UAE: Federal Authority Introduces Unified Employment Contract Model for Federal Sector

The Law Reporters, 16 September 2024: The UAE Federal Authority for Government Human Resources (FAHR) has unveiled a unified model for employment contracts within the federal government sector, a move aimed at streamlining and standardising employment terms for both Emiratis and expatriates.

This legal reform signifies a major advancement in the UAE’s employment framework, reflecting its commitment to fostering an inclusive, efficient, and well-regulated public sector.

The newly introduced employment contract model applies to all employees within the federal government, covering various employment types and work patterns.

It clarifies the different work patterns allowed under federal government employment, giving room for diverse roles and responsibilities while maintaining operational efficiency.

The reform includes provisions for flexible working hours, recognising the growing need for adaptable work schedules in a modern work environment.

One of the model’s most significant aspects is the specification of contract durations, providing clarity and transparency for both employers and employees.

Whether an individual is employed on a permanent, temporary, or project basis, the duration of the employment will be clearly stipulated.

The unified model is applicable to both Emiratis and expatriates employed in the federal government.

This inclusivity is in line with the UAE’s broader policies to integrate Emiratis into the public sector while ensuring that expatriates have clear and structured employment terms.

From a legal standpoint, this initiative represents a significant step towards reducing ambiguity and employment disputes in the public sector.

By standardising terms and conditions, the model enhances legal certainty for all stakeholders.

Employees now have a clear understanding of their rights and obligations, and employers can ensure compliance with unified guidelines.

The introduction of this contract model comes at a time when governments worldwide are reassessing employment frameworks to adapt to new work environments shaped by technological advancements, global mobility, and shifts in labour markets.

The UAE has consistently been at the forefront of such reforms, with this unified model being a testament to its proactive approach to labour governance.

The unified model also aligns with the UAE’s ongoing Emiratisation efforts, which aim to increase the number of Emiratis employed in the public and private sectors.

By creating a transparent, structured, and attractive employment framework, the federal government aims to encourage more Emiratis to join the workforce, knowing that their employment terms are safeguarded under this unified system.

The UAE’s move to introduce a unified employment contract model is a landmark reform that reflects the country’s legal sophistication and its ability to adapt to the evolving needs of the workforce.

It provides much-needed clarity on work patterns, flexible timings, and contract durations, ensuring fairness and legal consistency for both Emirati and expatriate employees in the federal sector.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

UAE: Streamlined Process for Withdrawing Absconding Reports Introduced

Khaleej Times, 6 September 2024: The Ministry of Human Resources and Emiratisation (MoHRE) has introduced a simplified process for both domestic workers and employers to file or withdraw absconding reports.

This initiative aims to provide a fair and transparent resolution for all parties involved.

According to the new guidelines, domestic workers can initiate the withdrawal process through MoHRE’s website, application, or by visiting designated domestic worker centres or Tawseel vehicles.

The service is available in all emirates except Dubai, where it can be accessed through the General Directorate of Residency and Foreigners Affairs.

To withdraw an absconding report, domestic workers must provide a copy of their Emirates ID, passport, and have a record of an absconding report lodged by their employer.

After filling out the application and paying the required fee (Dh115 online or up to Dh72 at business centres), MoHRE will verify the validity of the complaint.

Once approved, the worker can cancel the complaint without involving the employer within a week of the cancellation date.

Employers, on the other hand, can log into MoHRE’s portal or use their UAE Pass to submit an application for withdrawing the absconding report.

They must provide copies of the domestic worker’s Emirates ID and passport, and have a record of lodging a complaint against the worker for absence from work.

After paying the applicable fee and verification by MoHRE and the Federal Authority for Identity, Citizenship, Customs and Ports Security, the employer will receive final approval.

The new process aims to streamline the resolution of domestic worker disputes, with the latest amendments mandating that such cases be taken up at the Court of First Instance as a last resort if an amicable settlement cannot be reached with MoHRE.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

UAE: Circular Warns Against Violations in Marketing Calls for Securities and Commodities

Al-Ethihad, 3 September 2024: The Securities and Commodities Authority has urged the public to report marketing calls related to securities and commodities that violate the provisions and regulations outlined in Cabinet Decision No. 56/2024 on the regulation of telephone calls.

The Authority has outlined violations and practices that fall under the purview of the aforementioned resolution, including marketing of products not under the Authority’s supervision through unofficial channels without approval.

Using unjustified marketing pressures to convince individuals to accept a product or service.

Using false and misleading information when marketing a product or service.

Making marketing calls outside the authorised time frame of 9:00 AM to 6:00 PM.

Persisting after an initial rejection of a product or service.

Calling more than once a day or twice a week after no answer or call termination.

Not asking for consent before starting marketing, advertising, or promotion.

Not using registered local numbers issued by authorised telecommunications companies.

Making marketing calls from unregistered or non-company-owned numbers.

Receiving marketing calls from a company registered in the Non-Disclosure Register (DNCR).

Disclosing and trading personal data to third parties for marketing purposes.

Failure to indicate that the call is being recorded. Failure to disclose the company’s identity and purpose of the call at the beginning.

Additionally, any other violations of controls issued by the Authority.

The Authority has confirmed that companies approved for marketing securities and commodities via telephone can be verified on its website.

For the full story, click here.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

UAE: Strengthens Labour Law Penalties to Protect Workers’ Rights

The UAE has announced stricter penalties for companies violating labour laws, highlighting its commitment to safeguarding workers’ rights and combating illegal employment practices.

The recent amendments to the ‘Regulation of the Employment Relationship’, commonly known as the UAE Labour Law, introduce increased monetary fines ranging from AED 100,000 to AED 1,000,000 for labour law violations, a significant increase from the previous AED 50,000 to AED 200,000 range.

Specific offences targeted by the new penalties include employing individuals without proper work permits, neglecting to provide legitimate job opportunities, abusing work authorisation rules, and disseminating false recruitment or Emiratisation data.

In cases where companies fabricate employment or Emiratisation statistics, the fines will be multiplied by the number of employees involved in the fictitious employment.

Moreover, companies found guilty of severe violations may face criminal penalties in addition to the substantial financial fines, depending on the severity and impact of the infringements.

The amendments also establish a new process allowing labour dispute cases to be brought before the Court of First Instance if dissatisfied with decisions made by the Human Resources Ministry and Emiratisation.

The UAE government’s move aims to deter employers from engaging in illegal hiring practices and ensure fair treatment of both UAE nationals and expatriate workers.

Companies found in violation risk substantial financial penalties and potential legal consequences, which could impact their ability to hire foreign talent in the future.

The amendments reinforce the UAE’s commitment to improving the regulatory framework and holding employers accountable for upholding labour rights and ethical employment practices.

Businesses operating in the UAE are advised to review their recruitment and employment processes to ensure full compliance with the updated regulations.

Professional advisory services are available to guide companies through the changes and mitigate risks associated with non-compliance.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

UAE: Strengthens Labour Law Penalties to Protect Workers’ Rights

The UAE has announced stricter penalties for companies violating labour laws, highlighting its commitment to safeguarding workers’ rights and combating illegal employment practices.

The recent amendments to the ‘Regulation of the Employment Relationship’, commonly known as the UAE Labour Law, introduce increased monetary fines ranging from AED 100,000 to AED 1,000,000 for labour law violations, a significant increase from the previous AED 50,000 to AED 200,000 range.

Specific offences targeted by the new penalties include employing individuals without proper work permits, neglecting to provide legitimate job opportunities, abusing work authorisation rules, and disseminating false recruitment or Emiratisation data.

In cases where companies fabricate employment or Emiratisation statistics, the fines will be multiplied by the number of employees involved in the fictitious employment. Moreover, companies found guilty of severe violations may face criminal penalties in addition to the substantial financial fines, depending on the severity and impact of the infringements.

The amendments also establish a new process allowing labour dispute cases to be brought before the Court of First Instance if dissatisfied with decisions made by the Human Resources Ministry and Emiratisation.

The UAE government’s move aims to deter employers from engaging in illegal hiring practices and ensure fair treatment of both UAE nationals and expatriate workers.
Companies found in violation risk substantial financial penalties and potential legal consequences, which could impact their ability to hire foreign talent in the future.

The amendments reinforce the UAE’s commitment to improving the regulatory framework and holding employers accountable for upholding labour rights and ethical employment practices.
Businesses operating in the UAE are advised to review their recruitment and employment processes to ensure full compliance with the updated regulations.

Professional advisory services are available to guide companies through the changes and mitigate risks associated with non-compliance.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

UAE: Part-time Work Permit Procedures

Khaleej Topics, 18 August 2024: The Ministry of Human Resources and Emiratisation (MOHRE) has listed seven procedures for the issuing of a part-time work permit.

The Ministry of Human Resources and Emiratisation (MOHRE) has listed seven procedures for the issuing of a new work permit and a part-time work permit. Part time permits allow registered establishments to employ a worker under a part-time employment contract, where the worker’s hours or working days are less than their those of full-time counterparts. The worker can work for more than one employer after obtaining a permit from the Ministry.

First it is necessary to login to the electronic service their username or password or use their digital identity. The application must be through one of the service channels. The application must be electronically referred to the Ministry for verification the necessary conditions and documents are present.

If there are any issues the establishment will be notified of this.

If everything is correct, approval will be granted for issuing a part-time work permit. The contract will be approved electronically if the permit application is approved. Fees must be paid on issue of the approval.

The required documents include a clear coloured personal photograph with a white background, a copy of the passport including a valid residence visa, the approved job offer form issued by the Ministry and signed by the employer and the worker, an educational certificate (which is clear and bears the worker’s name; for skill levels 1 and 2, a university degree certified by the Ministry of Foreign Affairs for skill levels 3 and 4, a diploma or higher certified by the Ministry of Foreign Affairs for skill level 5, a general secondary school certificate certified by the Ministry of Foreign Affairs for skill levels 6 to 9, no certificate is required). The worker is not considered skilled if the monthly salary is less than AED 4,000, and they have an educational certificate.

Other required documents include a professional license issued by the competent authority, for occupations such as a doctor or nurse (professional license issued by the Ministry of Health and Health Authority), and for teachers, or teaching assistants, a professional license issued by the Ministry of Education, Knowledge Authority in Dubai, Abu Dhabi Department of Education and Knowledge, and Sharjah Private Education Authority).

The Ministry has set several conditions for obtaining a part-time work permit, including that the worker must be at least 18 years old, meet the requirements stipulated in the applicable legislation work in specialised professions or any other positions that require obtaining a professional license, the worker’s profession with the employer must be consistent with the establishment’s activity, the establishment’s license must be valid and have no violations that lead to the suspension of its activity according to legal regulations, the request for the permit must be submitted by the legally authorized signatory of the establishment, the worker must have a valid residence visa and a work permit issued by the Ministry. All skill levels and professions are allowed to obtain this type of permit based on the service’s specific conditions. Insurance or a bank guarantee is not required to issue the permit, and an electronic quota is not required to obtain a part-time work permit service.

The application process takes two working days, and the customer are notified of the result of the application upon completion. The customer can follow up on their application by accessing the inquiry services through one of these channels: the Ministry’s website, the MOHRE smart application, or the call centre 600590000. The permit is valid for one year.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

UAE: Federal Law on Labour Relations Organisation Issued

Al-Bayan, 12 August 2024: The UAE has issued a new federal decree-law amending provisions of the existing labour relations regulations. This move aligns with the country’s continuous efforts to develop a robust legislative framework that ensures an efficient and competitive labour market.

The primary objectives of the new decree-law are to regulate labour relations in a balanced manner, clearly defining the rights and obligations of all parties involved. Additionally, to provide comprehensive protection for workers and employers, enabling them to exercise their rights within a well-defined legal framework.

Lastly, to enhance the overall competitiveness of the UAE’s labour market.

Stringent penalties have been introduced for violations related to unauthorised employment practices.
Individuals found employing workers without proper authorisation, bringing in workers and leaving them without employment, misusing work permits, or closing facilities without settling workers’ rights will face fines ranging from AED 100,000 to AED 1 million.

Strict measures have been put in place to protect juvenile workers.
Employers found violating provisions related to the employment of minors will face similar hefty fines.
Additionally, individuals who agree to employ juveniles in violation of the law, including those with guardianship or custody over the minors, will also be subject to penalties.
Employers are now mandated to take necessary measures to settle the rights of workers in accordance with the new decree-law, its executive regulations, and related decisions before closing facilities or suspending operations.

The UAE’s proactive approach to enhancing its labour laws demonstrates its commitment to creating a fair and transparent work environment that safeguards the interests of both employers and employees.
These amendments are expected to further strengthen the country’s position as a preferred destination for skilled professionals and businesses seeking a robust and well-regulated labour market.

The UAE Government announced fines ranging up to Dh1 million on Monday after a Federal Decree-Law was issued, amending specific provisions of the Federal Decree-Law on the Regulation of Employment Relationships.

A fine ranging from Dh100,000 to Dh1 million will be imposed on employers for employing a worker without a work permit or bringing them without providing any job. The same fine will also apply for closing a business without settling the rights of workers, taking part in fraudulent labour acts including fraudulent employment or fictitious Emiratisation, employing a minor in violation of the law, and engaging in any act of circumvention of the laws or regulations governing the labour market, including fictitious employment.

As per the new provisions, the penalties will multiply based on the number of workers fictitiously employed.

Additionally, The Ministry of Human Resources and Emiratisation is now authorised to make a settlement provided that the employer pays 50 per cent of the minimum value of the fine and pays back to the government the financial incentives obtained by the fake employees.

The new decree stipulates that any criminal proceedings for fictitious employment, including fake Emiratisation, can only be initiated at the request of the Minister of Human Resources and Emiratisation or his/her authorised representative.

The decree also states that any disputes between employers and employees should be referred to the Court of First Instance rather than the Court of Appeal, if there is a disagreement with the decision made by the Ministry of Human Resources and Emiratisation in resolving the dispute.

This applies to all cases except for those disputes that have been adjusted or reserved for the issuance of a judgement.

Starting from the date of implementation of the provisions, the Court of Appeal is required to refer all requests, disputes and grievances regarding the regulation of employment relations to the Court of First Instance.

As per the new provisions, the court shall revoke proceeding with any claims filed after two years from the termination of the employment relationship.

This decree is part of the country’s ongoing efforts to develop its legislative and legal framework.
It aims to ensure the efficiency and competitiveness of the labour market, regulate employment relationships, and clearly define the rights and obligations of all parties involved, and ensure their protection by law.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

UAE: Reveals VAT Guidelines for Charities

The Federal Tax Authority (FTA) in the UAE has released comprehensive guidelines outlining the VAT treatment for charities operating in the country.

The guidelines, titled “Charities VAT Guide,” provide clarity on various aspects of VAT compliance for charitable organisations.

One of the key highlights of the guidelines is the introduction of the concept of “designated charities.”

These are charities that meet specific criteria, such as being approved by the Community Development Ministry, operating on a not-for-profit basis, and being primarily funded by grants or donations.

Designated charities will be eligible for a special VAT recovery scheme, allowing them to reclaim VAT incurred on expenses related to both taxable and non-taxable activities, except for exempt supplies.

A spokeperson from the FTA has stated that the guidelines aim to support the charitable sector in the UAE by providing a clear framework for VAT compliance.

Designated charities will benefit from the special VAT recovery rules, enabling them to maximise their resources for charitable purposes.

The document outlines the criteria for a charity to be recognised as a designated charity and the process for obtaining this status.

It also clarifies the VAT treatment of various activities undertaken by charities, such as business activities subject to VAT, non-business activities, and donated goods and services.

For charities that do not qualify as designated charities, the guidelines explain the standard VAT recovery rules.

These charities can only recover VAT on costs related to taxable supplies, following a prescribed input tax apportionment method.

The guidelines also address special situations, such as the VAT treatment of sales or leases of new buildings to charities.

The first supply of a new building specifically designed for a designated charity’s relevant charitable purpose will be subject to VAT at the zero rate, providing a cash-flow benefit.

The UAE Cabinet has issued several decisions listing the charities recognised as designated charities, eligible for the special VAT recovery rules.

The guidelines provide an updated list of these designated charities.

The FTA has emphasised the importance of charities familiarising themselves with the guidelines and ensuring compliance with the VAT regulations.

Failure to comply may result in penalties and other legal consequences.

With the release of these comprehensive guidelines, the UAE aims to support the charitable sector while ensuring a fair and transparent VAT system.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.