New measures for work permits in UAE, signature of employees for contract renewal and new work permits

The Ministry of Labour has announced new measures to renew work permits, previously known as labour cards, as well as expired contracts, by early next year.

Speaking about the new requirements, Humaid Bin Deemas Al Suwaidi, Assistant Under-Secretary for Labour Affairs, said from the beginning of next year, new decrees will require “clear signature” of employees for contract renewal and the issuing of new work permits, which will put an end to the current work permit renewal procedures which simply follow a notification from employers.

He explained, “Workers, under the new procedures, will enjoy better options of either accepting renewal of 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. It will also enable employees to completely end the relationship, search for alternatives, or return back home.”

“Based on studies, the new decrees will end labour disputes caused by unjust labour contract submissions made by employers without referring to the labourers themselves, and getting final approval before issuing a new work permit,” he said.

Saqr Bin Ghobash Saeed Ghobash, Minister of Labour, said that the three decrees come within the framework of developing legislation to regulate the labour market, confirming that the MoL is moving to a new phase based on establishing and promoting a balanced and productive business relationship between both sides, based on transparency.

The MoL is currently preparing to implement the new decisions on schedule as an effort to ease procedures between employers and workers, particularly in relation to work offers that employees agree upon, whether outside or inside the country, and ensure the highlighting of wages and breaks, as well as other rights and duties.

Al Suwaidi went on to say that the ministry had conducted a study examining the hiring processes in private enterprises, and took into account, through its new decrees, the active measures taken to issue a contract in the preferred language of labourers prior to their signature. This he said, will help “overcome any difficulties that both ends may encounter through several employment channels, including employment agencies or by dispatching company representatives to the targeted country or even through employment websites.”

The new decrees are interrelated and frame the relationship between both sides, starting by enabling the worker to review an offer before travelling abroad then signing the new unified contract with the employer upon entry, from which point a contractual relationship is recorded into the ministry’s database highlighting all rights and obligations as per the contract.

If the worker is in the UAE, the worker must duly sign the employment offer, as stipulated by the decree, before the employer applies for tentative approval to employ the worker.

Terminating employees- New UAE labour law

The UAE intends to enforce a new labour law at the start of 2016 to better regulate the relationship between employers and workers and curb violations to ensure both parties will get their rights.The new law includes three main rules governing labour contracts for workers from abroad, terminating contracts between the employers and workers and the issuance of a new work permit to a resident worker.

“These rules will take the labour market to a new stage based on a strong and balanced relationship between all parties and on agreement and transparency in contracting to guarantee the rights of all parties,” Labour Minister Saqr Gobash said.

The first rule in the law, published by the Dubai-based Arabic language daily ‘Emarat Al Youm’, requires the employer to issue a “clear and detailed” contract for the foreign workers to be brought from abroad, including all duties and rights for the two parties, job terms and other requirements in a language understood by the worker.

The contract must be signed by the worker before it is submitted to the labour ministry for the issuance of a work permit, which must not be altered at any stage.

“The same measures apply to workers who reside in the UAE. In this case, the employer must also get the worker’s signature,” it said.

Contract termination

The second rule, which governs contract termination, includes an agreement by the employer and the worker to end their two-year contract.

Another case includes a decision by the employer to terminate the contract before it expires.
In this case, the employer must give at least one month notice to the worker and pay the worker all dues during that period. “The notice period must also not exceed three months and must be agreed by both parties,” it said.

The new rule also governs cases in which the employer or the worker terminates the contract without abiding by the legal procedures.

Another case involves a decision by the employer to terminate the worker’s services for committing offences including assaulting or insulting the employer.

Regarding unspecified contracts, the employer seeking to terminate a worker’s contract must also give a notice of not less than one month and not exceeding three months.

“In all contract termination cases, any party has the right to go to court to seek compensation and any other rights,” it said.

Under the new rule, the work contract is considered null if the employer is found to have violated the law including failure to pay the worker for two months.

In case a worker could not start his job because of the closure of the company, the labour ministry will send inspectors to check the company’s status before issuing a decision within two months.

As for cases considered by the labour court at the ministry, it will issue a final decision forcing the employer to pay the worker two months’ salary or to compensate him for service termination or depriving workers from end of service benefits.

New job contracts

The new rules also cover new job contracts to workers whose contracts have expired or terminated by an agreement between the employer and the worker provided the worker has completed at last six months with his employer.

According to ‘Emarat Al Youm’, the new law specified three cases involving termination of work contracts.

They include agreement by both parties provided the worker has spent at least six months with the employer, termination of the contract by either party for some reason, and termination of the contract by the employer without reason.

The new law allows the issuance of a new work permit in cases where the employer is found to have violated his commitments, including failure to pay workers for two months, a complaint by the worker that he is not able to start his job because of the company’s closure, and a labour dispute at the ministry’s court.

Ministerial decisions 764, 765 and 766 aim to improve labour relations based on sponsorship.

New UAE labour rules effective on January 1, 2016

The new rules were unveiled on Monday by Minister of Labour, Saqr Ghobash to build upon the latest decisions to the labour policy initiative in 2011 regarding labour mobility.Sweeping new rules by the Ministry of Labour will forge a stronger relationship between employers and workers and enhance the labour market across the country by ensuring transparency and encouraging more flexible labour mobility for workers.

The three new rules cover application of ministry-approved contracts, conditions for terminating employees and labour permits to work for new employers

Ministerial Decrees 764, 765 and 766 pave the way for improved labour relations by securing more stable practices governed by regulations that protect workers who are legally sponsored to enter the UAE, the ministry said. “The new rules will also bring greater transparency, clarity and tighter monitoring of labour contract conditions and ensure both employer and employee enter into fully voluntary relationships,” a statement said. The decrees will see the creation of a new unified, standard labour contract.

Three decrees' objectives:

The primary purpose of the decrees is to delink sponsorship and labour relations: the former serves to secure legal entry and temporary residence in the UAE, while the latter is governed by an employment contract the terms of which are compliant with national labour legislation and regulation.
This purpose is achieved by:

•     Ensuring the transparency of the contracting process in the country of origin;
•     Ensuring non-substitution of the contract terms post arrival in the UAE;
•     Defining due processes for terminating labour relations;
•     Spelling out the rules and conditions for granting a worker whose labour relation has ended a new work permit.

  Highlights of Ministerial Decree (764 ) of 2015 on Ministry of Labour-Approved Standard Employment Contracts

•     Standard employment offer/contract: terms, rights and obligations;
•     Informed consent;
•     Non-substitutionof labour contract;
•     Filing the offer for eventual capture as a legal contract;
•     Termination clause;
•     Commitments by the employer.

    Highlights of Ministerial decree (765) of 2015 on Rules and Conditions for the Termination of Employment Relations

Any employment relation may be terminated, by either party, subject to a due process. One party or the other cannot be made to involuntarily continue the relation. A relation is terminated:

    By mutual consent, at any time
    By one party or the other, subject to certain considerations of notice and/or identification
    A relation is considered to be terminated if:

    - If employer does not meet its contractual obligation to worker;
    - If employer ceases to empower worker to perform his/her employment duties without; complying with due process;
    - If  a worker absconds, without complying with due termination process.

While a relation cannot be sustained except by mutual consent, the way it is terminated has a direct bearing on the status of the worker after termination (the granting or declining of a new work permit)

Highlights of Ministerial Decree (766) of 2015 on Rules and Conditions for granting a permit to a worker for employment by a new employer

    Sets the conditions for granting a new work permit to a worker whose labour relation with an employer has ended as a function of the manner the relation was terminated
    
    Notably ascertains that the power to determine the status of the worker whose employment has ended is a public authority

Buckscapital- UAE based Crowdfunding platform pre-launch website at Kochi

Buckscapital.com UAE based crowdfunding platform pre-launched its website before a group of media at Kochi. The functioning of the crowdfunding starts August middle of this year from UAE. Initially the activities limited to UAE, GCC countries and India. The entrepreneurs and investors can register their interest www.buckscapital.com

What is Crowdfunding?

 Crowdfunding is raising funds from multiple investors through a web-based platform or social networking site for a specific project, business venture or social cause. Crowdfunding is "the" alternative method for entrepreneurs, creative thinkers, and non-profits to get funding. In its basic form, it is the pooling together of small amounts of money from a group of people that share your passion and that you interact with online using social media. Everyone can use it without going to the banks or VCs, and the likelihood of getting funded is significantly higher.

There are four basic types of crowdfunding: Donation, Rewards, Debt and Equity. Each type is based on what the investor receives in return for funding a campaign.

 Donation -In this model, individuals make a financial contribution to a project without any expectations of financial benefits.

 Rewards - The investor receives a reward or perk in return for pledging. Common rewards include a thank you note, a branded t-shirt, or the product being funded (i.e., a pre- sale of the product).

Debt - Often called Peer-to-Peer (P2P) or Peer-to-Business Lending. The investor gives money in the form of a loan and receives profit in return.

Equity - The investor receives ownership in the company in return for their investment.

Buckscapital help the entrepreneurs to get the exposure for their projects and  potential investors to have a profitable platform for investment . Through this international crowdfunding platform, buckscapital.com aim to reform the global entrepreneurial environs by providing the wide network of investors and entrepreneurs. Buckscapital tries to build up a new standard of excellence in capital market, stands for your strong base for everlasting success.

 

UAE issues law against hate crimes and discrimination

The United Arab Emirates has issued a new law against any form of discrimination on the basis of religion, caste, creed, doctrine, race, colour or ethnic origin following a Decree by President His Highness Sheikh Khalifa bin Zayed Al Nahyan.The new law criminalizes any acts that stoke religious hatred and/or which insult religion through any form of expression, be it speech or the written word, books, pamphlets or via online media. The law also includes provisions for punishing anyone for terming other religious groups or individuals as infidels, or unbelievers.

The law is intended to provide a sound foundation for the environment of tolerance, broad­ mindedness and acceptance in the UAE and aims to safeguard people regardless of their origin, beliefs or race, against acts that promote religious hate and intolerance.

Penalties for violation of the various provisions of the law include jail-terms of six months to over 10 years and fines from Dh50,000 to Dh2 million.

The Anti-Discriminatory Law prohibits any act that would be considered as insulting God, his prophets or apostles or holy books or houses of worship or graveyards. It also has provisions to fight discrimination against individuals or groups on the basis of religion, caste, doctrine, race, color or ethnic origin.

The law condemns actions that would comprise hate speech or the promotion of discrimination or violence against others using any form of media, including online, print, radio or visual media.

Strict action will be taken against any form of expressions of hatred or incitement to hate crimes spread in the form of speech and published media.

The law also criminalizes any act that amounts to abuse of religion or vandalism of religious rituals, holy sites or symbols, and takes a serious view of violence on the basis of religious doctrines.

The law prohibits any entity or group established specifically to provoke religious hatred and recommends stringent punishments for groups or supporters of any organizations or individuals that are associated with hate crimes. It also bars any kind of events such as conferences and meetings within the UAE organized with the sole purpose of sowing seeds of discrimination, discord or hatred against individuals or groups on the basis of faith, origin or race. Receiving financial support for such activities is also punishable under the new law.The law encourages anyone involved in any activity that violates the law to voluntarily submit themselves before the authorities and has provisions allowing the courts to waive penalties in such cases.

The new law does not contradict with any other existing laws meant to protect specially privileged groups in the society such as women, children and individuals with disabilities or others.