New Labour LAW in UAE

New work permit rules in UAE from 2011 will ease job switch
The resolution says that the new employment permit will only be granted to the worker after the end of his work relationship with his employer

Abu Dhabi: As part of the ongoing reforms in the labour market, the Labour Ministry will soon introduce new regulations granting foreign workers more freedom to change employers without the six-month work ban or consent of the current employer.

The new rules, which will take effect on May 1, will replace the current formalities of transfer of sponsorship for foreign workers.

Retirement age in UAE

• Maximum age that foreign workers can be employed in UAE increased from 60 to 65 years old.

Part time work permits for students and other expat residents

• From May 2011, university and college students sponsored by the institute in the UAE at which they are enrolled can legally work part-time under certain conditions. Students need to apply for a part-time work permit from the UAE Ministry of Labour (MOL). Not clear if students must be studying full-time, or if the new labour law decree also applies to part-time students.
• A report in Gulf News 08 February 2010 said Gobash recalled an incident when the son of General Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, was denied the right to take up a part-time job in a company because there was no law regulationg [sic] these work permits. Implying that UAE National students also need a part-time work permit to be legally employed.
• The part-time employment permit is also available to expat residents working full-time who have a valid labour card, and to expat wives sponsored by their husband. Not clear if expat husbands under wife sponsorship can also obtain a part-time work permit.
• The part-time employment permit allows the holder to be employed in more than one part-time job.

Juvenile or teenage work permits

• From May 2011, teenagers from 15-18 years of age can find jobs in the UAE after obtaining a teenage work permit from the MOL.
• There are restrictions on the type of work and hours of employment. Ministerial decree 1189 for 2010 specifies 31 categories of work in which juveniles are not permitted to work, including underground jobs in mines, quarries, and other work related to mining; furnaces of melting metals; oil refining; bakeries; asphalt industry.
• Some reports refer to the work permit as part-time only but it appears that full-time work is permitted.
• Validity period of juvenile work permit is one year maximum.

Short term and temporary labor permit in UAE

• Expat and foreign workers over the age of 18 (and less than 65 years of age) who have not previously worked in the UAE can now apply for short-term work permits valid for 60 days at a time according to UAE Ministry of Labour (MOL) information reported by the Al Khaleej newspaper 26 April 2011.
• The 60-day work permits can be renewed up to 5 times (6 times reported but later information said maximum total period of one year), renewal must be made before expiry date of the permit or last renewed period.
• Work permit initial fee AED 500. Work permit renewal fees and bank guarantee amount not reported.
• Fine of AED 500 will apply for every 10 day period past the expiry date.
• Permit will automatically be cancelled if fees and bank guarantee not paid within 60 days. Not clear if this means within the validity period, or within 60 days after expiry of the permit.
• Short term work permits not available to UAE and GCC nationals (not that they need a work permit anyway, at least not UAE citizens).
• A report in Emirates Business 24-7 on 05 February 2011 said "Also, priority will be given to Emiratis and GCC nationals who can take up the required job" making it sound like those nationalities need to apply for a short term permit, however it is more likely that the intention is that permits should only be issued to foreigners if the company cannot find an Emirati or GCC citizen to do the same job, since they don't need work permits for the UAE as far as we know.
• Applications to be made at Tasheel center by employer or company representative, who must have electronic signature authority. Workers cannot apply for a temporary permit themselves.
• In some circumstances, e.g. unpaid salaries for more than 2 months, workers can obtain a temporary work permit even if their current employer objects.

Changes to laws about part-time work in the UAE - May 2011

• Students and housewives can work part-time in the UAE according to changes in the UAE Labour Law from May 2011.
• Part-time work permits will be available for one year at a time (fee AED 500), but female dependents and students with UAE residence visas will not need a work permit. Unclear if expat husbands sponsored by expat wives can work part-time without a permit.
• Expatriate male dependants (husbands and sons) of Emirati women do not need a work permit to work part-time.

Reforms

A new resolution issued by Saqr Gobash Saeed Gobash, the Minister of Labour, says a new employment permit will only be granted to a worker after the end of his work relationship with his employer without consideration of the legitimate six-month period which is usually calculated after the cancellation of the worker's labour card, but stipulates two must-do conditions:

1. The two contracting parties must have ended their work relationship cordially;

2. The worker should have worked with his employer for at least two years — the duration of the new labour card which will be issued by early January.

The labour market reforms, as stated by President His Highness Shaikh Khalifa Bin Zayed Al Nahyan in his National Day speech, are a challenge the UAE is addressing as part of its human development process.

Shaikh Khalifa said the Government "will press ahead with the process of updating legislation, regulating the labour market, supporting Emiratisation and empowering the private sector, encouraging it to shoulder social responsibilities, to invest in national human resources, to adopt environment protection mechanisms and to meet the needs of society".

The resolution defines two cases in which the worker can obtain the new work permit after the end of the job contract without the agreement of the contracting parties:

1. When the employer fails to honour his legal or contractual obligations;

2. In the event of expiry of a work relationship where the worker is not responsible for it, but there is a complaint filed by the worker against the firm, an inspection report should prove that the firm has been out of business for more than two months. As well, it should determine the worker has reported the same to the ministry.

The resolution says the labour dispute should have been referred by the ministry to the court and it issued a final ruling ordering the employer to pay the worker at least two months salary in compensation for the arbitrary sacking or termination of the contract prematurely, or any other rights.

Right to work permit

The resolution also defines three cases in which the worker shall have the right to get a work permit without fulfilling the condition of working at least two years with the employer:

1. When joining his new job, the worker should be classified in the first, second or third professional class 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.

2. Non-compliance of the employer with legal and labour obligations towards the worker or in the event the worker has no role in terminating the work relationship;

3. Transferring the worker to another firm the employer owns it or has stakes in it.

Gobash told the Federal National Council (FNC) on Tuesday the long-term goal of reforming the sponsorship system is to create a flexible labour market that meets development requirements. "Our labour market must be flexible, efficient and committed to Emiratisation policies as top priority."