UAE Labour Laws

8/20/2019 UAE Labour Laws

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Seminar on

LABOUR & IMMIGRATION DEPARTMENTS,DUBAI

Seminar No: 11

By

HUSSAIN CHALIYAM KUNNUMMAL (5A5)


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HUSSAIN CHALIYAM KUNNUMMAL

LABOUR & IMMIGRATION DEP. DUBAI

14-1-2011


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DUBAI LABOUR AND IMMIGRATION

DEPARTMENTS

MINISTRY OF LABOUR

The Ministry of Labour (MOL) or Department in Dubai and the UAE governs all work relatedissues. The MOL is responsible for issuing work permits (or labour cards) and imposing labourbans on those who are entitled to one. The Ministry of Labor does not issue residence visas orentry permits, they are dealt with by the relevant UAE immigration department (in Dubai, theDNRD).

the UAE ministry of Labour is a comprehensive the regulates of labour relations betweenemployers and employees. It is an advanced and balanced law that clarifies the rights and duties

of all parties concerned and brings numerous benefits to employees and workers.

A company who wish to establish and recruit staff in the company in UAE requires to register thecompany at immigration department and the ministry of labor. Without this procedure companycan’t Labour recruit the staff.

NEW (AMENMENTED) LABOUR LAWS

The goal behind the ministry's new law is to bring the labour market's level on a par with that of

Western countries, as well as cancelling the employers' monopoly of the labour market.

One-year ban will be imposed on offenders of labour and residency laws

The new regulations on conditions and criteria of issuing new work permit for a worker after the

expiry of his service contract and transfer of sponsorship implemented as of January 1, 2011 in

accordance with the cabinet resolution No 25 of 2010

Workers in the private sector, who have a one-year ban imposed on them by the Labour Ministry

for violating labour or residency laws, need to complete the ban before being able to apply for a

new job, no automatic six-month ban will be imposed on workers who leave their jobs but a one-

year ban will be imposed on offenders of labour and residency laws, including violating labour

laws, or breaking an employment contract.

Workers who are contracted on fixed-term contracts cannot breach the contract and resign on

grounds that they have completed a period of two years. If those workers are called to cancel

their labour cards they will be subjected to a one-year ban according to terms of the contract. But

if the contract is of an indefinite duration, and two years have been completed with the sponsor,

they have the right to change their job without objection.

new rules were issued by the labour ministry allowing a worker to switch jobs after the end of hisemployment contract without requiring a no-objection certificate to avoid a six-month ban.

WAGES PROTECTIONSYSTEM (WPS)

The UAE Wages Protection System (WPS)is developed by the UAE Central Bank and Ministry of

Labour to guarantee and record electronic salary payments to workers via banks, exchange

bureaus, and other financial institutions that are part of the WPS.


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One-year ban for breach of Limited contract

The one-year ban for workers who breach contract terms or who absent themselves from work

without a legitimate reason before the end of their fixed-term contract will continue,

Non-competition clause does not apply if employer fails the contract, the clause included in

employment contracts to prevent an employee from working for a competitor does not apply ifthe employer does not meet the contract obligations, and companies would lose the right to stop

them from getting other jobs if the firm failed to honour its legal or contractual obligations.

an employer cannot ask to enforce a ban on a worker who joined a competitor if he did not fulfilhis contractual obligations.

The non competition clause should not be applied for anybody who is below 21 years, it shouldonly be applied for jobs in which the employee would have had access to the company's secrets

or acquainted with its clients. It is important to understand that the non competition clausecannot be used merely as a mean to prevent the movement of workers and cannot be applied forall job categories.The real purpose of the clause is to safeguard the employer's lawful interests,

the new law completely scraps the "no objection certificate" (NOC).

It is not the employer's right to approve or disapprove switching of jobs .The employee will begranted a period of 30 days once his contract expires to find a new job and sponsor. This period isbasically given to the employee to complete procedures such as the issuance of a new visa inaccordance with the Ministry of Interior's procedures and signing the contract with the newsponsor. However, if the period expires and the employee's paperwork is not completed, he willbe considered illegal.

When the contract expires, the employee is granted a special permit by the ministries of labour

and interior, allowing him to stay in the country for 30 days to complete paperwork and finalise

procedures for the new work visa under the new job and employer. Under the new system, if an

employee completed the two-year working period, the employer had no right to force an

employee to stay on the job and would no longer face a six-month ban, since the new system

scrapped the NOC.

once a job contract expired or was legally terminated, the Labour Ministry would have theauthority to allow workers to take up new jobs without the consent of former employers or theso-called NOC.but the employee must inform his sponsor that he will not be renewing his contract 30 days before its expiry "Workers, skilled and unskilled, who end their job contracts legally and complete at least two

years of service, will get a labour permit outright," he said.Previously, these workers had tocomplete at least three years of service with their previous employers and had to obtain an NOCletter.Professional and skilled workers in the first three categories according to the Uniform GulfOccupational Classification would also be exempt from the six-month ban.


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companies would lose the right to stop them from getting other jobs if the firm failed to honourits legal or contractual obligations if the company not paying salaries for 60 days and not offeringproper accommodation etc.

the job classification

When joining his new job, the worker should be classified in the first, second or third professionalclass and that his salary should be not less than Dh12,000, Dh7,000 and Dh5,000 if he is in the

first, second and third class respectively.

New rule reduced the validity of labour cards to two years from three, starting from January 1,2011. This practically gives expat workers the freedom to switch jobs without a no-ojection

certificate (NoC) from the employer.The previous law had ensured workers get a six-month banforcing them to leave the country if their employers refuse theNoC.

Ministry of Labour has divided establishments in groups based

on the extent of their compliance with labour legislations,

systems and standards, cultural diversity approach and on-time

payment of salaries, provision of accommodation, and

emiratisation quota.

While the old system revolved primarily on the cultural diversity mix in firms, the new one allowsthe firm to move higher on the classification scale giving them slew of rewards based on theircommitment to certain standards like emiratisation, wages and housing," he indicated.He said the new resolution divides companies into three main categories: The first group whichtops the scale; The second which includes the current three categories A,B and C and the thirdone which along with the first are the newcomers.

The resolution ranks the firms

1. The percentage of workforce should not be less than 20 from the professional levels (1-2-3) ofthe total manpower.2. The wage of a worker should not be less than Dh12,000 if he is in level 1, Dh7,000 in 2 andDh5,000 in 3.3. Emiratisation percentage should not be under 15 in these levels.

The creation of this first group aims at opening up new professional jobs for Emaratis and avoid'mock' emiratisation,

For the second group, the resolution arranged firms as A,B and C according to cross-culturalpolicy. A company is in Group A if it does not commit itself to this policy by at least 25 per cent. Anon-compliance of 25 to 50 will place the company in Group B and C if the percentage crosses the

50 mark.The resolution grants firms until the January 1, 2011 to correct their status.The minister addedthe resolution introduced a black point and penalty system against offenders which candowngrade firms to a lower group and drop black points after one year.As for the third group, the resolution indicated that a firm in the second group which accumulates100 black points will be downgraded to the third group. A company can be placed in this group ifit is convicted by a court for recruiting infiltrators, commits trafficking in persons, provides wronginformation regarding wages protection system and fails to observe emiratisation policy. Financialfines on any of these irregularities can range between Dh15.000-20,000.

According to the new amendment, nationals should not be less than 15 per cent of the total staffof any company.Similarly, the skilled class (inclusive of three levels) should not be less than 20 per cent of thetotal employee strength of any company.The ministry has also classified establishments accordingto the type of employees they hire.Depending on the percentage of diversity among staff, companies now fall under three categories(first and second and third), and category II includes three levels (a, b and c).A facility will fall under level (a) if the diversity among employees is at least 25 per cent; underlevel (b) if diversity among workers is between 25-50 per cent; and under level (c) if the diversityis 50 per cent or more.


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A company can be upgraded to second level irrespective of the diversity provided the skilled classis not less than 20 per cent of total workforce. Similarly, companies can be downgraded if theyviolate labour laws, clarified Labour Ministry.

Employment fee for facilities under Category A has been reduced from Dh11,000 to Dh300 ayear. Transfer fee for companies under Category B, which earlier paid Dh11,500 for three yearshas been reduced to Dh1,500 for two years. Firms under Category C, which shelled out Dh12,000now need to pay just Dh2,000 for two years.

The ministry cancelled all fees for employment of nationals in the private sector to boostemiratisation. Similarly, fees for recruitment of GCC nationals have also been lifted.

Minimum wage limit

The Ministry of Labour on Saturday announced a minimum wage limit for different categories of

workers, depending on their qualifications. According to new labour laws, employees under skilledclass level 1 (those with a Bachelor's degree) should earn a minimum Dh12,000 a month.Diplomaholders, who come under skilled class level II, should earn not less than Dh7,000 and workerswho have passed high school should be paid a minimum salary of Dh5,000

UAE retirement age increased from 60 to 65

Expatriates in the UAE have been given an additional five years of service with the Ministry of Labourrevising the retirement age from 60 to 65.

Labour law violations

any violation of the text of the labour law is a criminal offence that merits punishment startingfrom suspension of a company's licence and fine to referral to the Public Prosecution.

General Directorate of Residency and Foreigners Affairs-Dubai

DUBAI IMMIGRATION

Most residents of the UAE are not immigrants in the normal sense of the word (meaning thosewishing to move to a country, settle there, and obtain citizenship of that country), but resident

expatriates with a UAE residence visa (or permit) that allows them to live in the UAE for a periodof time (usually 2 years between renewals, sometimes 1 year). For all issues to do withpermission to visit and/or live in the UAE, contact the relevant immigration office in the emiratein which you live or plan to live. If visiting the UAE, contact the immigration office of the emiratein which you expect to arrive. Note that Al Ain is not an emirate, it is a city in the emirate of AbuDhabi. Note also that although immigration rules are federal, they are not applied consistently ineach emirate. Sharjah especially, seems to do their own thing.

Immigration Departments are UAE government offices so that means they will be staffed

predominantly by UAE nationals. Being able to speak Arabic is therefore a bonus but most or all

officials that deal with the public will also speak some English. For most expatriates coming to

work in the UAE, their company PRO will be dealing with all the paperwork anyway, and will sort

out the residence visa without you needing to visit the immigration department .


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Departments:

Department of Naturalization and Passports

For family registration cards and passports issued to citizens of United Arab Emirates, aswell as other involved transactions.

The UAE Citizenship And Passport Law

There are three ways or types of citizenship, they are either a) by law in cases mentioned in Article 1,b) extension by marriage, c) naturalization in cases mentioned in the remaining articles.

Article 1Acquiring citizenship by law, extension or by naturalization in accordance with the provisions of thefollowing articles:

Article 2Is a citizen by virtue of the law:A- An Arab who maintained his residence in one of the Emirates since 1925 or before.B- The born in the country or abroad of an Emirati by virtue father.

C- The born in the country or abroad of an Emirati by virtue mother who is not attributed legally to afather.D- The born in the country of unknown parents

Article 3The marriage of a foreign woman to an Emirati doesn't entitle her to the citizenship unless announcedotherwise by the ministry of interior and was married for three years from declaring the wish to get thecitizenship and required to give up her original citizenship.

Article 4The wife who acquired the citizenship by extension may keep the UAE citizenship if her husband diedexcept the following cases:


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A- Married a foreign national.B- Returning back to her original citizenship or acquiring a new citizenship.

Article 5May be granted the citizenship of the following categories:A- Arab of Oman, Qatar or Bahrain if stayed continuously and legally for no less than three years andhave a legitimate way of living, have a good character and not convicted of a crime involving honestyand morality.

B- Members of Arab tribes who migrated from neighboring countries to the country and lived in thecounty legally and continuously for at least three years.

Article 6May be granted the citizenship any Arab if they resided continuously and legally in the United ArabEmirates for no less than seven years and have a legitimate way of living, have a good character andnot convicted of a crime involving honesty and morality.

Article 7May be granted the citizenship any person if they resided continuously and legally in the United ArabEmirates since 1940 or earlier and maintained his residency there and have a legitimate way of living,have a good character, not convicted of a crime involving honesty and morality and good in Arabic.

Article 8May be granted the citizenship any person other than those mentioned in Articles 5 and 6 if theyresided continuously and legally in the United Arab Emirates for no less than thirty years, twenty of

them after issuing this law and have a legitimate way of living, have a good character, not convicted ofa crime involving honesty and morality and good in Arabic.

Article 9May be granted the citizenship anyone who has done yeoman services for the country without adheringto the number of years stated in the previous articles.

Article 13Not be those who gain the citizenship by naturalization in accordance with Articles 5,6,7,8,9 and 10 theright of nomination, election or appointment in any representative bodies or ministerial positions andexcluded from the provisions of this article citizens of Oman, Qatar or Bahrain after seven years ofacquiring the citizenship.

Department of Entry Permits

It involves issuing residency, visit as well as work permits to workers and domestic helpers


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Offsite Centers

1 - Abu Hail Center2 - Bin Suqat Center

3 - Al-Dewan Center4 - DNATA Center5 - Emirates Airlines Office Center

6 - DNATA Aviation Center7 - Hyatt Regency Center

1. Residence permit for employment issued for an employeeThis involves a description of procedures of Naturalization and ResidencyAdministration/Dubai for issuing residence (employment) permits to private sector

employees

Required Documents:

A. Completed prepaid e-form applicationB. Original passport of the sponsored employee

C. Two (2) photographs of the sponsored employeeD. Original medical certificateE. Copy of the labour card or postal receiptF. Copy of the valid commercial licenseG. Copy of the valid establishment card

H. Original entry permit

Fees :a) AED 100 for each year’s residence (3 years maximum according to the e-form).b) AED 120 for urgent delivery application (optional)c) AED 10 for ordinary delivery application

Special Notes: All fees for residence permits and typing of applications shall be paid at the typing offices, and allsecurity deposits shall be paid cash to the bank staff at the Section Hall. Fines for overstaying 17days or less shall be paid cash to “Fines Collection” staff at the Section hall, while fines foroverstaying longer than 17 days shall be paid cash to the bank staff at the Section hall

2. (90) Days Long-Term Visit Visa (Individuals)E-form application (fees paid) including clear personal photo of the sponsored personapproved by the sponsor or authorized signatories (signed and stamped)

* Required documents:

A. Clear passport copy of the sponsor


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B. Clear passport copy of the sponsored personC. A copy of the salary certificate or employment contract of the sponsor (resident) must be

attachedD. Proof of family relationship (kinship)E. Traveler insurance

* Fees:

a) AED 1110 e-DNRD fees.b) AED 1120 e-form feesc) AED 1000 deposit, refundable upon departure of the sponsored person.d) Valid for 60 days from the issue date and non-renewablee) Valid for 90 days from the arrival date and non-renewable.

3. (30) Days Short-Term Visit Visa (Individuals) E-form application (fees paid) including clear personal photo of the sponsored person approvedby the sponsors or authorized signatories (signed and stamped)

* Required documents: A. Clear passport copy of the sponsor.B. Clear passport copy of the sponsored personC. A copy of the salary certificate or employment contract of the sponsor (resident) must be

attachedD. Proof of family relationship.E. Traveler insurance.

* Fees :a) AED 610 e-DNRD fees.b) AED 620 e-form feesc) AED 1000 deposit, refundable upon departure of the sponsored person.d) Valid for 60 days from the issue date and non-renewablee) Valid for 30 days from arrival date and non-renewable

4. (30) Days Short-Term Visit Visa (Companies)

E-form application (fees paid) including clear personal photo of the sponsored person approved bythe sponsors or authorized signatories (signed and stamped)

* Required documents: A. Clear passport copy of the sponsor.B. Copy of the establishment card.C. Traveler insurance

*Feesa) AED 610 e-DNRD fees.b) AED 620 e-form feesc) AED 1000 deposit, refundable upon departure of the sponsored person.d) Valid for 60 days from the issue date and non-renewablee) Valid for 30 days from the arrival date and non-renewable

4. (90) Days Long-term Visit Visa (Companies) E-form application (fees paid) including clear personal photo of the sponsored person approved bythe sponsors or authorized signatories (signed and stamped)

* Required documents:A. Clear passport copy of the sponsor.B. Copy of the establishment card.C. Traveler insurance


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*Fees:a) AED 1100 e-DNRD feesb) AED 1120 e-form feesc) AED 1000 deposit, refundable upon departure of the sponsored person.d) Valid for 60 days from the issue date and non-renewablee) Valid for 90 days from the arrival date and non-renewable

5. Student Visa: sponsor must be one of the licensed Universities or Educational Institutions in the UAE(recognized by the Ministry of Higher Education)

E-form application (fees paid) including clear personal photo of the sponsored person approvedby the sponsors or authorized signatories (signed and stamped)

* Required documents: A. Clear passport copy of the sponsorB. Copy of the establishment cardC. Copy of the trade licenseD. Traveler insurance

*Fees:a) AED 1110 e-DNRD fees.

b) AED 1120 e-form feesAED 1000 deposit refundable upon departure of the sponsored person.

6. Medical Treatment: Medical Establishments (Public and Private) approved by the Ministry of Health or HealthAuthority

E-forms application form (fees paid) including clear personal photo of the sponsored personapproved by the sponsors or authorized signatories (signed and stamped

* Required documents:A. Clear passport copy of the sponsorB. Copy of the establishment cardC. Medical certificate attested by MOH or Health AuthorityD. Traveler insurance

*Fees:a) AED 1110 e-DNRD feesb) AED 1120 e-form feesc) AED 1000 deposit, refundable upon departure of the sponsored person.

d) Valid for 60 days from the arrival date and can be renewed twice, 60 days each:e) AED 610 e-service fees.f) AED 620 e-form fees

7. Exhibitions/Festivals/ Conferences:for Governmental and Private Establishments

E-form application (fees paid) including clear personal photo of the sponsored person approvedby the sponsors or authorized signatories (signed and stamped)

* Required documents:A. Clear passport copy of the sponsorB. Copy of the establishment cardC. Copy of the trade licenseD. etter by the concerned entity announcing the exhibition, festival, or conference.E. Traveler insurance

*Fees:a) AED 210 e-DNRD feesb) AED 220 e-form fee


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c) AED 1000 deposit, refundable upon departure of the sponsored personValid for 60 days from the issue date and non-renewable- Valid for 30 days from the arrival date and non-renewable

8(33) Countries Upon Arrival

• Issued upon arrival at the airport

• Airline sponsored only

• Applicants should have onward booking

• Should have a minimum of 8 hour transit break

* Required documents:A. Original passport

B. Free of chargeC. Special notes: renewal shall be once and for a similar period (30 days).

*Fees:a) AED 620 e-form feesb) Service is provided through all air, land, and sea ports.

9. Tourist Visa for all Nationalities (Tourist companies):

* Required documents: A. Clear passport copy of the sponsorB. raveler insurance

*Fees:A. AED 210 e-DNRD feesB. AED 220 e-form feesC. AED 1000 deposit, refundable upon departure of the sponsored person

Valid for 60 days from the issue date and non-renewableValid for 30 days from the arrival date and renewable for the similar period (30 days),upon payment of a fees of AED 620.Service is provided through the eDNRD eServices.

10. Escorts of GCC nationals GCC countries (Gulf Cooperation Council: Saudi Arabia, Kuwait, Bahrain, Qatar and the Sultanateof Oman)To be issued to escort of GCC nationals (domestic helpers), for 60 days.

* Required documents:A. Original passport of the sponsored personB. Valid residency visa.

*Fees:a) AED 165 e-form fees.

Special notes:

Renewable twice and for a similar period (60 days each time).Renewal fees :AED 320Service is provided through all UAE entry points

11. GCC nationals (Resident) GCC countries (Gulf Cooperation Council: Saudi Arabia, Kuwait, Bahrain, Qatar and the Sultanateof Oman)To be issued to GCC resident nationals and those who accompany them

* Required documents:


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A. Original passport of the sponsored personB. Valid residency visaC. Proof of employment in the country of residence

*Fees:b) AED 165 e-form fees.

Special notes:

Valid for 30 days and renewable once for a similar period (30 days).Renewal fees AED 620 (e-form fees)

12. Mission Visa

To be issued to businessmen and highly qualified professionals.

* Required documents: A. Clear passport copy of the sponsorB. Health insurance

*Fees:

c) 320 e-form feesd) AED 1000 deposit, refundable upon departure of the sponsored person

Special notes:

Valid for 14 days from the issue date and non-renewable.Valid for 16 days from arrival date and non-renewable.

13. Transit Visa

* Required documents: A. Original valid passportB. Entry form for 96 hoursC. A valid ticket for onward flight

*Fees:a) AED 165 e-DNRD fees

b) AED 165 E-form fees

Special Notes:

Valid for 96 hours from the arrival date provided that the duration between the two trips is noless than 8 hours.Hotel reservation is needed.This service is provided through UAE entry points.

Contact Info:

HUSSAIN

[email protected]

Mobile: +971-50-5445610