Weekly Spotlight: New Ministerial Decision in the UAE Allowing Companies to Hire Employees on a Part-Time Basis

This week the spotlight is on employment law developments in the UAE, where the country’s Human Resources and Emiratisation Ministry has announced it has issued a Decision allowing companies to hire employees on a part-time basis. It is hoped the change will create a more flexible labour market in the country and reduce the country’s dependency on expatriate employees. However, a part-time contract cannot be changed into a full-time contract unless it is terminated first. Under the Decision, part-time employees must work no more than eight hours a day and have at least one day off a week. Employees will also be able to work in first and second level skilled jobs for more than one employer providing they have obtained Ministry approval. They will not need the approval of either their original or new employer.

Elsewhere, according to local newspaper reports, the application of the Good Conduct Certificate requirement has been extended. It now applies to existing workers in the country who are switching jobs regardless of their length of service. This dispels rumours in February 2018 the requirement would not apply to this category. It means Filipino and Indonesian domestic workers are now the only ones exempt from the requirement.

Weekly Spotlight: A Mechanism for Monitoring and Inspecting Real Estate Regulatory Authority licenced entities to be established in Dubai

This week the spotlight is on legal and regulatory developments in the real estate sector in Dubai, where the Real Estate Regulatory Authority has signed an agreement with the Dubai Economic Development Department. Under the agreement, a mechanism for monitoring and inspecting Real Estate Regulatory Authority licenced entities will be established. Under the agreement, the two sides will work together to issue and impose fines on violators of the relevant regulations. The Land Department will provide all of the data and information for proper inspections, supervision and follow-up of licenced real estate facilities to be carried out. It will also provide the Economic Development Department’s Commercial Compliance and Consumer Protection Department team with all of the directives, decisions and memorandums issued to real estate companies in Dubai which clarify the relevant regulatory clauses and how they are applied. For its part the Economic Development Department’s Commercial Compliance and Consumer Protection Department will organise awareness campaigns about the relevant regulatory requirements.

Elsewhere Dubai’s Municipality Buildings Department has announced it has launched a new industrial building projects system. The aim is to ensure contractors are registered and simplify procedures for owners and customers in this sector. The new system will allow a contractor to design industrial buildings and supervise their implementation without needing to appoint a consultancy office. An awareness campaign about the new system will launch on 26 March.

Weekly Spotlight: New System to Allow Companies to Issue Emirates ID Cards Electronically

This week the spotlight is on legal and tax developments in the UAE, where the country’s Federal Authority for Identity and Citizenship has announced it is working on a new system to allow companies to issue or renew Emirates ID cards for their staff electronically. The aim is to migrate 80% of the Authority’s services to smart and digital platforms by December 2018. Under the new system, companies who meet certain criteria will be able to use Authority services to issue ID cards electronically. Companies will have to have over 100 employees and must be licenced by the relevant authorities. They will also have to apply to the Identity and Citizenship Authority to use the system.

The Federal Taxes Authority has also confirmed the provision of a receipt is a fundamental consumer right. The Authority confirmed businesses should provide receipts and should not deduct taxes if have not registered. The Authority also warned fines will be imposed on businesses who deduct tax but refuse to provide consumers with receipts.

Weekly Spotlight: UAE’s Draft Arbitration Law Approved

This week the spotlight is on arbitration developments in the UAE, where the country’s Federal National Council has approved a draft Arbitration Law. The UAE’s judicial authority will now consider the Law before it is considered by the Council of Ministers and the Supreme Court. It is likely the law will be enacted in the second half of this year. Under the draft law, parties will be able to choose the arbitrator they want to hear their case according to its subject, the legal system they wish to govern their case, be it the UAE, UK, Singapore or any other jurisdiction and where it is heard. The law will apply to all arbitrations in the country, provided the parties ‘agree to not be subject to another arbitration law’ and provided the case does not ‘contradict the UAE’s public order and morals’. It is expected to adopt many of the provisions in the United Nations Commission on International Trade Law, which is a model for international commercial arbitration and has been enacted successfully in many countries. It comes as the numbers of commercial disputes in the country are increasing, according to DIFC Court figures. According to the Courts they handled 520 cases in 2017, with Court of First Instance claims, which include arbitration cases up 17% compared to the previous year, at 54.