UAE: Details of Draft Commercial Agencies Law Announced

Arabian Business, 30 June 2022: The UAE’s Economy Minister has announced details of a draft Commercial Agencies Law.

If approved, public joint-stock companies and public legal entities with a minimum 51% national capital contribution will be able to act as commercial agents.

Only UAE nationals will be able to act as commercial agents as is the case at the moment.

The existing law on regulation of commercial agencies imposes some restrictions on the cancellation of commercial agencies, even after the contract term has expired.

Under the new law, the agency contract will terminate on the expiry of the contractually agreed term.

The Minister added a draft law on cooperatives will allow various forms of cooperatives to be established in the country. This will enable them to benefit from the economic and development opportunities offered by this sector and boost its contribution to GDP.

It specifies the penalties which will be imposed on anyone who violates the law. These include fines of between 50,000 and one million AED.

A fine of between 200,000 and one million AED will be imposed on anyone who provides false or misleading statements in the articles of incorporation, annual statements and reports, financial statements and financial position or financial statements.

Additional reporting from Al Bayan on 29 June 2022. For full story, click here.

To view more news items and other content we have available, visit lexis.ae/demo to book a demo and start your free trial of Lexis® Middle East.

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

Dubai: Fees Imposed on Airline Agents to be Cancelled

Al Bayan, 27 June 2022: Dubai’s Crown Prince and Chairman of the Executive Council has issued Dubai Executive Council Decision No. 32/2022 cancelling fees imposed on airline agents and offices operating in Dubai.

Under the Decision, fees imposed under the regulations issued on 12 March 1985 and Dubai Decision No. 4/1998 on airlines agents and their branches and airline offices operating in Dubai, will be cancelled.

Anything which contradicts or contravenes the Decision will be repealed.

It will be published in the Official Gazette and come into force on its issued date. For full, click here.

To view more news items and other content we have available, visit lexis.ae/demo to book a demo and start your free trial of Lexis® Middle East.

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

UAE: Penalties for Getting Paid to Publish Illegal or Fake Content Clarified

Alroeya, 17 June 2022: The UAE’s Public Prosecution has clarified the penalties which will be imposed on those who get paid to publish illegal content or fake information.

Under Article 55 of Federal Decree-Law No. 34/2021 anyone who requests, accepts, takes directly or indirectly, a gift or a financial or a moral benefit or has been promised one inside or outside the state in return for publishing or republishing illegal content or any fake information in the state using one of the information technology mediums will be jailed and fined up to two million AED.

The gift or financial benefit will also be confiscated. For full story, click here.

To view more news items and other content we have available, visit lexis.ae/demo to book a demo and start your free trial of Lexis® Middle East.

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

Dubai: Operational Controls for Remotely-operated Marine Crafts and Vessels Approved

Following directives from the Chairman of the Dubai Council for Border Crossing Points Security, the Dubai Maritime City Authority at the Ports, Customs and Free Zone Corporation has announced  it has amended the regulations relating to the registration and licensing controls for remotely-operated marine crafts and vessels.

They have also amended the operational requirements for them.

They have done so to ensure the regulations in this area align with the highest international standards and best practices.

They have also been introduced to develop the maritime sector in the Emirate and create a safe and sustainable maritime sector there as well as improve the performance, safety, efficiency and competitiveness of the sector.

They include a number of operating controls for remotely-operated marine crafts and vessels, including compliance with all treaties, regulations and laws issued by the International Maritime Organisation related to the outputs of the Maritime Safety Committee circular and its amendments.

They also include a requirement to coordinate and obtain approval from the Dubai Maritime City Authority on the time and place of operation first.

Under the regulations, an inspection report and a safety certificate from an approved technical body has to be obtained. This will validate the safety of remotely-operated marine crafts or vessels in situations where communication and control are lost.

Marine crafts and vessels have to operate in line with best international practices and follow guidance in international operating codes.

In addition, operators have to provide a comprehensive risk assessment report when registering the marine craft or vessel based on the nature of operation, the size of the vessel or craft and the area of operation.

The report must be approved by the Maritime City Authority.

There must be adequate insurance coverage to protect people and property from loss and damage. The value of the coverage for a single accident should not be less than 10 million AED.

Marine crafts and vessels should comply with all requirements and standards set by the Authority on testing and operating remotely-operated crafts or vessels.

An emergency plan which details the potential risks of operating remotely-operated marine crafts and vessels should be prepared.

They should also be equipped with communication and sensor devices and day and night cameras to ensure safe operation.

The regulations apply to both remotely-operated marine vessels and marine crafts used in research, experiments and monitoring within specific geographic areas of the Authority.

They also apply to marine crafts used to transport passengers or goods and which sail within specific water areas and shipping lines approved by the Authority.

The regulations do not apply to autonomous marine devices, regardless of their dimensions and the purpose they are going to be used for.

To view more news items and other content we have available, visit lexis.ae/demo to book a demo and start your free trial of Lexis® Middle East.

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

UAE: Probation Notice Clarification Issued

Arab News, 8 June 2022: The Head of Labour Complaints at the Human Resources and Emiratisation Ministry has issued a clarification on how much notice employees who are in their probation period have to give.

They have clarified they have to give at least 14 days’ notice if they want to resign.

This applies to private sector employees.

Employees who have completed their probation have to give one month’s notice if they want to resign.

Previously, neither employer or employee had to give notice.

To view more news items and other content we have available, visit lexis.ae/demo to book a demo and start your free trial of Lexis® Middle East.

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

UAE: Draft Federal Commercial Agencies Law to be Discussed

Al Bayan, 7 June 2022: A member of the Financial, Economic and Industrial Affairs Committee of the UAE’s Federal National Council has announced the Committee has completed its study of all of the details related to a draft federal law on the regulation of commercial agencies.

The draft includes setting time periods for the termination of contracts, which allow, according to the type of commercial contracts concluded, to grant the agent periods of time ranging from two months for simple contracts and up to five years for contracts related to durable goods, which contributes to providing the opportunity to agents to prepare and arrange their situation following the termination of the commercial agency contract.

The law also states that where commercial agency contracts are not terminated amicably between the agent and client, the agency file is referred to a specialist committee at the Economy Ministry.

It will be discussed on 7 June.

For full story, click here.

To view more news items and other content we have available, visit lexis.ae/demo to book a demo and start your free trial of Lexis® Middle East.

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

UAE: New Classification for Companies on the Way

The UAE’s Human Resources and Emiratisation Minister has announced a new classification for companies is on the way.

It will be introduced on 1 June.

It has been introduced to respond to business owners’ demands.

It will protect employee’ rights and encourage innovation and promote the SME sector.

Companies who pledge to comply with the relevant laws and regulations on Emiratisation will be offered incentives.

The classification has been issued by Cabinet Decision No. 18/2022.

Companies will be split into three distinct categories by an interactive automated system which will enable a company’s classification to be changed transparently, in line with the procedures carried out by each company or transactions.

Companies will have to pay the service fees which correspond to the category they are in.

Companies who are in the first category will benefit from significant fee exemptions.

Companies will be able to be promoted to the first category if they meet at least one standard. These include increasing their Emiratisation rate at least three times above the target, cooperating with the Nafis programme to train at least 500 citizens annually or are a venture owned by a young citizen in line with the relevant approved standards.

They also include them being one of the training and employment centres which support implementing the Workforce Planning Policy by promoting cultural diversity or by being active in the targeted sectors and activities determined by the Cabinet based on a recommendation from the Ministry.

Companies which do not meet any of these criteria but have committed to the law and the cultural and demographic diversity promotion policy will be automatically classified in the second category.

All other companies found by the Ministry to have violated Federal Decree-Law No. 33/2021 and its Implementing Regulations (Cabinet Decision No. 1/2022) or the relevant resolutions regulating the labour market, or standards for protecting labour rights, or lack of commitment to promoting cultural and demographic diversity in the labour market will be categorised in the third category.

They may also be categorised in the third category if they commit other violations under Ministerial Decision No. 209/2022.

This includes issuing a final ruling that the facility committed a human trafficking crime, used or recruited workers without obtaining work permits, provided incorrect data, documents or information to the Ministry, violated obligations on workers’ wages, housing and safety standards, resorted to fake Emiratisation practices or committed other serious violations.

Service fees for work permits and transfer fees will not exceed 250 AED for companies in the first category for two years. The fees will be 1,200 for companies in the second category for two years. Companies in the third category will not be able to benefit from any fee rebates and the fees for issuing or renewing work permits will be 3,450 AED for two years.

Activities involving the employment of UAE and GCC citizens are exempt from these fees. Also reported in Alroeya on 24 May 2022. For full story, click here.

To view more news items and other content we have available, visit lexis.ae/demo to book a demo and start your free trial of Lexis® Middle East.

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

UAE: Probation Period Explained

Emaratalyoum, 16 May 2022: The UAE’s Human Resources and Emiratisation Ministry has confirmed the employer has the right to appoint any employee for a trial period of up to six months from the date of starting work.

However, there can only be one probation period.

If the employee successfully passes the probation period and continues to work, the trial period will be counted within the period of service.

If the employer wants to terminate the employee’s service during the probation period, they must notify the employee in writing 14 days before the date of termination.

If the employee wants to move on, they must notify the original employer in writing within a month of their desire to terminate the contract.

The new employer has to compensate the original employer with recruitment costs or contracting with the employee, unless otherwise agreed. For full story, click here.

To view more news items and other content we have available, visit lexis.ae/demo to book a demo and start your free trial of Lexis® Middle East.

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

UAE: Controls for Collecting Personal Information of Customers Clarified

Alroeya, 12 May 2022: The UAE’s Central Bank has clarified the controls for collecting personal information by entities which practice marketing, issuing and managing insurance policies.

The Central Bank has issued a Circular to this effect.

They have issued it to all insurance companies, insurance agents and brokers and banks which market insurance policies operating in the country.

It includes guidelines on the personal information which may be collected for insurance policies.

All insurance companies, insurance agents, brokers and banks which market insurance policies must comply with the guidelines when collecting personal information through application forms, service offers, claim forms, or any other type of document. provided by the customer, whether in writing, electronically, or through call centres.

The Bank clarified the instructions apply to collecting information related to all types of insurance and Takaful products, including life insurance, fundraising, health insurance, property and liability insurance and any other type or category of insurance products.

The personal information collected by the parties involved in the marketing, issuing and/or management of insurance policies should be limited to specific, explicit and legitimate purposes.

The aim is to ensure compliance with the regulatory and legal requirements and provide adequate advice to recommend appropriate insurance products when necessary.

For full story, click here.

To view more news items and other content we have available, visit lexis.ae/demo to book a demo and start your free trial of Lexis® Middle East.

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

UAE: Penalties for Abstaining from Submitting Documents to Judiciary Clarified

Al Bayan, 10 May 2022: The UAE’s Public Prosecution has clarified the penalties which will be imposed on those who don’t submit documents to the judiciary.

Under Article 317 of Federal Decree-Law No. 31/2021, anyone who is assigned by law to submit a document or anything else which is useful in proving a fact submitted to the judiciary and don’t do so, will be jailed for up to six months.

Alternatively they may be fined up to 5,000 AED.

For full story, click here.

To view more news items and other content we have available, visit lexis.ae/demo to book a demo and start your free trial of Lexis® Middle East.

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