Skilled workers can enter multiple employer contract in the UAE

Skilled workers, both Emirati and expatriates, can now enter a multiple employer contracts after obtaining approval of the Ministry of Human Resources and Emiratisation, according to a new ministerial decision.

Under the decision signed by Naser Bin Thani Al Hameli, Minister of Human Resource and Emiratisation, companies can recruit skilled workers — holder of university degree or higher and those who completed their diploma in any field — from inside the country of overseas under part-time contracts, which allow these workers to take several part-time jobs without approval of the original or other employers. The new system is implemented alongside with the existing system which allows employers and workers to establish a normal business relationship under fixed-term or indefinite contracts.

Al Hameli said the new system will enhance the flexibility of the labour market and meet the needs of the employers from the existing labour market and thus reduce dependence on labour being imported from outside the country. Under the new part-time contract, workers will put less than the usual eight hours a day or less than 48 hours per week and must receive a weekly rest of not less than one day.

Al Hameli said the "part-time contract" will reduce the operational costs of employers who recruit workers from inside the UAE.

He added the system contributes to attracting and retaining the skills and expertise to enhance the productivity of the labour market in the country.The part-time contracts are limited only to specialised professions that require a high degree of scientific, technical and administrative skills and a minimum university qualification as well as  technical jobs that require mental, scientific and technical as well as practical and supervisory skills of workers who completed their two or three year diploma in any field, according to Al Hameli.

Al Hameli stressed that "the part-time contract is subject to the same rules and penalties applicable to the regular employment contracts, either fixed-term or non-fixed-term, out of keenness to protect the rights of the parties to the employment relationship."

The original employer shall bear the fees levied by the ministry when contracting with a worker under the part-time job contract.

The reduced fees for skilled labour shall be between  Dh150 and Dh2000 according to the category in which the establishment falls within the classification system of companies.

The original employer shall also bear the employee's annual leave, the end of service benefits and any other financial obligations in proportion to the number of actual working hours and the amount of the wage paid by the worker.

The decision obliges each employer to provide the worker with the requirements and working environment stipulated in the ministry's regulations.

According to the decision, the employer may not require the worker to work more than the hours agreed upon without the written consent of the worker. The employer may not prevent the worker from working in a similar facility to his company under the non-competition clause or for disclosure of the secrets of the work unless a court ruling has been issued to this effect.

The resolution states that a part-time contract may not be converted into a regular contract until after the end of the part-time employment contract, so that each party may freely contract with the model it accepts.

FTA Issued guideline for filing VAT return and payment

VAT in UAE

The FTA hasissued a comprehensive guide to completing the VAT return and making payment. It is definitely worth reading regardless of whether you are completing the return yourself or getting professional help. The guide makes it clear which transactions should be reported in each box and like everything in tax, the devil is in the detail.

The first boxes, which identify you and your business, are prepopulated with the information entered on registration. For each of the seven emirates, you then record your standard rated (5 percent) supplies and VAT on these supplies in boxes 1a to 1g. Box 2 is for VAT refunded to tourists so is irrelevant for most businesses as you have to be registered with the FTA to participate in the scheme.

In box 3 you need to include supplies of goods and services under the reverse charge mechanism. This can be complicated so reading the guide is a must. Imported goods can be declared in either box 3 or box 6 depending on your customs declarations. Imported services will be declared in box 3. Boxes 4 and 5 are for zero-rated and exempt supplies where there is no VAT to declare but you need to report the sales values

Reporting your input tax is shorter and simpler; there are just two lines here to populate. Box 9 is for standard-rated supplies that you want to reclaim the VAT on. Be careful to exclude any non-recoverable VAT but you still need to report the inputs even though you will not be reclaiming the tax. Obviously, any exempt or zero-rated inputs would not be included here as there is no VAT to recover. Box 10 is for the input VAT side of the reverse charge entries and is the other component to what is reported in boxes 3, 6 and 7.

The return automatically calculates the VAT payable and recoverable and the net of these is the amount payable to the FTA. Remember to reconcile your VAT accounting ledger entries to your VAT return and adjust your accounting entries accordingly. Ideally, you want to be in a position where your accounting entries mirror what’s been reported on your VAT return, so if you were ever subject to a VAT audit, which could be up to five years later, you could provide the underlying detailed transactions to support the return totals you reported without discrepancies.

The Abu Dhabi Judicial Department reduced Will Registration Charges for Non-Muslims

The ‘wills’ registration office in the capital where many non-Muslim residents register their wills, has reduced the registration charges from Dh5,500 to Dh950 from December.

Though the service charge was only Dh500 when the service started in August from November, the office revised the service fee and started charging Dh5,500 for a ‘will’ registration. The Abu Dhabi Judicial Department [ADJD] reduced it to support the registry of wills.

In case of sudden death of the testator, the assets will be distributed by the court as per the will. The wills registration office for non-Muslims builds up the confidence among residents of legal protection of their assets in the UAE and it ensures them the liberty of selecting the appropriate method to write and register their will concerning the disposal of their estate after their death.

A spokesperson of the Abu Dhabi Judicial Department said: “Now the service fee is only Dh950 for registering a will.”

The spokesperson said: “Any person can bequeath his/her estate to males and females equally and in case of his/her death, the assets will be distributed by the court as stated in the testator’s will.”

Whereas the changing or revoking of will is concerned, the testator can revoke the will at any time, or otherwise replace it by a new one, the spokesperson said.

The office helps to legalise a will of a non-Muslim for the disposition of a deceased’s estates, nominating a guardian for his/her minor children, he said. From August last year, a special “Non-Muslims Wills Office” started operations at the Abu Dhabi Judicial Department to register inheritance wills for non-Muslim expatriates in the capital.

As people from many nationalities live in the UAE, they can now legally register their will here. It guarantees that their families and children can legally claim the assets in the UAE in case of testator’s death.” As per the will, beneficiaries can claim assets of the testator anywhere in the UAE, whether they register in Abu Dhabi or Dubai. It will be valid for all the UAE.

“More than 50 of my clients have registered their wills at the Abu Dhabi office but I can say that approximately, so far, more than 100 expatriates would have registered their wills at the Non-Muslims Wills Office in Abu Dhabi,” he said.

About the different services fees, he said, the Dubai Courts charges Dh2,165 for registering a will and Dubai International Financial Centre (DIFC) Courts takes Dh10,000.”

The office in Abu Dhabi was established after a decision issued in May by Shaikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, who is also the chairman of the Abu Dhabi Judicial Department, to create a registry of wills office and probate for non-Muslims.

The application is submitted online at [ADJD] website. The competent employee verifies if the application meets the requirements. A notification by SMS is sent to the applicant with the approval of the application or request for modification. The application fee is paid online through ADJD website.

The applicant can contact the Non-Muslim Wills Registration Office to schedule an appointment for the application processing. Then the applicant has to visit on the fixed date the Non-Muslim Wills Registration Office to submit the original documents. After completing these procedures, finally, the will is legalised and will be delivered by the Notary Public of the department.

REQUIRED DOCUMENTS

• Emirates ID.

• Passport (original and a copy).

• The document “Will” to be legalised, with a sufficient number of copies for all parties concerned and a copy of records.

• Documentation that provides clear proof of the bequeathed property ownership.

• An official translation attested by the Ministry of Justice is required where the document is drafted in a language other than the Arabic language.

• Venue: Abu Dhabi Judicial Department (Main Building)

• Timing: 8am to 2pm [Sunday to Thursday]

• Service Fee: Dh950

UAE work permit fees linked to company classification

 The Ministry of Human Resources and Emiratisation (MORHE) will enforce a revised fee structure for issuing work permits linked to the classification of companies. The new classification system of companies will be in three categories according to the skill level and the cultural diversity of their workers, in the implementation of a recent Cabinet decision.

Under the system, new work permit fees will be applied depending on the level of skill of the worker and whether he or she is outside or inside the country and the category of the company.

Companies recruiting Emiratis or citizens of Gulf countries as well as fishing boat facilities will be exempt from work permit fees, according to another Cabinet decision.

Classification System

The first category of the new system includes fishing boats owned by citizens and enterprises, members of the Emiratisation Partners Club, small and medium enterprises that are members of the youth project support institutions which meet the conditions as well as the new service centres “Tadbeer”.

Multicultural diversity

A company is classified as “Category 2” and rated as A, B, C and D in this category — according to the ratio of skilled workers, and to the extent of its commitment to multicultural diversity.

A company will be classified as (Category 2A) if it has 40 percent or more skilled workers of its total workforce — and at least 50 percent of the multicultural ratio is available in the company.

Category 2B - A company, which has between 10 percent and less than 40 percent skilled workers and at least 50 percent of the multicultural ratio will be classified as category 2B

Category 2C - If the percentage of skilled workers ranges between 5 percent and less than 10 percent of the total workforce and it has at least 50 percent of the multicultural ratio, the company will be classified as category 2C.

Category 2D - The company is classified as category 2D if the percentage of skilled workers is less than five percent of the total workforce, or the establishment does not have at least 50 percent of the multicultural ratio.

Cabinet resolution

The Cabinet resolution stipulates that companies with a workforce of not more than three workers will be classified in category 2B, which also includes companies with four to 10 workers — if 50 percent of the multicultural ratio is met.

If the multicultural ratio is not met, a company will be classified as category 2D.

A company will be included in the third category of the system if it has committed one or more of the 10 violations as stated in the Labour Law.

The facilities are transferred from one category to another, or from one level up or down, whenever they meet the classification criteria and conditions of the category or level to which they are transferred.

Work permit fees for workers from outside the country

The fee for issuing a work permit for a worker from outside the country is Dh 200 for the three categories.

The fee for issuing a work permit for two years is Dh 300 for the companies listed in the first category, regardless of the skill level of the worker.

The fee for the second-class companies

The skilled worker is Dh500

The semi-skilled worker Dh1,200

Level B Dh1000 for a skilled worker, Dh2,200 for semi-skilled skill

Level C Dh1,500 for a skilled worker, Dh2,700 for semi-skilled worker

Level D Dh 2000 for skilled worker and Dh3,200 for the semi-skilled worker.

The fee for a work permit for workers from outside the country for companies classified in category III is Dh5,000 regardless of the skill level of the worker.

The fee for a work permit for a worker from outside the country was also unified, as was the issuance of a work permit of Dh100 for each of the two services mentioned for the companies listed in the different categories in the classification system.

Work permit fees for workers from inside the country

The work permit fee for those who are on sponsorship of their parents for companies listed in the different categories is unified at Dh200.

The fee for a work permit for those who are on the sponsorship of their parents and for a period of two years for the first category is Dh300, regardless of the skill level of the worker, while the companies in the second category A is Dh500 for skilled workers and Dh1000 for a semi-skilled worker and the company’s category IIB Dh1000 for skilled workers and Dh2,000 for semi-skilled workers.

Companies of category 2C will be charged Dh1,500 for a work permit for a skilled worker and Dh2,500 for a semi-skilled worker

Category 2D will be charged Dh2,000 and Dh3,000 for skilled and semi-skilled workers respectively.

Work permit fees for companies listed in the third category will be Dh5,000 regardless of the level of skill of the workers.

A fee of Dh 100 for different categories of companies has been fixed for the application for a work permit and Dh 500 for issuing a work permit for one year for part-time jobs for teenagers.

A fee of Dh100 for the different categories of companies has been fixed for each service for requesting a temporary work permit, issuing a temporary work permit for each month, requesting a work permit for some time, issuing a work permit for some time for each month, requesting a training permit and issuing a training permit for a month and request a permit to test the worker and issue a permit to test the worker  for each month.

Employment transfer fees from one company to another

A fee of Dh100 was determined for companies listed in the three categories for each service requesting a transfer permit and the use of a worker from one company to another and requesting permission to transfer and employ a worker from one company to another owned by the same owner or partner, for a period of two years.

A transfer permit and the use of a worker from one company to another for two years will coast Dh 150 for the companies listed in the first category, regardless of the skill level of the worker.

The fee for the second-class companies at Level A will be Dh250 for the skilled worker and Dh500 for the limited skill and level  B, Dh500 for the skilled worker and Dh1,000 for the limited skill and level C, Dh750 for the skilled worker and Dh1,250 for the limited skill and level D, Dh1,000 for the skilled worker and Dh1,500 for limited skill, while the fee for the companies classified as category III is Dh2,500, regardless of the skill level of the worker.

 Renewal and amendment of work permits

The fee for the renewal of work permit for two years will be Dh300 for the first category regardless of the level of skill of the worker and companies in the second category level A, Dh 500 for the skilled worker and Dh1,200 for a semi- skilled worker and level B, Dh1,000 dirhams for skilled workers and Dh2,200 for limited Skill and level C /, Dh1500 for skilled workers and Dh2,700 for semi-skilled worker and level D, Dh2,000 for skilled workers and Dh3,200 for limited skill, while the fee for the companies classified in the third category Dh5,000, regardless of the skill level of the workers.

A fee of Dh200 was allocated for the companies listed in the three categories for each service to change the work permit or the job contract.

A fee of Dh100 per month for the companies included in the three categories has been determined for the renewal of a work permit.

A unified fee for the three categories in the classification system was set at Dh2,000 for the opening of a company register and Dh250 for the electronic signature card and Dh200 for issuing a public relations officer (PRO) card for expats for two years.

The fee for the issuance of an electronic work permit for domestic workers for two years for citizens and one year for expats is Dh100 dirhams and Dh100 dirhams for renewal of the permit.

The fee for the issuance of a work contract for domestic workers for two years for citizens and one year for expats is Dh50 and Dh50 for renewing the contract.