New UAE LABOR LAW 2022 article feature img

New UAE Labor Law 2022

Changes In The UAE Labor Law | The New Labour Law In The UAE 2022 As Stated By The Ministry Of Human Resources & Emiratisation

Federal Decree-Law No. 33 of 2021 governing the regulation of labor relations that took effect on Wednesday, February 2, 2022, on all establishments, employers, and workers in the private sector across the country has replaced Federal Law No. 8 of 1980. This new Law aims to improve employment practices in the UAE so that it meets worldwide standards for employees.
According to Dr. Abdul Rahman Al Awar, Minister of Human Resources and Emiratisation, the new law helps establish the UAE labor market’s position as one of the vital global labor markets in the region. The new law would provide versatility, and attract more skilled individuals while ensuring the rights of both employers and employees are well understood and protected.

The following are some of the most significant changes that the new Law will bring about.

Flexible Working Arrangements

Introduced with the new Law are alternative flexible employment arrangements.

  • Temporary work is suitable when the length of the employment duration is limited by time or a project goal. This appears to be a comparable situation to what fixed-term contracts give under current law.
  • Flexible work is stated as work hours and/or days that vary based on the workload and other operational factors.
  • Part-time employment is clearly established as when an individual works for one or more employers for a specific number of hours or days, and part-time employees will be entitled to pro-rated vacation leave.
  • A rather new work arrangement is Remote work, where all or part of the work is done outside the workplace rather than being physically present, whether part-time or full-time
  • And finally, Job-sharing work, where tasks are divided among several workers to complete previously agreed responsibilities. Equal distribution of salary is payable to each of them. Part-time workers are treated according to part-time job standards.

Furthermore, while there are no explicit requirements for remote / home-based working arrangements, it permits an employee to work remotely (from inside or outside the country) with the employer’s consent.  This is a positive step that responds to the working environment in the wake of the COVID-19 pandemic.

Changes In Employment Contracts

Unlimited employment contracts must now be transformed into fixed-term employment contracts within one year of the Decree’s effective date, with a three-year maximum time. By mutual agreement, the contract may be extended or renewed for additional shorter or longer periods after the initial term has expired. When determining the employee’s continuous service period, the new period or periods are regarded as extensions of the previous period and would be added to the employee’s continuous service duration – for end of service gratuity purposes or otherwise.

The New Law automatically applies to employees who are currently on unlimited contracts. Employers must transition existing unlimited-term contracts to fixed-term contracts within one year of the Effective Date, which is February 2023.

Under an unlimited contract, either party may end the contract for valid reason and should provide notice.

If the employee has been with the company for:

  • Less than 5 years – 30 days notice
  • More than 5 years – 60 days notice
  • More than 10 years – 90 days notice

The New Law mandates that the employment contract include the employer’s name and address, as well as the employee’s name, nationality, date of birth, and any other information essential to establish the employee’s identification and credentials. The contract should also include the employee’s job title, start date, location, hours of work, days off, and, if appropriate, the probationary period. The contract should also include the duration, agreed compensation, including allowances, and other compensation in case of injury, duration of yearly leave to which the employee is entitled, period of warning, contract termination process, and any other data defined by the MOHRE as necessary to manage the parties’ relations.

Work Permits

The Ministry of Human Resources and Emiratisation approved 12 categories of work permits as of February 2022, allowing companies registered with the ministry to employ workers who fulfilled the requirements of the permits. Among these permits is a permit to bring in a worker from outside the country, a permit to relocate a non-national worker to and from a business that is duly registered with the ministry, and a permit for individuals staying with family,

A temporary work permit, which is granted to a registered business intending to recruit a worker from abroad to complete a temporary work or a specific project within a fixed period, and a project work permit, which is granted to a registered business intending to recruit a worker from abroad to complete a temporary work or a specific project with a fixed period, are also included.

The part-time work permit authorizes registered businesses to hire a worker on a part-time basis, with reduced working hours or days than full-time employees. The individual can work for other employers as well once a part-time work permit has been issued. The work permit for minors also enables an individual who has reached the ages of 15 – 18 to work in a registered business under the guidance of the regulations and its executive directives.

A student work permit covering training and employment has also been confirmed. This type of permit allows registered businesses to train or employ a student in the country who has reached the age of 15, subject to certain requirements that ensure appropriate training and working conditions. A work permit for citizens/children from Gulf Cooperation Council countries allows Emirati and GCC individuals to work in registered businesses in the country.

For golden residency visa holders, a work permit will be issued upon the request of a registered business. Companies can also get a national work permit for trainees if they intend to train a citizen according to a known technical or scientific qualification.

Persons who seek to operate based on their own residency, most usually in the case of foreign individuals, will be granted a self-employment permit. This permit does not need sponsorship from a specific company or employer in the UAE, nor does it require the individual to have an employment contract under which he or she will receive an income directly from providing services for a certain period of time. This permit allows the individual to execute tasks or services to an individual or a company, in which case the individual is not employed by that person or business.

Employee’s Entitled Leave

Under the new legislation, bereavement leave is specified as five (5) days in the case of the husband or wife’s death, and three (3) days in the case of the mother, father, child, brother, sister, grandchildren, grandpa, or grandmother’s death.
Employees (parents) who have a child to care for are entitled to five (5) working days of parental leave.

According to the legislation, an employee who is associated with or regularly studies at a state-approved educational institution is entitled to study leave for a period of ten (10) working days each year to take tests, provided that the person has worked for the company for at least two years.

In addition, the national employee will be allowed full-time leave to undertake national duty with pay in conformity with the country’s regulations. Proof of service from the appropriate authorities is necessary in order to be eligible for the leave mentioned in this Article.

The Ministry of Human Resources and Emiratization established conditions, controls, and procedures for the issuance, renewal, and cancellation of work permits, as well as the transfer of workers from one establishment to another, so that employers can meet their labor needs and reap the benefits of their capacity and productivity at the lowest possible cost, particularly in the case of new work models.

End Of Service Gratuity

Because no agreements have been formed for workers who have turned in their resignation notice, resigning employees who have served for at least one year are entitled to a full end-of-service gratuity payout.

Also, there is no particular law that covers alternative pension plans, and it’s uncertain if MOHRE will recognize them, especially if a contract already exists.

Because no agreements have been formed for workers who have turned in their resignation notice, resigning employees who have served for at least one year are entitled to a full end-of-service gratuity payout.

Also, there are no particular laws covering alternative pension plans, and it’s uncertain if MOHRE will recognize them, especially if a contract already exists.

After the contract expires, all end-of-service benefits must be paid within 14 days. Businesses who fail to comply might face fines ranging from AED 5,000 to AED 1,000,000, with the amount increasing depending on the number of employees affected. However, if this time limit has elapsed, employee(s) are not entitled for compensation.

Onshore and inside the free zones, all UAE businesses (excluding DIFC and ADGM) are to revise their employee contracts. After a review to ensure conformity with the New Law, new employment contracts and other rules would be necessary.

If you require assistance in implementing these guidelines in accordance with the new Law, please do not hesitate to contact us. Our labor and employment lawyers in Dubai are glad to help you.

Contact Us to learn more

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Debt Collection - Al Reyami Advocates Legal Services

Debt Collection In Dubai UAE 2021

Debt Recovery And Collection In The UAE (No Win, No Fee – Out Of Court)

The United Arab Emirates is a country of amazing opportunities, which consists of approximately of 90% of expats who came to work, live and study in this country, raise and educate their children here, and who are very pleased with their choice thanks to the state policy aimed at harmonious, sustainable development and ensuring security of all who came to the UAE.

However, due to natural circumstances, such as Covid-19 for example, or deliberate illegal actions, organizations and individuals have to face a situation where they cannot receive the money promised to them under the contract or due to them.

Inevitably, they have to face an unpleasant and difficult situation of debt collection, look for ways to get the funds that they owe, as well as compensation and losses that they have suffered because of the delay of promised payments.

Clients of our law firm Hassan Al Reyami & Muhyealdeen International Legal Consultants often turn to us for help in debt collection and over many years of successful work in this area, our team of debt recovery lawyers and experts have been able to accumulate a lot of positive experience in resolving these issues.

Debt Recovery Process

Let’s take a look at the basic stages of debt collection that you have to go through to get a debt, sometimes you have to go through all of them, sometimes we manage to solve the issue at the first stage of collection, depending on the documents provided and the debtor’s ability to pay. They are pretty clear and strong:

  1. Drafting Legal Notice
  2. Mediation
  3. Litigation
  4. Enforcement

In addition, a final stage is – Settlement agreement, which can take place at each stage of debt collection.

Why do I need debt collection lawyers?

In our law practice, we faced with a variety of cases of non-repayment of debt due to different reasons and circumstances, and often the malicious intent of the debtor. The most common situations of non-repayment of debt includes the following:

  • Unpaid Cheques
  • Bounced Cheques
  • Unpaid Invoices
  • Unpaid Salaries
  • Unpaid Loans
  • Unpaid Service Benefits
  • Bad Debts
  • Delinquent Account Receivables
  • Commercial Debts
  • Insurance claims
  • And a lot more

At the first stage, we try to resolve the issue through mediation with the debtor, through negotiations, submission of documents justifying the debt, explaining to the debtor the consequences that non-payment of the debt can lead to, but we also do not forget that our collection case may end up in court, and therefore, we must issue a legal notice to the debtor with an indication of the amount, legal basis and the timing of debt repayment. We also have to take into consideration limitation of time to have a chance to claim the debt.

Quite often in our legal practice, but unfortunately not always, the mediation process leads to resolving the issue of collection in favor of our client.

The best outcome of mediation and negotiations with the debtor on debt collection is the signing of a settlement agreement with him on the repayment of the debt and the release of the relevant documents and the failure to proceed with the process in court proceedings, in which our law firm has accumulated extensive experience, having signed many amicable and settlement agreements and collected debts out of court to deep satisfaction of our customers.

If it is impossible to resolve the issue by an amicable agreement, the client is forced to go to court to resolve the issue of debt collection. Over the years of its more than twenty years of legal practice, Hassan Al Reyami & Muhyealdeen International Legal Consultants has accumulated vast experience in debt collection in the courts and arbitration of the United Arab Emirates.

Our Dubai lawyers had litigated in over 160 international and over 200 local arbitrations and court cases with an outstanding client satisfaction rating of 98% and completed over 5000 court case and arbitrations in total with high success rate. We have accreditation in all the courts in the United Arab Emirates and have local advocates in our team, which can present our clients before local courts.

A debt collection case won in the court is not a guarantee that you will receive your debt. A very important and difficult stage is the collection process, which includes investigating the property, accounts and assets of the debtor. Therefore, in the process of debt collection, it is necessary to legally competently provide that the debtor could not withdraw or hide his assets, thereby depriving you of the possibility of collection.

Why we recommend contacting debt collection specialists

The main reason for the failure of the collection of the tax is that the client is often not familiar with the laws of the UAE or does not understand them well, cannot properly draw up his claim, is in a stressful state, has chosen the wrong strategy for collecting a debt, and sometimes he simply cannot agree or talk in the same language as the debtor or his lawyers. For the creditors is also very important to come into contact with debtors as soon as possible, because he can have another creditors and because of that, there could be a lag behind other creditors demanding payments.

Regardless of the complexity of your debt collection case, Hassan Al Reyami & Muhyealdeen International Legal Consultants can assist you in debt collection in United Arab Emirates, and our legal practice covers all seven Emirates in United Arab Emirates. No win – no fee (out of court settlement), this is the guarantee of our work for you.

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dubai skyline sunset

New UAE Commercial Companies Law: 100% Foreign Ownership in LLC Mainland Companies

New UAE Commercial Companies Law: Which companies can claim 100% foreign ownership?

On 1st June 2021, amendments to Federal Law No. (2) of 2015 on Commercial Companies came into effect to allow 100% foreign ownership in LLC mainland companies in the UAE. Until recently, foreign investors could own a maximum of 49% of shares in such companies leaving 51% shareholding for an UAE national. Or, if speaking of a branch of a foreign company, it was prerequisite to have a local service agent to be named in the license.

The amendments were initially introduced by Federal Law by Decree No. (19) of 2018 on Foreign Direct Investment (FDI). This is in line with the UAE Cabinet initiative to loosen restrictions in certain economic sectors thus making it more attractive for foreign investors to run their business in the UAE mainland market, including global startups, and enhancing the positions of the UAE as a leading Middle East economy.

No requirement for nationality is now in place for establishing a company with the 100% foreign ownership. The Law states that “a foreign investor is considered a natural or corporate person who does not hold the nationality of the State (the UAE) and who invests in the State in accordance with the provisions of this Law by Decree”. Such persons will then be eligible for a renewable three years investor or partner visa.

The aim of these changes is to promote and develop the investment environment and promote attracting foreign direct investment in line with the developmental policies of the UAE. In particular:

  • Asserting the position of the State as a major attraction hub for foreign direct investment both regionally and globally.
  • Attracting and encouraging foreign direct investment.
  • Expanding the production base, diversifying it, and transferring and attracting advanced technology, knowledge and training.
  • Increasing the flow of foreign direct investment in the priority sectors to achieve balanced and sustainable development and create job opportunities in various fields.
  • Achieving the best return with the available resources and securing high added values for the State’s economy.

The new regulations are to relax restrictions for companies engaged in one of the 122 business activities which are on the Positive list fixed in Cabinet Resolution No. 16 of 2020 on the Determination of the Positive List of Economic Sectors and Activities Eligible for Foreign Direct Investment and Percentage of their Ownership (enclosed at the end of this article). Activities on the Positive list fall under the following sectors:

  • agricultural sector;
  • manufacturing sector;
  • services sector;

and include such activities as administrative and support services, agriculture, art and entertainment, construction, educational activities, healthcare, hospitality and food services, information and communication, manufacturing, professional, scientific and technical activities, renewable energy, space, transport and storage, etc.

In addition to establishing a comprehensive Positive list, the Resolution sets forth the licensing criteria for commercial companies falling under the FDI law, including the amount of minimum share capital for each activity – varies from AED 2 to 100 mln, minimum percentage of Nationals employed by such a company, the use of modern technology, contribution to R&D, bringing high added-value, and some other conditions for specific business activities.

There are certain exemptions to the 100% foreign ownership rule. Companies carrying out activities of a “strategic impact” will continue to be subject to foreign ownership restrictions. The following activities have already been listed in the Federal Law on Foreign Direct Investment and are on the Negative list:

  • Exploration and production of petroleum materials.
  • Investigations, security, military sectors, manufacturing of arms, explosives and military equipment, devices and clothing.
  • Banking and financing activities, payment systems and dealing with cash.
  • Insurance services.
  • Hajj (pilgrimage) and Umrah services, providing employment and recruitment services for staff and servants.
  • Water and electricity services.
  • Services related to fisheries.
  • Postal services, telecommunications services and audio and video services.
  • Land and air transport services.
  • Printing and publishing services.
  • Commercial agents’ services.
  • Medical retail such as private pharmacies.
  • Blood banks, venom and quarantine centres.

The Council of Ministers is eligible to add or remove activities from this list.

Also, a resolution is to be issued to specify the procedures for registering and renewing the registration of foreign investment companies in a special register at the Investment Unit called “Register of Foreign Direct Investment”.

The introduction of the law on 100% foreign ownership can affect already existing LLC companies with local shareholding which may desire to reconsider their ownership structure. To do so such companies can sell the shares belonging to an UAE national to a foreign national and thus become a 100% owner of the company. Certain charter documents will need to be amended (Memorandums of Association) accordingly. Companies planning to make respective rearrangements can do so by 2 January 2022.

Among other notable changes are:

  • introduction of mandatory corporate governance rules for all companies in the UAE (expected in the near future);
  • general shareholders meetings can now be held with the use of modern technology and be presided by foreign nationals as well as Emirati;
  • a general meeting can be called upon the request of one or more shareholders holding a minimum of 10% of the share capital;
  • the notice period for holding a general meeting has been increased to 21 days;
  • the amount of shares allowed to be sold via IPO has been increased to 70% (as opposed to 30%);
  • the shareholders have been given the right to sue a company in civil court in the event of any failure of duty by its directors that resulted in loss of money or damage;
  • expatriates can now be on the board of directors of joint stock companies;
  • and the authority to recognize required capitalization, shareholding percentages, approve the establishment of an onshore company is now with the local government institutions.

All the novelties introduced both by Foreign Direct Investment Law and the Cabinet Resolution introducing the Positive list are likely to even further open both the UAE mainland market and stock market to foreign investors and international companies, at the same time making UAE business more transparent and attractive for listing by means of introducing proper unified corporate governance standards.

You can view or download the Foreign Ownership Activities (FOA) PDF List by clicking this link: Foreign Ownership Activities (FOA)

 

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Inheritance Law in UAE for Expats

Inheritance Law in UAE for Expats | Dubai Inheritance Lawyer UAE

United Arab Emirates is a desirable country of dreams, for residence for many citizens of other countries, a country that is distinguished by hospitality to all nations in the world.  It is a country that has managed to create an atmosphere of goodwill and mutual respect among different nationalities, a country that has managed to attract investors and workers from many countries around the world. Due to this, about 90% of the population of the UAE are expats, many of whom have been successfully living, working and having business in the Emirates for many years.  Others have invested in the local real estate market in order to obtain a stable income from renting out real estate, and as such, inheritance law in UAE exists.

Sooner or later, expats are like to face the issue of inheriting property. It is good if the owners of various types of property have taken care of these issues in advance, and it is better to take care of this issue in advance, why, we will discuss in this article.

Despite the incredible progress of the Emirates in the implementation of Western institutions of law, the prevailing rules of law are Sharia laws, which underlie all the legislation of the UAE, which many expats forget or simply do not think about, feeling so comfortable in the UAE like in their home countries or even better.

Therefore, it is very important to understand the cultural and social differences that effects the legislation of the UAE.

The principal source of law of inheritance in UAE is Sharia and on this basis, Federal Laws bases. Main laws governing succession are Federal Law Number 5 of 1985 concerning the Civil Transactions Code and Federal Law Number 28 of 2005 regarding the Personal Status Law.

Article 1(2) of the Personal Law states that the law will be applicable on all the citizens of UAE unless a non-Muslim foreign national have special provisions according to their community, which empowers the foreigner to have a choice of the law and avoid application of Sharia. Simultaneously, Article 17 of the Civil Law states that the inheritance will be governed by the law of the testator at the time of his death.

The Personal Law in UAE permits the non-Muslim to draft a will and divide the property according to their will. However, if a foreign national dies without a will, the Civil Law and the Personal Law will allow the courts to distribute the assets of the deceased according to the principles of Sharia.

According to Article 17(1) of the Civil Law, the inheritance will be regulated by the law of the deceased during the time of his death, whereas, Article 17(5) of the Civil Law states that the UAE law will be applicable on non-Muslim expatriate wills regarding the property located in the country. In addition to this, Article 1(2) of the Personal Law states that the law will be applicable to non-Muslim unless he elects otherwise. Thus, if a non-Muslim foreign national die in the state are leaving the real property or other assets in the country, his home country law can be applicable, and his heirs can request the court accordingly. However, there is a restriction on dealing with the assets for property located in UAE.

On November 2020 President His Highness Sheikh Khalifa Bin Zayed Al Nahyan approved a number of Presidential Decrees amending the Personal Status Law, Federal Penal Code and the Federal Penal Procedural Law with immediate effect.

These amendments illustrate a shift from UAE based Sharia law towards a more secular system. Changes include the decriminalization of suicide, cohabitation of unmarried couples and reforms to the inheritance and divorce laws.

The innovations approved by the UAE President His Highness Sheikh Khalifa Bin Zayed Al Nahyan, were enthusiastically received by expats, as they create even more comfortable and familiar conditions for them to live, study and work in UAE. It was a positive and bold step by the Government of UAE.

Expatriates can now use the laws of their own country or nationality to deal with their personal estate and their assets would no longer be automatically divided under Islamic law. Previously, unless official legal measures were taken, the Sharia Law of Inheritance was applied to the estates of expats who passed away. This meant that assets were distributed according to Sharia law and even the custodianship of children was subject to the same laws.

Now, if a person dies in the UAE without a will in place, their estate will be divided as per the applicable law according to their citizenship – regardless of their religion.

The only exception here applies to the properties which are owned by the person within the UAE. These properties will be managed and divided according to UAE laws.

It is important to have a solid estate plan in place to ensure that your loved ones receive your assets. A will in the UAE is the simplest way for an expat to ensure their assets will be transferred as per their wishes.

Before the new changes to the inheritance law, if a person dies without a will, this can cause issues. Sharia law will be applied to any assets that are held in the UAE and this causes most complications in the event of a person’s death. Anyway, the assets will be frozen and will only be released upon the advice of the local courts. Any UAE bank accounts in the person`s name will also be frozen, even those in joint names, and vehicles in his name will be impounded. This happens very quickly and you should be prepared to it in advance. All women should have access to a bank account in their sole name, either here or in their home country, so as not to be left without a livelihood.

At this moment, the law enforcement practice of new changes in laws is in the stage of formation and it would be reasonable to consider how a non-Muslim can draw up a will before the adoption of new laws.

In the UAE, non-Muslims can draw up and register wills for their UAE assets that follow common law. In Dubai, wills can be notarized and registered in the Dubai Courts or at the DIFC Wills Service Centre and the Non-Muslim Wills & Probates Office at the Abu Dhabi Judicial Department. Will registered with the Dubai Courts apply to all Emirates, the will registered with the DIFC Wills Service Centre apply only to Dubai and Ras Al Khaim. However, in reality sometimes happens, that validity of the wills notarized and registered in the Dubai Courts decides by the court during probate.

Eligible individuals have the option to register different types of wills at the DIFC Courts Wills Registry for non-Muslims depending on the assets they wish to cover and whether or not the will is to encompass guardianship arrangements. There are currently five types of ‘DIFC Courts Will’ that can be registered, referred to as the ‘Guardianship Will’, ‘Property Will’, ‘Business Owners Will’, the ‘Financial Assets Will’ and the ‘Full Will’.

To register a DIFC Courts Will you must satisfy listed criteria:

  • You are not a Muslim, and have never been a Muslim.
  • You are over 21 years of age.
  • You own assets within the UAE.
  • Any children for which you wish to appoint guardians for must be habitually resident in the UAE.

Many expats may wonder, do I need a lawyer to prepare a will, and that is the right question. Given the diversity of assets that may be owned by a person who wishes to draw up a will, real estate, an operating business, financial liabilities, intangible assets, bank accounts, etc., we recommend to have a consultation with a lawyer before drawing up the will in order to avoid mistakes that will become irreparable in the future.

 

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Compensation for Occupational Injury

Employees Compensation for Occupational Injury | Dubai Labor Lawyers UAE

Federal Law No. 8 of 1980, UAE Labor law outlines employee’s right of compensation if they suffer injury at work. Under this law, more so with the assistance of a capable labor lawyer, employers are liable for workplace injuries sustained by employees.

Workplace injuries are defined broadly to include any accident sustained by the employee during their work or as a result of performing their work.

In addition to employees’ rights under the Federal Law No. 8 of 1980, employees can also bring claim against the employer under Federal Law No. 5 of 1987 (UAE Civil Code). However, under the Civil Code, the employee must prove the fault or negligence on the part of the employer in order to claim successfully.

UAE law guarantees safety of employee during work and therefore impose upon employers to ensure safety working environment to its employees. Employers are mandated by law to provide and have suitable health and safety guidelines in place, including policies and proper incident report protocol in order to promptly address and comply with the mandate of the Labor Law.

Below is the summary of the procedure and corresponding guarantees provided under the Labor law:

  1. In the event of injury sustained during employment, report must be immediately made by employees to the police and Labor Department or local office who has jurisdiction in the area where the injury took place. Investigation will be carried out thereafter.
  2. Copy of Investigation report will be sent by the police to the Labor Department and another to the employer.
  3. In cases of labor accidents, the employer shall be liable to pay for the treatment of the employee which includes hospitalization, medical test and medicines prescribed including rehabilitation.
  4. If the injury resulted and prevented the employee from performing his work, the employer shall pay him an allowance equivalent to full wage during the entire period of treatment or for a period of six month, whichever is shorter. If the medication requires more that six months or until the employee fully recovers, the allowance shall be reduced by half until the employee fully recovers, declared disabled or dies, whichever occurs first.

+ Article (147)

  1. Any dispute arises in regard to employee’s fitness for work or degree of disability shall be governed and shall be referred to the Ministry of Health through competent Labor Department. Medical Board will be formed to determine the matter related to the injury or treatment. Assistance of the expert may be sought, and the decision of the Committee shall be final and will submitted to the Labor Department for execution.
  2. In the event the occupational injury resulted to death of the employee, the person who at the time of death of the employee used to be entirely or mainly supported by the income of the descend shall be entitled to compensation equal to basic wage of the employee for 24 months, provided that the amount of compensation is not less than AED 18,000 or more than AED 35,000. Calculated as per the guidelines set forth under the Labor Law.
  3. Should the injury results to partial disability or permanent disability of the employee, compensation shall be calculated set forth under the Labor Law.

In summary, determination of the issues relating to the occupational injury shall be determined in accordance with the level or type of injury and the proportion of disability sustained by the employee.

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Ratification and Execution Process of Arbitration Award in UAE

Dubai Arbitration Lawyers UAE | Ratify Arbitration Award in UAE

Arbitral Awards in UAE sets out two stages: Ratification and Execution. This means that Arbitral Award must first be ratified so that it will subsequently enforce in the same way as court judgements issued by UAE courts. However, recent changes to arbitration in UAE have been introduced to pave way of simplifying the process of ratification and enforcement of the Awards govern by UAE laws.

Federal Law No. 6 of 2018 (the “New Arbitration Law”) governs the conduct of arbitration proceeding and the enforcement of arbitration awards in UAE. Under this law, it differentiates domestic and international arbitrations and the distinction between these has an impact on the process and procedure for the execution of the arbitral award.

The provisions of the Arbitration Law shall apply to:

  • Arbitration conducted inside UAE unless parties agreed in writing to abide to the provisions of another arbitration law and provided further that it will not be contrary to public policy and morals.
  • International Commercial Arbitration conducted abroad wherein the parties agreed in writing that UAE Arbitration Law will govern.
  • Arbitration cases and disputes governed by the UAE law, except otherwise expressly excluded by special provisions

Under this new law, the enforcing party may now apply for recognition and enforcement of arbitral awards in UAE. Summary of the process involved are as follows:

  • Enforcing party shall submit application to the Chief of the Court of Appeals in the Emirate wherein the award is sought to be recognized and enforced. The application must be accompanied by the following documents: original Arbitral Award or certified true copy; copy of the Arbitration Agreement signed by the parties; Certified Arabic translation of the award and copy of the transcript of filing the award with the Court of Appeals.
  • The Court of Appeal is mandated to order recognition and enforcement of the arbitral award within 60 days from the receipt of the application, unless otherwise reasons to nullify the award exist based on the provisions of Article 53.1 of the Arbitration Law. Petition to review the court’s decision on the enforcement of the Award can be filed with the Court of appeal within 30 days.

It is important to note that the new law, however, is not intended to apply to foreign arbitral award therefore it does not affect the enforcement of foreign awards in the UAE. Under Civil Procedure Code, enforcing party to a foreign award in UAE must file a substantive case in the local courts of first instance and the decision of the court of First Instance will be subject to two level: Court of Appeal and Court of Cassation.

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Punishment for Spreading Rumours in UAE

Punishment for Spreading Rumours under UAE Cyber Crime Law. False information Law | Fake News Law

Federal Law No. 5 of 2012, Federal Law No. 12 of 2016, and the Electronic Media Regulation of 2018 governs issue of transparency and spreading false information on social media. UAE authorities fasten down rumours and warns residents about the gravity of spreading rumours in UAE. In addition, they have adopted measures to combat the same by public awareness campaign and implementing course curriculum educating students about false news in digital era.

These laws are intended to regulate and impose severe punishment on those who are rumourmongers and found guilty of circulating fake news within UAE. The above law pertains to impose sanctions to cyber-crime. Any breach of privacy, illegal access to information or misuse of information can be defined as a cyber-crime in the UAE. In addition, these laws govern offenses such as sharing and posting online content that violates the privacy of others, insulting the symbols of the state and religions, calling for overthrowing the government of the UAE, and disseminating hate speech and inciting violence.  Violations of these laws will require assistance from Dubai criminal lawyers.

Specific provisions of the law impose the following sanctions:

Article 21 of Federal law No. 5 of 2012 imposed imprisonment of at least six months and a fine between 150,000 UAE dirhams and 500,000 UAE dirhams or either of these two penalties to whoever uses a computer network, electronic information system, or any tools of information technology to invade the privacy of another person. In addition, the same provision enhances the penalty to a period of imprisonment of at least one year and a fine between 250,000 UAE dirhams and 500,000 UAE dirhams or either of these two penalties when a person uses an electronic information system or any information technology means to alter a record, photo, or scene for the purpose of insulting, offending, attacking, or invading another person’s privacy.

Article 24 of Federal law No. 5 of 2012 punished by imprisonment and a fine between 500,000 UAE dirhams and one million UAE dirhams whoever establishes, administers, and runs a website or publishes on a computer network or any method of information technology online content promoting rioting, hatred, racism, sectarianism, or damage to the national unity or social peace or disturbance of the public order and public morals.

Article 28 of Federal law No. 5 of 2012 imposed imprisonment and a fine not to exceed one million UAE dirhams whoever establishes, manages, or runs a website or uses information on a computer network or any means of information technology to transmit information, news, or cartoon drawings or any other pictures for the purpose of endangering the national security and the higher interests of the State or to disturb the public order.

Article 29 of Federal law No. 5 of 2012 punished by imprisonment and a fine not exceeding one million UAE dirhams whoever publishes information, news, statements, or rumours on a website or any computer network or by any means of information technology to damage the reputation, prestige, or stature of the State or any of its institutions or its president, vice-president, any of the rulers of the Emirates, their crown princes, the State’s flag, the national peace, the Emirates’ coat of arms, the national anthem or any of the national symbols.

Article 30 Federal law No. 5 of 2012 sanctioned life imprisonment whoever establishes, manages, or runs a website, or publishes information on a computer network or by means of information technology to overthrow the State, change or seize its ruling system, or violate the country’s constitution or laws or oppose the basic principles that constitute the foundations of the State’s ruling system

Article 38 and 39 of Federal law No. 5 of 2012 imposed term of imprisonment whoever publishes online any incorrect, inaccurate, or misleading information that damages the interests of the State or tarnishes its reputation, prestige, or stature or any person who fails to remove or block access to illicit content after receiving a notice from the federal authorities.

Federal Law No. 12 of 2016 imposed a term of imprisonment and fine between 500,000 UAE dirhams and two million UAE dirhams to whoever uses a fraudulent IP address by using a false mailing address or a third-party address or by any other means for the purpose of committing a crime or preventing its discovery.

Finally, Electronic Media Regulation of 2018 regulates information on social media to provide a responsible content that does not violate the privacy of individuals and protects society. This legislation provides a mandate for certain activities to obtain license issued by National Media Council.

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Charges for Carrying Marijuana in the UAE

What are the Penalties and Charges for Carrying Marijuana in the UAE

United Arab Emirates is known to have zero tolerance attitude to narcotics and takes all illegal drugs cases very seriously. The Emirates is very keen on developing its technical anti-narcotic capabilities and have a very strict approach to tackling drug trafficking cases. If violations are committed, one may face these charges for Carrying Marijuana in the UAE.

UAE Law No 14 of 1995 and its amendments regulates and governs cases of any narcotics related cases especially illegal possession of Marijuana. The law states “that the substance cannot be “brought, imported, exported, made, extracted, separated, produced, possessed or taken”. United Arab Emirate does not recognize any medical cannabis program and any use of the same is illegal regardless of whether it’s for medical purpose or not.

The following sanctions, penalties and imprisonment will be imposed under the following circumstances:

  • If caught in possession of cannabis, you may be sentenced to four years or more in prison. Additionally, you’ll be given a fine of 10,000 dirhams
  • If you are found selling or distributing Marijuana in the Emirates, the penalty of imprisonment for a period of not less than 10 years and not more than 15 years shall be imposed on the criminal offender. You will also be given a fine of “not less than 20,000 dirhams.
  • On top of this and as additional sanction imposed to foreigners who are found guilty of any of the aforesaid cases, it is very likely that sentence will include deportation as well.
  • Also, under extremely rare cases, the law states that drug trafficking can be punished with death, which is usually executed by firing squad under UAE law.

Given the above circumstances, it is very important especially to travelers, foreigners, resident and locals of United Arab Emirates to know and be educated about the Emirates war on drug agenda and its aim to eliminate and combat illegal drugs.

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Divorce Process in UAE for Muslim Couples

The Legal Process of Divorce in UAE for Muslim Couples

Islamic marriages are governed by the Sharia law so as the legal dissolution of marriage. Despite the troublesome and complicated process of terminating marriage, Divorce in UAE for Muslim couples rates continuously increases, and marriage qualities have significantly changed.

Commencement of divorce in UAE entails certain requirements to be met such as: the couple must be resident of UAE for at least six months prior to the filing for divorce. In addition, it is important to note that filing divorce must be supported with legal grounds such as, but not limited to; Mental incapacity, Disability, Adultery, Abuse, Desertion and other legal grounds permissible under Sharia law.

Under Sharia law, there are two types of divorce – revocable and irrevocable. In revocable divorce, the marriage remains valid within the waiting period of three months. After this period, should the parties reconcile, they can do so by entering into a new marriage contract. On the other hand, irrecoverable divorce terminates the marriage as soon as the decree issued.

Brief summary of filing divorce process in United Arab Emirates for Muslim couples are as follows:

  • Divorce proceeding can be filed by the husband or by the wife. The initial step requires the case to be registered at the Family Guidance Section at the respective judicial department in one of the emirates.
  • Thereafter, the court will then appoint conciliator who will initiate a reconciliation proceeding between the parties. This is an indispensable process under UAE law. During this proceeding, divorcing parties will be entitled to address their concerns about the marriage. This can be done even in the absence of their respective legal representatives.
  • If amicable settlement fails and one of the parties or both are determined to dissolve their marriage, then the conciliator will issue a referral letter granting them permission to elevate the matter before the court and determine the conclusion of the divorce case.
  • Once the referral letter is issued, this letter can be submitted before the court within three months from the date of issuance.
  • Once the court obtains jurisdiction over the divorce case and subject to the court’s discretion, divorcing parties will be directed to provide their corresponding evidence to support their respective claims and lay down their own defense.

In addition, UAE government issued recent amendment towards divorce cases by virtue of Federal Law Number 8 of 2019 amending Federal. The following are the most significant amendments encompassing divorce proceedings and case determination:

  1. Under the new law, if the wife filed the divorce under grounds of adultery and she fails to prove the accusations, the case can be dismissed right away and no appeal will be permitted
  2. Under Article 118(2) of the new Law an order must be issued within 90 days from the date of appointment of conciliator. However, if conciliator fails to reconcile the parties, settlement proposal must be recommended to the court, and copy must be provided to the divorcing parties.
  3. Under Article 120 of the new law, if the parties fail to reconcile, the following will be considered:
    1. if it is proven to be the husband’s fault, the wife can seek divorce and other financial rights.
    2. if it is proven to be the wife’s fault, it can be dealt with in the following two ways: (i) divorce will be granted divorce upon paying a certain amount of compensation; or, (ii) unless husband request to maintain the marriage, the court, subject to the court’s discretion to preserving the marriage, can reject the divorce.
  • Under Article 120(4) of the new Law, if the conciliator fails to reconcile both parties due to mutual mistake of both parties, conciliator can order either party to pay compensation on pro-rata basis to the other one who is less guilty or get the divorce without any compensation. However, under Article 120 (5) of the new law, if the parties cannot reconcile and the reason behind filing for divorce is unknown or cannot be located, there can be two options: (i) If the husband is the applicant for divorce, the conciliator can recommend dismissing the case; (ii) Whereas, if the case has been registered by the wife, the conciliator will choose whether to issue an order for divorce with a lump sum amount or to dismiss the case in the interest of preserving the family.

When arranging a divorce, seek the advice of our team having a specialist divorce lawyers in Dubai (with knowledge of local Sharia law). We are ready and willing to handle your legal matter

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dubai UAE labour law

UAE LABOUR AND EMPLOYMENT LAW

UAE LABOUR AND EMPLOYMENT LAW | LABOUR AND EMPLOYMENT LAW IN UAE

Federal Law No. 8 of 1980 governs labour rights of employees in UAE public and private sector. Except for certain categories of employees, this law applies to all employees working in the UAE, whether UAE nationals or expatriates.

In turn Ministry of Labour is the overseeing authority responsible in maintaining the proper implementation of labour rights and responsible implementation of the labour laws and regulations.

UAE Labour Law provides the framework relating to the following core employment facets: employment contract bound and conditions relating to working hours, termination of employment, end of service gratuity payments and notice period, vacation and public holidays, sick leave, maternity leave and annual leave.

UAE employment contracts are categorized into two classification: limited and unlimited contracts. Major distinction between these two types of employment contract are as follows:

  • Limited contract is a fixed term and it will automatically terminate at the end of the term unless terminated earlier by either party or renewed by both parties. On the other hand, unlimited contract is an open-ended and maybe terminated in accordance with the conditions set forth in the UAE Labour Laws.
  • Limited term contracts have no notice provision and will expire at the end of the term. On the other hand, under the UAE Labour Law, there are two main ways for an employer to legally terminate an unlimited term contract – minimum notice period of 30 calendar days unless otherwise agreed on longer notice period; without notice period if the reason of employment termination is grounded for one of the 11 exhaustive gross misconduct reasons set out in Article 88 and 120 of UAE Labour Law.
  • In the event, the employee desires to terminate the limited term contract before the expiry of the term, he will be liable to pay the employer “early termination compensation” or half of three months’ salary or half of the remuneration for the residual period if the contract is less than 3 months prior to its expiration. On the other hand, in an unlimited contract, an employee may resign by providing 30 days’ notice period. However, the employee may resign without notice if the grounds are based on the conditions set forth under Article 121 of the Labour Law.
  • End of service gratuity for both Limited and Unlimited contract are calculated as follows:
 Employee who has completed one year or more of continuous service:

·         21 days’ basic salary for each year of the first five years of service

·         30 calendar days’ basic pay for each additional year

Provided that the entire remuneration does not exceed two years’ pay.

However, in cases where the employee is terminated summarily for gross misconduct pursuant to the provisions of the UAE Labour Law, the employee is not entitled to end of service gratuity.

End of service gratuity computation will differ in the event the employee resigned:

(i) Under limiter term contract, the employee is not entitled if he resigns less than 5 years or service. If he has more that 5 years of service, gratuity is calculated as per above guidelines.

(ii) Under unlimited contract, he will be entitled base on the following calculations:

·       One to three years of service: 1/3 reduction

·       Three to Five years of service: 2/3 reduction

·       More than Five years of service: no reduction

 

If you want to know your rights and learn more about how employment and incentive practices are implemented in UAE Labour Law, you can contact our team of expert labour lawyers in UAE and we will guide you through and pertinent legal advice will be provided.

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