LexisNexis Middle East

Oman: Contractual Changes Announced for Public Sector Employees

01/03/202201/03/2022
by Benjamin Filaferro

Times of Oman, 27 February 2022: Oman’s Labour Ministry has announced public sector employees in the Sultanate will be offered fixed-term contracts.

They will be offered these contracts instead of open-ended contracts.

In addition, either the employer or employee can terminate the employment contract before its duration ends.

Employees can also be denied their annual bonuses if they are considered to have performed poorly at work.

The Decision was issued in line with Oman Sultani Decree No. 89/2020, establishing the Labour Ministry and determining its areas of competency.

Article 4 of the new Decision states: ‘Either of the two parties may terminate this contract before the end of the contractual year without giving reasons, provided that the other party is notified of this no less than three months prior to their termination. During this time, the second party will remain in service.

The first party may waive the right of the second party to continue working after they have been notified of termination, or will require them to continue working until the end of their notice period, if circumstances so require, provided this does not conflict with the interest of the work, and provided that this notice period is fully calculated within the actual service period of the second party.

The second party is entitled to periodic bonuses on the first of January each year, in the category prescribed to their pay grade, and equivalent to their financial allocations, provided that at least six months have passed since the date on which the contract was issued.’

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News developments

Saudi Arabia: Excess Cash Must be Disclosed

28/02/202228/02/2022
by Benjamin Filaferro

Saudi Gazette, 25 February 2022: Saudi Arabia’s General Authority of Civil Aviation has issued a circular to all airlines operating in Saudi airports on the necessity of excess cash, jewellery and precious metals being declared.

Airlines must educate passengers who are departing and arriving in the Kingdom about the requirement.

The disclosures must be made to the relevant authorities.

Also reported in Al Riyadh on 24 February 2022. For full story, click here.

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News developments

UAE: Employment Agencies Regulation Issued

28/02/202228/02/2022
by Benjamin Filaferro

The UAE’s Human Resources and Emiratisation Ministry has issued a Ministerial Decision on the regulation of employment agencies.

Ministerial Decision No. 51/2022 has been issued as part of the implementation of Federal Decree-Law No. 33/2021.

It covers the activities of employment agencies, mediation between parties in terms of labour relations, and contract condition negotiations when establishing an employment relationship.

It also establishes several procedures covering agency licences and allows branches to be opened in the licencing Emirate or any other emirate, in line with the requirements of local regulatory authorities.

Under the Law, the Decision specifies various obligations for agencies. These cover mediation, temporary employment and outsourcing as well as the obligations of beneficiaries.

The obligations of agencies, in terms of mediation, temporary employment or outsourcing, include drafting accurate contracts consistent with the law and keeping workers’ records for at least two years. These must contain the details of workers, employers and beneficiaries.

The responsibilities of mediation agencies include returning workers to the country from which they were recruited and covering the costs. They are also responsible for damage caused to others because of their activities if it is proven the agency has not complied with the terms of an agreement with an employer or beneficiary and the worker’s failure to pass a required medical examination.

The obligations of a temporary employment agency and outsourcing also include implementing the legally established requirements of any employer towards a worker. In addition, the agency may not, under any circumstance, fail to implement these obligations because of a beneficiary’s failure to fulfil their agreement.

The agency must also not employ children who are not eligible to work under applicable laws in the country or receive any cash or commission. The Ministry will oblige the agency to provide a relevant acknowledgement.

In terms of the obligations of beneficiaries towards workers, the Decision specifies various obligations, including meeting all occupational health and safety requirements for workers proportional to the nature of their work and the risks of their professions, under the relevant legislation as well as not assigning a worker to any job or service outside the general framework of their agreed duties. It also prohibits workers from working for more hours than the total agreed with the agency, except under overtime provisions and controls under the Decree Law, relevant Implementing Regulations and Decisions and with the agency’s approval.

The obligations also includ providing workers with instructions on their required duties in writing, under the general framework agreed with the agency, providing an attendance sheet before sending workers to their agencies, recording, in writing, any reservations made by workers about the content of the sheet, and not employing workers for other parties. Also reported in Alroeya on 24 February 2022. For full story, click here.

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News developments

Kuwait: Commercial Agency Law Amendments Proposed

28/02/202228/02/2022
by Benjamin Filaferro

Arab Times, 22 February 2022: A Kuwaiti MP has proposed an amendment to the country’s Commercial Agency Law.

They have proposed an amendment to Article 24 of Kuwait Decree-Law No. 68/1980.

If approved, it will state ‘Any foreign company can establish its branch in the country and operate here without the need for a Kuwaiti agent’.

They have also proposed an amendment to Article 31 of Kuwait Law No. 49/2016 (the Public Tenders Law) on the conditions which individuals or companies must meet to participate in public or limited tenders, as well as direct contracting.

Individuals or companies must be registered in the commercial register, in addition to the suppliers and contractors register. The aim of the amendment is to eliminate the privileges granted to local agents, most of who have caused problems which impeded the implementation of many development projects because of the absence of suitable technology and unwillingness to support national projects.

They added most local agents focus on making gains and engage in visa trading, instead of working in the public interest

They went on to say some of these agents won tenders and then divided the projects which were distributed to subcontractors who failed to meet the conditions.

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News developments

UAE: Guidelines on Introducing Employee’s Rights and Legal Duties Issued

24/02/202224/02/2022
by Benjamin Filaferro

Alroeya, 22 February 2022: The UAE’s Human Resources and Emiratisation Ministry has launched a guide aimed at informing workers in the private sector about their rights and duties under Federal Decree-Law No. 33/2021 on the regulation of labour relations and the Implementing Regulations.

The guide includes a set of instructions which will increase the worker’s awareness of their rights and duties during the period before their arrival in the UAE as well as after their arrival in the country and practicing their work.

It also contains instructions on what to do when the employment relationship ends.

Before the worker comes to the country, the guide provides a package of instructions for workers. This includes fully reviewing the job offer, especially in terms of the job title, responsibilities, privileges and the value of the wage. It also includes reviewing the detailed annex attached to the job offer, which states their rights and duties under the Law.

It will be published in seven languages, including Arabic, English, Urdu, Bengali and Chinese Hindi and Malayalam. For full story, click here.

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News developments

Bahrain: Civil Aviation Regulation Law Amendments Approved

24/02/202224/02/2022
by Benjamin Filaferro

Al Watan, 21 February 2022: Bahrain’s King has approved and issued Bahrain Law No. 4/2022 amending the Civil Aviation Regulation Law promulgated by Bahrain Law No. 14/2013.

Under Article 1 of Bahrain Law No. 4/2022, the definitions of civil aviation affairs, national aircraft and unit or investigation unit contained in Bahrain Law No. 14/2013 will be replaced wherever they appear with

‘Civil Aviation Affairs: The body entrusted with the authorities, competencies and powers related to civil aviation and represented by the Undersecretary for Civil Aviation Affairs.

National Aircraft: An aircraft registered in the National Aircraft Registry.

Unit or Investigation Unit: The unit for investigating accidents and dangerous incidents of aircraft established under Article 90 of this law’. For full story, click here.

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News developments

UAE: Income Tax is Not Going to be Introduced

24/02/202224/02/2022
by Benjamin Filaferro

Arabian Business, 21 February 2022: The UAE’s Minister of State for Foreign Trade and Minister in charge of Talent Attraction and Retention has announced an income tax is not going to be introduced.

They said the idea is not being discussed at all.

They made the announcement just weeks after the authorities announced a general corporation tax was going to be introduced.

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News developments

Saudi Arabia: Legal Practice Law Amended

21/02/202221/02/2022
by Benjamin Filaferro

Saudi Gazette, 18 February 2022: Saudi Arabia’s Justice Minister has announced the Cabinet has approved proposed amendments to the Kingdom’s Legal Practice Law.

The amendments specify new conditions for foreign law firms in Saudi Arabia.

They create a regulatory framework for foreign law firms and include a number of conditions which foreign offices must meet to obtain a licence to practice the profession in the Kingdom.

In addition, they include a number of provisions which will contribute to improving the efficiency of the profession.

The amendment reduces the period of experience required to obtain a lawyer’s licence in the Kingdom from three to two years.

The rule which allowed unlicenced agents to plead has also been repealed.

This move is aimed at protecting the legal profession, improving its standards and developing the control of professional obligations and responsibilities.

There are also procedures for filing and reviewing disciplinary cases, boosting the principles of integrity and transparency and ensuring the necessary guarantees are provided.

They are aimed at developing and supporting the law profession in the country.

The Justice and Commerce Ministries and Saudi Bar Association have been involved in the drafting of the amendments.

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News developments

UAE: National Crypto Licencing on the Way

21/02/202221/02/2022
by Benjamin Filaferro

Arab News, 17 February 2022: According to media reports, the UAE authorities are preparing to issue federal licences to Virtual Asset Service Providers by the end of the first quarter of this year.

They will be issued to attract key players in this field to the country.

The Securities and Commodities Authority is in the final stages of amending legislation to allow Virtual Asset Service Providers to set up.

They will be responsible for regulatory oversight of these companies but will work with the country’s Central Bank.

Local financial centres will be able to establish their own day-to-day licensing procedures.

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News developments

Egypt: FinTech Law Approved

21/02/202221/02/2022
by Benjamin Filaferro

Arab News, 16 February 2022: Egypt’s President has approved a new FinTech Law.

Under the Law, the country’s Financial Regulatory Authority is now the sole licensor and regulator of companies in this field.

The Law will also regulate various digital financial solutions, including robo-advisory, nano-finance, insurtech and tech-enabled consumer finance.

The President also approved the Unified Budget Act. This makes it mandatory for the Government to be more transparent on public finances.

Under the Law, the Government will also have to present annual medium-term budgets and tax strategies to the House of Representatives and set spending limits for each Ministry.

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