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Tuesday, July 2, 2013

Can I leave my free zone job in UAE without penalty?

I joined a company under Jebel Ali Free Zone Authority (JAFZA) seven months back. The contract states that if an employee leaves within one year of joining, he has to reimburse the cost of visa and other expenses incurred by the company on him. I am now considering taking up a job with a company outside JAFZA. Kindly advise whether the company can enforce the terms of the contract and also if they would be entitled to put a ban on me.

In respect to the article in your contract which states that "if an employee leaves within one year of joining, he has to reimburse the cost of visa and other expenses incurred by the company on him", it is considered void and contrary to the Labour Law. But in this case, the employer is entitled to claim the compensation for the employee's violation of the labour contract, as the labour contracts in Free Zones like JAFZA are usually limited to two years.

Therefore, if the reader revokes the contract prematurely, then the company in this case has the right to claim ... compensation as he terminated the labour contract prematurely, and the amount of compensation varies between a maximum of Dh1,500 and Dh2,000.

Such an amount shall be determined according to the employee's position as well as salary.

The employer has the right to ask JAFZA to put a work ban for a year as such a work ban is applicable for JAFZA only.

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

One-year ban for false work permits:UAE Labour ministry

A one-year ban will be imposed on anyone who obtains a labour card with a company they are not really working for, said a senior Ministry of Labour official.
According to Humaid Bin Deemas Al Suwaidi, Assistant Undersecretary for Labour Affairs, the ministry is determined to overcome the problem of false labour ties between sponsors and workers.

Al Suwaidi said the ministry is moving forward with the implementation of measures to reduce such practices. He said the failure of the employer to cancel or renew a labour card for a worker may be considered a deception.
“The ministry is investigating all companies who are asking the ministry to reduce fines on labour cards,” he said.
“We also check if this specific establishment is really operating effectively and the number of the workers sponsored by this company and also if the company is abiding by the labour law,” he said.

He said if all conditions required by the ministry are applicable the ministry may reduce the fine, especially if it is proved that the employer is not aware of the procedures necessary to issue or renew labour cards.

“It cannot be flexible if is shown that there is no real working relationship between the employer and the worker,” he said.
He said in such cases fines will be imposed on such companies and no new work permits will be issued to such companies until all issues are settled with the ministry.

He said the fine imposed for delaying issuing or renewing labour cards after 60 days from the date the worker enters the country or from the date of the expiration of the labour card is Dh1,000 for each month of delay or part thereof.

He said the Ministry of Labour last year referred to the public prosecution 297 companies proved to be closed and which had many workers still on their sponsorship.

He added that last year 950,000 labour cards were issued by the ministry to various companies in the country.Workers who obtain false work permits from any company will not be allowed to work here for one year, he added.

Failure to pay workers' salary for two months or more can affect all companies under same owner - UAE Ministry of Labour

The Ministry of Labour has begun applying new procedures for issuing work permits.

This came within the implementation of a decree issued by the Minister of Labour, Saqr Ghobash, through which he re-regulated the procedures adopted.

New procedures will also be in place for opening records for business owners whose companies commit five types of violations.

The violations include failing to pay workers' salary for two months or more - taking into account the period during which the wages were stopped being paid and the number of workers affected by the violation.

These procedures will also be applied on companies owned by partners of the violating company.

The new procedures are based on a mechanism of notifying the concerned business owner of the committed violation.

It also grants business owners a grace period to settle the violation before their other businesses can be suspended, taking into account the imposed sanctions of the violating institution in accordance with the relating decrees.

Suspension of the other institutions includes preventing them from getting any type of work permits, whether for recruiting full or part-time workers or transferring labourers.

Other violations include failing to pay administrative claims of the ministry for months from the due date, not renewing or applying for work permits of workers for four months from his/her entry to the country or the date of joining the company.

Monday, June 24, 2013

Abu Dhabi tenancy contract must for residency visa from Abu Dhabi

A tenancy contract from Abu Dhabi is now a must when applying or renewing residency visas in the emirate.

In response to a resident’s query, who wished not to be named, on whether the residency visa of his family could be renewed with a tenancy contract issued from Dubai, the Abu Dhabi Government Contact Centre said: “Be informed that you can’t apply for the visa with tenancy contract issued from Dubai.”

When contacted, the call centre executive, reiterated: “You cannot apply for a residency visa or any visa with a tenancy contract issued from any other emirate except Abu Dhabi. You also need to get it attested by the Abu Dhabi Municipality.”

Last year, it was made mandatory across the UAE that expatriates applying for or renewing residence visa were required to produce a valid tenancy contract in the emirate they resided. Moreover, attested contracts from any other emirate were accepted in Abu Dhabi for residency visa renewal.

In September, the Secretariat General of the Executive Council had said that Abu Dhabi government employees would be required to live inside the capital within a year. The decision was made to ensure the safety of employees commuting long distances, often in bad weather conditions, the council said.

This website had reported in May that Abu Dhabi government owned companies were sending reminders to their staff, asking them to relocate to the capital before September or lose out on their housing allowance. Company circular states

,  “Staff currently living outside the emirate of Abu Dhabi will have a one-year grace period from September 2012 to relocate to the emirate in order to be eligible for housing allowance after September 2013. Those who wish to remain resident outside Abu Dhabi beyond September, 2013 will not be entitled to any housing allowance.”

Sunday, June 23, 2013

UAE labour protection for expats

The UAE provides an attractive environment for foreign workers of 200 different nationalities, adopting comprehensive strategies to protect their rights and improve both their working and living conditions.

In this context, and as part of its commitment to improve the standards of workers' accommodation in line with international standards, the UAE has approved the Manual of the General Criteria for Workers' Accommodation.

Accommodation for workers

The decision emphasises employers' responsibilities to provide workers with accommodation commensurate with international labour standards.

Each facility operating in the country has to upgrade its workers' accommodation conditions to comply with these standards.

In implementation of this decision, Abu Dhabi has invested about Dh20bn ($5.4bn) in 23 workers "cities" which are capable of providing accommodation for 385,000 workers.

These complexes have been built in line with the new manual which stipulates that all accommodation must include its own medical clinic equipped with full services, parking, yards, walkways, mini-market, green spaces and playgrounds.

Freedom of movement in labour market

Other innovations in the efforts to protect workers' rights are aimed at introducing greater flexibility and freedom of movement in the labour market, and establishing a balanced contractual relationship between employer and worker.

At the same time, access to effective legal remedies in the event of a labour dispute have been vastly improved. In particular, the Ministry of Labour (MoL) has set up a collective labour disputes committee, with representatives of workers and employers in each labour office.

The committees must issue a decision on a dispute within two weeks of referral. Their decisions can be challenged before an appeal court within 30 days of issuance.

According to the UAE Minister of Labour, Saqr Ghobash of more than four million people employed in the private sector, only 20,000 are Emirati, and 65 per cent of those work in banking.

Working hours

The mandatory midday break for labourers who work in the sun during the summer months began on 15th June, 2013, for the ninth consecutive year. The three-month midday break rule will be strictly enforced until 15th September, 2013.

Companies will have to give a two-and-a-half hour break from 12.30pm to 3pm for all labourers who work in the open air, such as on construction sites.

The Ministerial decision also states that daily working hours must not exceed eight hours per day or night shift, and that overtime should be paid to those working additional hoursin a 24-hour period, as per Federal Law No. 08 of 1980.

Ministry inspectors hold workshops before and during the ban period to create awareness of the rules, and also make regular visits to ensure compliance by both the employers and workers.

The Ministry of Labour orders all employers to put up signs in Arabic and other languages about the banned hours, while in the case of daily exemptions (see below), employers must ensure there is enough cold water for all workers.

Work which has to continue non-stop for technical reasons is exempt from the ban, but employers are still required to provide facilities to cater for the health and safety of workers; including access to first aid supplies and cold water.

Companies which violate the midday summer break will face penalties which include having the classification of their firms downgraded by the Ministry, and a fine of Dh15,000 for each violation.

Wage Protection System

In yet another significant stride in this regard, the MoL has launched  the Wages Protection System (WPS) to safeguard payment of workers' wages via transfers through selected financial institutions. These transfers will be regulated by the government.

Furthermore, foreign workers are guaranteed the right to send their savings to their home nation  and in 2012, approximately Dh70.46 billion was remitted overseas for the benefit of workers’ families.

The UAE MoL has introduced a comprehensive range of protection measures covering both pre- and post-departure needs of workers, beginning in their country of origin (for instance, protecting workers from illegal recruiters and setting up a contract validation system), continuing after their arrival in the country (through measures like curbing abuse and non-payment of wages), and on their return and re-integration to their home country.

The UAE Labour Minister, Saqr Ghobash, has discussed a number of issues related to the regulation of the labour market in the UAE in separate meetings with Brent Wilton, Deputy Secretary-General, International Organisation of Employers, and William Lacy Swing, Director-General of the International Organisation for Migration (IOM).

Discussions covered the measures applied by the Ministry in terms of controlling and regulating the work of private employment agencies in order to minimise any negative practices that might be carried out by them.

‘Abu Dhabi Dialogue’

The officials hailed the role played by the UAE and its initiatives to improve the management of temporary contractual work cycles, particularly the ‘Abu Dhabi Dialogue’ initiative and the subsequent meetings of the countries which are sending and receiving labourers.

The second Ministerial Consultations of ‘Abu Dhabi Dialogue   2" was held in Manila from 17th  to 19th  April, 2012.

Representatives from 20 countries took part in the meeting, six of them being the labour-receiving countries of UAE, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait, in addition to eleven labour-sending countries: Afghanistan, Bangladesh, China, India, Indonesia, Nepal, Pakistan, Philippines, Sri Lanka, Thailand and Vietnam, as well as representatives from Malaysia, Singapore and Korea as observers.

The meeting concluded with the Manila Communique, which adopted the Framework of Regional Collaboration, 2012 for the Abu Dhabi Dialogue, and supported its guidelines for voluntary initiatives, and increased collaboration and partnerships to ensure the welfare and protection of contract workers.

The closing session of the meeting included a brief presentation on the latest electronic ratification system on labour contracts which aims to protect labour rights in the UAE.

Labour Mobility-Enabler for Sustainable Development

The UAE hosted an international conference on ‘Labour Mobility-Enabler for Sustainable Development’ in May, 2013.

The conference was organised by the Ministry of Labour, the Ministry of Foreign Affairs, the ECSSR and the National Qualifications Authority, in partnership with the Executive Office of the Council of Ministers of Labour in the GCC, the Government of Sweden which holds the chairmanship of the Global Forum on Migration and Development, the International Organisation for Migration (IOM) and the World Bank.

The UN Secretary-General's Special Representative for Migration and Development also participated at the conference.

The conference, held under the patronage of Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, saw 150 experts, government officials and international researchers and executives discussing the subject of cross-border movement of labour and its impact on development.

In his speech at the conference, which was read out by Saqr Ghobash, the Minister of Labour, Sheikh Mansour said, "The UAE and GCC states are concerned over contributions to international efforts to upgrade the relationship between immigration and development, as well as investing knowledge in the development policies which are related to the movement of workforce across borders on national levels, and within the framework of regional and international cooperation."

"The GCC hosts more than 15 million expatriate labourers, who are contributing to the development of our national economies.

“The workers are also benefiting from the available job opportunities in upgrading their qualifications, increasing their incomes, and improving their standard of living.

"In this regard, we should point out that our country, despite the repercussions of the global economic crisis, has created almost one million job opportunities for expatriates in the past four years. This has contributed to alleviating unemployment at the regional level."

He noted that, "The GCC is the third biggest regional organisation in terms of financial remittances by expatriates, estimated to be around $80 billion in 2012, in which the UAE share constituted 24 per cent."

The UAE won membership of the Board of Directors of the Arab Labour Organisation (ALO) after earning the confidence of delegates to the 39th Arab Labour Conference, held in Cairo in April 2012.  The UAE has also gained membership of the Financial Control Authority of the ALO.

‘Absher’

In 2012 and 2013, the UAE pushed much harder for Emiratisation. President His Highness Sheikh Khalifa bin Zayed Al Nahyan launched the ‘Absher’ initiative in November 2012, to promote the participation by Emiratis in the job market.

Meanwhile, His Highness Sheikh Mohammad bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has labelled 2013 as Emiratisation Year.

The ‘Absher’ initiative is a unique and valuable enterprise that serves the interests of the nation’s youth and provides them with means of stability and a dignified life.

Later, the MoL announced the registration of 2,200 Emiratis working in the private sector for its discounts and special offers programme, a part of the Absher initiative. Absher cards have been distributed, allowing them access to services provided by 23 governmental and private bodies.

In January 2012, Saqr Ghobash, launched phase 1 of the Labour Market Data System (LMDS) in the country.

The launch of Phase 1 also saw the signing of Memoranda of Understanding with the Federal Council for Demographic Structure, the National Centre for Statistics, the National Human Resources Recruitment and Development Authority (Tanmia),  the Abu Dhabi Employment Council (Tawteen), the Abu Dhabi Statistics Centre and the Pension Fund of Abu Dhabi.

The ministry also announced that private sector companies participating in the programme will be offered advantages, such as giving them priority for the completion of forms in services provided by the Ministry in Abu Dhabi, Dubai and other emirates.