bin Dimas said “the UAE’s Federal Labour Law mentions both basic salary and allowance but does not indicate their proportion to each other.

He added that the MoL asks employers to update employee contracts.

He added that the employment contract is signed with the mutual consent of the employer and employee.

The employee knows before signing the contract details of his salary and end-of-service benefits.

Sunday, February 5, 2012

EIDA Registration Process

Registration for the First Time


Step 1:
Fill in the e-form at any Emirates ID authorized typing centers or online (coming soon).
(ID card applicant is not required to attend to the typing center in person).
Step 2:
Upon filling in the e-form, the customer will receive an SMS setting the date and place of registration.
Step 3:
On receiving the SMS, the customer heads for the Service Point stated in the SMS.
(Children under 15 are not required to go to Emirates ID Service Points)

Required Documents:

UAE Nationals:

  • Original valid passport
  • Original family book

GCC Nationals:

  • Original valid passport
  • UAE residence document (valid employment certificate, real estate lease or ownership contract, commercial license, school registration certificate, certificate of dependency, valid marriage contract or an employment card)

Residents:

  • Original valid passport
  • Residence or entry visa

Children below 15:

  • Documents required for each group
  • Colored passport-size (4।5 x 3।5 cm) photo with white background
Registration Fees:

Fees of registration and card issuance as of September 29, 2011:

Issuance and renewal of ID card for UAE citizens and GCC nationals (five years AED 100
Issuance and renewal of ID card for residents (for each year of residence) AED 100
Issuance of a replacement for the damaged or lost card AED 300
Change of details that require issuing a new card (The updated card expires on the same date as the old one) AED 150
Application of a mobile vehicle (for individuals, single family, for one day) AED 1000
Issuance and Renewal of card (Urgent Service) AED 150

•The above fees apply to all age groups.
•People exempted from fees (people under the Social Security Code – People with disabilities and autism).
•Services not included in fees exemption are mobile vehicle service and urgent service.

Registration Delay Fees for All people in the UAE


Delay in registration or issuance of the ID Card AED 20 per day, Maximum AED 1000
Delay in renewing the ID Card (30 days after expiry date)
Delay in reporting any change in the details (30 days after the change date)

Dates of applying delay fees

November1,2011 UAE Nationals
December1,2011 Government and semi-government employees (Federal and Local)
December1,2011 Residents of the following Northern Emirates (Umm Al-Quwain, Al-Fujairah, Raas Al-Khaimah and Ajman).
February1,2012 Sharjah Residents
April 1, 2012 Abu Dhabi Residents
June 1, 2012 Dubai Residents

•The residents of Abu Dhabi, Dubai and Sharjah,with residencies expiring in 2012, will be required to enroll for the ID card along with renewing their residencies
•Delay fees will be applied to children below 15 as of October 1, 2012
•The delay charges will apply to expired cards depending on the deadlines communicated for each emirate
•It is required to renew the expired ID card within 30 days of its expiration

Important Notes for Emirates ID Customers:


• Ensure the service required at the Typing Center (new registration, renewal of ID Card or replacement for lost or damaged card).
• Should you choose the wrong service, we will contact you to pay due fees.
• Ensure that your mobile phone number and PO. Box recorded in the registration form are correct.
• The customer can receive his/her ID card through the PO Box or any office of Emirates Post.
• Ensure that all data recorded in the e-form is correct.
• Visit the typing center to edit your e-form as long as we did not contact you.
• Legal fees of typing centers are AED 30.
• If any Typing Center charges more than AED 30, please contact us.
• In all events, don’t leave your passport at the Typing Center to avoid possible loss.
• Failure to visit the Service Point on the given date for two times will cancel your form and fees.
• Should you want to change the registration date, please call us at 6005-30003
• Keep the financial receipt which proves that you filled in the e-Form.
• Children below 15 are not required to go to the Typing Centers or Service Points.
• Colored contact lenses and hand henna are not allowed at the time of registration.
• People over 15 must bring the Typing Center receipt together with the original passport.
• If the form is modified at a Typing Center other than that where the customer applied for the ID Card, the customer shall pay AED 5 as service fees.
• If you want to set a single appointment for all family members at the same Service Point, you need to ask the Typing Center staff to link these transactions together so that all family members can go to the same Service Point on the same date.
• For more information…. please contact us at our call center or visit our official website.



EIDA’s fresh warning for card collection delay

The Emirates National Identity Authority (EIDA) has issued a new warning to applicants who miss the 90-day deadline to collect their national cards, saying the card will be destroyed and holders will be fined Dh300.

EIDA’s director general Ali Al Khoury said those who apply for a new card or renewal of their cards must collect them within three months after they receive the first notification by SMS on their mobile phone, adding that Emirates Post (Empost) normally send six notifications to card holders.

“Cards which are not collected within 90 days from the first notification will be destroyed but that does not mean the applicant’s data will be annulled…they will be retained by EIDA and in this case holders must apply for a replacement,” he told the Sharjah-based Arabic language daily Alkhaleej.

He said a replacement can be issued at registration offices or online by filling a new application for a fee of Dh300.

“We call on all applicants to collect their cards within 90 days from the first notification to avoid having their cards destroyed,” Khoury said.

He said EIDA, which is overseeing a landmark nation-wide ID project, has signed agreement with Empost to deliver cards to all applicants in their respective emirates. “Empost sends six SMS in English and Arabic to the mobile phones of the applicants asking them to come and collect their cards,” he said.

Khoury’s comments follow growing public complaints that cards end up at Empost centres located far from their areas. Others say that a 90-day deadline is not enough as they could be outside the UAE for more than three months.

“Last month, I had to take a day off work to travel nearly an hour outside Abu Dhabi to collect my card…I applied in Abu Dhabi city but Empost informed me my card is in Suweihan, which I have never visited,” Imad Hariri said.

In press remarks last week, EIDA said it is planning to replace the present delivery system with on-the-spot facility that allows holders to receive their renewed cards just after they apply at registration centres.

“Eida has gone a long way in addressing this problem,” Eida Ali Mohammed Al Khoury said after an Authority meeting on Tuesday.

“We are in the process of creating what is termed as decentralised typing centres…four such centres will be set up on a trial basis soon…they will allow applicants to receive their cards within minutes.”

Friday, February 3, 2012

A company cannot increase six-month probation period - UAE Labour Law

More than 7 months ago I worked in a company on a contract for limited period. After completing six months of service my company terminated my contract saying that this termination is within the probation period as per the company and the company has the right to do so because I did not pass the probation period, and they said I am not entitled to end of service or termination compensation because I did not complete one year in service. I have learnt from the company that the probation as per the company system is for eight months, not six months. Also, I was informed that in accordance with the Labour Law the period of six months is the minimum and maybe agreed to increase it according to the company system and interest. Is this true? What is my legal position in this case as I have signed a letter in this regard and agreed on the probation period which is eight months? What about my termination as per the labour law. Is it within the probation period or after, and what is my right in this regard?
Article no37 of the Federal Labour Law No8 of 1980 states the following. “A worker may be engaged on probation for a period not exceeding six months, during which his service may be terminated by the employer without notice or severance pay: provided that a worker shall not be engaged on probation more than once in the service of any employer. Where a worker successfully completes his period of probation and remains in his job, the said period shall be reckoned towards his period of service”. Therefore, based on this article no agreement shall be made to increase the probation period and the company has violated the labour law because they have terminated the questioner’s limited contract after the probation period and the company must compensate the questioner by paying three months full salary plus other end of service rights.
Questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants.