UAE Visa Rules and Procedures

Highway training made mandatory for new drivers in Dubai

2012-01-25T11:04:00.000+04:00

Gulf news picture

Training to drive on the highway for a minimum of two hours has been made mandatory to obtain a driving licence in Dubai, officials announced yesterday.

"After passing the road test, drivers will now have to undergo driving lessons along the highway, with trainers beside them, before they are issued a driver's licence," said Ahmad Hashim Behroozian, CEO of the Roads and Transport Authority's (RTA) Licensing Agency.

"This will ascertain the drivers' ability to cope with the vehicle as well as other vehicles on the road."

He was speaking at the launch of the unified curriculum for all driving institutes in Dubai.

The unified curriculum for training and qualifying those wishing to obtain driving licences for light motor vehicles has been distributed to all institutes and has been put into effect since the start of this year, he said. Training on the highway is just one of the changes the new curriculum will introduce. Other significant changes include mandatory night driving lessons and lessons on sudden braking in case of emergency situations.

"It is a complete training package, which takes the learner from attitude development and road safety awareness to vehicle familiarisation, from driving in simple to complex road networks to night driving until finally to freeway driving."

At present, every driving school has its own curriculum. "They all cover the major skills but by unifying we have put a structure around the training process and based on this the schools can come up with improvements," Behroozian said.

The new curriculum — delivered in Arabic, English and Urdu — has two components. The theoretical component comprises eight basic lectures and videos — including road rules, attitude and accident case studies — which are mandatory for trainees to attend as they cover safety standards and groom them to become able drivers, he said. The practical component comprises five basic stages including emergency braking, parking exercises, night driving and highway driving.

No additional costs

The number of mandatory lessons will still continue to be 40 lessons. This way the curriculum will not mean any additional costs for the trainees, Behroozian said, adding that the drivers will benefit from better training at the same cost.

The curriculum will follow a systematic progressive teaching method, whereby trainees will have to demonstrate their proficiency before being allowed to progress to the next step.

Three specific areas along the highway have been identified by RTA for training drivers, Hussain Al Saffar, Director of Drivers Training and Qualification department at the RTA, told Gulf News.

The road connecting the Business Bay crossing to Al Hadiqa Road, Emirates Road from near the Sharjah boundary up to Al Aweer Interchange and Al Aweer road leading towards Hatta are the areas identified.

"While driving along the highway, trainees will not be assessed because they would already have passed the road test. But the training is a means of managing risk on the highways," he said.

Asked if the new curriculum will make it easier or harder for aspiring drivers, Sultan Al Marzouqi, Director of the Drivers Licensing department, said that the RTA's focus is on allowing only safe drivers on the roads.

"The pass rate at driving tests has more than doubled recently, going from 17 per cent on average between 2008 and 2010 to 30 per cent in 2011. Accidents and deaths have also come down. This means drivers are being trained better," he said.

Expatriates' ID card deadline extended in three emirates

2012-01-21T17:11:00.003+04:00

Residents of Abu Dhabi, Dubai and Sharjah whose residence visa expires this year can register and renew ID cards at the time of renewing their visas. They will be exmpt from fines, said Emirates Identity Authority (Eida).

According to an 'Emarat Al Youm' report, more than 683,000 residents in the three emirates will benefit from the new rule.

Eida had earlier set October 31, 2011, as the deadline for all expatriates in the UAE to renew ID cards. Thereafter, they were required to pay Dh20 fine per day, with a maximum Dh1,000.

The Authority said the decision to reshedule registration deadlines was taken because of the demands from a large section of the population in the three emirates to extend the deadline, especially from unskilled class.

Expatriates in Sharjah are required to register and renew their ID cards before February 1; Abu Dhabi residents before April 1; and those in Dubai before June 1.

UAE nationals advised not to marry foreign women

2012-01-21T16:46:00.003+04:00

The UAE nationals have been advised not to marry foreign women due to social, legal and financial complications which arise following such marriages, said a renowned lawyer.

Speaking at the Noor Dubai Radio, Isa bin Haider, CEO of Bin Haider Advocates & Legal Consultants in the UAE, said a large number of cases are pending before the courts due to such marriages.

He pointed out that the young men marry foreign women not to make family but to get rich. But if the husband's income gets depleted, the foreign wives create problems which lead to court cases.

Bin Haider urged the UAE youths to marry the Emarati women who follow the same traditions and customs as men.

He also advised the young nationals not to make big commitments with regard to alimony at the time of marriage and follow the rules.

He said a decree by His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE, fixed it at Dh50,000 which applies only in case of marriages with the Emirati women.

While the marriages of UAE nationals with foreign women will be subject to what was agreed upon in the marriage contract with regard to alimony.

Bin Haider also informed that the second marriages have additional financial burdens such as leading the young men to deeper debt.

He called for dialogues between couples and urged resorting to solving family problems through discussions and listening to other party’s concerns. He emphasised that if husband listens to wife’s grievances, it will help solve a number of family problems and will lead to a happy life.

According to the National Center for Statistics, most of the marriages by UAE nationals with foreign wives end in divorce. For instance, there were 1,798 marriages with foreigners in UAE last year, and 695, or 39 per cent, of these marriages had ended in divorce.

EIDA launches online registration

2012-01-21T16:05:00.002+04:00

Persons applying for a renewal or a new national identity card need no longer to wait in big queues at registration centres as they can now benefit from an online registration service launched on Thursday.

With a click on a few buttons on their personal computer, applicants who have credit cards can now register while at home or office without the need to go through agonizing waiting at packed typing centres.

The Emirates National Identity Authority (EIDA), which is overseeing a nation-wide ID project, said the new services involves new registration, renewal of existing cards, and replacement of lost or damaged cards.

“Applicants can also check the status of their application online…payment can be done by credit card after the applicants register with EIDA website so they can be given a password,” EIDA said in a statement.

EIDA director general Ali Al Khoury said the new service, which is now confined to expatriates, would save time and effort for both the public and registration offices through the UAE.

“It also reduces the Dh70 fee paid by applications to registration offices by 40 per cent…once the applicants finish registration online, they will be given an appointment to go for stamping.”

He said the scores of ID typing and registration centres would continue to operate and serve those who do not wish to register online.

Deportees cannot return to UAE without Interior Ministry’s permission

2012-01-21T16:00:00.002+04:00

Expatriates deported from the UAE cannot return to the country, unless they have a judicial or administrative ruling or special permission from the Ministry of Interior.

This is in accordance with a new legal principle, issued by the Dubai Court of Cassation. A visit visa or a residence permit issued by the General Department for Residency and Foreigners Affairs (DGDRFA) stands void if there is no permission of the Interior Minister, the court ruled.

The principles were issued when the court considered the appeal of a foreign woman, who was fined Dh10,000 and was deported.

The Dubai Public Prosecution referred the woman for trial as she entered the UAE without the permission of the Interior Minister.

The Court of First Instance heard the case and fined her Dh10,000 to be followed by deportation. But the woman took the case to the Appeals Court, which upheld the ruling.

Unsatisfied by the two verdicts, she then moved the Court of Cassation, which issued the above principles.

The woman’s argument was that she had a residence visa and is sponsored by her Emirati husband.

But the Court of Cassation rejected her clarifications stating that Interior Ministry’s data as well as her fingerprints confirm the fact that she had been previously deported from the UAE under charges of prostitution. And that she later returned on a visit visa and then changed status to residence visa under the sponsorship of her husband. This, the court ruled, is in violation of the legal rule as well as the Interior Minister's decision.

The Court of Cassation based its ruling on Federal Law No. 6 of 1973, as amended by Law No. 13 of 1996 on entry and residence of foreigners.

Dubai urged to link visa to traffic record

2012-01-21T15:53:00.002+04:00

Dubai’s traffic police chief has suggested linking residence visa for expatriates to their traffic record within an ongoing campaign to curb road accidents and attain a zero death target in 2020.

Major General Mohammed Saif al Zafin also revealed the emirate is considering raising the penalty for using the mobile phone while driving, saying the present Dh200 fine is not a sufficient deterrent.

“There is a need to link the issuance of residence visas to the traffic record of expatriates in order to push some groups who top the list of offenders to abide by traffic laws in the emirate,” he said.

“Introducing stiffer penalties and then linking them to residence visas will have a great effect on drivers’ compliance and on reducing road accidents and deaths…the police do not at all want to harm any people in their livelihood but only want to ensure they respect the law.”

Speaking at a seminar on mobile phone use in cars held in Dubai on Thursday, Zafin referred to a recent traffic police report that Pakistanis top the list of road accident causers, adding that there should be measures to deter them. He also proposed cutting the extra speed limit for motorists.

“I believe the 20 km extra speed limited allowed in Dubai is exaggerated and must be reduced to 10 km,” he said.

“The speed limits in some Dubai streets are not compatible with those roads and should be either raised or reduced depending on the nature of the road.”

Speaking about mobile phone use in cars, Zafin said Dubai is considering raising the current fine on the grounds it does not deter drivers.

“The Dubai traffic department is looking forward to increasing the current Dh200 fine for using mobile phones while driving because this fine does not provide enough deterrent to drivers,” he said.

He noted that motorists can use mobile phones while stopping at red lights but added they must end it once the signal turns green.

Failure to register rent contract with Ejari result in fines for tenants from 2012

2011-12-27T09:54:00.000+04:00

Registration of rental contracts with the Dubai Land Department (DLD) will soon become a pre-requisite to accessing other government services, according to a top property regulator.

The Land Department and its regulatory body — the Real Estate Regulatory Agency (Rera) — has been trying to implement the system through a registration portal — Ejari.com.

The move will help the government to monitor the property market and offer better insights through its rental index while ensuring all tenants pay their housing fees regularly. Currently, these contracts are processed by the landlords. The rental data fed into the system is used to calculate the housing fees that are included on utility bills.

Registration of residential and commercial lease contracts through Ejari is mandatory and failure to comply may lead to a penalty, Gulf News has learnt. A Dh160 fee is chargeable to register a lease agreement with Ejari. The fee is payable by either party to the agreement.

The Ejari registration will be mandatory to obtain utility services. If the contract is not registered, transactions could be delayed at several government departments, principally the Dubai Economic Department and the Residence and Foreign Affairs Department.

Trends indicated by the Ejari data will be reflected in the rental index and will have a crucial role in updating it. Information about rental levels in specific areas, the demographic base and the kinds of property formats in favour can also be found.

"The decision is effective on every new contract to be signed in 2012; however, Rera is prepared to allow individual tenants with existing contracts to wait until these are due for renewal before seeking registration," Bin Ghulaita added.

"This regulation was announced a year ago and notices were sent out to parties concerned that the new rule would be effective by 2012. The Department will not accept any contract unless it is registered with Ejari."

According to the Rera, the rule applies to landlords and tenants in Dubai, real estate companies entrusted with the management of realty projects on behalf of others, as well as official agents of owners of commercial complexes and shopping centres.

Electronic images of cheques can be used as proof before UAE courts of law

2011-12-27T09:44:00.000+04:00

The UAE Central Bank said yesterday that it had obtained a decision by the Ministerial Council for Services to include images of cheques sent to the Central Bank electronically, among tools that are subject to the provisions of Federal Law No. (1) of 2006 concerning electronic transactions and commerce, and as document of proof before the UAE courts of law.

The decision based on the text of Article 2.3 of the law, also said electronic images can be accepted provided that the original cheques are kept with banks for cheque forgery case proceedings, as needed.

"Therefore, it has been decided to stop the sorting and exchange process of physical cheques at the Central Bank in Abu Dhabi and Dubai, starting from 29 February 2012," said a circular sent to all banks operating in the UAE.

Image cheque clearance system (ICCS) member banks have to keep the original cheques deposited with them for collection and stamp them with the following statement, before sending the cheque's images electronically to the Image Cheque Clearing System, said the circular: "True copy of cheque deposited with [xxxx] that undertakes to present it upon request."

The enhancement of the electronic image cheque clearing procedures will cut costs relating to cheque clearing and improve collection time.

The Central Bank also asked all banks to comply with the above requirements, keep the original cheques deposited with them for the legally binding period and present them upon request, starting from February 29.

The Central Bank said it is constantly endeavouring to develop and enhance services provided to banks and other financial institutions operating in the UAE.

Seatbelts mandatory for rear seat passengers in Dubai

2011-12-22T15:41:00.000+04:00

The General Department of Traffic of Dubai Police has prepared a new Bill which, once approved, will make it mandatory for rear passengers in vehicles to wear seat belts, according to Arabic dailies this morning.

The proposal says it will be the driver’s responsibility to ensure that all passengers in a vehicle are buckled up, and in the event of failing to do so, the driver may be fined.

Lt. General Engineer Mohammed Saif Al Zaffin said the proposal was made based on accidents in which rear passengers could have avoided injuries or even deaths had they been wearing seatbelts.

He added that the Police found that the risk for children sitting in the back seat doubled because they rarely buckle up, with their parents believing that sitting in the rear would automatically protect them in case of an accident.

He stressed that the draft law imposed on the driver to oblige the passengers sitting in the back seat to harness seat belts, and in case of a failure to do so, he will be subject to violation.

Dubai link residence visas to Emirates Identity Cards from April 1, 2012.

2011-12-15T10:52:00.000+04:00

Emirates Identity Authority (Eida) has announced that Dubai will link residence visas to Emirates Identity Cards from April 1, 2012.

ID card link to visas in Dubai will be compulsory from from April next year, said Eida, adding that the procedure will be co-ordination with the General Department of Residency and Naturalisation.

Eida stressed that ID card registration is mandatory for issuing and renewing residence visas in Abu Dhabi, Sharjah, Ajman, Fujairah, Umm Al Quwain and Ras Al Khaimah.

Meanwhile, the authority also said that it will open six more registration centres at the preventive medicine centres this month in Abu Dhabi, Dubai, Ajman, Ras Al Khaimah, according to an 'Al Khaleej' report.

The UAE will have a total of 26 registration centres by the year-end with the new additions. The new centres will be distributed in Ajman and Ras Al Khaimah, while in Dubai they will be located at Al Quoz, Satwa and Jafza. In Abu Dhabi the new centre will be located at Al Jazira.

Eida added that the centre in Al Quoz, Dubai can register about 700 people a day; the one in Satwa can register 1,000 people a day and 250 people can be handled at the Jafza centre.

No job ban for expats on Husband visa

2011-12-14T15:03:00.000+04:00

The UAE does not impose a work ban on expatriate employees sponsored by their relatives in case they want to shift to another job, according to the ministry of labour.

A ministry committee discussed several applications for job transfer and exemption of the six-months and one-year ban for some workers at its weekly open-day meeting .

One application was submitted by a female pharmacist who wants to be sponsored by her husband after the pharmacy where she had worked shut down, according to Alkhaleej newspaper.

The committee told the applicant she can get a new job after transferring visa to her husband and obtaining clearance from the former employer, the paper said.

“The committee made clear that the labour law allows a woman sponsored by her husband to shift to another job without having a work ban because a ban is not applicable on those who are sponsored by their relatives.”

Re-Entry certificate to UAE-if absent for 6 months or more

2011-12-13T13:16:00.000+04:00

Can I bring my daughter studying in a University in India to UAE even after her stay in India is more than 6 months?
She is having a residence Visa in Abu dhab.
Can she come if she shows her Student ID card.?

Answer:

No Residence Visa holder is allowed to stay more than six (6) months out of UAE. A Residence Visa holder staying more than six (6) consecutive months out of UAE, his/her Residence Visa will become null and void. However, if the Residence Visa is valid, the client may submit a request for a Re-Entry Permit. Before completing her 6 month stay in India, you must approch the immigration department and submitt application for extending her stay.

Filipino workers returning to Philippines during holiday season advised to secure travel exit clearances from Philippine missions in the UAE

2011-12-13T10:33:00.000+04:00

Dubai: As per Gulf news report, Overseas Filipino workers (OFWs) returning to the Philippines during the holiday season are advised to secure travel exit clearances from the Philippine missions in the UAE ahead of their scheduled departure to avoid hassles during their trip, a diplomatic official said.

"They should apply for the overseas employment certificate [OEC] before leaving the UAE to save them time and to avoid hassles and delays at Manila airports," Philippine Labour Attache Nasser Munder told Gulf News.

The OEC or the travel exit clearance is a document that proves that a returning OFW is in the Philippines for a holiday and intends to go back to the same employer abroad. Manila airport officials will not allow OFWs to return to their jobs abroad without the said document.

Task force formed

As the month of December is considered the ‘peak season' for returning OFWs, the Philippine Overseas Employment Administration (POEA) in Manila formed a task force earlier this month in anticipation of the arrival of thousands of OFWs who will spend the holiday season in the country.

OFWs in Manila usually begin queueing at the POEA main office as early as 4 am to get their OECs. Processing could take days and would sometimes need courier service for an additional fee. To avoid the long queues, returning overseas workers may apply for their OECs for a Dh10 fee at the Philippine Overseas Labour Offices in Abu Dhabi and Dubai.

"If the OFW brings all the necessary documents with him, he can get the OEC in a matter of minutes," Munder said.

Presenting an OEC at Manila airports exempts OFWs from paying travel tax and terminal fees, he added.

What you need

· Photocopy of passport with residence visa stamp.

· Filled-in application form.

· Additional documents for domestic helps and private drivers:

· Copy of employment contract with sponsor's signature.

Immigration Ban in UAE

2011-12-12T13:19:00.001+04:00

With the exception of UAE nationals, all other residents require permission from the UAE government to live in UAE.All non-Emirati require work permits to be employed in Dubai and UAE. They may be subjected to a work visa or entry visa. Ban depending on who they are and what they had been doing when in Dubai or UAE. An immigration ban means you cannot enter the UAE, whether as a visitor or for residency. Other bans can arise if you have been convicted of a criminal offence while in the UAE. Common offences that many expats get into trouble with are bad debts, bounced checks, drinking and driving, drunk in public, inappropriate relationships. Of course, more severe offences such as theft, violence, rape, murder etc will also result in an immigration ban but not so many expats indulge in these activities, and those that do are not usually so surprised to receive a ban.

An immigration ban can also arise if you have broken the rules related to immigration for example entering the country illegally, working without a work permit, absconding (leaving your job without informing your sponsor / employer), overstaying (this last one is not so likely to be a problem, just expensive when you get your overstaying fine).
Criminal offences usually result in a permanent ban and this is monitored via eye-scanning equipment at airports, so losing your passport and getting a new one won't get you back in to the country.

The draft Companies Law approved by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai

2011-12-05T11:34:00.001+04:00

Passing the new companies law,Shaikh Mohammed said move shows the government’s approach to enhance theflexibility and the strength of the national economy to keep pace with globaleconomic changes so as to maintain a steady and balanced growth pattern in alleconomic sectors in the country.

The new companies’ law ispassed as part of the government’s strategic approach to give greaterflexibility to set up various types of companies and strengthen corporategovernance of joint stock companies. It lays down a general framework for thegovernance of public companies to guarantee the rights of all shareholders andto ensure transparency and disclosure of financial data as well as theefficiency and integrity of the Board of Directors.

The cabinet also passed anorder restructuring the National Authority for Qualifications under thechairmanship of Labour Minister Saqr bin Ghobash Saeed Ghobash and fiveofficials representing various government departments as its members.

The cabinet also passed a lawregulating the work of experts in the courts of law in the country. The cabinetalso ratified a number of international agreements and budgets of some federalagencies.

The new companies law iswidely expected to allow foreigners orforeign companies to own 100 per cent of their businesses in the UAE in somesectors. It has been under consideration for several years now

Under the prevailing law,foreign ownership of businesses in the UAE is limited to a maximum 49 per centas nationals own 51 per cent. The current 49-51-equity law is applicable to allnationalities except those from within the GCC countries. At present,foreigners are given full business ownership rights in free zones across theUAE.

Also in the pipeline is legislationaimed at protecting foreign investments in the UAE.

Analysts believe that suchbold reforms will help attract foreign direct investments and bigmultinationals to the UAE mainland instead of to certain free zones where theyare currently confined.

The proposed law on foreigninvestment will address a key investor concern about protection againstcontract disputes and other legal issues.

It will further enhance theUAE’s position in the global competitiveness ranking by the World Economic Forum,analysts said.

Sultan Al Mansouri, Minister of Economy, saidthe new companies' law issued by the cabinet today contributes to enhance thecompetitiveness of the national economy at all local, regional andinternational levels as well as enhance the performance of the businessenvironment and investment climate in the UAE.

The Minister pointed to theimportance of being a new law that keep pace with local and global economicdevelopments and supports the economic openness and diversification policies.He also praised the remarkable cooperation of all federal agencies, local andprivate sector that have had a major role in expressing opinions andobservations that enhanced it content and effectiveness to comply withdifferent needs and economic requirements of the UAE.

The new law provisions of thelaw are stated as follow: Develop a general framework for corporate governancethat contributes to protecting the rights of shareholders and to achievetransparency and disclosure of financial data and the efficiency and integrityof the Board of Directors.

Entrusted to the Registrar ofCompanies at the Ministry of Economy to the task of supervising the record ofbrand names for different types of companies that are registered in anyemirate, in order to avoid repetition among them.

Did not identify minimumcapital for the companies with limited liability.

Allow the Cabinet to issue aresolution specifying the forms of businesses, activities or groups that mayincrease the share of foreign partner for 49% of the capital of the company andso may not reduce the ratio after the issuance of that resolution.

Authorized the shares forpublic subscription on the basis of the price of the security by one of thecompanies specialized in this field.

Unify standards and accountingprinciples, which the company must comply with when preparing interim andannual accounts and when determining the distributable profits.

Authorized exception to thepriority right to subscribe into new shares to shareholders in the followingcases: A. Allocating a proportion of the company's shares to its employees.

B. Entering a strategicpartner in the company.

C. Capitalization of the debt.

12. Allows the co-founders ofthe public shareholding company to the subscription in shares of not less than(30%) and not more than (70%) of the capital of the company. The new law alsoreduced the length of time spent in founding companies.

Labour ban still making life tough for workers seeking to change jobs in UAE

2011-11-29T14:52:00.001+04:00

Ministry consultant says new rules apply to companies that have closed down or no longer exist
Dubai: Workers have complained that the Ministry of Labour is still asking for approval from sponsors if workers wish to change jobs after two years.

Affected workers pointed to the ministry's earlier reforms to the labour law which did away with the need for a sponsor's approval for employees who have been with their sponsors for two continuous years. The workers complained that they were being slapped with one-year ban for failing to secure such approval.

The labour rules, which were implemented early this year by the Ministry of Labour, allow workers to switch jobs at the end of their employment contracts without the need for a no-objection certificate.

However, Hussain Hussain, a legal consultant at the Ministry of Labour clarified the new rules and said expatriate workers would still receive a one-year ban if they failed to get their sponsor's consent before changing employment.

"No one is allowed to switch jobs even if they complete many years in their [current job], without the consent of their sponsor," Hussain said.

He also said the new law allows workers to change employment in cases such as when the company employing them has closed down and no longer exists.

"But those workers will be given one-year ban if they do not file a complaint at the Ministry in less than two months after the [closure] of their company."

Ahmad Tajul Deen an Indian, employed in Dubai said he been with the same company for six years before the manager fled the country.
"My colleagues and I went to complain at the ministry after we lost hope that the manager would come back," he said.
"That happened three months [after the manager] left the country. The ministry stamped a one-year ban on each worker in the company."
Ameer, an Afghani PRO for a company in Sharjah, said that he went to apply for a visa for a new employee for his company.
Proof of cancellation

"I was told that the approval of the previous employer is required and the previous employer should show at the ministry that the visa has been cancelled, otherwise a one-year ban will be [slapped on] the worker," he said.

He said the ministry had not changed any rules and added that workers still needed approval of the sponsor to change jobs.

    January 1, 2011: New rules allow expatriate workers to seek new employment without a no-objection certificate
    The worker should have served out a two-year contract with the company.
    A worker with an expired contract can obtain a new work permit and shift to another employer without the passing of the six-month period and consent of his sponsor.
    The resolution says new employment permit will only be granted to the worker after the end of his work relationship amicably with his employer.

Dubai to enforce Dh50, 000 fines to end menace of illegal maids- Maids convicted first time deported for a year; Repeat offenders will get jail

2011-11-28T10:31:00.000+04:00

Domestic help must besponsored by their recruiters, according to a top DNRD (Department ofNaturalisation and Residency Dubai) official.

Similarly, employers hiringworkers who are not on their sponsorships will face Dh50,000 fine, he added.

Judge Ali Humaid bin Khatam,Head, Court of Naturalisation and Residency, said at least 70 per cent casespending with the departments prosecution involves those of housemaids.

Some of them are also believedto have entered the country illegally and a few others have been overstayingtheir visa periods.

Out of the 3,478 defendantsbrought to trial between June and October this year, 2,434 were housemaids.About 1,217 people are on trail for recruiting 'absconding maids', said BinKhatam.

First-time offenders includingabsconders will be fined and deported for a year after serving their jailterms. They can return to seek work in the emirate. However, repeated offenderswill be permanently deported from the country and can return only with aspecial permission from the Ministry of Interior.

Citing cases that appearedbefore the prosecution, Bin Khatam said one case involved an Arab woman whoallegedly accused her maid of stealing. Investigations revealed she had hiredthe help illegally and that she was not under her sponsorship. Therefore, ifconvicted, the Arab woman would be fined Dh50,000 while the maid would bedeported after serving jail term.

Similarly a European was finedDh50,000 for recruiting an 'illegal' maid who inturn was impriosoned for onemonth and later deported, he added.

However, there are also caseswherein househelps are exploited by their owners.

Balcony barbecue’ fine fixed at Dh500 --Trakhees Commences Campaign for Misuse of Balconies and Damage to Buildings Facades

2011-11-28T10:14:00.001+04:00

Trakhees Community ConformanceDivision (CCD), Department of Planning & Development – aims to maintain theaesthetic appearance of residential compounds in particular and of Dubai ingeneral. To ensure the commitment of residents in adhering to the rules andregulations applicable within its jurisdiction, CCD has undertaken a comprehensivecommunity-based awareness campaign among all users of these complexes whichincludes a range of awareness-raising posters and brochures in five languages:Arabic, English, Hindi, Urdu, and Chinese, all containing the followinginstructions:

- Do not install satellitedishes on the facades of buildings and balconies
- Do not use balconies asplaces of storage for any purpose other than seasonal furniture
- Do not shake or hang sheets,clothes or curtains or rugs or mops or laundry on balconies or railings ofhomes
- Do not light barbecues onbalconies of apartments

The aim of the campaign is toraise awareness in all segments of society, among residents or visitors ofthese complexes by reaching them in their place of residence. The outcome willbe to preserve upscale appearance, which is characteristic of the Emirate ofDubai by reducing the off-putting appearances which adversely impact theoverall aesthetics. The fine for misusing your balcony or damaging the façadeof the building in Trakhees-supervised residential communities will be Dh500per offence.

In a statement the authoritysaid initially officers would be warning residents not to misuse theirbalconies, set up barbecues, or fix any satellite dishes, and those failing tofollow the rules will be fined Dh500.

Areas under Trakhees’supervision, as per Degree No 22, includes, but not limited to Palm Jumeirah,Jumeirah Heights Jumeirah Village, Jumeirah Lakes Tower, Jebel Ali Downtown,International City, Discovery Gardens.

Last week Community Conformance Division (CCD), Department of Planning& Development of Trakhees has informed residents not to fix satellitedishes on the facades or balconies of their buildings; not to use balconies asplaces of storage for any purpose other than seasonal furniture pieces; not tohang sheets, clothes or curtains or rugs or mops or laundry on balconies orrailings of homes and not to have barbecues in their balconies.

Public and private sector to be closed from December 1-3

2011-11-27T11:59:00.001+04:00

The Ministries and public institutions will close on Thursday, December 01, 2011, and resume on Sunday, December 4, according to the circular issued on Friday by Humaid Al Qattami, Minister of Education and Chairman of the Federal Authority for Government Human Resources.

According to the circular, the Islamic New Hijri Year 1433 holiday has been moved to Thursday, December 1, as it coincides with the National Day holiday from December 2 to December 3, 2011.

Al Qattami congratulated President His Highness Sheikh Khalifa bin Zayed Al Nahyan; His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai; Members of Supreme Council, Their Highnesses Rulers of emirates, UAE people, Arab and Muslim countries, on advent of the new Hijri Year and UAE National Day anniversary.

Holidays for private sector

Next Thursday, December 1, 2011 will be a paid holiday for all workers of the UAE's private sector to mark the Islamic New Hijri Year 1433, the Ministry of Labour said in a statement.

The New Hijri year holiday was moved by the Ministry to next Thursday - December 1.

Next Saturday December 3, 2011 was also announced by the Ministry as a paid holiday for all workers of the UAE's private sector in celebration of the 40th anniversary of the UAE's National Day, according to the Ministry's statement.

The Ministry extended greetings and best wishes to President His Highness Sheikh Khalifa bin Zayed Al Nahyan, His HIghness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai; Members of Supreme Council, Their Highnesses the Rulers of the emirates, the UAE People and Arab and Muslim countries, on advent of the new Hijri Year and the occasion of the UAE national day.

Bank holiday

Banks will close their branches on Thursday, December 1, 2011, to mark the 40th anniversary of the UAE National Day as well as the New Islamic Hijri year, the Central Bank of the UAE announced in a notice.

"Banks are required to ensure that their ATMs are properly stocked with cash at all times," the Central Bank's notice said

Consumer Rights in Dubai and UAE

2011-11-23T11:33:00.000+04:00

The Consumer Rights Division of the Department of Economic Development promotes consumer rights and fair trading in Dubai by:

providing information and advice to consumers and retailer / sellers about their rights and responsibilities;

helping consumers resolve disputes with retailer / sellers;

investigating complaints about unfair trading practices;

regulating business activities

The Dubai DED is the only government department dedicated to raising awareness of consumers' and retailers' rights and responsibilities and through the Commercial Compliance and Consumer Protection Division, the Department will also deal with any relevant disputes.

To raise awareness of the Consumer Rights Federal Law (24) 2006 published BLUE BOOK

Consumer Code of Rights

1. Goods must meet a level of quality and performance that would be reasonable to expect, given their price and specifications.

2. Goods must be suitable for the purpose that the seller conveys to the consumer, and match the description given to the consumer

3. Services must be carried out with due care and skill

4. Materials used in connection with a service should meet customer requirements

5. Consumers have rights to remedies in the case that there are problems with goods or services provided:

Repairs, replacements and refunds depending on the nature of goods

Having services supplied again or refund its value if cannot be done again.

Consumer Rights Responsibilities

1. Understand product warrantees, guarantees, origin, storage, expiry and the method of use prior to making a purchase

2. Request a receipt from the seller and ensure that the details on the receipt are correct. Receipts should be kept for your records.

3. For products with an extended lifespan, ensure that you understand the details of the after-sale services and warrantees.

Consumer Rights as stated in Consumer Protection Law No. (24) 2006

The Right to Safety:

To be protected from products, production processes and services that may cause harm to health and safety

The Right to Know:

To know the accurate information concerning the goods and services (ex: original products, for food to mention expiry date & ingredients, others).

The Right to Choose:

Right to have multiple options of items and services in competitive prices and quality

The Right to Representation:

The right to express opinions to develop the goods, services, prices and availability

The Right to Be Informed:

Acquisition of knowledge and skill and awareness of consumer rights and responsibilities through continuous awareness programs

Retailer Service Provider Responsibilities

Avoid misleading advertising and provide consumers accurate information about their rights.

Policies regarding refunds, replacement, repair or rework for defective or damaged products and/or incomplete services should be clear.

Goods and services should be presented with clear information in Arabic and any other language in addition to displaying prices in UAE currency (Dirham).

All consumers should be provided with a dated detailed receipt.

Sellers of used or repaired goods should label the product condition visibly and clearly.

Offer products with valid guarantees and warrantees.

Services providers have to guarantee service quality for a period of time. If services are not carried out with due care, the service must to be provided again for free or refunded.

Ensure that employee’s knowledge is compatible with the range of products and services offered.

Shopping Advice:Before You Buy Goods Services

Think carefully about what you are buying and how you are going to use it.

Research retailers who hold the item / product that you are interested to buy;

Evaluate the various options for price, quality and how they meet your needs;

Shop around and get at least three quotes or prices. Not only do you get to compare value, but you also learn about different products, quality, after sales service and what suits you.

Ask for advice if you´re not sure.

Evaluate the various retailers to establish their consumer rights policy for returns, defects and refunds.

At The Sale

Ask the retailer to explain the product, warrantees, guarantees, origin, storage instructions, expiry and the method of use whilst at the outlet.

Do not be pressured into buying if you are not ready.

When purchasing products you should be given the same price if paying by cash or credit card.

When paying for goods ensure you collect and keep the receipt and check that the details are correct prior to leaving the outlet.

Where applicable collect and check the details of any warranties and guarantees and ensure they are correct before leaving the outlet.

Inspect the goods carefully at the retail outlet or immediately when arriving home .

Make sure the receipt contains the retailer details and a detailed description of the goods purchased, date and price.

Keep all invoices, warranties, receipts and invoices. You may need them later on !

After You Have Bought Goods And Services

If the goods are damaged or not to your specification then do not accept them and call / visit the retailer as soon as possible.

Please try and explain the issue to the retailer and where possible explain the defect in detail and ensure that you take all documentation ( original receipt and guarantees ) with you.

Allow the retailer the opportunity to resolve the issue.

If you are not satisfied with the retailer’s response please contact the consumer protection section at DeD.

If you have been misled and the product you purchased is not what you asked for then please contact the retailer and allow them the opportunity to resolve the issue.

Steps to help you resolve your issue

Consumer Rights provides a service to help you to resolve your complaints with retailer / sellers or businesses in Dubai.

If we believe the retailer / seller has acted inappropriately, you can lodge a complaint with us and we will follow our normal complaint handling processes to try to resolve the complaint. It is in your interests to shop with retailers and service providers who display the ´we support consumer rights´ stickers as they are following the Federal Law and will be aware of their rights and responsibilities.

Consumer Complaint Checklist

You may find the Consumer Complaint Checklist useful for checking off what records you need to keep and for useful tips on getting you through each step. Please contact us if you just want to make an enquiry or you need any assistance.

These four steps may help you resolve your problem with a shop or business:

1, Know your rights and responsibilities Find out about your rights and responsibilities. Before you go back to the shop or business, it´s helpful to know where you stand legally. You may have more rights than you think or the shop or business may be within their rights. Knowing where you stand can help you argue your case.

2, Talk to the shop or business involved Sometimes a problem can be sorted out most effectively and efficiently just by sitting down together and talking things over. Keep a list of the phone calls you have made and the people you have spoken to.

3, Put it in writing If talking it over doesn´t work, put it in writing. This will be useful if you need to take further action.

4, Make a formal complaint if your problem still isn´t resolved after following steps 1,2 and 3, you can contact Consumer Rights to make a formal complaint.

Talk to the retailer / seller

In most cases an issue with a business or retailer / seller can be resolved pretty quickly just by explaining the situation and offering a mutually acceptable solution.

Tips on how to approach the situation:

Talk it over with an appropriate person in the organisation, for example the owner, a local manager or the customer relations manager.

Take note of who you speak to and when, in case you need to make a formal complaint later.

State your problem calmly, saying who you were dealing with and explaining clearly what happened.

Let them know what you want them to do, for example, replace the item, refund your money, or rectify the fault. Listen to what they have to say. They may be able to suggest a solution you hadn´t thought of that resolves the situation to your satisfaction.

Give them a reasonable amount of time to fix the problem.

Talk to them about when the problem may be fixed. Agree on an acceptable date and make sure you both understand what will happen by when.

Give them your contact details so they can contact you if necessary.

Be polite and treat them as a professional.

Putting it in writing

If you haven´t resolved your issue with a phone call or visit, follow-up with a letter

Provide details about the issue and your attempts to resolve it.

Quote your reference, agreement or account number if you have one.

Enclose a copy of any receipt, proof of purchase or any other relevant documents.

Don´t send originals.

Keep a copy of your letter.

Check you have the correct name and address.

How It Works

Consumer Protection will contact each person involved in the dispute to try and find a satisfactory resolution. While the aim is to resolve most complaints within 30 days, this isn´t always possible if the issue is complicated or there is a lack of co-operation.

If the complaint isn't resolved

If a mutual agreement is not possible, Consumer Rights will advise both parties of their recommendation based on the Federal Law. Should the Buyer be acting outside of their rights as per the Federal Law, they will be advised to drop the case based on Federal Law Directives which will be explained to them in detail.

Should the buyer be acting within their rights as per the Federal Law the seller will be requested to resolve the dispute with clear details of why the case is valid. Should the seller / retailer not comply with the original recommendation from DED a company representative will be requested to visit DED to discuss the matter and to resolve the case.

What if the law has been broken ?

In this case, Consumer Protection will inform the shop or business and try to remedy the situation. Where appropriate legal action may be taken e.g. in cases of fraud or where retailers knowingly sell counterfeit goods. This will help to resolve your dispute and also help to prevent future problems for other consumers.

How to contact us

There are several ways in which you can register a complaint at DED, these include telephone, fax, email, website or a personal visit to DeD consumer protection division.

In all instances you will be expected to provide your name and contact details, full details of the retailer / service provider and a description of the case to be lodged. You should ensure that all supporting documents related to the case are with you at the time of lodging your complaint.

The Consumer Protection division will provide you with a unique case number which should be quoted when enquiring about the progress of your case which we will seek to resolve within 2 working days.

Call ´Ahlan Dubai´ +971 600 545555

Fax +971 4 450 3996

Email consumerrights@dubaided.gov.ae

Pregnant staff can get 15 days off before delivery

2011-11-16T13:08:00.000+04:00

Fatwa says any sick leave taken before that date should not be included; Maternity leave must be 60 days with full salary
Pregnant female workers in the UAE are entitled for 15 days off before delivery and any sick leave taken before that date should not be included, according to a the country’s top Islamic legislation body.

The Fatwa and Legislation Department at the Ministry of Justice was responding to a query by a government institution on whether sick leave taken by a pregnant female employee should be included in her pre-delivery leave.

“The maternity leave must remain at 60 days with full salary for two months and the pregnant employee is entitled for a pre-delivery leave of a period not exceeding 15 days,” the Department said in a new fatwa (Islamic edict).

“A sick leave taken by pregnant women must not exceed one week and must be approved by an authorised doctor…this period should not be included in the pre-delivery 15-day leave for pregnant employees.”

If sick during annual leave, you get extra days off

2011-11-16T13:02:00.000+04:00

Employees falling ill during their annual leave must be compensated for the duration of the sick leave given to them by authorised doctors, according to a new fatwa (Islamic ruling) in the UAE.

The Fatwa centre at the Ministry of Justice issued the new edict in response to a query by a local government department about a female employee who was given a 26-day annual leave, during which she fell ill.

The department said the employee presented a medical report showing that she had received treatment for 20 days during her annual leave and that she asked the department to compensate her for the sick leave days.

“A sick leave and a normal leave should not be linked…in case the sick leave happens during the normal leave, then it must be considered as a sick leave, which must be deducted from the normal leave.”

Companies can take dispute cases to Dubai International Financial Centre ( DIFC) courts

2011-11-01T15:34:00.000+04:00

Dubai: Companies will now be able to choose to have dispute cases heard in English common law courts.
A new law will allow businesses from Dubai and across the Gulf to use the courts of the Dubai International Financial Centre (DIFC), meaning that they can avoid the backlog that has plagued Dubai's traditional civil courts.
The move, which has been welcomed by both lawyers and local businesses, is likely to boost the workload at the DIFC, lawyers say, as companies are drawn to the opportunity to be awarded costs — an option not available in civil cases.
Major impact
But experts also point out that it will be some time before the law, signed by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai yesterday, has a major impact on the DIFC courts.
The option to choose the jurisdiction of the DIFC will have to be written in new contracts, except in cases where the parties in existing disputes agree to have the case heard outside of the civil courts.
Nonetheless, lawyers were upbeat about the news last night.
Positive thing
"It's a positive thing and will be viewed positively by quite a lot of the international companies doing business in this region," Alec Emmerson, a consultant at Clyde and Company, told Gulf News.
Justice Sir David Steel, Associate Judge of the DIFC, said that the importance of the law was to give potential litigants the option of choosing civil or common law courts.
"It's a question of whether the initial participants in the dispute are enthusiastic about going to the Dubai courts or whether they would prefer to go the common law court," he said.
Steel added that while the ruling may eventually see an increase in cases before the DIFC, he did not anticipate a need for more resources.
"We will play it by ear," he said.

Eid holidays start from November 5 for private sector

2011-11-01T15:19:00.000+04:00

Private sector employees will get a break from Saturday until Monday (November 5-7), according to the circular issued today by the UAE Ministry of Labour.

The circular issued today by Saqr Ghobash, Minister of Labour, stated that the official holiday covers private sector corporations and firms in the UAE. Employees of the private sector will get a paid Eid Al Adha holiday from Saturday to Monday.

He congratulated President His Highness Sheikh Khalifa bin Zayed Al Nahyan, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, and Members of Supreme Council, Their Highnesses Rulers of emirates, UAE people, Arab and Muslim countries, on advent of Eid Al Adha.

Public sector holiday until November 8

Ministries and federal institutions across the UAE will observe Eid Al Adha holidays starting from Saturday 5th until Tuesday 8th November 2011.

Residents on family visa can seek employment like any other person - Ministry of Labour issues clarification

2011-10-11T11:08:00.000+04:00

Residents who are on their family visa have a right to seek employment under contracts of both, limited and indefinite durations, just like any other person in the UAE.

This was stated during a weekly meeting of the Ministry of Labour and representatives of various institutions on Monday, according to an Al Khaleej report.

A no-objection certificate for such work permits has to be cleared and granted by the ministry, but officials clarified that there is some confusion at typing centres, that those on family visas can only work on fixed-term contracts.

An official said: “This is not true.”

Officials added that the ministry is the only body authorised to apply a six-month ban in the absence of en employee violating a two-year contract.

This came in response to a complaint submitted by a worker, where he said the company canceled his labor card and claimed to impose a ban after he was terminated by the facility.

Fines on late ID card renewal effective November 1-Emirates Identity Authority

2011-10-03T11:32:00.000+04:00

Residents who fail to renew ID cards within one month after expiry will be fined Dh20 per day, according to Emirates Identity Authority (Eida).

Arabic daily 'Emarat Al Youm' reported that residents with expired cards beyond 30 days will be fined a maximum of Dh1,000. All residents, expect children under 15 years of age, must renew cards within a month.The fine will not be calculated on the remaining years of residence visa, the authority clarified. Applicants have complained that some typing offices have been charging fees proportionate to the remaining years of residence visas.

Beginning November 1, residents who delay renewing their ID cards will be fined, according to Emirates Identity Authority (Eida).According to a report in 'Al Khaleej' the fines will be imposed as per the Executive Council of Ministers’ Decree No. 25 of 2011.

The authority had earlier announced that residents who fail to renew ID cards one month after expiry will be fined Dh20 per day to a maximum of Dh1,000.

Residents who possess receipts of registration will be exempt from paying fines provided they complete the application process within the valid period, Eida added.

The authority confirmed that children under 15 years of age will be reprieved from paying fines for another year. They will be fined only beginning October 1, 2012.Meanwhile, an Eida team will begin coordinating with Ministry of Health and relevant health registration bodies to record newborns and help categorise age group registrations.

Two-year residence visa rule in UAE applies ONLY to private sector workers

2011-09-25T10:14:00.000+04:00

The recently introduced two-year residence visa rule only affects private sector workers, a senior official from the Ministry of Interior clarified.

The term of the labour card, which is issued to private sector employees, has recently been reduced from three to two years — which also means the term of the residence visa for those who work in the private sector has been reduced.

Major General Nasser Al Awadi Al Menhali, Acting Assistant Undersecretary at the Ministry of Interior for Naturalisation, Residency and Borders, Gulf News report says that only those who work for private companies and who need to be issued with a labour card from the Ministry of Labour will have a two-year visa.

Same period

"All other expatriates who work in the country, including those who work for government, semi-government companies, NGOs such as charitable organisations, investors, and all those who have their labour permits and residency issued only from the residency department have a three-year visa," said Major General Al Menhali.

He said family members, including spouses and children, will have the same visa period as their sponsor.

"If the sponsor's visa is for two years the family members' visa including wife/husband and children will have their visa for two years and if the sponsor's visa is for three years they will have their visa for three years," said Major General Al Menhali. He explained the residency department has not reduced the length of the visa and it is still three years for everyone. "When we get an application for a residence visa we look at the validity of the labour card issued by the Ministry of Labour; if it is for two years then we will issue a two-year residence visa," he explained.

He said the ministry is studying significant amendments to the current law which deals with residency and foreigners' affairs

No fines on private sector during Eid

2011-08-28T11:48:00.000+04:00

Private sector firms which default on extending labour cards and other papers will be exempted from penalties during Eid al Fitr but they should finish all papers just after the end of the holiday, the Ministry of Labour has said.

The exemption covers all private sector transactions at the labour ministry, mainly labour cards which require employers to pay fines in case they do not renew them 60 days after they expire. Under the labour law, employers must pay Dh1,000 for each delay month.

“The ministry will not impose fines against companies which default in their transactions during Eid holiday,” the semi official Arabic language daily 'Al Ittihad' said, quoting an unnamed ministry official.

“All companies are required to immediately come to the ministry and finish those transactions just after the end of the holiday.”

Government departments will remain closed from Sunday (Aug 28) until Saturday (Sept 3). They reopen on Sunday (Sept 4).

‘Fine’ plan for not registering for ID cards

2011-08-20T22:32:00.000+04:00

The Emirates Identity Authority (Emirates ID) has announced that it is working on a plan which authorises it to impose fines on residents who fail to register for the national ID card.

According to a Gulf News report, a statement issued by the authority said it is working out a plan for the Prime Ministerial Decision No. 25 for 2011, published in the UAE Government Gazette recently.

"The Authority will put together a robust mechanism to fully implement the Prime Ministerial Decision, which will be effective within 60 days from its date of issue," Gulf News quoted the statement without elaborating on further details.

When contacted, a spokesman of the Emiartes ID said it will announce the implementation plan soon, which will specify what category of residents will be fined for not registering for ID cards.

The government had previously fixed December 31, 2010 as the deadline for both Emiratis and expatriates to register for ID cards. However, the deadline has since been extended.

Doing a Business in UAE

2011-08-17T10:42:00.000+04:00

Legal Structures for Business in UAE

Earlier, each emirate followed its own procedures governing the operations of foreign business interests. In practice, however, Dubai and the other emirates followed the same general system, whereby foreign companies operated in one of three ways: with a local sponsor, through a partnership with a UAE national or company, or through a private limited company or public shareholding company incorporated by Ruler's decree.

Since 1984, steps have been taken to introduce a codified company’s law applicable throughout the UAE. Federal Law No. 8 of 1984, as amended by Federal Law No. 13 of 1988 - the "Commercial Companies Law" - and its by-laws have been issued. In broad terms the provisions of the Law are as follows:

The Federal Law stipulates a total local equity of not less than 51% in any commercial company and defines seven categories of business organisation which can be established in the UAE. It sets out the requirements in terms of shareholders, directors, minimum capital levels and incorporation procedures. It further lays down provisions governing conversion, merger and dissolution of companies.

Ownership Requirements

51 % participation by UAE nationals is the general requirement for all UAE established companies except:

1. Where the law requires 100% local ownership

2. In the Jebel Ali Free Zone

3. In activities open to 100% AGCC ownership.

4. Where wholly owned AGCC companies enter into partnership with UAE nationals.

5. In respect of foreign companies registering branches or a representative office in Dubai.

6. In professional or artisan companies where 100% foreign ownership is permitted.

The basic requirement for all business activity in Dubai is one of the following three categories of licences:

· Commercial licences covering all kinds of trading activity.

· Professional licences covering professions, services, craftsmen and artisans.

· Industrial licences for establishing industrial or manufacturing activity.

These licences are all issued by the Dubai Economic Department. However, licences for some categories of business require approval from certain ministries and other authorities: for example, banks and financial institutions from the Central Bank of the UAE; insurance companies and related agencies from the Ministry of Economy and Commerce; manufacturing from the Ministry of Finance and Industry; and pharmaceutical and medical products from the Ministry of Health.

More detailed procedures apply to businesses engaged in oil or gas production and related industries.

Practising some trade activities (e.g. jewellery and insurance) requires the submission of a financial guarantee issued by a bank operating in Dubai. In general, all commercial and industrial businesses in Dubai should be registered with the Dubai Chamber of Commerce and Industry.

Company Formation UAE may take one of seven forms:

1) Public Shareholding Companies

2) Private Shareholding Companies

3) Limited Liability Companies

4) General Partnerships

5) Limited Partnerships

6) Partnerships Limited by Shares

7) Shareholding Companies

Each entity must be registered and licensed with the UAE Federal Ministry of Economy and Commerce and with the appropriate authority in the Emirate in which its office will be located.

Public share holding company

Public shareholding company formation uae is a company with a capital divided into equal negotiable shares. In such companies a shareholder’s liability is limited by the number of shares held by him.

Minimum capital required to form a public share holding company in uae is AED 10 million with a nominal face value of AED 1-100. Shares are registered in a share register and cannot be issued lower than the nominal value. All shares must have equal rights.

The Board of Directors must have a minimum of three and not more than twelve directors. The chairman, as well as a majority of the board, must be UAE nationals for public share holding company formation uae.

Private Shareholding Company

Another company formation uae is private share holding company. A private shareholding company must have a minimum of three shareholders. The minimum share capital to form a private share holding company is AED 2 million.

Shares may not be offered to the public. The Chairman and majority of the Directors in a private shareholding company must be uae nationals.

Limited Liability Company

This type of company formation uae is widely accepted way to business. Under the Commercial Companies Law or CCL (Federal Law No. 8 of 1984 Concerning Commercial Companies as amended by Federal Law No 1 of 1984 and Federal Law No 13 of 1988, Federal Law No. 15 of 1998), foreign investors are permitted to hold up to 49 per cent equity ownership in UAE companies, 51 per cent of the equity must be held at all times by one or more UAE nationals

This type of company formation uae can be formed by a minimum of two and a maximum of fifty persons. Shareholder liability is limited to the value of shares held in the company’s capital.Non UAE nationals may own up to 49 percent of an LLC. The Companies Law provides that an LLC may engage in any lawful activity except insurance, banking and investment of money for others.

The following steps are required in establishing a limited liability company in Dubai.

· Select a commercial name for the company and have it approved by the Licensing Department of the Economic Department;

· Draw up the company's Memorandum of Association and have it notarised by a Notary Public in the Dubai Courts;

· Seek approval from the Economic Department and apply for entry in the Commercial Register;

· Once approval is granted, the company will be entered in the Commercial Register and have its Memorandum of Association published in the Ministry of Economy and Commerce's Bulletin. The licence will then be issued by the Economic Department;

· The company should then be registered with the Dubai Chamber of Commerce and Industry

General Partners

General Partnership company formation uae is a type of company where all the shareholders are jointly liable for the company liabilities to the extent of their assets. All the partners should be UAE nationals. General partnerships are formed by two or more UAE nationals who are jointly and severally liable for its debts. Interests of a partner can be transferred as stipulated in the partnership agreement or with the approval of all partners.

Limited Partnership

A limited partnership is another type of company formation uae which composed of one or more general partners who are jointly and severally liable for all of its debts, and one or more limited partners who are liable for the limited partnerships debts only to the extent of his capital contribution.

A partnership limited by shares has both general partners with unlimited liability and partners whose liability is limited by their shares in the capital. The capital must be at least DH 500,000 and has to be divided into negotiable shares of equal value.

Joint Ventures

Another company formation uae is Joint Participation is a form of company consists of two or more partners for carrying out a single or multiple businesses by one of the partners in his own personal name.

This is a contractual agreement between a foreign party and a local party licensed to engage in the desired activity. The local equity participation in the joint venture must be at least 51%, but the profit and loss distribution can be prescribed.

There is no need to license the joint venture or publish the agreement. The foreign partner deals with third parties under the name of the local partner who – unless the agreement is publicized – bears all liability.

A joint venture is a type of company formation uae where contract may be written or oral and not required to be notarized. Third parties can recourse only to the partners with whom they deal.

Termination of Employment Contract in UAE

2011-08-11T15:04:00.000+04:00

1. When the contract is terminated?

It is terminated in the following cases:

- If both parties agree on its termination, provided that the worker's consent is given in writing.

- If the limited contract expires, unless tacitly or expressly extended.

- If the employer resigned the worker or the worker submitted his resignation in the unlimited contracts, provided that each of them shall notify the other according to the law.

2. Is the contract terminated by worker's or employer's death?

Article (114). Employment contract shall not be terminated by employer's death, unless the subject of the contract is connected with his own person. But the contract is terminated by worker's death or his total disability, on a condition of providing an approved medical certificate for the same.

3. If the worker's disability is partial, is the employment contract terminated?

If the disability is partial, he can perform other works according to his health condition … an employer shall, according to a request from the worker, shall shift the worker to another position suitable to the worker, And to pay him the salary given at such position.

* Example: a worker is injured.. His injury is partial as per a medical report.. The worker then requested from the employer to shift him from his current position (builder) to another one suitable with his health condition (guard) .. There, the employer shall pay the worker a monthly salary of (guard) , not a salary of his last position ( builder).

* Cancellation Of The Limited Contract By Employer And Worker First: cancellation of the limited contract by employer:

4. My contract is a limited contract and the employer dismissed me without a legal reason, am I entitled to compensation for the injustice dismissal?

Article (115) : If the employer dismissed you and revoked the contract without the reasons provided in the article ( 120) , he shall compensate the worker by a pay of (3) months or the period remained from the contract , whichever is shorter … unless otherwise provided by the contract.

* Example: a worker with limited contract started from 10/1/ 2005 and expires on 9/1/ 2008 … and the employer dismissed him without a reason or justification in 3/2/2007 .. Here, the worker is entitled for a compensation against the injustice dismissal , payment for ( 3) months.

* Example: a worker with a limited contract started from 10/ 1/ 2004 and expires on 9/ 1/2007 .. the employer dismissed him without a reason or justification in 3/12/ 2006 .. here, the employer shall compensate the worker for the injustice dismissal for the remaining period of the contract. Namely, he was dismissed in 3/12/2006 before his contract expires in 9/1/ 2007 .. so the remaining period as from date of dismissal to the date of expiry of the contract is = (37) days … and it is the period for which the worker is entitled for compensation by the employer .. (This is the explanation for phrase of “the remaining period from the contract).

5. Is the compensation for injustice dismissal calculated on the basic salary or the total salary?

Compensation is calculated on the total salary received by the worker According to the article (115) in which it is mentioned the word (remuneration) … and the remuneration is provided for by the labour law, … article (1). (Remuneration): “All payments made to the worker on a yearly, monthly, weekly, daily, hourly, piece work, or production or commission basis. Remuneration shall include raise of living and include as well any grant given to the worker as a reward for his honesty or efficiency if such amounts are provided for in the contract of employment or in the internal regulations of the establishment or have been granted by custom or common practice to such extent that the workers of the establishment regard them as part of their remuneration and not as donations " Second: Revocation Of The Limited Contract Of Association

6. My contract is a limited contract and I submitted my resignation before my contract expires; shall I pay compensation to the employer for revocation of the contract? …

Article (116): Where the contract is broken by the worker before the limited time the Worker should by 45 day from his total salary or the residual period of the contract whichever is shorter

7. I worked with the employer for two years and my contract is limited by (3) years and I obtained a work opportunity at another place …. Is the employer entitled to deduct (45) from my dues for non- completion of the contract of employment?

According to what has been mentioned into these questions: In all cases and according to the article (116): If the contract of the worker is with a limited period and he submitted his resignation before expiry of the contract without the reasons provided for in article (121)., the worker shall compensate the employer for What he has sustained from damage sue to revocation of the contract through compensating the employer by half of remuneration of the last three months or the remaining period from the contract , or whichever closer , unless otherwise provided for by the contract.

* Example: a worker with a limited period contract for (3) years .. he worker two years and ( 11) months … and he submitted his resignation , here, he shall compensate the employer by a half of remuneration of the last three months or the remaining period from the contract , or whichever closer from them , unless otherwise provided for in the contract.

8. My contract is a limited and it has not been expired yet, may I submit my resignation and serve for one moth of notice?

As for the limited contracts, there is no one month of notice … because the one month notice is for the unlimited contract .. therefore , the worker shall compensate the employer by a half of remuneration of the last three months or the remaining period from the contract , or whichever closer from them , unless otherwise provided for in the contract.

* Example : a limited contract started from 4/3/2005 and expires on 3/ 3/ 2008 , and the worker submitted his resignation in 5/6/ 2006 .. here, the worker shall compensate the employer by a half of remuneration of the last three months or the remaining period from the contract , or whichever closer from them , unless otherwise provided for in the contract.

9. I submitted my resignation before ( 6) months from expiry of my limited contract and the employer wants to deduct a remuneration of 45) days , is he entitled for so ?

As per the article (116) from the labour law … the employer is entitled to deduct from the total remuneration.. due to your revocation of your contract of employment with no reason

10. A worker with limited contract which will be expired after one year submitted his resignation due to his personal circumstances: ( family problems at his home country) or ( he obtained another job) shall he pay the compensation amount ?

Yes, the employer is entitled to demand the worker for the compensation amount, because these are personal matters

11. How the compensation is calculated, on the basic or total salary?

It is calculated on the last remuneration received by the worker.

* Termination Of The Unlimited Contract Of Employment By Employer And Worker: First: termination of the employment contract by worker: article (117).

12. I am employed under a labour contract of unlimited period, and I want to leave my present job. What should I do?

- This labor should submit his written resignation letter…And should mention in it that he want to work for a period of one month only, and this one month period shall represent the notice period fixed in one month.

13. I have terminated the service of one labor employed with me under a labor contract of unlimited period; do I need to give him a notice of one month?

- Yes… because, based on Article No. 117, if the employer is desirous to terminate the service of any of his employees, he should do so in writing and should give him a notice of one month as per the law…except in case of termination pursuant to Article No.120

14. I am employed under a labor contract of unlimited period…and I receive my salary on per diem basis…, how can I send a notice to my employer in case I have submitted my resignation?

Article No. 117

- The notice can be send by per diem labors as follow:

1- If the labor has worked for a period exceeding 6 months and less than one year, he should sent a notice of (one week) to his employer.2- If the labor has worked for a period not less than one year, he should send a notice of (two weeks) to his employer.

3- If the labor has worked for a period not less than five year, he should send a notice of

(one month) to his employer.

* Example (1): A labour with a labour contract of unlimited period, who worked with his employer for a period of 7 months for a salary of DHS. 25/day…If such worker needs to resign, he should give a notice of one week to his employer commencing from the date of his resignation letter * Example (2): A labour with a labour contract of unlimited period, who worked with his employer for a period of one year for a salary of DHS. 30/day…If such worker needs to resign, he should give a notice of two weeks to his employer commencing from the date of his resignation letter

*Example (3): A labor with a labor contract of unlimited period, who worked with his employer for a period of five years for a salary of DHS. 50/day…If such worker needs to resign, he should give a notice of one month to his employer commencing from the date of his resignation letter

*Example (4): A labor with a labor contract of unlimited period, who worked with his employer for a period of three years for a salary of DHS. 20/day…If such worker needs to resign, he should give a notice of two weeks to his employer commencing from the date of his resignation letter

15. If the employer or the worker refused to receive the termination or resignation letters, how can we proof the same?

- Both parties should resort to the Labor Relation Department…As for the worker, he should continue in performing his duties in case he has submitted a compliant.

16. I have submitted my resignation letter to my employer, knowing that I am working under unlimited labor contract, do the said one month notice to be calculated within the total service period?

Article No. 118 - Yes, such period shall be calculated within the total service period provided that the worker has actually worked within the said period

17. I have worked during the notice period of one month after I have submitted my resignation letter… And after the notice period has expired, my employer asked for an extension of the notice period without any reason. Shall he have the right to do the same?

The employer may extent the notice period after the worker has completed his work in that period, but the same should be under the consent of both parties.

18. I have submitted my resignation letter to my employer, knowing that I am working under unlimited labor contract besides, we have already, me and my employer agreed to reduce the notice period, what shall be my legal position in such a case?

The one-month notice period may neither be reduced nor may the month period be relieved from even if the same has happened under the consent of both parties… but the respite period may be increased, (the month notice)

19. How can the month notice allowance be calculated if the worker has submitted his resignation letter or if the employer has terminated the service of the worker…and the worker has already done his duties during the said period?

- It shall be calculated based on the last salary received by the worker.

* Example: A labor with a labor contract of unlimited period, and who worked with his employer for a salary of DHS.2000… but at present time, he receives DHS. 3000 as the employer has increased his salary

- In this case, the worker shall have the right to receive the one month notice salary based on the last salary he received from his employer which amounts to DHS. 3000

20. I have worked with my employer for a period of one year under a labor contract of Unlimited period, yet I have submitted my resignation letter… and I have worked during the notice period of one month, but it was stipulated in my labor contract that if I submitted my resignation, I should work for 3 month as a notice period…Do I need to be bound to such condition?

- Yes, the labor should be bound to the one month notice period, (3 months), if his contract so requires.

21. In case the worker has submitted his resignation letter, but he suddenly ceased working before completing the one month prescribed notice period, what shall be the legal action in this case?

Article No. 119 If the worker didn’t work during the notice period or if he didn’t complete the prescribed period…he should, in this compensate the employer with an allowance called: (the notice allowance) and this shall be through the last salary received by him from his employer.

22. in case the employer has terminated the worker’s unlimited labor contract and didn’t ask the said worker to work during the notice period…, or if he has reduced the notice period, then What shall be the legal action towards such case?

- If the employer has terminated the service of his employee, he should, in case he is not desirous to avail the work of his employee during the notice period, pay to the worker the one month notice period’s salary based on the last salary received by the worker. And in case the employer has terminated the service of his employee after the later has worked for a limited period from such notice period, then the employer should compensate his said employee for the remaining period.

* Example: The employer has terminated the service of his employee, whereas such employee has worked for 20 days from the one month notice period, but the employer has asked him to cease working…In this case, the employer has to compensate the worker also for the remaining period which amounts to 10 days.

23. A worker was terminated by the employer after the former has worked for 11.5 months…whereas the employer has paid him the value of the one month notice period, do such worker deserves the end of service gratuity?

- The worker shall not have the right to obtain the end of service gratuity as he didn’t work during the one month notice period.

24. If the worker has submitted his resignation letter and was ready to work during the one month notice period…and the employer has waived such period, do such worker deserves the allowance of the one month notice period?

- Yes, he shall have the right to claim for the allowance of the one month notice period.

25. In case the worker has submitted his resignation letter and took a leave… or resigned during such leave period…shall the said one month notice period become invalid?

- No, it shall not become be invalid and the worker should work for the one month notice period.

26. May the employer terminate the worker without notice?

Article: (120) - Yes it is possible in some cases including:

1- If the worker has impersonated a false personality or nationality or if he has presented forged documents or certificates.

2- If the worker is still in the probation period and was dismissed within or at the end of such period.

3- If the worker has committed a mistake out of which a great loss has resulted to the employer…provided that such employer has already reported this case to the Ministry of Labor within a period of 48H from being informed by the incident.

4- If the worker has violated the work safety instructions or the work place, provided that such instructions were in writing and displayed in a prominent place.

5- If the worker hasn’t performed his main obligations as per the labor contract…and continue in so doing in spite of a written investigation made with him for this purpose and of noticing him not to repeat this violation, otherwise he shall be liable for termination.

6- If the worker has been finally adjudged by a competent court for a crime damaging honour, general morals or for breach of trust.

7- If he had disclosed the company’s confidential information.

8- If he was found drunk or using drugs during the work hours.

9- If he had assault his employer, the manager in charge or any one of his colleagues during the work hours

10- If the worker is absent without presence of reasonable cause, for: - More than discontinuous 20 days during the year. - More than 7 continuous days.

Note: In all the above cases, the employer should prove the occurrence of the relevant incident.

* Example: I have worked with my employer…and he has accused me for the crime of breach of trust…an investigation in the matter was carried out and as a result I was finally adjudged for a fine and imprisonment… ACCORDINGLY, the employer terminated service…so I am claiming for the amount of the notice period and the compensation such termination.

- The worker shall not have the right to have the amount of the notice period based on Article: 120 of the labor law as such worker was dismissed as a result of breach of trust…so the employer shall have the right to terminate him without notice.

* Example: I have been absent from duty for more than 7 continuous days…when I am back to work, my employer dismissed me without any reason… I am claiming for the amount of the notice period.

- The worker shall not have the right to have the amount of the notice period if he was absent without reason for 7 continuous days… but if he has any reason, such as an approved sick leave, his employer shall not have the right to dismiss him.

27. If the employer is having a right to dismiss the worker without notice…, shall such worker have the right to leave the work without a notice?

Article: 121: - The worker may have such right in the following two cases:

* If the employer has violated his obligations before the worker with respect to the terms provided for in the contract and the law.

* If an assault had happened against the worker from the employer or from his representative.

Note: The worker should prove the occurrence of both cases.

* Example: I am working with my employer… but he didn’t pay me the salary of 3 months…so I have left the work…but my employer is claiming for the notice period?

- The employer shall not have the right to claim for the notice period as he has violated the law and the labor contract based on Article: 121

28. My employer has dismissed me without any reason after I have passed the probation period… do such dismissal considered arbitrary?

Article: 122 - If the employer has dismissed the worker, after the probation period without any reason, or if the reason of such dismissal has no connection with the work or if it is due to a compliant to the concerned authorities against the employer or for a case filed against the employer…then such dismissal shall be considered arbitrary.

29. If the employer has arbitrary dismissed me without presence of any reason and I am damaged due to the same…how can such damage and arbitrary dismissal be determined?

Article: 123The competent court is the party which adjudge the employer to pay the compensation for the worker…and it is the party which estimate the value of such compensation as per the work nature and size of damage incurred by the worker in addition to his period of service…provided that the compensation value shall not exceed the salary of 3 months calculated on the basis of last salary received by the worker.

30. The employer has terminated my service due to the fact that I am not fit from the health point of view, shall he have the right to do the same?

Article: 124:

- He may not have the right to do the same for health reasons before the worker has utilized all his legally due leaves. However any agreement or condition contrary to this Article shall stand null and void.

31- Can I have the right to obtain an experience certificate after I have spent my work period with my employer?

Article: 125:

- The employer should give the worker, on the basis of the later request, and at the end of

his contract period, a free experience certificate…such certificate should include:

A- Date of joining the work

B- His contract expiry Date.

C- Total service period

D- Type of work.

E- Last salary obtained in addition of other entitlements, if any.

* The employer should also give back to the worker all his certificates, tools and equipment, if any.

32. I have worked with my employer, but he have sold the establishment for some other person…how can I obtain my work dues?

Article: 126: - Based on Article: 126, the service shall be continuing even if the establishment was sold to any other person…both new and old employers shall be jointly responsible for a period of 6 months…and after this period the new employer should bear the responsibility alone.

* Example: An establishment was sold by the original employer to some other person, but the original employer didn’t settle the labors dues…then 3 months were elapsed since it was sold to the new employer…in this case both the new and old employers shall be jointly obliged to pay the workers dues…and after 6 months the new employer shall bear such responsibility alone.

33. I have signed the labor contract…whereas mentioned in the said contract a term which stipulates that after the expiry of my service or during suspension of my work, I should not work with any other competing company for a period of two years?

Article: 127: - If it was agreed in the labor contract as such…then the worker should be bound to the same…and should not work with any competing company all through the period mentioned in the contract… provided that:

1- The worker should be of 21 years of age when the said contract was concluded.

2- To fix the time…e.g.: Not to work with any competing company for a period of two years from the date of cancellation.

3- To fix the place…e.g.: Not to work with any competing company in UAE…or any particular Emirate.

4- Type of work… e.g.: In the same company’s field of work… or the same job.

* Important:

The condition of non- competition was not stipulated in the labor contract approved by Ministry of Labor, but it was mentioned in the labor contract concluded abroad or in the internal labor contract concluded between the two parties or in the work offer, do this be valid?

* The work Ban

34. I have worked with my employer under a fixed contract for a period of two years, but I didn’t completed the period of my labor contract…whereas my employer wants to cancel my labor card with a ban of work for one year in a pretext that I didn’t completed the contract period?

- The worker shall be banned from work for one year from the cancellation date if he didn’t complete his fixed period contract…and has ceased working without legal reason…and he shall not have the right to work with other employer during such period.

35. I have worked with an employer with a contract of unlimited period and I didn’t worked for the notice period… shall the employer have the right to put the pan stamp on my passport?

Article: 129:- The employer shall have the right to put the pan stamp if the worker didn’t work for the notice period after resignation…or if he worked for some days from the notice period and ceased working after that altogether without reason…however, the worker shall not have the right to work for another employer during that period.

36. Is there any exclusion with regard to the one year ban on the worker if the original employer agreed to cancel the said ban? Article: 130: - The worker may be excluded from the provisions of the two Articles No. 128 and 129 with regard to the ban before joining the other work and this shall be through the approval of Minister of labor based on the application of the original employer.

37. I am employed under a limited period contract for 3 years and I have asked my employer not to renew the same…then who shall pay the costs of the return ticket?

Article: 131: - If the worker has completed his limited period contract and if he didn’t want to renew the same…the employer must be obliged to pay his return tickets. And if the worker has joint some other work, then his new employer should be obliged to pay his said return tickets.

38. If I worked under limited or unlimited period contract and submitted my resignation, shall I have the right to ask for return tickets?

- If the worker has resigned or terminated his service contract, he should bear the costs of the return tickets.

39. I have completed my labor contract, whereas there is a stipulation in such labour contract showing that my employer should bear the costs of my family return tickets in addition to the baggage shipping costs, have I the right to bound him to the same?

- If such stipulation is present in the labor contract, the worker shall have the right to claim for the said costs…

40. As for the return tickets, shall my employer have the right to return me to the capital of my home country or to the place he has already brought me from?

- To the place he has already brought you from.41. My employer has cancelled my labour card, and I am now present at the labour camp, but he asked me to leave this accommodation, what is your opinion about this?

- The employer shall have the right to ask the worker to leave the accommodation, if he has paid to the worker all his work dues.

42. If a labour compliant has been referred to the court…from when does the period of 30 days for vacation of the accommodation shall start to go into effect?

Article: 131: - The employer shall file a complaint to vacate the worker from the accommodation…, and the 30 days period shall start to be effective commencing from the date in which the employer has deposited the worker’s dues with the Ministry as a trust…, if the worker didn’t vacate the accommodation after this, the concerned authorities should take the necessary action.

43. How the End of Service Gratuity is determined?

From Article: 132:

- The worker deserves the End of Service Gratuity if he completed one year or more in the service…and it shall be calculated as follow:

A- 21 days for each year from the first 5 service years

B- 30 days for each year if his service years have exceeded the same. However, the total End of Service Gratuity should not exceed the salary of two years.

44. Shall the leaves without pay be calculated within the service period?

Article: 132:- The period of leaving the work without pay shall not be included within the service period.

45. I have worked with my employer for two years and 5 months…, shall the End of Service Gratuity be calculated for the parts of years?

Article: 133: - The worker shall have the right to have the End of Service Gratuity for the part of the year if he has completed one year of service or more.

46. Shall the End of Service Gratuity be calculated for the total salary?

Article: 134: - The End of Service Gratuity shall be calculated according to the last salary, (Basic) obtained by the worker…, this shall be true for all workers getting their salaries on monthly, weekly or daily basis…, and shall be calculated based on the average salary for workers receiving their salaries based on piece. So the allowances shall be included in the basic salary, such as: the accommodation allowance, transportation, overtime and other allowances…………etc.

* Important:

A worker who receives his salary on piece…,e.g. He may receive DHS. 1000 for the piece or DHS. 500 for the piece…, in this case the average salary only should be calculated, i.e. * His total salary for 6 months…, to be divided over 6…to obtain the average salary: Total salary for 6 months = 25000/6 = DHS. 4166 which is the average salary

47. If a worker died, shall his employer pay his End of Service Gratuity?

Article: 136: - If the worker died, his employer must pay his End of Service Gratuity to his hires.

48. I have worked with my employer for the year 1975, i.e. before the issuance of the Labour Law in 1980; shall I have the right to claim for the End of Service Gratuity for my service period with my employer before the issuance of the Federal Labor Law in 1980?

Article: 136:

- The worker shall not be entitled to have the End of Service Gratuity for the period before the issuance of the Federal Labor Law in 1980 unless the worker was a national citizen.

* The Unlimited Period Contract: - In case the worker has ceased working:

49. Kindly show how can the End of Service Gratuity be calculated if the worker has ceased working when he is employed under unlimited Period Contract?

Article: 137:1- If the worker’s service period is not less than one year and not exceeding 3 years, he shall

be entitled to have 1/3 the value of End of Service Gratuity, i.e. 7 days in each year.

2- If his service period has exceeded 3 years but less than 5 years he shall be entitled to have

2/3 the value of End of Service Gratuity, i.e. 14 days in each year.

3- If his service period has exceeded 5 years he shall be entitled to have 21 days as a value of

End of Service Gratuity for each year of service.

* And if the service period has exceeded 5 years he shall have 30 days as End of Service Gratuity for each year of service.

* Example: I have worked with my employer for 2.5 years, how my End of Service Gratuity can be

Calculated, knowing that I have ceased working on my own will, and I have unlimited period contract with a salary of DHS. 1500?

- If the service period does not exceed 3 years, this worker shall have 7 days End of Service Gratuity for each year of service…parts of the year shall also be included, i.e. The two years shall be multiplied by the Gratuity’s days: 7x2 = 14 days

- In case the employer has dismissed a worker of an unlimited period contract without reason after completing one year of service…, such worker shall have the right to receive 21 days End of Service Gratuity for each year:

* Example:

- If the worker has worked for 3 years and 7 months and his employer has then dismissed him, such worker shall be entitled to have:

- 21 days for each year if his service period didn’t exceed 5 years.

- 21x 3 + 21/12x 7= 75 days

* Other Example:

A worker of unlimited Period Contract was dismissed after completing 6.5 years of service ,He shall be entitled to have an End of Service Gratuity of: 21x5+ 30+30/6 = 105+ 30 + 15 = 150 days, whereas 21 days were calculated for the first 5 years…, and 30 days each year for the above to this.

* TheLiimited Period Contract:

- In case the worker has cancelled his labor contract: Article: 138:

If the worker has willingly ceased working before completing the contract period…, he shall

not be entitled to have the End of Service Gratuity…, unless his service period has exceeded

5 years.

* Example:

A worker with a limited period contract which has commenced on 4/4/2004 and expired on

3/4/2007, he has submitted his resignation letter on 25/5/2005 and before completing the

contract period, the worker has cancelled the contract, such worker shall not have the right

to receive the End of Service Gratuity.

* Example:A worker with limited period contract which shall start on 4/4/2001 and expires on 3/4/2004.

This contract was renewed for further 3 years ending on 2/4/2007. This worker has submitted his resignation letter on 20/11/2006…, in this case the said worker shall be completing 5 years and 7 months of service. Then he shall have the right to receive the End of Service Gratuity as provided for in Article: 138. This because his service period has exceeded 5 years

* 5 x 21 + 30/12 x 7 = 105 + 17 = 122 days

* In case the employer has cancelled the labor contract:

In this case the worker shall have the right to receive an End of Service Gratuity if his employer has dismissed him without reason, in amount equal to 21 days for each year provided that he has completed one year of work, and 30 days for each year if his service period has exceeded 5 years.

50. When shall the worker be banned from having the End of Service Gratuity?

Article: 139:- The worker shall be banned from having the End of Service Gratuity in two cases:

* If the worker was dismissed from the service for any reason set forth in Article: 120 of the labor law…, or if he left the work for the purpose of avoiding dismissal for the same reason

* If the worker has willingly ceased working without notice…, and for reasons other than those shown in Article: 121 of the law, and if he is working under unlimited period contract…, or if he didn’t complete 5 years of service with regard to the limited period contract…, and submitted his resignation letter.

51. I have worked with my employer…, whereas present in the establishment a box called the “saving box” in which the employer was used to put in it an amount of money for the account of the workers as an End of Service Gratuity…, in case I have reached my end of service period, shall I deserve to have from such amount?

Article: 140:* The worker shall have the right to receive from this amount, if the employer is depositing the same in the saving box against his legal obligation towards the End of Service Gratuity…, and if it was stipulated in the saving box as such.

* The worker shall have the right to receive What he was entitled for from the saving box in addition to the End of Service Gratuity if the saving box didn’t stipulate that What was deposited by the employer in the said saving box is against the employer’s legal obligation towards the End of Service Gratuity.

52. I am working in an establishment, in which the system of pension and insurance is adopted…, in case of my end of service; shall I have the right of option between having the pension and the End of Service Gratuity?

Article: 141:- According to Article: 141:

The worker may choose between having the pension and the End of Service Gratuity or to have his dues in the pension or insurance box or whichever preferred to him…, (except with regard to nationals, whereas the Pensions and Insurance Authority’s terms shall be valid wherefore)…, Law No. 7 for the year 1999 regarding Social Pensions and Insurances.

Return Tickets

* The return tickets shall be in the worker’s account if he resigned without reason before the expiry of the limited period contract or resigned with respect of the unlimited period contract.

* The return tickets shall be in the employer’s account if he dismissed the worker, without reason or cause provided for in Article: 120

* The return tickets shall be in the employer’s account if the worker has completed the limited period contract.

How to overcome the six-month labour ban in UAE

2011-08-08T09:51:00.000+04:00

Employees who have been slapped with a six-month labour ban for breaking their contracts before the expiry of two years can work for a new company, provided they hold at least a high school diploma and have been offered a good position and salary by the new company, employers were told by the Ministry of Labour .

To lift the ban, an employee should have been offered a minimum salary of Dh5,000 for high school graduates, Dh7,000 for diploma holders and Dh12,000 for bachelor's degree holders.The salary must be mentioned in the labour contract.

No fee will be imposed for lifting the ban when these conditions are met, Ali Al Shehi, Senior Administrator at the ministry, said in a seminar held to inform employers about their rights and duties as well as recent ministerial decisions.

"We are still imposing the six-month labour ban on employees who quit their jobs before completing two years of service, but the ban can be lifted if the new employer offers the candidate a good position and an appropriate salary," he said.

The new employer needs to submit the employee's educational certificate, which does not need to be attested at this stage. It will be scanned and entered into the Tas'heel system, and a new labour permit will be issued accordingly.

Al Shehi told employers that as of January 2012, company categories will have a different scale when it comes to labour permit applications.

"When a new company is registered, it will be charged Dh1,500 for each of the first four work permits to be issued to the company, which corresponds with category B2," he said.

Afterwards, the company can move up or down categories B1, B2 or B3, or C depending on its activity, the number of employees it hires, their qualifications and diversification in the nationalities of workers.

Companies in B1 category pay Dh600 per work permit, while B2 companies pay Dh1,500 and B3 companies pay Dh2,000 for each permit.

Diversification

"This step aims to encourage diversification and hiring employees from various nationalities, so companies who hire workers from one nationality will not be upgraded, while those that hire from more nationalities will move up to categories B3, B2 and so on," Al Shehi said, adding that companies will also upgrade their categories by hiring skilled workers.

He advised people who want to start new companies to check their sponsor's record at the Department of Economic Development to ensure that their record is clear and they have no other companies facing problems, which will hinder their application.

"The sponsor of a company has to clear any outstanding dues or labour issues before he can sponsor another one, so we advise those who want to open a new business to look for a sponsor who has no other companies registered under his name," Al Shehi said.

Oqood Registration or Pre-registration law for Dubai Real Estate

2011-08-04T10:16:00.000+04:00

Dubai's Land Department in conjunction with the Real Estate Regulatory Authority (Rera), introduced new online application 'Oqood' Law No. 13 of 2008 will enable the effective implementation of for regulating the interim real estate register in Dubai.

This Law aims to create further consumer comfort and protection within the Dubai real estate market by introducing a mandatory system of pre-registration for “off-plan” sales contracts for real estate units at the Land Department. ‘Off-plan sales’ refers to the sale of real estate units based on an architectural plan of the property before the structure is built and the property finished

Under the new Law, any off-plan sales that are not registered will be invalid. Where the Land Department finds that any developer is not complying with the provisions of the new Law (or any other applicable law) it will prepare a case report and refer the case to the relevant authorities for investigation.

It appears that this pre-registration system will work alongside the existing project registration system established at RERA as a consequence of the introduction of the Escrow law. It also provides the basis for the implementation of some of the provisions of Dubai’s new mortgage law (Law no. 14 of 2008) and the ability to register a mortgage against an off-plan unit.

In relation to pre-registration fees, developers will continue to bear a cost per off-plan unit contract in the region of AED 370 when registering the site plan.

Liquidated damages and procedure on default

If a buyer breaches an off-plan sale contract with a developer, under the new Law the onus will be on the developer to advise the Land Department of the breach. The Department will then issue a notice to the buyer granting a 30 day grace period for the buyer to comply with its contractual obligations (or rectify its breach). If the breach is not rectified within the 30 day period, the developer may terminate the contract and return all amounts paid by the buyer except for 30% of monies paid, which the developer is entitled to retain. Note the reference is to retaining a percentage of monies paid by a buyer rather than percentage of the purchase price.

Variations to units

Developers are no longer entitled to claim additional money from a buyer where a unit turns out to be larger on completion than the measurement set out in the off-plan sale contract. However, where the unit turns out to be smaller, unless the difference is minor, the developer must compensate the purchaser for the difference.

What amounts to a ‘minor’ or ‘insignificant decrease’ is not defined in the new Law, although from our discussions with the Land Department we are anticipating a tolerance of somewhere between 3 and 5%. It is unclear whether it will be possible for developers to define such terms in off-plan sale contracts to protect themselves in case of any unforeseen variations in the completed development

The introduction of Law No. 13 of 2008 ("Law 13"), which came into force on 31 August 2008, aimed to create, amongst other measures, a mandatory system of pre-registration for off-plan sales contracts at the Land Department. The purpose of this system was to give purchasers reassurance that a note of their interest would be recorded at the Land Department and, assuming all obligations under the contract were performed, that title to the property purchased would be transferred to them upon completion.

Law 13 requires developers to register off-plan sale and purchase agreements on an Interim Real Estate Register maintained by the Land Department. In practice a system known as "Oqood" is used to record such registrations. Law 13 provides that sales or transfers will be void if not recorded on the Register. Law 13 also required developers to register sale and purchase agreements entered into prior to Law 13 coming into force within a time limit of 60 days of the law coming into force.

The provisions of Law 13 caused some confusion in the market. For instance - what would happen if a sale and purchase agreement was registered outside the 60 day time limit?

Article 3 of Law 13

Article 3 of Law 13 provides:

The Interim Real Estate Register is used to record all disposals of Real Estate Units off plan. Any sale or other disposition that transfers or restricts title or any ancillary rights shall be void if not recorded on that Register.

Any developer who made a sale or other disposition that transferred or restricted title prior to the coming into force of this Law should approach the Department to get it registered in the Real Estate Register or the Interim Real Estate Register, as applicable, within 60 days after the date on which this Law came into force.

At first glance, the provisions of Article 3 seem to be relatively clear. Article 3(1) requires transactions to be recorded on the register, failing which they will be void. Article 3(2) states that transactions must be registered within 60 days of the law coming into force. What is not clear, however, is what happens if a transaction is registered after the 60 day period. While Article 3(1) provides that transactions will be void if they are not recorded on the register, it does not set out a time limit for registration.

Six-hour a day work for private sector in UAE during Ramadan

2011-08-01T12:49:00.000+04:00

The rule applies to all workers regardless of their religion, whether they are fasting or not.
"As per Article 65 from the Federal Labour Law, the working hours are reduced by two hours during the month of Ramadan to six hours (36 hours per week) from eight hours (48 hours per week). Based on this, the working hours for those working in commercial establishments, hotels and even security, are also reduced to six hours a day,"
However, a worker could be employed for more than six hours daily during Ramadan if the extra hours are considered as overtime and he or she is compensated for it by 25 per cent of the basic pay per hour during day, and 50 per cent during night, . Each company is allowed to organise its working hours to serve its best interests, but on the condition that workers are compensated for the overtime hours, which should not be more than two hours a day.
An official source at the Ministry of Labour, meanwhile, has said the company officials must place signboards or issue notices indicating the reduced working hours for all workers during Ramadan. Notices must be in all languages spoken by the employees or labourers at the particular establishment, and must be placed in such a way that they are visible to all staff.
He called on the workers to report the establishments to the ministry or labour offices across the emirates if they are forced to work for the regular working hours during the month.
He said the ministry would intensify inspections at the establishments during this period, and the violating firms would face penalties as per the labour law

Ramadan timings for public sector in UAE

2011-08-01T11:10:00.000+04:00

DUBAI - Work at the UAE federal ministries and departments will be from 9am till 2pm during the holy month of Ramadan, the state news agency WAM said.

Meanwhile, the working hours of private sector companies will be reduced from eight to six hours during the Holy month of Ramadan, without affecting the salaries of employees, WAM reported.

Renowned UAE astronomer, Ebrahim al-Jarwan, has predicted that the holy month of Ramadan will start on August 1 and will last for 30 days.

According to the Sharjah-based astronomer, the Ramadan 'Hilal' (crescent moon) will rise on July 30.

"It will then take shape 21 hours and 23 minutes later. It will be difficult to sight the moon from the UAE, but Ramadan will start on August 1," Al Jarwan said.

"The dawn-to-dusk fasting month for Muslims, will last 30 days this year. This means Eid Al Fitr will be on August 31," he added.

During Ramadan, Muslims abstain from food, drink and sensual pleasures from sunrise to sunset and are required to focus on their relationship with god.

Non-competition clause in UAE Labour Law

2011-07-27T13:33:00.000+04:00

A labour contract may contain a condition specifying that after the completion of the contract, the employee shall not work with a competitor of the employer. This is to protect the interests of the business of the employer.

The UAE Labour Law states that if the job allotted to the employee allows him to know the employer’s clients or to know the secrets of the job, the employer may stipulate that after the end of his contract, the employee shall not compete with him or share information in any competing project.

A non-competition agreement may be signed before or during the term of the employment, but as per the law, it will only come into effect on termination of the employment contract. The employers may include a clause in the labour contract or sign an additional agreement banning the employees from working for competitors for a certain period. In order to apply non-competition clause certain conditions have to be fulfilled. The employee has to be 21 years old or more at the time of signing the contract. The agreement shall be, as far as time, place and nature of work are concerned, limited to what is necessary to protect the legal interests of the employer. If the job assigned to the employee allows him to know the secrets and know-how of the employer’s business dealings, then the employer may impose non-competition clause.

In the event that the employee works in a company, where such secrecy nature does not apply then the non-competition clause cannot be used.

To impose a non-competition clause against an employee, the non-competition agreement signed between the parties is to be restricted as per the provisions mentioned in the UAE Civil Code and the Labour Law.

Such a stipulation shall not be valid unless it is clearly restricted to certain time, place and type of work, in a sufficiently determined manner so as to constitute a real protection of the legitimate employer’s interests.If the employer terminates the employee or the employee terminates the contract due to a reason that is ascribed to the employer’s fault, then the non-competition conditions shall not be applied against the employee.

Maternity leave for working woman in UAE

2011-07-26T10:44:00.000+04:00

I have worked in a company for 6 months only. I have completed the probation period, but currently I am in my ninth month of pregnancy and I have some questions in this regard:
1. Is the woman entitled to maternity leave each time or for once only within her employment with the company?
2. In case of depletion of the maternity leave, am I entitled to extend such period, if necessary, is it paid or without pay and what is the period of such leave?
3. For the period of my service, am I entitled to the whole maternity leave, which is, to my knowledge, 45 days and is it paid or without pay?
I would like to clarify to the questioner that as per the Labour Law the working woman is entitled to maternity leave each time she becomes pregnant and requires such leave, not for once. As for the questioner’s other enquiries, article no. 30 of the Federal Labour Law no. 8 of 1980 states the following:

“A female worker shall be entitled to maternity leave with full pay for a period of forty-five days, including both pre- and post-natal periods, provided that she has completed not less than one year of continuous service with her employer.

A female worker who has not completed the aforesaid period of service shall be entitled to maternity leave with half pay.

A female worker who has exhausted her maternity leave may be absent from work without pay for a maximum period of 100 consecutive or nonconsecutive days if such absence is due to an illness preventing her from resuming her work.
A medical certificate issued by a duly authorised medical institution or authenticated by the competent health authority confirming that the illness is a result of pregnancy or delivery shall document such illness. The leave provided for in the preceding two paragraphs shall not be deducted from other leave periods”.
Questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants.

UAE Labour Law and Probation Period

2011-07-26T10:34:00.000+04:00

A company that exceeds six months probation is in violation of the UAE Labour LawArticle 37 of the UAE Labour Law states the following: “A worker may be engaged on probation for a period not exceeding six months, during which his services may be terminated by the employer without notice or severance pay; provided that a worker shall not be engaged on probation more than once in the service of any one employer. Where a worker successfully completes his period of probation and remains in his job, the said period shall be reckoned towards his period of service.”

US Consulate General moving to Bur Dubai-No US visas services from Aug 2-4

2011-07-26T10:27:00.000+04:00

The US Consulate General in Dubai will move from its current premises at the World Trade Centre to a new facility in Bur Dubai, adjacent to Dubai Creek.

The new Consulate has been built on land donated to the US by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

Interviews and other services for US visas and routine consular services for American citizens will be suspended from August 2 to August 4.

All services will resume on Sunday, August 7 at the new building. Emergency services for American citizens will not be affected by the move.

American citizens seeking consular services during this period can make arrangements at the US Embassy in Abu Dhabi.

Jennifer Rasamimanana, Charge d'Affaires of the US Mission to the UAE, said: "We have here around 40,000 Americans residing in the UAE while we have around 1,000 companies operating here."

The new facility will allow the Consulate General to increase the efficiency and accessibility of its services to the public. It receives around 50,000 visa application a year for people from 125 different nationalities, mainly Iran.

Wife can sponsor Husband and Family in UAE

2011-07-17T12:51:00.000+04:00

Sposering Husband in UAE,The Department of Naturalisation and Residency requires the following:

The wife shall be an engineer, doctor or teacher.

The salary shall be either Dh4,000 or Dh3,000 and accommodation.

If the wife job is other than the above listed professions, she shall make a petition to the Department of Naturalisation and Residency to exempt her from this requirement. The said department will decide on this request and pass its resolution of acceptance or rejection.

Public Sector Procurement -Public Tender Law in UAE

2011-07-13T09:24:00.000+04:00

The Federal Regulation ofConditions of Purchases, Tenders and Contracts, Financial Order No. 16 of 1975(the Public Tenders Law) regulates bidding for public sector tenders. Withcertain exceptions, only UAE nationals, foreign entities represented by a UAEagent, or foreign entities with UAE partners (i.e., a UAE entity with at least51 per cent UAE ownership (‘national entities’) may bid for public sectortenders for the supply of goods and public works projects that are governed bythe Public Tenders Law. As a result, foreign entities wishing to perform publicsector contracts are generally required to have some level of UAE nationalparticipation. Such participation typically takes the form of either:

(i) A registered commercialagency

(ii) A ‘service agent’ of theforeign entity’s UAE branch office

(iii) The majority owner of ajoint venture in which the foreign entity owns 49 per cent or less of a UAElimited liability company (i.e. a national entity).

The following are three majorexceptions to the application of the Public Tenders Law:

1) The Public Tenders Law doesnot apply to purchases and contracts conducted by the federal defence forces –procurements for the federal defence forces are conducted pursuant to Decree 12of 1986 of the Deputy Supreme Commander of the Armed Forces (the ‘Armed ForcesProcurement Regulations’.

2)The Public Tenders Lawrelates to federal government procurement and not procurement by thegovernments of the individual emirates. For example, Abu Dhabi has aprocurement system, which generally tracks that of the Federal Public TendersLaw by requiring suppliers to have commercial agents or national companies thatare registered with the Abu Dhabi municipality.

3) The general requirement forUAE national participation is not uniformly observed by all government agenciesin the context of certain direct sales to the public sector or private tendersin which the government solicits bids directly from relevant manufacturers,particularly in cases in which the goods or services are quite specialized ornot widely available. These ‘exceptions’ arise on a case-by-case basis

Customs Regulations in UAE

2011-07-13T09:17:00.000+04:00

On entering UAE at the airport or elsewhere, visitors maybe subject to a check by customs officers. Tourists should take careful note ofthe following customs regulations:

Visitors to Dubai can bring the following items free ofduty:

» Gifts with a valuenot exceeding AED 3,000

» 400 cigarettes, 50 cigars, 500g of loose tobacco

» 4 litres of alcohol, or 2 cartons of beer (1 carton =24 cans, each not exceeding 355 ml)

The following items of personal luggage are also exemptfrom duty, provided it is of a personal and not commercial nature:

» Personalbelongings, cameras, radios, CD and DVD players, projectors, telescopes, mobilephones, computers, baby strollers, portable music equipment, sports equipment

» Up to AED 40,000 in cash and travellers chequesprovided the passenger is 18 or over

Items prohibited in Dubai include narcotic drugs, goodsfrom Israel or with an Israeli logo/trademark, crude ivory and rhinoceros horn,gambling equipment, tires, radioactive material, forged currency, cooked andhome-made food, and prints, sculptures, and lithographs.

There are several types of items that must be declared toDubai Customs on arrival. Non-declaration of these is an offence. Such itemsinclude:

Cash (or equivalents) above AED 40,000 or $US 10,000
Pets
Skins of endangered animals subject to the CITESConvention
Books, films, DVDs, CDs, photographs
Gifts with a value of more than AED 3,000
Medicines – even if for personal use
Fireworks, explosives, weapons, ammunition, knives,swords, self-defence equipment
Plants, trees, soil
Narcotics
Medicines

Note: Due to increasing concerns from readers concerningmedicines we reference the following information. We take no responsibilitywhatsoever for its accuracy or whether it is currently up to date.

Statement on medication

Individuals may bring medicine into the country for theirpersonal use. Up to three months’ supply of a prescription item can be broughtinto the country by a visitor and 12 months’ supply by a resident if they canproduce a doctor’s letter or a copy of the original prescription. Narcoticitems can only be brought into the UAE in exceptional cases with priorpermission from the director of medicine and pharmacy control. These guidelinesrelate to medicines brought in by an individual through an airport or bordercrossing and medicines arriving by post.

Visitors must take care to ensure that medicines andmedications prescribed in their home countries are not restricted beforetravelling to the UAE. The UAE Ministry of Health’s Drug Control Departmentpublishes a list of controlled medicines and medications. Visitors shouldcontact the Ministry of Health drug control department to check whether theirmedication is on the controlled list, and needs prior permission for importation.The Customer Service Centre of the drug control department can be contacted byemailing drugcl.csc@moh.gov.ae, by telephone on +971 2 611 7240 or by fax +9712 632 7644.

The following PDF documents are on the UAE Ministry ofHealth website:

» Guidelines forImport of Personal Medicines

» List of Restricted and Controlled Drugs

Labour rights under husband's sponsorship in UAE

2011-07-11T14:39:00.000+04:00

My wife has been working in a company for almost three years under a limited period contract that expires after six months. She is on my sponsorship and has a work permit. My questions are: Can my wife resign immediately or does she need to give one-month notice to the company as per the law? If the company does not accept her resignation, will the Ministry of Labour impose a ban on her although she is under my sponsorship? What are my wife’s rights for end-of-service gratuity in accordance with the labour law?

The questioner’s wife is working on a contract for a limited period and if the contract is terminated pre-term, she will lose her labour rights except the right related to leaves only. Also, the wife might be requested to compensate the employer an amount equivalent to a salary for 45 days if the employer proves that he suffered a loss or was affected by such behaviour. Finally, the employer might request the Ministry of Labour to impose a one-year ban on the wife due to this violation even if the wife is not under the company’s sponsorship.

Questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Bahar Advocates and Legal Consultants.

Dubai Court of Cassation clarifies terms for suing employee for joining competition

2011-07-09T14:09:00.000+04:00

The Dubai Court of Cassation has ruled that that an employer has the right to seek compensation from an employee who breaches the terms of contract by joining a competitor, within two years of leaving office.
However, the court, while dismissing a case filed against an employee, observed that the employer should prove claims of damage caused by the action with clear evidence.
The pronouncements came during the hearings of a case in which a company sought Dh100,000 in compensation from one of his former employees for breaching the terms of contract by joining the company’s competitor.
The lawsuit was filed against a woman, a computer programmer, by a shipping company, which claimed that the defendant damaged the prospects of her former employer by joining its competitor and sharing the company’s internal secrets with her new employer.
The Court of First Instance, which first heard the dismissed it for lack of evidence of any damage caused by the employee’s actions, which prompted the plaintiff to appeal the verdict before the Court of Cassation.
The Court of Appeal upheld the ruling, but the company appealed the verdict once again before the Court of Cassation, which made the above observations.
The Court of Cassation rejected the company's appeal and based its ruling on the text of Article 127 of the law regulating labor relations.
The court said: “Although the employee had violated the non-competition clause mentioned in the contract, however, the breach did not result in harm to the company.”
The court added that the case documents are free from any evidence of damage to the company and hence, the plaintiff’s claims are not right.

Services & Investment Activities reserved for UAE Nationals

2011-07-06T13:12:00.000+04:00

1. Commercial Agencies: Practice of trade agency Functions (registered exclusive agency agreements with the Ministry of Economy) within UAE is exclusively reserved to UAE nationals, either individuals or companies totally owned by natural nationals.

Ref: Federal Law No 18 of 1984 concerning the organisation of commercial agencies

2. Only UAE nationals and companies totally owned by UAE nationals may supply:

Real Estate Services
Rental/Leasing Services relating to Cars
Services Incidental to Agriculture, Hunting, and Forestry Services Incidental to Fishing
Placement and Supply Services of Personnel
Investigation and Security Services
Passenger and Freight Road Transportation

Ref: Decision of the Ministerial Council Presidency regarding the economic activities and professions excluded from the Decision of the GCC High Council of 2002 / 23rd Session Ref: Federal Law No 18 of 1984 concerning organisation of commercial agencies.

3. Travel Agencies and Tour Operator services are reserved to UAE nationals or individuals or companies totally owned by natural nationals. Ref: Federal Law No 18 of 1984 concerning organisation of commercial agencies.

4. Only the following services, among the Audio-visual Services and Recreational, Cultural and Sporting Services as defined in the WTO List regarding Services Sectorial Classification (MTN. GNS/W/120: 10 July 1991) may be supplied by foreign suppliers:

Studios for Artistic & Cinematographic Production and Photography
Theatrical Troupes
Movie Halls
Theatres
Halls for Artistic Exhibitions
Sporting Activities

Ref: Decision of the Ministerial Council Presidency No 2/203 of 25 April 2005.

5. The ownership of Pharmacies, Warehouses of Medicaments and Preventative Medicine Centres is limited to UAE nationals, either individuals or companies owned by natural nations (Articles 19 &35).

Ref: Federal Law No 4 of 1983 on the pharmaceutical profession and pharmaceutical comp

Property must be worth Dh1m for UAE's new 3-year real estate visa

2011-07-05T13:16:00.000+04:00

Details surrounding the new three-year real estate visa announced by the UAE government last week are flying in thick and fast.The visa will not be available to investors in land, but will allow property investors to sponsor their families and stay in the UAE for three years without leaving, according to senior government officials.Major General Nasser Bin Al Awadi Al Menhali, assistant undersecretary for Naturalisation, Residence and Ports Affairs, told Gulf News that the full details of the law would be made public soon.

It is still unclear if the visa provides investors all the usual benefits of a residence visa, such as enabling them to open bank accounts and apply for local driving licences.While this website on Monday spoke to a source who claimed to be in the know as to what was discussed at these meetings before announcing the decision, no official statement has been forthcoming so far. Until now.

An official quoted in press reports today has stated that the value of the property will have to be Dh1million for an investor to sponsor his/her family and stay in the UAE for three years without leaving, after getting the visa. source had said that: “A number of proposals were discussed at the meeting with ministry officials and one of the proposals was to restrict stay of the property owner to nine or 10 months in a year. However, the final regulation is yet to be drafted.”

However, Gulf News on Tuesday quoted Major-General Nasser bin Al Awadi Al Menhali, Assistant Undersecretary for Naturalisation, Residence and Ports Affairs, as saying that those with property worth more than a Dh1m will be allowed to stay for three years on the new visa.

“Investors can have access to banking services through their international bank accounts. However, it is not yet clear if they can avail of regular benefits of a residence visa holder such as open bank accounts and seek local driving licences,” the paper quoted Menhali as saying.Again, this website’s source had said that access to a number of services - such as applying for a local driving licence, personal loans and getting admission to schools – was also discussed at the meeting.

“The longer duration was requested to allow investors, who want their children to attend schools, have enough time. Generally, schools have long summer holidays and Eid vacation. So, we though, nine or 10 months is sufficient,” the source said.

Sultan Butti bin Mejren, Director-General of Dubai Land Department was quoted by Gulf News as saying that the Dubai Land Department will check the value of properties to see if owners qualify for the extended visa scheme.The UAE Federal government on June 28 announced it was extending visa for real estate investors from six months to three years.

This website had reported then that the discussion about extension of the property visa was held about a month-and-a-half ago and a number of issues were discussed.Sultan Butti Bin Mejren, Director-General of the Dubai Land Department, said his department would be involved in checking the value of properties to see if owners qualify for visas."As soon as the bylaws are issued, the link between the two departments will be activated to check the real value of the property as well as the transaction that will alert the system of the transaction," Bin Mejren said.

Al Menhali added: "The aim of this law is not full residence in the UAE but to give more flexibility and make it easy for the investors to stay and move in and out of the UAE to manage and watch over their properties."

UAE bans credit card surcharge from July 1

2011-07-05T12:33:00.000+04:00

Ministry of Economy has warned retailers in the UAE to stop charging fees on credit cards from July 1. Sultan bin Saeed Al Mansoori, Minister of Economy and Chairman of the Supreme Committee for Consumer Protection, headed the second meeting of the committee for 2011 which passed resolution prohibiting retailers from imposing charges on credit card usage as commission.
The committee also agreed on liberalising trade of 15 new products including detergents and washing powders, dairy products and juices, drinking water, livestock, feed, fats and oils, and the list will be sent to the cabinet for approval.
This is strategic to reduce monopoly and exploitation, and will enhance market competitiveness,â€ said Al Mansoori.
The committee reviewed a report on the advertisements for fast food outlets, and recommended that awareness measures must be initiated to ensure that customers are not misled by catchy advertising and resort to unhealthy eating, especially of junk food.
The committee also reviewed a report on the status of the Call Centre in the Consumer Protection Department, and another on the difference between the prices of key food items sold at cooperative societies and major retail outlets.
The committee discussed the Electronic System for Goods Monitoring which is expected to be operational during the second half of 2011. Currently, the ministry is undertaking a pilot phase with some commodities and the results will be generalised for other goods. The new system works through electronic links between the major trading centres and UAE customs ports, and can monitor the prices of 200 commodities on a daily basis.
The committee discussed a report on the increase of prices at gas stations and recommended to open channels of communication between the Ministry of Economy and all petrol stations with the participation of representatives from economic departments to identify the reasons for rise in price.
The committee was briefed on a proposal to reduce rental fees at retail outlets and cooperative societies. The committee recommended the distribution of marketing margins equally between retail outlets and consumers

Tas’heel -Online Goverment system for labour related process in UAE

2011-07-03T10:14:00.000+04:00

Tas’heel is an online government system designed to simplify all labour related processes, improve output volume and increase efficiency. It allows companies and typing centers to make online transactions and payments to MOL, encouraging a paperless environment. Through Tas’heel, companies do not have to worry about physically submitting payments or documents Receive new labour card and mission labour card application

Transactions- Receive modify or lost labour card application
- National new labour card application
- Sponsorship transfer (express)
- Company License Renewal
- Relative Sponsor Work Permit
- Modify Work Permit
- Replacement of Work Permit
- Nawakas Scanning Document
- Cancel New Labour Card Application
- Online Cancellation
- Salary Certificate

Labour Card
Receive New Labour Card and Mission Labour Card Application: This application is used when attempting to apply for a Labour Card or a Mission Card for the first time. An employee can only be eligible for this application if he/she obtained their Labour Contract as well as their Medical Fitness test. This service can be accessed using the Transaction Number. For the normal new labor card must be submitted through TASHEEL system within 60days of entry otherwise penalty will be given by MOL.
For Mission Work permit it is valid for 3 month and must be submitted through TASHEEL system within 1 week from the date of his entry, otherwise fine will be 500 for each 10days delayed of submission.

Receive Modify or Lost Labor Card Application: This application is used when a modification is made to an employees’ nationality, salary or occupation. It is also used to replace a lost Labour Card. For Modification: A letter from the company is required with the old contract as well as the new contract stating modification in the new contract
For Lost Labor Cards: A letter from the police is required stating that the employee has misplaced his/her Labour Card and officially reported it to the authorities.

This service can be accessed using the Transaction Number.
National New Labour Card Application: This application is only applicable for U.A.E Nationals applying for a Labour Card for the first time. An employee can only be eligible for this application if he/she obtained their Labour Contract as well as their Medical Fitness test. This service can be accessed using the Transaction Number.
Sponsorship Transfer: This application is used when an employee is transferring to another job and must in turn transfer their sponsorship status. To complete the process, the employee must obtain the cancellation (signed by previous employer & employees) as well as the new contract (signed by the new employer and employee). This service can be accessed using the Transaction Number.

NOTE: After scanning the application correctly the PRO must submit the following documents at MOL:
The receipt from TASHEEL system.
The original cancellation signed by both parties
Computer card for the old company
Two contract copy from the application

Establishments
Company License Renewal: This application is used to renew a Company Trade License. This service can be accessed using the Company Code and License Number.

Work Permit
Relative Sponsor Work Permit: This application is used when a sponsored relative(wife/family members) is seeking a work permit and is required to provide no objection documents from the sponsor in order to proceed with the application. This service can be accessed using the Transaction Number.

NOTE: The following must be verified before entering the application into the system, otherwise the application will rejected:
The passport of the sponsored relative as well as the sponsor must be valid for at least 6 months
The residency of the sponsored relative as well as the sponsor must be valid for at least 1 month
The age of the sponsored relative seeking a work permit must at least be 21 years of age

Modify Work Permit: This application is used to amend information in the work permit such as name, nationality, passport number, etc. This service can be accessed using the Transaction Number.
Replacement of Work Permit: This application is used by the employing company who decide replacing a current employee on a valid work permit with a new employee using the same work permit without incurring additional or new charges. A work permit is valid for 60 days and can be extended for a maximum of 30 additional days. The replacement process can take place only if the work permit is valid. This service can be accessed using the Transaction Number. Create Temporary Work Permit: a person who holds residence visa at another company or family sponsorship. It will be valid for 6 months after getting the approval from MOL. The cause of this application will be depends upon the category of the company.

Miscellaneous
Nawakas Scanning Documents: Nawakas means ‘missing’ and this application refers to missing one (1) or more documents from the requirements submitted for Labour Card and Work Permit applications. This service can be accessed using the Transaction Number.
Cancel New Labor Application: This application is used when employee information is entered incorrectly in the Labour Contract Application and requires rectification. The incorrect application must be cancelled using this service after which the system will require an hour to update itself. Once this is done a New Labour application must be entered and submitted. This service can be accessed using the Transaction Number.
Online Cancellation: This application is used when an employer seeks to cancel the labour card and contract of an employee (who no longer reports to the employer). The cancellation can be signed electronically or manually depending on whether the company has an electronic signature. Signatures that are manually applied tend to get processed more efficiently and take less time. This service can be accessed using the Transaction Number.
Salary Certificate: This application is used when the Ministry of Labour requests from a company the salary certificate of a specific employee.

Cancel work permits and Labour cards UAE establishments directly approach Tas'heel centres

2011-07-03T09:57:00.000+04:00

Establishments wishing to cancel work permits and labour cards need to directly approach Tas'heel centres

Abu Dhabi: Establishments wishing to cancel work permits and labour cards need to directly approach Tas'heel centres directly, as the Ministry of Labour will no longer provide this service starting on Sunday.Tas'heel is an online government system designed to simplify all labour-related processes.

According to Humaid Bin Deemas, Undersecretary at the Ministry of Labour, this step comes to save the time and effort of customers by providing the services, from typing application to cancelling of cards, at one stop, without having to visit the Labour Ministry offices.Bin Deemas called on establishments to present their requests directly to the 25 ‘Tas'heel' service centres in Dubai, Sharjah, Ajman, Fujairah, Ras Al Khaimah, Umm Al Quwain and Al Ain City.

In Abu Dhabi, establishments can apply through typing centres linked with the Tas'heel system.He pointed out that the ministry's offices will stop receiving requests for cancellation beginning on Sunday.

Bin Deemas said owners of establishments, who have the e-signature, may avail of this service starting on Sunday. However, those who do not have their e-signature have until September to get it, as manual applications will only be accepted until the end of September.

He said after the establishment owners cancel labour cards at the Tas'heel centres, the data will be sent electronically to the Labour Ministry. The Labour Ministry will then send the data to the Residency and Foreigners Affairs Departments.Bin Deemas said this service will benefit more than 280,000 establishments registered with the ministry and which carry out more than one million different cancellation transactions.

He also noted that the e-link project includes linking about 20 key services between the ministries of Labour and the Interior. the new procedure allows the owners of the joint system to facilitate the completion of the procedures for cancellation round the clock, seven days a week.

The Ministries of Labour and Interior will jointly implement the electronic cancellation service for labour cards, with effect from Sunday.The move comes in line with the first phase of the electronic link between the two ministries to boost the strategic partnership and achieve qualitative shift in exchange of data and information.

In accordance with this service, applicant firms seeking cancellation of work permits and labour cards will apply to the Tas'heel service centres set up for this purpose.

UAE extends visa for property investors to 3 years

2011-06-28T17:39:00.000+04:00

Decision taken at Federal Cabinet meeting on Tuesday.The UAE federal government has extended visa for real estate investors from six months to three years.

This decision was taken by the Federal Cabinet on Tuesday.“The government took a raft of measures as part of its efforts to underpin economic growth within its strategic plan 2011-2013, including extension of visa for real estate investors to three years instead of six months,” Wam said.

The government also gave instructions for drafting a federal law regarding competition and another bill for reviewing provisions of federal law 6 of 2007 regarding the establishment of the Federal Insurance Authority and its mandate

Analysts said the decision will boost the property sector in the country as will impact on the growth of the overall economy.

End of service benefit should be calculated basis of total salary -Dubai Court

2011-06-27T10:12:00.000+04:00

A worker’s end of service benefit should be calculated with respect to his total salary and not just the basic payment, according to a new ruling by the Dubai Court of Cassation.The decision comes in a case where an employee sought dues of up to Dh159,000 from his employer, which was rejected by the Court of First Instance and later overturned another court.

However, there was no indication from the court whether this was a precedent or only a ruling for this particular case.
Accusing the company of his arbitrary suspension, the employee in his lawsuit demands three months’ salary as compensation for sacking him without notice, Dh11,000 as salary of the last month he worked, Dh22,000 as leave allowance and ticket to his home country and Dh82,000 as his end of service gratuity.
The plaintiff also claimed in the lawsuit that he worked in the company as a Director of Advertising and Editor of a magazine owned by the company.
However, Court of First Instance in its judgment rejected his lawsuit and ordered the employer to pay a total amount of Dh54,000 to the employee.
The employee appealed against the verdict to the Court of Appeal which ordered the employer to pay the value of a return ticket to the complainant’s home country in addition to the amount ordered by the earlier court.
The prosecution also appealed against the ruling on the basis that the end of service benefit of the employee was calculated only on according to the basic salary of worker, which it said was against the labour law.
The Court of Cassation accepted the appeal and directed the case to the Court of Appeal asking for a new panel judges to look into the case.
The Court of Cassation observed: "The pay in accordance with the provisions of Article I of the Labor Law includes all that a worker receives as emolument, whether in cash or in kind, hence the gratuity should be calculated according to the entire amount received by a worker, including his monthly commission.”

The most annoying bank fee in the UAE and how to avoid it

2011-06-23T23:53:00.000+04:00

One of the less obvious side-effects of the economic slowdown is the increase in the number of bank services that were earlier offered for free but are now being charged for by the country’s banks.

Readers who’ve been around for more than a few years will remember when banks would actually honour their “free-for-life” credit card pledge and not charge customers an annual fee for such cards.

Nowadays, however, a free-for-life card comes preloaded with monthly maintenance fees, contradicting the very essence of the term “free” although we’re sure legally and technically, the banks are always right.

Also, there was a time when it used to be a customer’s privilege to have a documented proof of your bank transactions and account balance delivered to your doorstep every month – without an additional charge. Now, more often than not, you’ll have to shell out loose change every month to receive a copy, or settle for an emailed statement if you’re not inclined to dole out extra dirhams every month.

For bankers that want to give us the “green” logic: please stop bundling additional brochures and unwanted marketing material along with our bank statements and that will go a long way in going green.

A recent poll run by Emirates 24|7 shows that a majority of respondents believe that UAE banks are finding ingenious ways of relieving us of our extra dirhams, any which way they can get them off us.

The poll shows that the most annoying fees that customers in the UAE have had to pay include monthly statement charges and to get a ‘no dues’ letter after the end of a loan with the bank. Close to a third (29 per cent) of respondents branded their monthly statement charges as the most annoying bank fee they’ve had to pay while an equal number of people said paying money to get a ‘no dues’ letter after having repaid the loan with all the interest and charges was the most annoying fee for them.

“I was a good customer of my bank and prepaid my personal loan – for which my bank charged me an early settlement fee, by the way – and then asked them to give me a no liability letter. They charged me Dh200 for it. I found it ridiculous, but I’s rather pay to have the letter and be safe than not have it and be sorry,” said a respondent.

“The banks are now masters in the science of nickel-and-diming consumers with fees that start from the second you open an account to the moment you close it. I’ve moved from one bank to another and found out that it’s the same fees under different names,” said another upset respondent.

Almost a quarter (24 per cent) of respondents found paying money to close a bank account as the most annoying bank fee ever levied on them while 10 per cent said paying to talk to a human teller was the most annoying for them. “Suddenly, the once toll-free numbers have all become paid now,” a customer quipped. Another 7 per cent said that money being charged for issuing a replacement credit card was the most annoying.

lists below some tips that you can follow to avoid having to pay some of the most annoying fees charged by banks:

1. Minimum Balance Fees. While this fee is not new, some banks have now started levying this fee on even salary accounts, which were earlier exempt from it. If you find it hard to maintain a certain balance in your account and you happen to mind this fee, then your best bet is to go with banks that don’t yet have a “minimum balance required” clause, although there’s no guarantee that they wouldn’t commence this practice in the future.

2. Ubiquitous ATM Fees. These ATM fees are everywhere. You use a UAE Switch ATM machine and before you know it, you’re out Dh2 per transaction. If you use these ATMs abroad, be prepared to pay Dh15 or even more per transaction. To cut down on these costs, use debit/credit cards where possible and regularly stock up on cash at you own bank’s ATM for bills you can’t pay by cards – petrol, for instance.

3. Paper Statement Fees. Emailed statements are indeed the ‘green’ way of doing things – and more efficient too, considering the number of times I’ve lost my paper statements in the past. Online banking is much more convenient and hassle-free. But remember, once you switch to emailed statements, some UAE banks charge you a one-time fee of up to Dh100 to switch back to paper statements. So if you think that you might need to switch back to paper statements – for whatever reason – in the near future, you may be better off paying a nominal monthly fee for paper statements instead of a hefty switch-back charge.