The UAE (United Arab Emirates) ministry of labour has introduced a number of ministerial resolutions which affect all employees who fall under their jurisdiction.

The changes seek to address issues which have arisen in the UAE as a result of the economic downturn, allowing for more flexibility within the movement of a largely expatriate workforce, whilst simultaneously increasing penalties for bad practices by employers.

Cabinet Resolution No. 25 of 2010 and its supporting ministerial resolutions introduced:

(1) new internal work permits

(2) a waiver of the automatic ban on employment in some cases; and

(3) the imposition of penalties for bad practices

New internal work permits

The five new internal work permits allow for a work transfer, temporary work, part-time work, work for those sponsored by family and juveniles.   The permits will be issued upon approval by the ministry of labour.  This means that although these work permits appear to create new access to the workplace for prospective employees, nevertheless the ministry of labour will be able to control the extent to which the permits are taken up, having regard at all times to the overriding objective of the ministry of labour to ensure that work is a right of a UAE national.

Waiver of automatic 6-month ban

Prior to the cabinet and ministerial resolutions, upon termination of employment, an employee was given a 6-month automatic ban from working for another employer who operated under the ministry of labour jurisdiction.  The ban could be lifted either by the provision of a “no-objection certificate” by the former employer (provided that the employee had more than one year’s service) or the payment of a fee (where the employee had more than three years’ service).  However, the effect of the ban has led to concerns that  certain expatriates who attained good knowledge of local practices, were deterred from remaining in the UAE following the termination of employment (particularly where this was due to redundancy) and have thus been lost to the country and the economy. 

From 1 January 2011, the automatic ban has be lifted in certain cases.  The intention appears to be that employees with long service, or those who are unfairly treated by their employers or who are made redundant, should be allowed to find immediate alternative employment, without regulatory hindrance.

Workplace violations

The ministry of labour has also introduced tougher penalties against defaulting employers.  The applicable resolution introduces three categories of violation, depending upon their seriousness, as well as “black points” and fines.  There are a range of violations in each category, ranging from people trafficking and failing to pay employees for more than 60 days in the first category, failing to comply with applicable procedures for UAE nationals, or attending a summons from the Ministry of Labour in the second category, to failing to participate in the newly implemented wage protection system or failing to comply with required standards of health and safety in the third category.

Conclusion

The implementation of the new resolutions appear to indicate the seriousness by which the UAE has taken the ILO’s (International Labour Organisation) comments and recommendations regarding past practices in the UAE.