Three-day weekend in the U.A.E effective from July first 2023 to Federal Govt employees

 The UAE government has announced that federal government employees will be able to opt for a three-day weekend starting July 1, 2023. The new work pattern is part of a broader effort to improve work-life balance and productivity in the public sector.

Under the new system, employees will be able to work 10 hours a day, four days a week. This will give them a three-day weekend, from Friday to Sunday. Employees who choose to work this compressed workweek will be able to do so without any loss of pay.

The new work pattern is voluntary, and employees will be able to choose whether or not to participate. However, the government is encouraging employees to take advantage of the opportunity, as it is seen as a way to improve work-life balance and productivity.

The UAE is not the first country to introduce a four-day workweek. Iceland, for example, has been running a trial of a four-day workweek since 2017, and the results have been positive. Employees have reported feeling less stressed and more productive, and the country's economy has not suffered as a result.

It remains to be seen whether the UAE's new work pattern will be as successful as Iceland's. However, the government is confident that it will be a positive change for the public sector.

In addition to the new work pattern, the UAE government has also announced a number of other measures to improve work-life balance in the public sector. These include:

•     Increased flexibility for employees to work from home.
•     Increased opportunities for employees to take parental leave and other types of leave.
•     Improved health and wellness programs for employees.

The UAE government is committed to creating a more attractive and productive work environment for its public sector employees. The new work pattern and other measures are part of this effort.

How new corporate tax effect Free Zone companies in the U.A.E

The corporate tax in the UAE will affect free zone companies in the following ways:

  Qualifying income: Free zone companies that earn qualifying income will be taxed at 0%. Qualifying income is defined as income derived from activities carried out in the free zone, such as manufacturing, trading, and providing services.
  Non-qualifying income: Free zone companies that earn non-qualifying income will be taxed at 9%. Non-qualifying income is defined as income derived from activities carried out outside of the free zone, such as selling goods or services to mainland customers.
    Small business relief: Free zone companies with gross revenue of less than Dh3 million per year may be eligible for small business relief, which means they will not be taxed on their non-qualifying income.

The corporate tax will have a mixed impact on free zone companies. On the one hand, it will increase the cost of doing business for companies that earn non-qualifying income. On the other hand, it will reduce the cost of doing business for companies that earn only qualifying income. The overall impact of the corporate tax on free zone companies will depend on their specific circumstances.

Here are some additional things to keep in mind about the corporate tax and its impact on free zone companies in the UAE:

1.     The corporate tax is a new law, and there is still some uncertainty about how it will be implemented.
2.     The tax authorities have the discretion to interpret the law in a way that could be unfavorable to free zone companies.
3.     Free zone companies should carefully review their business activities to determine whether they are earning qualifying income or non-qualifying income.
4.     Free zone companies should consult with a tax advisor to understand their specific tax obligations under the new law.
   

New Changes in UK Visa rules for the Citizens of Arab Countries

 The UK government has announced a number of changes to its visa rules for citizens of Arab countries. These changes will come into effect on 1 January 2023.

Under the new rules, citizens of the following Arab countries will be eligible for visa-free travel to the UK for up to 6 months:

    UAE
    Saudi Arabia
    Qatar
    Kuwait
    Bahrain
    Oman
    Jordan

Citizens of these countries will still need to apply for an Electronic Travel Authorization (ETA) before travelling to the UK. The ETA is a free online application that can be completed in minutes.

The UK government has said that the new rules are part of its commitment to "building a global Britain" and "making it easier for people from all over the world to visit the UK."

The changes have been welcomed by some businesses and tourism groups, who say they will make it easier for people from Arab countries to visit the UK. However, some security experts have raised concerns that the new rules could make it easier for terrorists to travel to the UK.

The UK government has said that it has taken steps to mitigate these concerns, such as requiring all ETA applicants to provide their passport information and travel history.

The new rules will be reviewed after 12 months to assess their impact.

Here are some of the key changes to the UK visa rules for citizens of Arab countries:

    Visa-free travel for up to 6 months for citizens of the UAE, Saudi Arabia, Qatar, Kuwait, Bahrain, Oman, and Jordan.
    Requirement to apply for an Electronic Travel Authorization (ETA) before traveling to the UK.
    Free online application for ETA.
    Review of the new rules after 12 months.

The new rules are part of the UK government's commitment to "building a global Britain" and "making it easier for people from all over the world to visit the UK."

Types of work arrangements available in the U.A.E

 There are a variety of work arrangements available in the UAE, including:

    Full-time: This is the most common type of work arrangement, and it involves working a set number of hours per week, typically 40 hours. Full-time employees are typically entitled to benefits such as health insurance, paid leave, and retirement plans.

    Part-time: Part-time work arrangements involve working fewer hours per week than full-time employees. Part-time employees may be entitled to some benefits, such as paid leave, but they are typically not entitled to the same level of benefits as full-time employees.
    Temporary: Temporary work arrangements are typically for a specific period of time, such as a few months or a year. Temporary employees may be entitled to some benefits, such as paid leave, but they are typically not entitled to the same level of benefits as permanent employees.
    Freelance: Freelance work arrangements involve working on a project-by-project basis. Freelancers are typically self-employed and are responsible for finding their own work and managing their own finances.
    Remote: Remote work arrangements involve working from home or from a remote location. Remote employees typically have the same level of responsibilities as in-office employees, but they are able to work from anywhere with an internet connection.

The type of work arrangement that is right for you will depend on your individual needs and preferences. If you are looking for a stable job with benefits, then full-time work may be the right choice for you. If you are looking for flexibility and the ability to work from home, then a remote work arrangement may be a better fit. If you are looking for a temporary job to gain experience or to supplement your income, then a temporary work arrangement may be a good option. And if you are looking for the freedom to work on your own terms and to set your own hours, then freelance work may be the right choice for you.

No matter what type of work arrangement you choose, it is important to make sure that you understand the terms of your employment contract. Your contract should clearly state your job title, responsibilities, salary, benefits, and termination procedures. It is also important to make sure that you are familiar with the laws governing employment in the UAE. The UAE has a comprehensive labor law that protects the rights of employees. If you have any questions about your employment contract or the UAE labor law, you should consult with an employment lawyer.

Important changes in the U.A.E Labour law in 2023

The UAE Labour Law was amended in February 2022, introducing a number of changes to the employment landscape in the country. Some of the key changes in the law for you to consider

  The introduction of fixed-term contracts: All employees in the private sector are now required to be employed on fixed-term contracts, with a maximum duration of three years. This change was made in an effort to increase flexibility for employers and to reduce the number of cases of unfair dismissal.
  The removal of the no-objection certificate (NOC) requirement: Under the old law, employees were required to obtain a NOC from their employer before they could leave their job. This requirement has now been removed, making it easier for employees to switch jobs.
  The introduction of a new grievance procedure: Employees are now entitled to raise a grievance with their employer if they believe that they have been treated unfairly. The new grievance procedure is designed to be more accessible and transparent than the previous system.
  The increase in the minimum wage: The minimum wage for employees in the private sector has been increased from AED 3,000 to AED 4,000 per month. This change was made in an effort to improve the lives of low-income workers.

These are just some of the key changes that have been introduced to the UAE Labour Law in 2022. If you are an employee or employer in the UAE, it is important to familiarize yourself with these changes so that you can ensure that you are compliant with the law.

In addition to the above, the UAE government has also introduced a number of other changes to the labor market in recent months, including:

  The introduction of a four-and-a-half day working week: The UAE government has announced that the working week in the public sector will be reduced from 5 to 4.5 days, starting from January 1, 2023. This change is expected to be extended to the private sector in the near future.

 The introduction of a compulsory unemployment insurance scheme: The UAE government has also announced the introduction of a compulsory unemployment insurance scheme, which will come into effect on January 1, 2023. This scheme will provide financial support to employees who lose their jobs.

These changes are part of a broader effort by the UAE government to improve the working conditions and opportunities for its citizens and residents.