Showing posts with label dubai. Show all posts
Showing posts with label dubai. Show all posts

Monday, January 21, 2013

What to Do When: Employer does not pay your salary in time

What to Do When: Employer does not pay your salary in time
UAE Labor Ministry Official on what action to take in case of violation of terms of contract - including vacations, overtime and gratuity
What should an employee do when faced with an employer who has not aid his/her salary on time?
Also, in case of violation of terms of contract concerning vacations, overtime, or gratuity, what course of action can an employee take?
An official at the Ministry of Labour states that an employee has the right to file a complaint against the employer.
This can be done through the ministry's website
The employee can also call the toll-free number 800665, which allows him/her to file a complaint or to inquire about all his rights guaranteed by the Labour Code.
The employee can also e-mail the complaint to
The Ministry of Labour official also clarified that its call centres are equipped to offer a wide variety of services to employees and employers.
Call centres are equipped to give information on procedures and laws, including the wage protection system (WPS), housing requirements for workers and working hours.
Employees can also track their complaints on the website.
Through a service called e-natwasal, available on the website, an employee can review his labour contract and make a photocopy of it.
Role of MoL
The official stated: "In case of receiving a complaint the MoL will summon the parties and hear their points of view and try to reach a satisfactory solution for both.
"If the ministry cannot reach a solution it will refer the case to the Labour Court.
The Mol eases the measures for laborers to file cases where the MoL briefed the procedures in one single action after it was based on three steps."
The Ministry of Labour offers services in several languages including Arabic, English, Russian, Filipino, Hindi, Somali, Afghan, Persian, Punjabi, Malayalam and Tamil.
Cassation Court verdicts
Verdicts of the UAE's Courts of Cassation affirm that nonpayment of salaries in the proper time is considered arbitrary dismissal, which then requires compensation.
Also the Courts of Cassation confirm that an employee who is forced to resign because of non-payment of his wages for more than two months is deemed to have been unfairly dismissal by the employer.
Where the employer fails to pay the worker's wage and in such case it is a breach of contractual obligations, the employee should be compensated by the equivalent of 3 months' basic salary.
The statistics of the MoL show that the average number of daily telephone calls received by its call centres is 2,500.
According to latest statistics on the ministry's website, the number of visitors exceeds 29 million.
© Emirates 24|7 2013
© Copyright Zawya. All Rights Reserved.

Thursday, December 13, 2012

Immigration to Canada under Skilled Category

Federal Skilled Trades Class launch next month

3,000 applications will be accepted under the programme in 2013

Canada's Minister for Citizenship, Immigration and Multiculturalism, Jason Kenney, announced the launch of the long-awaited Federal Skilled Trades Class (FSTC).

The launch of the long-awaited Federal Skilled Trades Class (FSTC) will be on January, 2, 2013, announced Canada's Minister for Citizenship, Immigration and Multiculturalism, Mr. Jason Kenney.

A total of 3,000 applications will be accepted under the program in 2013.

The programme was only recently introduced by the Canadian government as part of the three-pronged approach, which added the new programme to the already existing Federal Skilled Worker Class (FSWC) and the Canadian Experience Class (CEC).

The FSTC program will allow qualified and experienced trades people to immigrate to Canada, based on the following set of criteria:

Ability to work in one of the trades (up to 2 job offers or assessed qualifications);

Proficiency in official languages (minimum CLB 5);

Previous work experience in the selected trades (minimum 2 years full-time); and

Meet the employment requirements of the selected trade.

The new Skilled Trades Stream will help address serious labour shortages in some regions of the country, and support economic growth," Minister Kenney said. "For too long, Canada's immigration system has not been open to these in-demand skilled workers. These changes are long overdue and will help us move to a fast and flexible immigration system that works for Canada's economy."

Monday, November 26, 2012

Changing Job in UAE

Ban can be avoided by paying Dh3,000

Nasser Ahmed Al Osaiba (Compiled by Ahmed Shaaban) / 6 August 2012

I am working in a company here. When joining the company, they did not ask for my qualification. As I want to quit, will I escape the labour ban if I get my degree attested?
According to Article 1 of the cabinet decision No. 18 for the year 2005, the condition of the time that is required for changing the sponsor can be exempted against paying Dh3,000. Hence, you have to apply to the Ministry of Labour to exempt you from the ban against paying Dh3,000 no matter what was your degree.
PG degree-holder can shift job after one year
An expatriate husband with an MBA degree is sponsored by his expatriate wife. He has been working with a Dubai-based company for the last two months under a work permit and now wants to change the job. Will he be liable to labour ban?
According to Article 1 point 3A of the cabinet decision No. 18 for the year 2005, the holder of a postgraduate degree can request for a transfer of his sponsorship after one year of his work. Additionally, according to the same article, the time condition can be exempted by paying Dh3,000. Hence, he has to apply to the Ministry of Labour to exempt him from the ban.
Degree-holder can shift to new job after two years
Is it possible to move to another company after my two years’ stay in my present job as a beautician in a salon? I discussed the issue with my boss but he said I should finish three years before quitting. I am holding an unlimited contract. My visa will expire in July 2013. Will I be liable to a ban? The salary I get is less than Dh5,000. I am holding a college certificate. Please advise.
According to Article 1 point 3B of the cabinet decision No. 18 for the year 2005, the holder of a bachelor degree or an equivalent degree can request for a transfer of his sponsorship after two years of his work.

Thursday, November 22, 2012

Construction Sector is Promising

Hiring in UAE: New jobs to open up in construction sector

One of the worst hit sectors during the recession phase may now offer many new jobs as construction activity picks up in the country.
According to a survey by, more than half of the recruiters (58 per cent) in the GCC predict new jobs in the coming quarter.
These recruiters are optimistic about the overall recruitment scenario. Most of these opportunities will be for the 8-15 years' experience levels.
Experts agree that this is one sector which looks very promising in the coming year. Trefor Murphy, Managing Director at Morgan McKinley believes this sector will show marked improvement in 2013. Agrees Toby Simpson, Managing Director at The Gulf Recruitment Group. According to him, "construction and engineering consultancy have shown growth, although largely due to projects outside the UAE."
Despite the optimism about the sector, a minority of the recruiters believe that we may see more layoffs in the coming quarter. The survey reveals that 19 per cent of the respondents forecast layoffs in the said period, whereas 13 per cent predicted no hiring.
"This clearly suggests that the global financial crisis has impacted hiring decisions of some companies who prefer to adopt a wait and watch mode," said the findings.
The widening gap between demand and supply for talented workers has become a major issue across the sector and those who predict new jobs said a talent crunch while hiring their employees is a problem they have to deal with. The findings suggest it is most difficult to hire talent at the 4-8 years' experience level.
"We are happy to see return of positive sentiments in the construction industry. We expect to witness things turning even better in the mid-term. Most of the GCC governments have large development projects in the pipeline and this should help provide the required boost to the construction industry," said Tarun Aggarwal, Business Head,
As new jobs open up in the sector, employees can also expect increments. Even in 2012 many employees got pay hikes. Majority (54 per cent) of the recruiters surveyed said that the range of increments were within the range of 5 per cent and 10 per cent. About 18 per cent recruiters said that they got less than 5 per cent increments.

Monday, October 29, 2012

The End of Service Gratuity according to UAE Labor La w: is it the beginning of the end?

The End of Service Gratuity according to UAE Labor La w: is it the beginning of the end?

End of service gratuity ("ESG") is a topic that is currently stirring much debate. In particular, it was recently reported that after conducting a study into the ESG system, the World Bank recommended the establishment of a pension fund for expatriate employees to replace or supplement ESGs.
The ESG explained
ESG is a sum of money that an employer is lawfully required to pay an employee upon the termination of the employment relationship, subject to the employee satisfying certain conditions that are set out in the UAE Labour Law. The ESG scheme was introduced 40 years ago to ensure that when employment relationships were terminated, employees without pension benefits received a lump sum payment to assist them during the period following termination or for them to put towards their savings.
The payment is based on the employee's basic salary and length of service, although it may be reduced depending on the circumstances of the termination of employment and where the employee was working (see "reduced amount" section below). The calculation does not take into account payments that are additional to basic salary, such as housing and car allowance. However, where an employee receives a guaranteed or regular commission payment, this may be included within the calculation of basic salary for the purposes of the ESG calculation.
The amount
Employees with at least 12 months service are entitled to 21 calendar days' salary for each year of service in the first five years of employment and 30 calendar days' salary for each year of service worked beyond five years. The ESG payment is calculated on a pro-rata basis and therefore employees receive credit for the entire period of service. Importantly, the calculation is applied to the employee's salary at the time of termination, which can result in the ESG being substantial for long serving employees. The maximum ESG entitlement cannot however exceed two years salary.
Reduced amount
Where individuals are employed in onshore organisations within the UAE (and some of its free zones), reductions may be applied to their ESG entitlement should they resign from their roles. In particular, where an employee on a limited term contract with less than five years service resigns prior to the expiry of the fixed term, the employee is not entitled to an ESG payment whatsoever. In the case of an employee on an unlimited term contract, having been employed for more than one year but less than three years, he will receive one third of the full ESG entitlement. Where the period of continuous service is more than three years but less than five years the departing employee will be entitled to two thirds of the full ESG. Once an employee has accrued five years service, either on a limited or unlimited term contract, there will be no reduction pursuant to a resignation.

Monday, April 30, 2012

Labor Law Changes in U.A.E.

Ministry threat for employers forcing UAE workers to sign settlements

Final settlement proof must to cancel labour card

Six-month ban will be cancelled when employees submit contract with new company

Labour cards of employees will be cancelled only after companies provide proof that all their financial dues are settled, according to the 'Ministry of Labour'.
The ministry official was responding to a query during the weekly meeting, where a worker had the verdict go in his favour. He alleged receiving only Dh24,000 and that his company wanted to cancel the visa, when Dh74,000 was rightfully due to him, according to a report in 'Al Khaleej' newspaper.
If the company refuses to act the worker can move the court, siad the officialas as there will be no delay in judicial procedures.
In a separate case, Labour Ministry committe while addressing the weekly meeting rejected the request of a company to transfer 74 workers from one of its plant to another facility owned by the same employer. According to an earlier rule, companies are required to pay Dh500 fee for the transfer of each worker after meeting all the other conditions set by the ministry.
In case the employee did not complete two years, the company must a transfer fee for work permit and labour card fee for two years of Dh300 in the first category; Dh600 for second category – level A; Dh1,500 for second category – level B; Dh2,000 for second category – level C; Dh5,000 for third category.
However, labourers who were sacked by the company before completing two years can move to another company. The application of skill levels and minimum wages rule will not be applied in such cases.
The six-month ban and cancellation of labour card can be revoked provided the employee submits a new contract of another company that is in accordance with the skills level and minimum wage rules.

The Ministry of Labour will not issue new work permits to companies if there are cases pending against owners who force workers to sign documents stating they received all financial dues.
According to an 'Al Khaleej' report, the ministry will also not allow such owners to open new facilities. However, it will renew labour cards that already exist.
The move aims to ensure the rights of labourers and help them abide by work contracts signed.
The ministry has called on workers to file complaints about employers who force them to sign on financial-receipt documents.

[Proof of final settlement more]

However, the complaints must be filed within 12 months of the documents being signed. Once they receive a complaint, ministry officials will study the case, hear out the employers' version and initiate appropriate legal action only if an amicable settlement is not found.
The Ministry stated that labour cards can be cancelled only if the employer submits documents to prove that all financial dues have been setlled with the respective employee.
All dues even if employee dies outside UAE
If UAE employees happen to die outside the country, then their families are entitled to receive financial dues including gratuity, according to the Ministry of Labour.
In the weekly session, while addressing labour issues, Khalil Khouri, Director of Work Permits, Labour Ministry, said: "If any person were to die outside the UAE, while being legally employed in the country, the financial dues of the deceased as per the employment contract should be handed over to the family."
"Similarly, the labour card of the deceased will be cancelled once the death certificate - duly attested by both the embassy of the country where the person died as well as the Ministry of Foreign Affairs - is presented.
Alternatively, the labour card will be automatically cancelled after six months as per labour laws," Khouri was quoted by 'Al Khaleej' newspaper.
Answering a labour transfer query, Khouri said employees can be transferred to another facility, if the company they were working for is closed. But in such cases, the ministry should be notified of the closure of the company within two months. Following which, the Inspection Department will study the complaint and, if need be, punishment procedures would be initiated against the owner.
End-of-service benefits... time to set up a gratuity fund in UAE
A legal expert has suggested that the UAE should set up a Gratuity Fund to meet the end-of-service benefits requirements in the country.
He also suggested that gratuity payments should be based on gross pay or at least a set minimum percentage of total remuneration (such as 75 per cent).
Shoeb Saher, Senior Associate with Habib Al Mulla & Company, said there are a number of things that need to be considered by the UAE lawmakers to address areas in which the current Labour Law may not be in keeping with the increasingly sophisticated demands of both employers and employees.
He recommended that employers should be obliged by law to keep gratuity funds in a separate account that is independently administrated for the benefit of the employees. Payments into this fund should be made by the employer annually (similar to pension schemes available in other jurisdictions). These funds could be invested in government-backed securities or fixed deposit accounts with local banks, both low-risk options with immediate and ongoing benefits for the local economy.
"There are a number of benefits in making such changes to the law," says Saher. "If the calculation of end-of-service gratuity was more clearly defined in the labour law, this would create more certainty amongst both employers and employees. It would also reduce the amount of litigation in this area, reducing the judicial workload for routine matters."
If separate gratuity funds were established, this money would be protected in the event that the employer runs into financial difficulty or becomes insolvent. The financial sector in the UAE would also receive a boost due to the extra liquidity generated by such funds, Saher pointed out.
Areas of concern
The law expert said there are concerns about the current legislation governing the payment of termination gratuity. He listed them as follows: In cases where the employer is in financial difficulties i.e. they become insolvent, the chances of the employee ever recovering their end-of-service gratuity are limited leaving them with little or no recourse even within the judicial system as there are no funds to make this payment.
The current laws might arguably incentivise employers financially to find ways to terminate an employee for a specific cause and without notice under Article 120 of the Labour Law. Termination under Article 120 bars an employee from claiming any gratuity payment.
Employees with low income do not have the financial means to fight a court case in instances where an employer fails to fulfill its end of service gratuity obligations.
It remains common practice for UAE companies to deliberately allocate an artificially modest basic salary to employees and increase the total salary with additional benefits such as travel and housing, etc., as gratuity is based solely on the basic salary.
Saher pointed out that according to recent reports the combined liabilities of companies in the UAE for end-of-service benefits currently amount to more than Dh14.6 billion.
These figures are believed to be growing rapidly as employees stay in their jobs longer in the wake of the global financial crisis and because gratuities are paid on the basis of an employee's final salary and salaries have generally been on the rise.
"As the UAE continues to progress towards global standards in many areas, it is very important to ensure that laws governing employment are adequate to handle the increasing sophistication of the economy and the UAE business environment, especially if the UAE wishes to continue to attract and retain foreign inward investment and some of the world's best talent," the law expert added.
Gratuity explained
As the name implies, end-of-service gratuity is an amount of money that every employee is entitled to receive, and every employer is liable to pay, upon termination of an employment relationship in the UAE, provided that the employee meets the conditions set out in the Labour Law (UAE Federal Law No. 8 of 1980). End-of-service gratuity forms part of the benefits an employee is entitled to upon termination of their employment contract.
Under the Labour Law employees in the UAE are entitled to the following benefits upon termination:
A notice period or payment due in lieu of the notice period where the contract for an unlimited period;
Payments equivalent to accrued but unutilised leave or any part thereof;
Payments for overtime or any wages due and not yet paid;
End of service gratuity calculated on duration of employment;
Where the contract of employment is for an unlimited period, compensation for unreasonable dismissal if the contract was terminated by the employer for unreasonable cause (generally to a maximum of three months);
Where the contract is limited, compensation equivalent to the period until the end of the contract, or three month's salary whichever is less; and
Repatriation expenses to the employee's country of domicile as per the Labour Law or as stipulated in the contract.
Calculation of gratuity
End of service gratuity is a sum of money payable by an employer to an employee where the employee has completed one or more years in continuous service. Gratuity is calculated as follows:
21 day's wages for each year of service for the first five years 30 day's wages for each additional year beyond 5 years on the condition that the total gratuity shall not exceed the aggregate of two years' wages.
Gratuity is calculated on an annual basis if the employee has completed at least one year of continuous employment with the employer. A day of absence from work without pay shall not be included in calculating the length of service. However, if an employee has completed one year and more in continuous service they are entitled to gratuity as a percentage of the year proportional to the duration of their service.
So for example, if an employee has worked for one year and three months they are entitled to end of service gratuity calculated on the period of 15 months. If they have not worked for the minimum period of one year, they are not entitled to end of service gratuity.
Gratuity is calculated on the basic wage last paid to the employee prior to termination of the employment contract and this wage is the basis for calculating the gratuity for each year of employment.
Determination of basic wage
The Labour Law stipulates that basic wage means anything received by the employee as a wage excluding housing, transport, travel allowances, overtime, family allowances, entertainment allowances or any other allowances or bonuses. According to a recent judgment in the UAE courts, any amount payable to an employee which is classed as their wage (other than allowances or bonuses), and for these purposes wage includes, amounts paid as a percentage, commission or performance-based pay, and therefore are taken into consideration for the calculation of gratuity.
Reduced gratuity
Reduced gratuity payments are calculated in accordance with the employee's length of continued service in instances where the employee resigns.
An employee with a contract for an unlimited period who resigns after continuous service of no less than a year but no more than three years is entitled to one third of the gratuity provided above. If the period of continuous service is more than three years but less than five they are entitled to two thirds of the gratuity. If continuous service is more than five years, the employee is entitled to the full gratuity payment.
Forfeiture of gratuity
The employee may be deprived of gratuity under the following circumstances:
They were dismissed for one of the reasons stated in Article 120 of the Labour Law or left work to avoid dismissal
They are employed under a contract for a specified limited period and resigned of their own free will before the end of the contract (only applicable where continuous services is less than five years)
They are employed under a contract of unlimited period and left the job voluntarily without notice, in cases other than those provided for in Article 121 of the Labour Law.
Note: This article is intended for general information only and should not be considered as legal advice.

Wednesday, January 4, 2012

200 workers stranded in Dubai without salary

DUBAI - Hundreds of workers remain stranded in Dubai for nearly four weeks after the owner of their company absconded to India owing them five months salary.

The Indian businessman, Joseph D'Souza, fled last month after his businesses failed.

He founded a steel fabrication and engineering firm that called itself Systems Engineering, with offices in Sharjah and Dubai, in 1997, and employed 400 men from India, Bangladesh, Nepal, Pakistan and Sri Lanka as helpers, welders and steel fixers.

The situation has left many deeply concerned about their future. One labourer suffered a nervous breakdown after the company went under. Laila Abubakr, a social worker from the Overseas Resident Malayalee Association in Dubai, said that the man is now in a stable condition.

Mrs Abubakr said only 200 of the 400 workers had been repatriated.

"Consulates representing workers' countries are giving free tickets for the men to be sent home," she added. "We hope in a week or two all the workers will be home."

Mrs Abubakr said each employee might receive up to AED1,600 from the bank guarantee deposited by Mr D'Souza. "It is a little amount compared to what each worker was supposed to get. The bank amount is being equally divided among all the men," she said.