UAE: New E-commerce Law Approved

Arabian Business, 7 December 2023: The UAE’s Economy Ministry has announced it has approved a new E-Commerce Law.

Federal Decree-Law No. 14/2023 has been approved to facilitate the growth of e-commerce in the country.

It integrates the roles of federal and local entities involved in e-commerce. It covers the requirements of the Central Bank on digital payment gateways, the requirements of the Federal Tax Authority and the requirements of the Telecommunications and Digital Government Regulatory Authority or TDRA.

In addition, it covers the cybersecurity requirements of federal and local entities and regulates the roles of the relevant federal and local entities in terms of the requirements and approvals required from the local entities concerned with the digital transformation of business activities and the e-commerce licensing requirements of economic development departments.

It will enable an authority fto be established to integrate supervisory, regulatory and judicial control operations and organises relations between merchants and merchants and digital merchants and consumers.

It applies to free zones in the country, including financial free zones, regarding activities that are not related to financial activities too.

Finally, it organises the relationship between parties of digital contracts and protects online consumers and relevant parties.

It aims to improve the business environment, facilitate business transactions, improve efficiency, reduce costs and promote stability in the sector.

It emphasises the central role of entities and authorities responsible for licensing and regulating e-commerce and associated logistic services and digital payment gateways in the country.

However, it does not impose any additional requirements on digital traders or other service providers.

It also protects consumer interests by safeguarding intellectual property rights and the purchase of goods or services via e-commerce channels.

It authorises trade conducted through modern technology and makes it similar to physical trade carried out.

It provides optional jurisdictions for dispute resolution, including arbitration as well and introduces an optional insurance coverage principle regarding obligations arising from trade through modern technology.

The Ministry developed the law with federal and local stakeholders as well as the private sector and relevant experts.

Also reported in Al Bayan on 7 December 2023. Click here to read more.

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UAE: New Emiratisation Rules Announced

Arabian Business, 30 November 2023: The UAE’s Human Resources and Emiratisation Ministry has announced new Emiratisation rules.

Under the new rules, companies with between 20 and 49 employees in specific sectors have to hire an Emirati worker in 2024 and another in 2025.

From January 2025, an annual financial contribution will be imposed on companies that fail to meet their requirements in 2024. This will equate to 96,000 AED for each Emirati not recruited.

A financial contribution of 108,000 AED will be imposed in January 2026 for 2025.

Companies can pay their contributions in instalments in agreement with the Ministry.

Companies in the information and communications, finance and insurance, real estate, professional and technical activities, administrative and support services, education, healthcare and social work, arts and entertainment, mining and quarrying, transformative industries, construction, wholesale and retail, transportation and warehousing, hospitality and residency services will be affected.

They will have to do so in line with Cabinet Decision No. 33/5W/2023, which will come into force in January 2024.

The companies were selected in line with specific criteria and information, including the quality of their jobs, the extent of their compatibility with Emiratisation goals, geographic locations, growth and other conditions that would attract Emiratis to work in these economic activities and ensure job continuity.

The activities were also chosen because of their rapid growth rate and ability to provide jobs and a suitable work environment.

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UAE: Implementation Date of New Pension Law Announced

Al Bayan, 27 November 2023: The UAE’s General Pensions and Social Security Authority has announced the implementation date of the new Pension Law.

They announced Federal Decree-Law No. 57/2023 will apply to citizens joining work for the first time from 31 October 2023.

The Authority added that entities affiliated with it are employers in the federal and local governments in all of the Emirates, apart from local government employees in Abu Dhabi and Sharjah.

The Authority is also affiliated with employers in the private sector in all emirates of the country, except for private sector employers in Abu Dhabi.

Click here to read more.

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UAE: New Pension Law Approved

Gulf News (United Arab Emirates), 17 November 2023: The UAE’s General Pension and Social Security Authority has announced it has approved a new Pension and Social Security Law.

Under Federal Decree Law No. 57/2023, the maximum contribution account salary for Emiratis working in the private sector has been increased from 50,000 to 70,000 AED.

It will apply to Emirati employees who have joined the labour market for the first time.

This will be case from the date of its publication in organisations participating in schemes run by the Authority.

Existing participants will continue to be covered by Federal Law No. 7/1999 on Pension and Social Security.

A pensioner who receives a pension in line with Federal Law No. 7/1999 or any other previous law will also continue to be covered by the existing law.

An insured individual who has received an end-of-service bonus in line with Federal Law No. 7/1999 or any previous law, will continue to be covered by Federal Law No. 7/1999, even if they started a new job after Federal Decree Law No. 57/2023 was issued.

Under the Law, an insured employee is authorised to consolidate previous periods of service, for any employer covered by the Law to their total pension. The insured individual can also consolidate the period of service before acquiring UAE nationality. The periods of prior service in any entity approved by the UAE Cabinet will be suggested by the Authority’s Board of Directors.

The minimum age for the insured individual to be entitled to a retirement pension is 55.

The minimum subscription period is 30 years.

The new Law grants working mothers’ more flexibility and benefits. It states that working mothers can apply for a retirement pension entitlement when they are younger and can benefit from a shorter subscription period as well.

They can also maintain their optional subscription if they have chosen to take leave to care for their children, in line with the terms and conditions. The new Law authorises the insurer to benefit from optional subscription where they requested unpaid leave to pursue postgraduate study.

The monthly subscription salary for the public sector consists of the basic monthly salary of the insured individual, in addition to the monthly allowances. This includes the cost-of-living allowance, the social allowance for children, the social allowance for UAE nationals, and the housing allowance, provided that the value of the insured individual’s contribution account salary does not exceed 100,000 AED.

However, in the private sector, the contribution account salary is specified by the employment contract. The monthly subscription amount must be between 3,000 and 70,000 AED.

The new Law allows an insured individual to request the purchase of a nominal period of adjoining to be added to their actual service periods provided they have actually worked at least 25 years when submitting a purchase request or 15 years if they have reached 60. The period required to be purchased should not exceed five years for men and women.

The new Law introduces further equality between insurers from the public and private sectors. A pensioner whose subscription period has reached 30 years, has the right to combine the pension with salary, regardless of their value. This combination applies to retirees from the public and private sectors.

The Law also states that the payment of the pension will be suspended if a pensioner joins a new job covered by the provisions of the new Law in exchange for compensation, whether a monthly salary, a lump sum, or a reward if this compensation is equal to or greater than the value of the pension and they will be paid the difference if the new salary is less than the pension amount. The pension will be repaid at the end of service in line with Federal Decree-Law No. 57/2023.

Monthly contributions for insured individuals will be 26% of their contribution account salary. The insurer’s contribution will be 11% of the insured’s contribution account salary and the employer’s contribution will be 15% of the insured’s contribution account salary.

The government’s contribution will be 2.5% of the private sector employer’s share for Emirati nationals whose contribution account salary is less than 20,000 AED.

This will be the case to encourage UAE nationals to be recruited into the private sector.

To unify general rules between the public and private sectors, the pension calculation mechanism will be determined based on the average contribution account salary of the last six years of the subscription period or the entire contribution period if less for employees in both sectors.

Under the Law, the Authority has been authorised to draft the Implementing Regulations to the Law and conditions for employers and self-employed people to benefit from the new Law.

The Finance Minister will issue a Decision once approved by the Authority’s Board of Directors.

The Authority is also authorised to draft the necessary Implementing Regulations and conditions to apply the provisions of the GCC Insurance Protection Extension Programme.

It has been issued to improve the Authority’s policies as well as how it works and ensure financial resources of pensions are sustainable.

It has also been issued to honour the Authority’s future commitments.

It also aims to improve the flexibility of pension and social security services in the UAE and mitigate against any gaps in services and policies provided to UAE nationals working in the public and the private sectors. Moreover, the Law will bring further equality in insurance benefits to encourage UAE nationals to join private sector companies.

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