Employee rights under UAE Labour Law

Article 102
The disciplinary rules that may be inflicted by the employer or the representative thereof shall be :
1 - Warning
2 - Fine
3 - Suspension with reduced pay for a period not exceeding ten days
4 - Deprivation from or deferment of periodic bonus in establishments containing a system for such bonuses
5 - Deprivation from promotion in establishments applying a system for such promotion
6 - Dismissal from work without prejudice to the end of service gratuity
7 - Dismissal from work and deprivation from the total end of service gratuity or a part thereof. Such penalty shall not he inflicted for reasons other than the ones mentioned exclusively in Article 120 hereof.
Article 103
The disciplinary rules shall determine the cases where each disciplinary sanction set forth in the preceding Article shall be inflicted.
The Minister of Labour and Social Affairs shall issue, by means of a decision thereof, a model list of disciplinary rules and rewards to guide the employers in setting their own rules in this regard.
Article 104
The fine may be a specific amount or an amount equal to the wage of the worker for a specific period . The fine prescribed with regards to one breach may not exceed the wage of five days . Furthermore , for the settlement of the fines imposed on the worker , a maximum amount equal to the wage of five days may be deducted from the wage of the worker per month .
Article 105
Fines imposed on workers shall be recorded in a special register along with the cause and circumstances of imposition thereof as well as the name and wage of the worker. A special account shall be allocated therefore and the monthly proceeds thereof shall be used for the social welfare of the workers in accordance with the decisions issued by the Minister of Labour and Social Affairs in this regard.
Article 106
The penalty of deprivation of the periodic allowance may only be imposed once per year. Such allowance may not be deferred for more than six months.

Article 107
The penalty of deprivation of the promotion may not be imposed for more than one promotional cycle. The penalised worker shall be then promoted during the following promotional cycle should he meet the necessary conditions for such promotion.
Article 108
The financial differences from the deprivation of the promotion or allowance or the deferment thereof, of which the employer shall benefit, shall be registered in a special register along with the cause and circumstances of the imposition as well as the name and wage of the worker. A special account shall be allocated therefore and the monthly proceeds thereof shall be used for the social welfare of the workers in accordance with the decisions issued by the Minister of Labour and Social Affairs in this regard.
Article 109
No disciplinary sanction may be imposed on the worker for an act perpetrated thereby outside the work place, unless such act is connected to the work, the employer or the responsible manager. Furthermore, it shall not be permissible to impose more than one sanction or combine any disciplinary sanction with the deduction of any part of the wage of the worker in accordance with the provision of Article 61 hereof.
Article 110
It shall not be permissible to impose on the worker any of the sanctions set forth in Article 102 unless after the notification thereof in writing with regards to charges made against him , after having heard the worker and the defence thereof investigated, and after having recorded the matter in a minutes deposited in his personal file. The sanction shall be noted at the end of such minutes.
The worker shall be notified in writing of the sanctions imposed thereupon, the type and amount thereof, the causes of imposition and the sanction to be imposed in case of recidivism.
Article 111
The worker may not be accused of a disciplinary offence after thirty days of the discovery thereof. Furthermore, no disciplinary sanction may be imposed after sixty days from the date of the end of the investigation in the offence of which the worker is found guilty.
Article 112
As amended by Federal Law no. 12 dated 29/10/1986:

The worker may be temporarily suspended from work upon the charging thereof of a deliberate crime against life, property, honour, honesty or of carrying out a strike.

The suspension period shall commence on the date of the notification of the incident to the competent authorities and until the issuance of a decision thereby in such regard. The worker shall not be entitled to his wage during the said suspension period. Should a decision be issued for the non-prosecution or the acquittal of the worker, the latter shall be reinstated and paid the full wage for the suspension period, should such suspension be arbitrary from the employer.
Call centre For any Labour issues, call 800 665

Expats can add their UAE homes and properties to their will

For all those who’d been waiting eagerly for the launch of the DIFC Wills, which will ensure that wishes of testators are carried out even when it comes to immovable property, there’s finally good news.

After being much in discussion, DIFC is finally launching its Wills and Probate Registry by April 30, 2015.

The DIFC Wills and Probate Registry has been established under the jurisdiction of the DIFC Courts, however, it will operate as a distinct entity, as an ancillary body of the Dispute Resolution Authority, the third branch of the DIFC.

By virtue of the new Wills and Probate rules, individuals with assets in Dubai now will have the ability to register will in English language that creates legal certainty for the inheritance of their assets after death. It is a simple and efficient mechanism to pass on their estates according to their wishes, says DIFC.

As per the draft rules, those wishing to use the registry will have to pay about Dh10,000 to register their wills. This is more than double the charges that people incur with a normal will in Dubai and this includes lawyer’s fee, translation and attestation of wills with the Dubai Courts. But, there seems to be good news as the cost of registering a DIFC is likely to come down.

According to Diana Hamade, Attorney at Law & Legal Consultant, UAE Courts & DIFC Courts, International Advocate Legal Services, who is also a member of the drafting panel, revealed that the fee was set up at Dh10,000 but now they are looking into reducing it.

But even with the higher cost, many expats believe this could give them much needed peace of mind as it can reduce legal claims.

As of now, the expat will registered can only safeguard their interest as far as the movable assets are concerned but will fall short if there are any immovable assets in the country.

The Civil Transactions Law of the country applies to real estate inheritance in the county. The same law outlines the procedure. While a sub-article of the said article states that if a person dies in the UAE, then the law of her/his country shall apply when it comes to the disposition of his real estate assets in the country.

However, the subsequent article states that all assets including real estate shall be governed by the UAE law.

However, the DIFC wills are expected to change this. “The DIFC wills will be executed as per the testator’s wish and enforced in DIFC Courts. There is no application of Sharia or law of any sort,” explains Hamade.

UAE drafting law for 100% foreign ownership of firms

 UAE  drafting a foreign investment law that would allow 100 percent foreign ownership of businesses in some sectors, the economy minister said on Monday.Sultan bin Saeed Al Mansouri, speaking at an international investment conference in Dubai, did not specify the sectors or say when the law might be passed.
The initiative may mark a more aggressive push by the Arab world's second biggest economy to attract investment. At present, foreigners generally cannot own more than 49 per cent of any UAE firm unless it is incorporated in a special free zone.

A new companies law, anticipated to take effect within months, was originally expected to relax this restriction, but that reform was dropped because of strong opposition from some Emiratis who feared they could lose out to foreigners.

Mansouri said on Monday, however, that the UAE was determined to diversify its economy beyond oil and saw foreign investment as a key way to do this."Economies face pressures from changes in the international environment, including the drop of the oil price," he said.
While Mansouri did not say how the new foreign investment law would work, it may require fully foreign-owned firms to transfer technology in sectors that are strategically important for the UAE. Officials have previously said they are keen to attract technology for industries such as aerospace.
New foreign direct investment (FDI) in the UAE rose 25per cent to $13 billion in 2014, Mansouri said, adding that the government aimed to raise FDI to 5 per cent of gross domestic product in coming years. GDP was Dh1.540 trillion  ($420billion) last year, he said.

UAE Ministry of Labour begin issuing fines for labour-related offences from March 5

The Ministry of Labour will begin issuing fines for three types of labour-related offences, notably not issuing labour contracts, non-renewal of work permits during the grace period and a fine against non-renewal of the trade licence of private recruitment agencies.

The ministry will start issuing fines with effect from March 5 in accordance with the Cabinet’s decision which was issued recently.

Humaid Bin Deemas Al Suwaidi, Assistant Undersecretary of Labour Affairs at the ministry, said that under the Cabinet’s decision, employers will have a grace period of 60 days to renew work permits or get new work permits for their employees from the date of entry into the UAE or the adjustment of the employee’s status to avoid a Dh500 fine per month.

Bin Deemas stressed the importance of documenting labour contracts through the ministry, as well as the employer’s commitment to renew work permits in a timely manner. This helps the minsitry regulate relations between both parties and stabilises the labour market and thus protects the rights of both the employers and the employees.

“Starting March 5, the ministry will issue fines against private recruitment agencies that operate with expired licences. The decision includes both Temporary Employment offices and Mediate Offices,” he explained.

In implementation of the Cabinet’s decision, which took effect on January 5, the ministry provides temporary employment agency business owners with a 60-day grace period to renew their licences and avoid the fine. The fine used to be issued against those agencies on the day following the expiry date.

The Assistant Undersecretary for Labour Affairs called upon private recruitment agencies to speed up renewals according to the procedures followed before March 5 in order to avoid fines, which increase by Dh1,000 for mediating agencies, and Dh2,000 for temporary employment agencies per month of delay. “The previous amount was Dh10,000 for both,” he said.

Temporary Employment offices use an employee’s services by hiring him out to work for a third party, where they carry out the work or service under the supervision of the third party. Mediate Offices act as a third party between both the employee and the employer to help in the negotiation process in terms of the contract to form a business relation between them.

Expatriates to pay addtional Dh220 for new family visas in Dubai

Expatriates applying for family visas will have to pay an additional Dh220 to open the file at the General Directorate of Residency and Foreign Affairs (GDRFA).This is a one-time charge per family. The regular fees charged for the visa remain the same. The fee is applicable for new visas only. Existing visas can be renewed without additional payment.
According to sources at the typing centres in Dubai, the new fee became applicable last month and is mandatory for all new family visas.
GDRFA officials were not available to confirm the changes in visa fees despite repeated attempts.“The fee has to be paid at the time of submitting the visa application at GDRFA,” Wali Mohammad, a typist based in Al Karama, said.
However, another visa agent said that the file opening fee is charged for visa renewals as well.
“I have also come across some existing visa renewal cases where the applicants are charged the fee. There is some confusion and we haven’t had any clarity from the authorities,” Omar Mukhtar, manager of a typing centre in Al Satwa, said.

Typing centres also claimed that the entry permit fee for new family visas has increased from Dh360 to Dh400 per visa. The renewal fee remains Dh360.

The total cost of a new family visa is now Dh1,310, which includes Dh400 for entry permit, Dh290 for medical test, Dh270 for Emirates ID and Dh350 for visa stamping.

Meanwhile, the unannounced additional charges came as a surprise to many residents looking to apply for family visas.
“When I approached a typing centre to get applications typed for my wife and children I was told that there is a fee to open the file. I had not heard of it and made inquiries at the immigration office, which confirmed it,” Mohammad Esmail, from India, said.
Another applicant requested the authorities to announce any changes to the procedure prior to implementing it.
“I would want to hear it from the authorities rather than getting to know from other sources. When I approached the GDRFA office with my applications I was told that I have to first pay Dh220 to open a file. I was a bit irked, but had no choice but to pay it,” Khalid Attar said.