Lecture 10

Recent Developments in the UAE Labor Law & the Updates Recommended

ContentsA- The Recent Developments in accordance with Cabinet Resolution No. 25 of 2010 concerning the

work permits. (Cabinet and Ministerial Resolutions are applauded) • Employees Transfer.• Temporary Work Permits • Part-time work• Work Permit for Personnel Sponsored by their Kinship• Juvenile Persons Work Permit

B- The Recommended Updates in Accordance with AD Government’s Legislative Road Map Project: Enacting a legal framework for unemployment to compensate national citizens who are

unemployed. Enhancing Emiratization Efforts. Increasing maternity leave and breastfeeding hours. Defining a minimum wage for all employees. Amending Articles 132 to 139 regarding End of Service Remuneration. Amending Article 149 regarding death and Disability indemnity. Adopting certain policies to enhance diversity. Adopting Flexi-time and Family friendly work environment.

Employees Transfer In the light of Cabinet Resolution No. 25 of 2010 concerning the work permits, The

Ministry of Labor issued Ministerial Resolution No. (1186) of 2010 on the Rules and Conditions of Granting New Work Permits to Employees, which provides that once the labour relation has been terminated, the MOL is enabled to issue a permit to an employee which allows them to move to another employer without the application of the six month ban.

• Practically, this allows for the immediate transfer of sponsorship provided that the termination was: one, consensual; and two, that the employee had spent at least two years of service with the first employer.

• There are four exceptions to the consensual termination requirement above: i) the employer has breached any of its legal or contractual obligations; ii) the employee has filed a complaint with the MOL due to the establishment’s closure; iii) the employee has filed a labour claim with the Courts; or iv) the employer’s unilateral termination or non-renewal of employment.

• The necessity that the employee must have spent at least two years with his previous employer to avoid the six month ban is avoided if: i) the employee joins the first skill level earning at least AED12,000, the second skill level earning at least AED7,000 or the third skill level earning at least AED5,000; ii) the employer is in violation of its legal obligations towards the employee or the employee is not the cause of the termination; and finally iii) the employee moves to an establishment which is owned by the first employer or if the employer is a shareholder in that establishment.

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Temporary Work PermitsIn the light of Cabinet Resolution No. 25 of 2010 concerning the

work permits, The Ministry of Labor issued Ministerial Resolution No. (1188) of 2010 on the Rules and Conditions of Granting a New Work Permit.

Temporary Work Permit• This permit is intended for those who are to be engaged on a

project or job function for a period of no more than six months. • Recognizing the need for flexibility in the UAE labour market,

this permit allows those who need to enter and work in the UAE for a short periods of time without the undue burden of obtaining a two year labour card and leaving after only having used one quarter of its entitlement and then facing repercussions should the employee wish to transfer to a another employer.

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Part-Time Work PermitsIn the light of Cabinet Resolution No. 25 of 2010 concerning the work permits, The Ministry

of Labor issued Ministerial Resolution No. (1188) of 2010 on the Rules and Conditions of Granting a New Work Permit. This part-time work permit has been created for those engaged in employment with working hours which are less than the normal full-time working hours of other employees in the same job. According to the MOL, this new part-time permit allows those who are already in full-time employment to take up a second part-time job. This is a huge step away from the previously strictly regulated work permit which tied you to your sponsor, and in most cases, your sole and only legal employer.

• In particular, It provides that part-time work permit may be issued to four categories of people:• Resident employees in full-time employment who hold valid MOL labour cards. Such employees will

require the approval of their main employer before being provided with a part-time permit to work. • Co-dependent sponsored residents (i.e. housewives).• Students who are above the age of 18.• Government servants.This permit shall not be given to people who are over 65 years old.

Interestingly, the Ministerial Resolution allows the MOL to issue part-time permits to employees enabling them to work for more than one establishment at any one given time.

Furthermore, part-time workers are entitled to all the labour rights as enshrined in the UAE Labour Law.

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Work Permit for Personnel Sponsored by their Kinship (blood relationship)

• In the light of Cabinet Resolution No. 25 of 2010 concerning the work permits, The Ministry of Labor issued Ministerial Resolution No. (1188) of 2010 on the Rules and Conditions of Granting a New Work Permit.

• This permit is issued to those who are currently dependents and take up employment with an MOL registered organization. In particular, it permits women over 18 years, who are dependents, the husbands of the UAE female citizens, and sons and daughters of the UAE female citizens to work full time while they are on their kinship.

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Juvenile Persons Work Permit• In the light of Cabinet Resolution No. 25 of 2010 concerning the

work permits, The Ministry of Labor issued Ministerial Resolution No. (1188) of 2010 on the Rules and Conditions of Granting a New Work Permit.

• This permit is specific to those between the ages of 15-18 who take up employment.

• This is further governed by Ministerial Resolution No. (1189) of 2010 concerning the Regulations and Conditions of Issuing Work Permits to Minors. As expected, the conditions espoused in this Resolution provide that the minor’s custodian must approve the minor’s employment; the minor will be restricted from performing any dangerous or difficult jobs as defined in the Resolution; the minor will not be allowed to work at night (from 8pm to 6 am); and the minor will only be permitted to work a maximum of six hours a day.

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AD Legislative Road MapA rA review of the economic legislations applicableeview of the economic legislations applicable

in the Emirate of Abu Dhabiin the Emirate of Abu Dhabi((The The Recommended Updates Concerning the UAE Labor LawRecommended Updates Concerning the UAE Labor Law))

((Oct. 2009 - July 2011Oct. 2009 - July 2011))Dr. Mohammed Haitham Salman, Team Leader, DEDDr. Mohammed Haitham Salman, Team Leader, DED

Recommended Updates Enacting a legal framework for unemployment to compensate

national citizens who are unemployed.Enhancing Emiratization EffortsIncreasing maternity leave and breastfeeding hours.Defining a minimum wage for all employees. Amending Articles 132 to 139 regarding End of Service

Remuneration.Amending Article 149 regarding death and Disability indemnity. Adopting certain policies to enhance diversity. Adopting Flexi-time and Family friendly work environment.

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Enacting Unemployment Law• A draft law for unemployment has been

prepared to compensate unemployed locals.

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Enhancing Emiratization Efforts• Encouraging both locals and private sector

to work together through bridging the pay gap between both sectors for certain period of time.

• Adopting further additional measures to combat fictitious employment of locals in the entities of the private sector.

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Increasing maternity leave and breastfeeding hours.

• Increasing maternity leave to 70 days with full salary in context with other related laws in the region.

• Increasing the breastfeeding period to two hours separately and providing nursery for the infants of the employees.

• Enacting paternity leave for a couple of weeks.

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Setting up National minimum wageIn accordance with Article 63, The Council of Minister should define a minimum

wage. Ministerial Resolution No. 1187 of 2010 concerning the measures and limits of

entities classification, makes an attempt to define certain levels of wages, as follows:

• The salary of employees (both citizens and expatriates) under skill level 1 [holders of Bachelor’s degree or higher] should not be less than Dh12,000, according to the new Labour Ministry resolution.

• Salary for diploma holders should not be less than Dh7,000 and for those who fall under skill level 3 should be paid a minimum of Dh5,000 per month.

• Still there is a need to establish a minimum hourly wage in the UAE applicable to all sectors and in consistent with current cost of living.

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Amending End of Service Remuneration

• End punishing the employees if they decide to end unlimited employment contracts. So, employees are entitled to take their full end of service.

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Updating death and Disability indemnity.

Updating the amounts provided under Article 149 which limits death and work indemnity to 24 month basic salary Not less than 18000 not more than 35000 to be in consistent with current cost of living.

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Diversity Practices A number of regulations and practices to enhance

diversity in the workplace should be established. Well run companies go beyond required legal actions to welcome employees of all backgrounds

Actions taken by companies to manage diversity effectively: They articulate a clear diversity mission, set objectives, and

hold managers accountable They spread a wide net in recruitment, to find the most

diverse possible pool of qualified candidates They set up diversity councils to monitor the company’s

goals and progress toward them as well as to solve any kind of harassments in the workplace.

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Flexi-time and Family friendly work environment

A shift in corporate cultures is needed to truly become a “family friendly” company where men and women are fully supported in their efforts to balance work and family responsibilities

Types of programs companies are offering:Child CareElder Care (parents or other elder relatives)Parental and family leave (12 weeks unpaid leave)Work flexibility (flextime and working from home

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