New U.A.E labor law changes Employment sector of Emirates

The Ministry of Human Resources and Emiratization (“MOHRE”) has approved a revision of UAE labor law and Federal Decree No. 33 of 2021, which establishes employment relationships and related implementing regulations pursuant to Council Decision No. 33 of 2021. 1 of 2022. (Collectively the “New Law”), which became effective on February 2, 2022 (the “Effective Date”).

  Fixed-term employment contracts only:

 The new law has abolished the concept of permanent employment or unlimited contracts and only fixed-term employment contracts (up to 3 years) can be concluded. Employers have until February 2, 2023 to convert all current permanent employees to temporary contracts.  Temporary contracts only. The new law abolished the concept of permanent contracts and only fixed-term contracts (up to 3 years) can be concluded. Employers have until February 2, 2023 to convert all current permanent employees to temporary contracts.

  Probation or Internship:

 While the probationary period has a maximum duration of six months, the new law now requires a minimum of 14 days' notice from anyone who intends to terminate the employment relationship during the probationary period and if the employee is employed by another employer domiciled in the UAE starts must offer at least   30 days in advance. In addition, the employer can ask the new employer for reimbursement of the costs of hiring the employee.

 Part-time work and flexible working arrangements 

 Some new alternative forms of flexible and a typical work have been introduced, including part-time work (with associated benefits), agency work (for specific project work), flexible work (where working hours and days can vary according to the needs of the employer) and job sharing (details from MOHRE not yet known) 

Working days and Hours

 Friday is no longer an obligatory rest day and employers are obliged to give their employees at least one rest day on each day of the week. The maximum working time remains eight hours per day/48 hours per week (assuming a six-day week) with a two-hour overtime limit, but there are potential exceptions to these requirements under the Executive Rules, which limit working hours to no more than 56 per week.

Annual leave:   Employees are now required to take annual leave in the accrual year and cannot carry unused days over to the next annual leave year unless the employer agrees (or in very limited circumstances where the employer has prevented the employee from taking leave during the accrual year). Unused days expire without compensation. The payment of vacation days not taken is only made in exceptional cases or in relation to the vacation days accrued in the year of termination of the employment relationship   and is only paid on the basis of the basic wage.

 Other leave

The new law expands and introduces various innovations:

Maternity leave: extension to 60 calendar days (45 days fully paid and 15 days half paid); this also applies if the employee suffers a miscarriage after 6 months.

Extraordinary leave: five calendar days in the event of the death of the employee's spouse and three calendar days in the event of the death of a parent or grandparent, child or grandchild, brother or sister of the employee.

Parental leave: five calendar days (for both parents) within six months of the birth of the child.

 Educational Leave: 10 calendar days per year to sit exams provided the employee has been employed for more than two years and is 

Study leaves: 10 calendar days per year to sit exams as long as the employee has more than two years of service and is studying at an accredited educational institution in the UAE.

Discrimination and equal pay: Workers are now particularly protected from discrimination in the workplace and the law prohibits discrimination based on race, colour, sex, religion, national origin, social status and Invalidity that would jeopardize the worker's equality of opportunity or prevent him or her from finding and keeping a job. While maternity and/or pregnancy are not listed as protected characteristics, employers are not permitted to fire (or threaten to fire) a female worker because she is pregnant or on maternity leave. In addition, the new law provides for equal pay for men and women for the same work.

Termination of Employment:

 Dismissal Without prejudice to the use of the term “limitation”, the new law provides that fixed-term employment contracts can be terminated for “good cause” during the contract period, provided that the notice period of the employment contract has expired. Termination without notice for reasons other than those relating to the employee's performance or conduct is now permitted. First, the notion of dismissal is now explicitly recognized as a valid ground for dismissal when the employer is insolvent or insolvent, or when there are economic or exceptional reasons. In addition, the compensation scheme for arbitrary dismissals (under the old law) has been significantly reduced, with compensation possibly only being available to workers in two, specific cases of dismissal, merely pointing out that it is still unclear how the labor authorities will do this Court will interpret new Prohibition on reducing or withdrawing premiums A former employee who resigned five years ago is entitled to a reduction in severance pay (permanent contracts) or is fired (fixed-term contracts). In addition, the termination without notices also led to the loss of the employee's tips. The new law eliminates them, so the employee is now entitled to termination pay regardless of the reason for the termination. (Note - until February 1, 2023 reduced severance pay for employees retiring from permanent contracts at that time)

 Payment of Service Termination Fees

Payment of all contractual and statutory dues must be made within 14 days of termination of employment or the employer may be fined from AED 5,000 to AED 1,000,000 by the MOHRE. The above summarizes the main points that have a significant impact on the contractual arrangements that retailers have with their employees. This requires a review of documentation templates, policies and procedures to ensure legal compliance with the new law and supporting regulations.

UAE 5 Year Green Visa

5 Year UAE Green Visa Explained

The UAE’s Green visa is a type of residence visa, that allows its holder to sponsor himself/herself for 5 years, eliminating the need for a UAE national or employer to sponsor his/her visa.

Who can apply for a Green Visa?

UAE Visa System is expected to attract more talented and skilled individuals to the country. Three categories of people - Freelancers, self-employed and skilled employees can apply for Green Visa

1-Freelancers or self-employed people

Freelancers or self-employed people who wish to apply for a Green Visa need to submit:

 A freelance/self-employment permit from Ministry of Human Resources and Emiratisation, proof of a bachelor’s degree or a specialized diploma.

Evidence of annual income from self-employment for the previous two years amounting to not less than AED 360,000, or proof of financial solvency throughout their stay in the UAE.

 2-Skilled employees

To apply for a Green Visa, a skilled employee must:

Have a valid employment contract.

Be classified in the first, second or third occupational level as per Ministry of Human Resources and Emiratisation

 hold a minimum of bachelor’s degree or equivalent

 have a salary of not less than AED 15,000 per month.

Cost Of Green Visa

• Green Visa Cost: Dh2280/
• Emirates ID: Dh575/
• Medical Fee: Dh320/

Renewing the visa

The visa is renewable for the same term upon its expiry.

Read related news coverage on WAM.

For more information You can touch with

Federal Authority forIdentity, Citizenship, Customs and Port Security (ICP)

General Directorate ofResidency and Foreigners Affairs – Dubai

 

 

How to file the Financial Settlement Proceedings in new U.A.E insolvency Law

The courts in U.AE started taking cases from individuals under the new law from this month. The insolvency law includes civilians who are not merchants whose financial difficulties have prevented them from paying their debts and discharging their financial receivables – the insolvency law has set out clear and easy-to-apply rules for collecting bad debts and rehabilitating the financial position of the debtor

Step 1 - Approach the court
You need to raise the case with a court in the UAE.
Step 2 - Prepare the documents

You would need to provide the following documents as part of your application:

•     A memorandum containing a brief description of the Debtor’s financial position and any data relating to his sources of income, both inside or outside the State, his professional, vocational or craft status, as the case may be, and his liquidity projections and sources thereof within a period of twelve (12) months following the submission of the application.
•     A statement of the names and addresses of creditors whose debts are not paid or are not expected to be paid by the Debtor, the amount of each debt, the dates of maturity thereof and the securities provided to the creditors, if any.
•     A detailed statement of the Debtor's movable and immovable property inside and outside the State and the approximate value of each on the date of submission of the application.
•     A statement of any legal or judicial proceedings or actions taken against the Debtor.
•     A statement by the Debtor that he is facing current or anticipated financial difficulties and that he is unable or is expected not to be able to pay all of his debts, whether due at the time of submission of the application or in the future.
•     The fund necessary to support the Debtor, his family and any dependents thereof.
•     The Debtor’s proposals to settle his financial obligations.
•     The Debtor’s nomination of an Expert to undertake the proceedings in accordance with the provisions of this Decree-Law.
•     A statement of the disclosure of financial transfers outside the State that took place during the last twelve (12) months.
•     Any other documents supporting the application or requested by the Court.

Failure to Complete the Required Data

According to the law, "If the Debtor is unable to provide any of the documents or data required in accordance with the provisions of Article (3) of this Decree-Law, he shall state the reasons therefor in his application. If the Court deems that the documents submitted are not sufficient to decide on the application, it may grant the debtor a time-limit for the submission of any additional data or documents."
Step 3 - Payment of Fees and Expenses

The exact amount of fees is specified by the court, after assessing the expertise fees and fees of the judicial proceedings. If the debtor is not in a position to make the payment immediately, the law has provisions for delaying the payment.
Step 4 - Measures to preserve debtor's funds
The Court may decide to take the necessary measures to preserve the Debtor's Funds while the case is being processed.
Step 5 - Court decides on the application
Within five days of the application being submitted to the court, the court will decide on whether it will accept the application or not. If the application is accepted to settle the individual's financial obligations.
If the court rejects the application, the individual can take the application to the Court of Appeal. The decision issued in the appeal shall be considered final.
Step 6 - Assigning an expert
The court will then assign an expert, or experts, to the case. The specific regulations related to the selection and assigning of the expert are stated in Article 8 of the law.
Step 7 - Creditors submit their documents
Next, the creditors would need to hand over their debt documents to the expert, along with the necessary statements and collaterals.
Step 10 - Expert completes his report
In 20 days, unless the court grants an extension, the expert will submit a detailed report, clearly laying down the dues and the details provided in the documents of the debtor and creditors.
Step 11 - Court audits the report
The court will then audit the report and if it deems necessary will instruct the expert to create a payment plan to settle the financial obligations of the debtor.
What are the cases in which the application can get rejected?
According to the law, these are the conditions that can lead to the rejection of the application
1- If it is established to the Court that the Debtor has carried out any action or refrained therefrom with a view to concealing or destroying any part of its funds.
2- If the Debtor has provided false statements on his debts, rights or funds.
3- If the Debtor has ceased to pay any of his debts on the maturity date thereof for more than fifty (50) consecutive working days, as a result of his inability to pay such debts.
Step 12 - Preparing the repayment plan
Articles 13 to 20 of the law lay down the detailed process of approval, voting and clearance from all concerned parties to finalise on a repayment plan.
Step 13 - Implementation of the financial settlement plan
Articles 21 to 24 detail how the expert, who is now in a position of supervising the execution of the plan, would implement the plan. This would include the sale of any property held by the debtor and provide regular updates to all parties concerned on the repayment of dues. It is also possible that during the implementation of the plan, the expert finds it necessary to make amendments to the plan. In such a scenario, the process is laid out in Article 24.
Step 14 - Termination, Expiry and Nullity of the Financial Settlement Proceedings Plan
In case the debtor clears all dues as per the plan, the plan shall be completed. However, if the debtor still fails to clear his dues, the law goes on to state how the court and the appointed expert can go on to start insolvency proceedings, which include but are not limited to the sale of assets.