UAE Labour Laws: No Labor Ban, Work permits, Contracts

At last UAE labour feel freedom from now on As ministry of labour UAE applies new rule for employment contracts, termination and work permits will come into force starting January 2016. With new rules Six Month labour ban is over from now. Previously if labour whether male or female and sponsor/employer not follow mutual termination of job contract the labour have to face Six month labour banned due to which labour is unable to get new job in UAE for six months. These new rules were introduced to grow well and balanced relation in between employee and employers.

Mol Introduces NEW Decrees in UAE Labour Laws were:

–Ministerial Decree 764: Standard Work Contracts
–Ministerial Decree 765: Termination of Limited Contract and Unlimited Contract
Ministerial Decree 766: Granting of New Work Permits

Below I give Explanation of Ministerial Decree 766: Granting of New Work Permits which give condition to get new work permit in case of termination or resignation. And Granting a permit to a worker for employment by a new employer.

This change is rule take place to make labour market broad and employer did not face problems in hiring of labours form abroad or within country. There are many highly skilled workers that were facing these kind of bans this rule make them back in UAE labour market while gives more benefits without recruiting new labour.
Now as per new rule regarding standard labour contract, sponsor/employer should apply for a Quota form the ministry of Labour. The offer letter must contain detail description of job, right and duties of each parties. This is to be made through a Tas’heel centers. If any worker is in the UAE, he/she signed the offer letter before employer applies for tentative approval to employ him/her.
The contract has must be signed by labour/worker before submission to the MoL for registration process. Any alteration or change is term will not be done until it is beneficial for worker. After letter is signed by worker employer have to enclose this with application to obtain approval for issuing of work permit.
14 days was given to Worker to sign the offer.

Explanation of ARTICLE No. 1 of Ministerial Decree 766

Rules for Limited Period of Contract:

Worker could join other company if contract is expired with current company/employer but must have valid visa.

All terms expired after the contract period and no be renewed

After completion of Six month of work, both employee and worker mutually terminate the contract. The requirement of six month duration is not for Skill category 1,2,3 classified by MOL UAE.

Employer initially terminate the contract without any reason, provided that you completed six month in service

Limited contract have specific duration after which contract is expired and the renewed if necessary. In case of renewal Either you or your company terminates the limited contract after renewal.

Whoever terminates the contract first provide notice period as per the contract or 3 months if notice period is not mentioned in the job contract.

Worker must do his work with full intentions during notice period and employer must give him all type of benefits normally given.

The terminating party should compensate the other party with 3 month gross salary which is during notice period.

If worker do not serve the notice period you may have to pay compensation to your employer for not serving notice period.

Rules for Unlimited Contract:

Both parties mutually terminate contract, if worker completed 6 months of work. The requirement of six month duration is not for Skill category 1,2,3 by MOL UAE

If one of the party decide to terminate the contract he must inform the other party

Notice Period Rule is same as limited contract. 3 months notice period or as stated in Job Contract.

The employer only terminate the contract by giving any genuine reason other than non-compliance by worker. Provided that Worker completes 6 month in service.

The terminating party(Employer) should compensate the other party(Worker) with 3 month gross salary which is during notice period(Notice period as stated in Job Contract)

If worker do not serve the notice period you may have to pay compensation to your employer for not serving notice period.

“Unlimited term” contracts who are now allowed to obtain a new work permit even if it is an employee-initiated termination, so long as the employee has completed six months’ service and completed their notice period as agreed.

Article no 2 to 5 Explanations:

Article No 2 Explanation: 
The New Work Permit is not be granted on any other cases except in cases given in Article No.1.
Article No 3:
All Educational Institution(Schools, Colleges) authorities  first obtain the approval for  relevant government agencies prior to issuing of Work permit  This means, any school in Abu Dhabi or o must obtain ADEC approval prior to applying for work permits for the teachers. While Dubai and other Emirates have to get approval from their own respective gov agencies related to education.
Article No 4:
The work permit becomes null and void which means not use-able in case if application of work permit  given with any false claim regarding worker or employer.
Article No. 5:

All old laws regarding granting of work permits are annul after the implementation of the new law.

After all of that MOL has removed the 6 month labour ban. This means, you will not face labour ban if you change your job before completing 2 years of service.

Note that labour ban will be applicable for worker having skill  Level 4 and 5 set by MoL under various circumstances.

Any Questions than Must Comment Below I try my best to help you.

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