U.A.E Revoke Six Month Labour Ban from January 2016

Effective from January 2016, there will be no six months ban if services are terminated in mutual agreement between the employer and employee. UAE Ministry of Labor has confirmed that the ban of six months will be cancelled beginning January if the work permit and employment are terminated in mutual agreement.The Ministry of Labour said that beginning January 2016, it will revoke the six months ban rule, if employee and employer opt for mutual termination of work permit.

The new rule is part of the new resolutions issued by Labour Minister Saqr Ghobash Saeed Ghobash in September.However, workers in grade IV and V who have not completed six months with the first job are exempted from this rule, he added
According to the Ministry, employees will be allowed new work permits to join another facility immediately, even if the employee has not completed two years at the first facility.
The ministry has completed procedures for implementation of the resolutions beginning next year, the report added.
Humaid Rashid bin Dimas Al Suwaidi, Assistant Undersecretary at Ministry of Labour, told Al Bayan that under the new resolution, employees who end their service in agreement with the establishments and cancel their work permits will be allowed to move to other establishments, even if they have not completed two years at the workplace.
However, workers in levels IV and V who have not completed six months with the first facility are exempted from this rule, he added.
Al Suwaidi said that currently workers who terminate their service through consensus and have completed two years are also not allowed to move to another facility immediately. They are allowed to join another job only after a period of six months from the date of cancellation of the work permit, he added.
As per the new resolution No. 766 of 2015 workers will be granted new work permits immediately beginning January, explained Al Suwaidi and added that this is so as long as both the parties fulfill the conditions agreed upon in the labour contract signed between them.

Al Suwaidi confirmed that the new Ministry rule aims to attract and retain talent, and is in line with the strategic goal of the government to being a knowledge-based economy attracting global talent.
He said the ministry aims to promote workers from within the country rather than bringing them from abroad, especially people with expertise.
Al Suwaidi said last year 340,000 workers who ended their service at one job could not get new work permits because they had not completed two years and the labour market thus could not benefit from experiences and skills.
 

Parent Visa In U.A.E,Sponsor Require Dh 20000 salary

Expatriates earning less than Dh 20,000 salary cant sponsor their parents on residence visas in the UAE.

The new ruling requires applicants to provide evidence of either having a minimum salary of Dh 20,000 or a monthly pay of Dh 19,000 plus a two-bedroom accommodation. 

Old Rule :

(UAE expatriates, holding valid resident visas having a minimum salary of AED 6,000 with accommodation or AED 7,000 without accommodation can get one year renewable resident visas for their parents or parents-in-law.

As per new regulations, you have to sponsor both your mother and father together and show proof that you are their sole provider and that there is no one to take care of them in your home country. However, if your parents are divorced or one is deceased, you should carry documentary proof, when visiting DNRD to obtain the entry permit visa, which is the first stage before you can apply for a residence visa. You also need to obtain a medical insurance policy for each parent with minimum coverage of AED 600 per year.)

Documents required for entry visa

• Typed application form

• Original passport of sponsor

• Passport copy of parent/s & 1 photo

• Proof of relationship from your embassy/consulate attesting both relationship and that you are sole provider for your parent/s

• Copy of job contract for the sponsor or salary certificate from employer.

A new requirement is submission of DEWA bill and your tenancy contract showing you have adequate space in your house for your parents (minimum 2 bedroom apartment). You need to get your tenancy contract stamped by the Land Department, certifying it is minimum 2 bedroom. In case your tenancy contract does not mention that you have at least 2 bedrooms, then you need to get an affidavit from your landlord and submit this as well.

Procedure:

• Take the documents and go to General Directorate of Residency and Foreigners Affairs - Dubai. Submit along with a letter from your side appealing on humanitarian grounds for entry visa for your parent/s. Enclose copies of all above documents along with your contact numbers. The Approval Committee will either confirm or reject your application within two weeks. If approved, go to next step.

• Have a registered typist complete the form after paying the fees.

• Go to the residency section of DNRD and hand in the documents.

• Entry Permit will be sent by Empost usually within 48 hours, or if you have applied for urgent visa, then you should receive it from the counter in a few minutes.

Fees:

• AED 20000/ refundable deposit (keep receipt safely for renewal or reimbursement, as this is paid back only when the visa is cancelled or in case your parent dies)
• AED 110 application fee + typing centre fee (or pay AED 100 more for urgent application)
• Convert entry visa to residence visa for parents
• Once your parents enter the country with the entry visa, you must convert it to a residency visa no later than 60 days from the date of entry.

Documents required for residence visa

• Application form & 3 photos of parent

• Original passport of parent/s and sponsor

• Original entry permit

• Health card or medical insurance policy for parent/s

• Refundable deposit receipt

• Original job contract or salary certificate of the sponsor

Procedure:

• Do a health check up and obtain a medical card.

• Take the documents and go to the General Directorate of Residency and Foreigners Affairs - Dubai.

• Have one of the typists there complete the form for you after paying the fees.

• Go to the residency section and hand in the documents.

• The passport/s with the residency visa stamp will be sent to you through Empost

Dubai Public Private Participation Law –PPP Law- Attract more private investment in 2016

Dubai New PPP Law draw more private investment into infrastructure projects in 2016, through the law, Dubai will be able to invite private companies and investors to finance and operate assets that otherwise would have been funded by government budgets.

With oil prices dipping below US$40 a barrel this month, the time to rely on private sector money may be more urgent that ever before not only for the UAE but for all Arabian Gulf countries.

With the IMF warning that some regional economies could use up their financial buffers within five years as they face a combined fiscal deficit exceeding $700 billion between 2015 and 2019, the incentive to go for PPP is urgent. Even Kuwait has revamped its PPP law to try to attract more investors to its slew of projects.

“In a high oil price environment, there was limited incentive for the regional governments to use PPP structures outside of the traditional power and water sectors,” says Dubai-based Mario Salameh, the head of project finance MENA at HSBC bank. “We will be watching closely for signs that the mood is changing given the lower oil price environment and the additional pressure this brings when developing and funding infrastructure projects.”

Dubai’s new PPP law excludes the power and water sector, which has its own legislation. Dubai Electricity and Water Authority has awarded few IPP projects, the latest being the $1.8bn Hassyan clean coal power project in October 2015.

The law covering public-private partnerships is due to be introduced on November 19, and will allow the emirate to tap private sector funding for key projects such as the expansion of Al Maktoum International Airport and the extension to the Dubai Metro Red Line from Nakhel  Harbour and Towers to the Expo 2020 site.

However, as regional economies face increasing budgetary pressures resulting from the weaker price of oil, public sector clients are increasingly turning to private finance to help pay for projects.

The consortia bidding to build the extension to the Dubai Metro Red Line will be able to use public-private partnership (PPP) models as part of their bids, according to Dubai Roads & Transport Authority’s chief engineer for rail operations, Shahrin bin Abdol Salam.

The new Dubai law will remove the need for project-specific legislation for entities and for the government to act as guarantor for projects, as has been the case with the limited private finance rules that currently cover the power and water sector.

It will allow any government entity to use PPPs to develop infrastructure so long as they meet certain conditions.

For instance, all projects worth more than Dh200 million will need to form a special purpose vehicle (SPV) overseen by a committee containing a project CEO and a representative from the Department of Finance, although projects over Dh500m will still need the approval of the Supreme Committee.

However, supplementary regulations are also needed to determine whether SPVs can be based in free zones and offer foreign investors stakes of more than 49 per cent.

The first project to use PPP funding will be the new Union Square station plaza containing a number of towers that are set to be built above the existing Dubai Metro station.

The introduction of a new PPP law in Dubai follows on from the implementation of similar regulations in Kuwait and Bahrain.

Abu Dhabi’s new Real Eastate law Effective from January 2016

The much awaited new real estate law – No. (3) of 2015 Regulating Real Estate Sector in the Emirate of Abu Dhabi – has now been published, and will take effect as of January 2016. This law is mostly good news for the average person, but as with anything, we will have to see how it is implemented. Here are 10 the most interesting bits from the new regulation for residential buyers and sellers in the emirate’s investment zones:

It had been anticipated that this law would introduce some sort of rent cap or calculator as there has been much speculation as to how it might work. However, if it is coming it isn’t in this law, so rents will continue to be set by landlords as the market will allow.

Abu Dhabi’s Department of Municipal Affairs (DMA) has been tasked with regulating the real estate sector. The DMA’s responsibilities will include implementing the law, issuing licences, controlling escrow accounts and cancelling real estate projects. The DMA will now essentially perform the same function as RERA in Dubai. Let us hope its regulations (when published) come with some real teeth to dissuade the sharp practices that are still common in the emirate.

The law prohibits developers from collecting registration fees from investors and only allows developers to charge administrative fees, which must first be approved by the DMA. This means that the existing customary 2 per cent registration fee applicable on resales would be abolished.

• Owners associations to be created

The new owners associations will have constitutions, legal status, hold title to common property and be responsible for the property’s repair and maintenance. The new law even states that owners associations will have the right to apply to the courts for an order to sell the unit of an owner who hasn’t paid their services charges.

• Off-plan sales

A developer will now not be allowed to sell units off-plan unless it proves that it owns a real estate right over the project land and that it has opened an escrow account for the development. There will also be a requirement for a “disclosure statement” to be attached to the sale and purchase agreement that provides prescribed information on the development to ensure that purchasers are informed of all the relevant facts before buying.

• Escrow accounts will be set up for off-plan sales

One of the requirements for the sale and marketing of off-plan units will now include that the developer has set up an escrow account. The proceeds from off-plan sales will need to be paid into this account and only taken out in stages to fund construction. Given the restrictions on withdrawals, the developer will effectively have to self-fund (or obtain finance) for the first 20 per cent of construction works. These accounts also apply to existing projects as well, unless the building has reached at least 70 per cent completion.

• Right to terminate an off-plan purchase

Off-plan buyers can terminate their purchase of the unit in the case of “substantial prejudice”. Certain examples are given in the law, such as substantial changes the specifications contained in the unit SPA or delivery of a unit that is unusable due to fundamental defects in construction.

• Compensation for delayed projects

The DMA may fine developers to compensate purchasers where the developer is delayed beyond six months. Importantly, this may apply to existing developments depending on the stage of completion. The new law also includes provisions for the cancellation of projects or appointment of a new developer where there is significant delay.

• Building liability for developers

There will now be a 10-year liability for developers relating to fundamental structural building defects. It means developers will be legally responsible to fix any defects that manifest 10 years after handover and this will also include a one-year defects liability period

Three UAE labour Decrees to be effective from January 2016

The Ministry of Labour _ Dubai November 19th, 2015 H.E. Saqr Ghobash, Minister of Labour, said “The three new decrees, to start beginning of next year, meet wise leadership guidance are consistent with the Constitution and labour market requirements, they also promote the transition to the knowledge based economy as well as compatibility with international labour standards."

Ghobash confirmed that the stability the “Labour market is a reflection of the stability of the working relationship between both parties, something which is expected to be reinforced by those decisions that would establish a better relationship between the employer and workers due to transparency of the unified contracts. Also enable workers to shift to other firms at any time preserving their rights, all in accordance to regulations set forth, which enhances the UAE labour market mobility and flexibility."

The Minister of Labour put forth his statement while meeting over 300 ministry employees and legal scholars to review and discuss the upcoming decrees, in the presence of Mubarak Saeed Al Dhahiri, MoL Undersecretary and Humaid bin Deemas Al Suwaidi, Assistant Undersecretary for Labour Affairs and Dr. Omar Al-Nuaimi Assistant Undersecretary for Policy and Strategy.

"Files highlighting Labour Rights by the Human Rights watch is one of the most vital issues of concern, urging us to provide them protection and rights preservation, and so following the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai to be the ‘Number One’ Nation globally, maintaining rights is definitely a core value, hence, three new decrees coming up," Ghobash said.

"The three resolutions came after building a strong economy and adds to legislations accomplished by the ministry over the past couple of years to reach a stabile labour market to achieve the UAE 2021 vision of creating a stable labour market and a productive workforce to promote a competitive knowledge-based economy that revolves around UAE citizens, including an emphasis on providing better protection to workers' rights and ensure while insuring employers, whom welcomed the new decrees, interests are being kept and maintained,” he said.

The minister praised govt. employees capabilities and contributions to institutional development and expressed his confidence in their ability to properly implement the new decisions to achieve marked objectives. Similarly, efforts by legal scholars had not gone unnoticed, the ministry stated that they handle labor disputes fairly and work endlessly to find amicable solutions to preserve their rights.

On the sidelines of the meeting, a workshop was held by his excellency Humaid bin Deemas Al Suwaidi, Assistant Undersecretary for Labour Affairs, to explain texts of each of the three new decrees and implementation procedures.

Following on inquiries Legal Counsel Karem Abdul Latif together with Mohammed Mubarak Director of Labour Relations Office in Dubai replied to all concerns questioned.

The first decree requires employee signature preceding a contract renewal to obtain a new work permit, something which will be hereby terminate procedures currently implemented to renew work permits after only receiving a notification through the employer stating that both ends agreed to renew the contract, stating all privileges and requirements enclosed in the contract to be renewed.

Workers, under the new procedures, shall enjoy better options of either accepting to renew the contract according to marked privileges and stipulated requirements in the new contract, or amend these privileges and conditions upon agreement by both parties, which actively contributes to promoting a strong working relationship, or on the other hand enable employees to completely end the relationship search for alternatives or return back home.

The second decree, points six cases of labour contract termination for fixed-term contracts and four cases for non-term contracts.

Additionally, the third decree regards terms and conditions of granting a new work permit to worker who choose to end a working relationship through four cases to issue a permit if the contract between both ends was a fixed-term contract and three cases for non-term ones, something which promotes flexible mobility and maintains labour market competencies and exchange experiences internally.