Move to Abu Dhabi by Sept, govt firms to staff

Abu Dhabi government owned companies are sending reminders to their staff, asking them to relocate to the capital before September or lose out on their housing allowance.

One company circular, which was seen by Emirates 24|7, states: “Staff currently living outside the emirate of Abu Dhabi will have a one-year grace period from September 2012 to relocate to the emirate in order to be eligible for housing allowance after September 2013. Those who wish to remain resident outside Abu Dhabi beyond September, 2013 will not be entitled to any housing allowance.”

This website reported earlier that companies in Abu Dhabi, which had provided accommodation to their employees in Dubai, had begun informing them of non-renewal of their rental contracts after the contract term expired.

“I have been provided accommodation in Dubai by my company, but few weeks back I was told by my HR department that my rental contract would not be renewed when it expires in January,” an employee of a semi-government company said on conditions of anonymity.

In February, Cluttons, a property consultancy, said rents in Abu Dhabi's prime areas rose by over 25 per cent in the past six months due to an influx of government workers living in Dubai and other emirates.

In its first quarter 2013 report, Jones Lang LaSalle said rents in the prime areas have increased partly because of the initial relocation of Abu Dhabi government employees from Dubai in response to new regulations and limited availability of high quality units for private rental.

The Executive Council decision was made to ensure the safety of employees commuting long distances, often in bad weather conditions. Government stats reveal the number of employees and their families who live outside the emirate at 23,000.

The decision, however, has an exception and is not applicable on employees recruited by branches of the government companies located outside Abu Dhabi.

The Circular 14/2012 regarding the policy related to the housing allowance in Abu Dhabi states:

• No housing allowance should be applied for any employee who resides outside the Emirate of Abu Dhabi; the housing allowance shall not be paid to any employee who opted to reside outside the emirate of Abu Dhabi.
• The new amendment shall be applied in relation to all locals and expats employed by any department, institution, or company fully owned by the government of Abu Dhabi or any subsidiary fully owned by such departments, institutions, or companies.
• The employees shall be granted one-year period to comply with this amendment. However, any employee, recruited after the issuance of this amendment, shall comply immediately with provisions of this amendment.
• This amendment shall not apply for the employees recruited by branches located outside the emirate of Abu Dhabi.
• Periodical reports shall be presented to the Civil Service Council in respect of the implementation of this amendment.

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