Standardised new contracts effective from January 1: MoL

Starting January 1, 2016, the UAE will implement the new labour contract that standardises employment terms, the Ministry of Labour said on Wednesday.

Under new labour contract rules, residents of the UAE cannot renew their work permits nor will they be issued new permits if an employer fails to provide a signed unified contract starting 2016.

The ministry will approve requests by workers to move to another employer only if they met the terms and conditions of the contracts they are party to, the ministry officials said on Wednesday.

During a workshop, Humaid bin Deemas Al Suwaidi, Assistant Undersecretary for Labour Affairs at the Ministry of Labour, pointed out that the new procedures of recruiting foreign workers from outside the country will establish a stable, transparent and balanced relationship between workers and employers because they are built on contractual basis and mutual consent in line with labour regulations. This relationship will be terminated by consent from both parties or when either party fails to meet their obligations stated in the contract.

The new measures implement three new decrees issued previously by Saqr Ghobash, Minister of Labour, to regulate the labour market.

According to the new decrees, contracts will be for the term of only two years and can be renewed by consent from both parties, the employer and the worker.

A new work permit will be issued for the worker only after one year after the contract is terminated.

EARLIER REPORT

January 1: No UAE work permits if new unified contract not signed with worker

The UAE Ministry of Labour (MoL) will refuse granting work permits without signed unified contracts, starting next year, it said in a tweet (@MOLUAE) on Tuesday.

It further added that employers must assist workers to sign contracts within 14 days from entry.

Another of its tweet read: “The employer must inform the worker & vice versa, about ending a work contract with at least a 30 day notice.”

Earlier this month, WAM quoted Saqr Ghobash, Minister of Labour saying three new decrees, effective beginning of the New Year, will help promote the transition to a knowledge-based economy while meeting international labour standards.

"The three new decrees, to start beginning of next year, which meet wise leadership guidance, are consistent with the Constitution and labour market requirements. They also promote the transition to the knowledge-based economy and are compatible with international labour standards.

“The stability the labour market is a reflection of the stability of the working relationship between both parties, something which is expected to be reinforced by decisions that would establish a better relationship between the employer and workers due to transparency of the unified contracts. They also enable workers to shift to other firms at any time preserving their rights, all in accordance to regulations set forth, which enhances the UAE labour market mobility and flexibility,” Ghobash added.

The first decree requires employee signature preceding a contract renewal to obtain a new work permit, something that will terminate procedures currently implemented to renew work permits after only receiving a notification through the employer stating that both ends agreed to renew the contract, stating all privileges and requirements enclosed in the contract to be renewed.

Workers, under the new procedures, shall enjoy better options of either accepting to renew the contract according to marked privileges and stipulated requirements in the new contract, or amend these privileges and conditions upon agreement by both parties, which actively contributes to promoting a strong working relationship, or on the other hand enable employees to completely end the relationship search for alternatives or return back home.

The second decree, points six cases of labour contract termination for fixed-term contracts and four cases for non-term contracts.

Additionally, the third decree regards terms and conditions of granting a new work permit to workers who choose to end a working relationship through four cases to issue a permit if the contract between both ends was a fixed-term contract and three cases for non-term ones, something which promotes flexible mobility and maintains labour market competencies and exchange experiences internally.

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