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What is a Notice Period?

There have been lot of confusion and queries with regard to notice period. In this post I will attempt to shed some light on what is a notice period.

So you have been working in a company for some time and want to resign. You could resign today and go tomorrow. But who will take care of the responsibility that you have been handling? This is where the notice period comes into picture. Also your company needs time to find a replacement for your position. A notice period is the time between your resignation and your last day of working at a company or organisation.

What does UAE Labour Law say?

As per Article 117 of UAE Labour Law, the employer and employee may terminate the employment contract with unlimited period, for a valid reason at any time after conclusion of the contract by written notice duly given to other party, thirty days (30 days) at least prior to termination. However, your actual notice period may vary according to the complexity of your work and what is mentioned in your contract.

In respect of daily wage employees period of notice shall be as follows:

· On week in the employee has worked for more than six months but less than one year.

· Two weeks if the employee has worked for at least one year.

· One month if the employee has worked for at least five years.

What about salary during the notice period?

The employee is entitled to full salary during the notice period. This is clearly written in the Article 118 of the UAE Labour Law. The employee must also work during the notice period as usual. A notice period can not be decreased but it can be increased if both the parties agree to it.

What if I am unable to serve the notice period?

If either of the parties has failed to serve the notice period, the failing party should pay the other party “Compensation in lieu of notice” indemnity. This is mentioned in the Article 119 of the UAE Labour Law.

Notice period during probation:

An employer can terminate an employee during the probation period with One day notice period. However, in the UAE Labor Law it is not clearly stated what if employees wanted to terminate contract during probation period. However, most organisations do mention a clause of termination of labour contract during the probation period by either party and it is usually One day.

Article 129 of UAE Labor Law:

If the non-national employee has notified the employer of his desire to terminate the contract with unlimited period and has absented himself from work before the end of the legal notice period, he may not take up employment elsewhere before the lapse of one year from date of absence from work, even with consent of employer, and no other employer, who is aware of the case may recruit him or keep him in service before the end of such period.

10 reasons why your employer/company can terminate you

Aamir Awan 08:58:00 UAE Law

UAE Labour Law provides rights to both employers and employees. This means both, companies and individuals need to follow UAE Labor Law in UAE. It may not be applicable to free zone companies; however most of the free zones do follow UAE Labour Law. One of the aspects that UAE Labour Law covers is the Termination of Employment Contract by employers.

This is covered under the Article 120 of the UAE Labour Law.

So why, how and when can an employee be fired or terminated by the company?

There are 10 different reasons why and when an employee can be fired!

1. False identity adopted by employee or submission of forged documents;

2. During Probation Period;

3. Errors by employee results in significant material/financial loss;

4. Employee violates workplace safety rules;

5. Failure to perform basic duties as per contract;

6. Business secrets leaked!

7. Judgement in court against employee for criminal offences;

8. Found under the influence of alcohol during working hours;

9. Assaults colleagues;

10. Absent from work continuously for 7 days or intermittently for 20 days without informing.

Detailed explanation of Article 120:

Here I will provide you with detailed explanations for each of the above scenarios when can an employee be fired from company under Article 120.

1. If the employee adopts a false identity or nationality or if he submits forged documents and certificates:

· If while your employment contract is being drawn, you have taken up a false identity or duplicate identity and your employer becomes aware of this, you can be terminated without any notice under Article 120. Also if you have adopted a false nationality through forged documents like passports and if your employer becomes aware, you can be terminated.

· When applying for your employment/labour approval, you have to provide your educational certificates. if you have forged your educational certificates, you are liable to be terminated. Your company also requests your experience certificates from the previous employers. If these are found to be forged, you will be fired as per the rules of UAE Labour Law under Article 120. So beware of these rules and regulations. Submitting any kind of false documents like passports, experience certificates are also criminal offences under UAE Laws. Not only would you lose your job, you also may be reported to court for these offences.

2. If the employee is appointed under a probationary period and dismissal occurred during or at the end of the said period:

· It is a known fact that, during probation period, your company can fire you or terminate you without any reason. In most cases, your company may fire you during probation period because your on job performance has not been good. Not only for this reason, your company can fire you for any reason or no reason at all during the probation period.

3. If he commits error causing substantial material loss to the employer provided that the latter advises the labour department the incident within 48 hours from having the knowledge of the same:

· If you have committed any serious mistake that has resulted in a financial loss for your company, then your company has the right to fire you. It is not clear from here what is ‘substantial.’ However, I believe this depends on the company type. For a small company, substantial can mean even 10000 Dirhams. But, your company should inform MOL within 2 days of the incident or within 2 days of having knowledge of the incident. These type of offences are rare, however, I have heard them happen.

4. If the employee violates instructions containing safety of the place of business provided that such instructions are displayed in writing at conspicuous places and in case of an illiterate employee the latter be informed verbally of the same:

· UAE Labour Law, also provides provisions for the safety and security of the work place. Every employee should adhere to the safety standards adopted by the company. If you have not obeyed the safety requirements, you can be terminated from your work for negligence to adhere to such rules. This is serious offence considering many of the companies in UAE are construction and project related. If you have passed by any construction site, you would have noticed certain notices that have been put up at the entrances or important places. You have to adhere by these rules and they are up there for a reason.

5. If he fails to perform basic duties under the contract of employment and persists in violating them despite formal investigation with him in this respect and warning him of dismissal if the same is repeated:

· When you join any company, you are given your job description or Key Performance Index (KPI) upon which you are evaluated. These documents mention what you are supposed to be doing. However, if you have not been able to even perform the basic requirements of the job duties, you can be fired under Article 120 of UAE Labour Law. Furthermore, your company can issue warnings against you in this regard. If you have still failed to perform you duties and requirements, your company can fire you.

6. If he divulges secrets of the establishment where he is employed:

· By virtue of your work, you may come across information and secrets of how your business is run and managed well. This is confidential information and should remain this way. You are not supposed to leak or divulge this information to any 3rd party. If your company finds out that you have leaked the company secrets, your employer can fire you as per Article 120.

7. If he is awarded final judgment by the competent court in respect of an offence prejudicing honour, honesty or public morals:

· IF during your course of employment, you are found to have violated certain laws and the courts issues judgment against you, your company can dismiss you as per Article 120.

8. If during working hours he is found drunk or under the influence of drug:

· This is self explanatory! If you have been caught in the act of being drunk, intoxicated by alcohol or any kind of drug during your working hours, you can be fired as per Article 120.

9. If in the course of his work he commits an assault on the employer, the manager or any of his colleagues:

· Have you heard of the news where an employee physically assaulted his manager? He was fired from the work! Any kind of physical assault that you commit against your employer, manager or your colleagues can lead you to get fired. This is true even during non working hours. There are multiple cases reported in the news papers where the company fired employees for getting into physical fights with each other. However, I am clear as to whether, this rules contains mental or verbal assault.

10. If he absents himself without lawful excuse for more than 20 intermittent days or for more than 7 successive days during one year:

· Whenever you take leaves, you are supposed to inform your employer that you will be absent from work. If you have informed or taken permission for being absent, you can be terminated under the UAE Labour Law. It is important that you have taken a written approval when absenting yourself from work.

What are the benefits if you are terminated ?

If you are fired or terminated under UAE Labour Law article 120, there are no benefits except that you will paid salary till your last working day. You will not be paid gratuity EOSB for your services. Your accrued leaves will be cancelled. However, you will get one way air ticket for your journey home.

What should you do when you are fired under Article 120?

There is little that you can do when you are fired under Article 120 of the UAE Labour Law. The rules and scenarios mentioned there are crystal clear as to the offences that Ministry of Labour considers serious. Hence, you should familiarise yourself with the scenarios under which you can be terminated and avoid committing these offences.

However, it should be clearly established that you have committed the offence. If you have not committed any offence mentioned under Article 120 and are terminated, you may file a complaint with MOL. All the communication should be in writing and officially signed by employer/company.

I am sure you have learnt something new through this post. Let me know what do you think about this. Comment below your doubts.

No visas for sponsor who did not register with WPS

Aamir Awan 01:48:00 WPS

Several employers and workers presented their cases at the weekly open day organised by the Ministry of Labour, where a wide range of requests including licence renewals, permission for new work permits and lifting of bans and fines were considered.

The committe representing the Ministry of Labour refused a UAE sponsor work permits to hire new employees at his 29 facilities and denied renewal of trade licences of some others. The ministry records showed some violations in 13 facilities. Also the national did not register all of his facilities in the wages protection ystem (WPS), which requires each facility to pay their workers’ salaries through the system.

The open day, attended by Humaid bin Dimas, Executive Director of the Labuor Ministry; Abdul-Wahab Essa expert at the department of labour offices and Essa Al Zarouni, Director of Inspection in the ministry, received 30 complaints and petitions from employers.

The committee promised to consider the request submitted by an employer to waive off Dh10,000 fine issued against him for violating the mid-day break rule. Al Zarouni said: "Usually the ministry refuses to excuse any employer from mid-day rule fines. But this is an exemption as a concrete work, crucial to the construction of that project, had to be completed at one go. However, in future documents from the Department of Water and Electricity, supporting the case, should be presented to the labour ministry to make employees work through mid-day."

In another case, the committee refused to renew the licence of a office belonging to a, UAE citizen because it was a bogus facility. Bin Dimas said: “Such people must be referred to public prosecution, because they trade in supplying labourers. And when there are no sufficient work they are forced to abscond and end up being a security threat."

In yet another case, that came up for hearing at the open day was the request by a citizen to write-off the fines on his four facilities for delaying their renewal. The committe instructed a panel to visit those facilities and give them a report.

The committe also heard the request of an Arab businessman who asked the ministry to issue him temporary work permits until the court issued a verdict on the dispute with his partners pertaining to their shares in the company. He requested the ministry to renew his visa as he has been overstaying in the country long after his residence visa expired. He also requested to sponsor his wife, who is currently under the sponsorship of the company run by his partners. The committee promised take a decision after hearing what his partners had to say.

Meanwhile, the committe rejected the request of a worker to revoke his ban slapped by his sponsor after he was impriosoned for a year on charges ofalcohol trafficking and the Department of Naturalisationa nd Residency ordered him to leave the UAE within three months. The committee ruled that the worker should leave the country to serve the six-month ban period.

The committee confirmed that the law allows employer to complaint against workers if they are absent for more than seven consecutive days without notice.

What To Do When: You do not get your salary on time

Aamir Awan 00:39:00 1 WPS

Although there may not be many such cases in the country, there are some employees who complain of delayed or withheld salaries.

AA, an employee with a private shipping agency, claimed that he and his colleagues were not paid for two months and when they objected to this, the company officials tried to intimidate them by threatening them that they would have to resign, followed by a six-month or one-year work ban on them.

If you are in a situation like AA, you have full recourse to law and there is nothing that you need to fear.

Emirates 24|7 spoke with legal experts on employment and they assure that employees have their full rights in place, which you should be aware of.

But, before you jump to conclusions and decide your next course of action, try to understand the reasons behind the non-payment of salaries and look for ways to resolve the issue amicably.

According to Alexander Mcgeoch, head of employment at legal firm Hadef & Partners, “In cases where non-payment of wages does occur, the likelihood is that the employer company is in some kind of financial difficulty.

"If this is the case, then the company may have to terminate the employment of all, or at least some, of its staff. In such a situation, the company should keep its employees fully informed of developments and should notify those on the payroll who are to be made redundant, as soon as possible.

“The alternative, and I believe much less usual, reason for non-payment of salaries is sheer neglect on the part of the employer – and, where this is the reason for employees going without their monthly pay cheque, it is unforgivable,” he explains to this website.

Whatever the case may be, “non-payment of remuneration to employees, in full and on time, is a most serious and fundamental breach of contract,” as Mcgeoch puts it.

If you are in this unhappy situation, you are fully entitled to resort to legal means to ensure all your dues are rightly paid to you.

Non-payment of dues, says Mcgeoch, “Automatically entitles the employee concerned to bring a claim against his (or her) employer. It also exposes the company to penalties under the Wages Protection System Law,” which may also cause damage to the reputation of the company.

“If an employee isn’t paid for two months, he can complain to the Ministry of Labour and also request that his current employment work permit and visa are cancelled without the registration of an employment ban,” says Sara Khoja, Partner at legal firm Clyde & Co in the UAE.

If you are an employee that has not been paid salary and/or any other financial benefits to which you may be entitled (like additional salary in lieu of unused annual leave), this is what the Hadef expert suggests to do.

“Approach the management and request them to be open with you and discuss the prospects of your being paid. If the company managers are not prepared to give any concrete commitment (i.e., to the effect that you will be paid within the next two or three days) or, if they do give such a commitment but thereafter fail to honour their promise, then you are fully entitled to bring a claim against the company.

“This can be done by reporting the matter to the Ministry of Labour (or, as the case may be, relevant free zone authority) who will register your claim for non-payment of salary.

"The law requires that, through the mediation of the appropriate government body (i.e., the Ministry of Labour or, as the case may be, relevant free zone authority), the parties must first endeavour to settle their differences and, if this does not prove possible, the employee claimant will be given a ‘referral’ letter which will enable him (or her) to go straight to the courts and institute legal proceedings against the company for recovery of unpaid dues.”

Mcgeoch also suggest reporting the matter to your respective consulate or embassy. In the case of the larger expatriate communities, the embassy (or consulate) will have a “dedicated” officer whose role it is to look after the interests of those of his (or her) fellow nationals who are facing problems connected with their employment.

Legalities can scare away average people, but this should not be the case if you have been wronged. Employee should not fear reporting cases of non-payment of salary and benefits. It is the employer who is in the wrong for having breached the terms of the employment contract.

“The employer has broken a binding agreement with someone (i.e., the employee)... The government of this country – both at the federal and at the emirate level – is unwilling to tolerate such behaviour,” adds Mcgeoch.

While there may be some such cases, problems regarding non-payment of salaries have been on the decline since the introduction of the federal Wages Protection System Law in 2009.

As per this system, all registered business concerns have been required to pay staff wages though a licensed bank.

Each month the entire amount of the company wages bill has to be paid to the bank in one lump sum and thereafter, acting as the company's agent, the bank distributes the relevant salary amounts to the bank accounts of the individual employees.

The virtue of this system is that, with the cooperation of the agent bank concerned and the Central Bank (to which the agent bank reports), it is relatively easy to monitor the timely payment of staff salaries by employer entities. This means that companies that are in default (i.e., for non-payment of salaries) can be readily identified and thereafter penalised, as Mcgeoch says.

The UAE Wages Protection System

Aamir Awan 00:17:00 1 WPS

The MinisterialDecree 788 of 2009 (Protection of Wages) ("WPS") came into force on 1September 2009 in the United Arab Emirates ("UAE").

Since 2009, The United Arab Emirates has demonstrated significant efforts towards ensuring and protecting the rights of workers in the UAE with the implementation of the Wages Protection System (WPS). The WPS initiative ensures that salary payments are properly regulated; payment of employee wages must be made by direct electronic transfer into local bank accounts via regulated domestic banks, exchange bureaus, or financial institutions approved and authorized to provide the service.

Developed by the Central Bank of the UAE, the Wages Protection System allows the Ministry of Labour to create a database that records salary payments in the private sector to monitor and guarantee the timely and full payment of wages. Through the database, defaulting companies can be easily identified and penalized. The WPS covers all institutions registered with the Ministry of Labour across all sectors and industries in the UAE and compliance with the WPS is mandatory. Government entities are exempt from WPS and it is also not applicable in Free Zones.

How It Works:

1. Open an account with one of the banks operating in UAE.

2. Select a WPS agent that is approved and authorized by the Central Bank of the UAE (WPS agent service can be provided by a bank, exchange bureau, or a financial institution).

3. Create a detailed wages list for all employees and send a copy to WPS agent.

4. Issue instructions to the bank to transfer wages to workers. Instructions must be accompanied by the detailed wages list.

5. The bank will send the payroll details for the employer to the WPS agent.

6. The WPS agent will send detailed wage list and salary transfer instructions electronically to the Central Bank of the UAE, who will then forward details to the Ministry of Labor database. Data received will be checked to ensure that the details correspond with information already registered with the Ministry of Labour.

7. Once approved by the Ministry of Labour, the WPS will send the salary information and authorization for payment to the appointed WPS agent in order to start paying the wages.

Employers must submit employee salaries via the WPS within two weeks of wage due date if paid on a monthly basis. Employers who fail to transfer payments on time will have work permits suspended until wage payments are made in full. Repeat violations can lead to suspensions of applications for work permits for a month or more.

Employers must also bear all costs associated with implementing the WPS (bank fees, agent fees, etc.). In no form may an employer attempt to share or deduct costs from employee wages.

The Ministry of Labor provides companies with a tool to create detailed wage lists. For steps how to download and use the WPS service, please refer to The Ministry of Labor – Wages Protection System User Manual.

UAE Visa Requirements and Rules

Aamir Awan 03:03:00 UAE Visa

General information about visa requirements and different types of visas in the UAE has been listed below. However, the visa regulations are subject to change and therefore, should be verified with the travel agent or nearest UAE embassy or consulate or your airline before travel.

Citizens from 33 countries listed herein do not require visas prior to arrival at the UAE airport. Nationals from GCC countries do not require a visa to visit the UAE. They only need to produce their GCC country passport at the entry point in UAE. However, people entering the UAE for employment, will require a visa which could be obtained through their employer or sponsor. The kind of visa required for entry into the UAE is dependent on several factors such as nationality, purpose of travel, duration of stay etc. A penalty charge of Dh.100 per day is imposed on visitors who overstay.

Visa on arrival granted to following categories:

AGCC Residents: are residents who are not GCC nationals, but hold high professional status such as Company Managers, Accountants, Auditors, Business People, Engineers, Doctors, Pharmacists or employees working in public sector, their families, drivers and personal staff sponsored by them, are eligible for non-renewable 30-day visa on arrival at approved ports of entry. National Citizens of the following countries: UK(with the right of abode in UK), France, Italy, Germany, the Netherlands, Belgium, Luxembourg, Switzerland, Austria, Sweden, Norway, Denmark, Portugal, Ireland, Greece, Finland, Spain, Monaco, Vatican, Iceland, Andorra, San Marino, Liechtenstein, United States, Canada, Australia, New Zealand, Japan, Brunei, Singapore, Malaysia, South Korea and holders of Hong Kong SAR passports will be granted a free of charge visa for a single visit upon arrival in the UAE. It should be noted that this list is subject to change from time to time and it is therefore best to check with local UAE embassy or the airline used for travel to UAE.

Visa not required for:

AGCC Citizens: Citizens of Arab Gulf Co-operation Council member states, including Kuwait, Bahrain, Qatar, Saudi Arabia and Oman do not require a visa. Visitors, who do not fall into any of the said categories, will require a visa and a sponsor for their visit. The sponsor usually applies for the visa on behalf of the visitor. Valid Sponsors: Hotel and Tourism Companies can apply for visas on behalf of the tourist for a Tourist Visa with 30 days validity, or a Service Visa valid for 14 days or a Visit Visa valid for 30 days which could be extended by another 30 days. Airlines and Airline Handlers are eligible to apply on behalf of their crew members for a 96-hour Transit Visa. Even other organizations based in the UAE may can apply for Visit Visas and Service Visas. Individuals (friends or relatives), who are already residents in the UAE, subject to guidelines, can also apply on your behalf for a Visit Visa.

Entry Service Permit:

An Entry Service Permit is applicable to the following categories and their families, such as Company Managerâ€™s representatives, Account Auditors, Sales Managers, delegations from companies or establishments to carry out commercial activity in the UAE, consultants sought by the UAE companies to perform certain urgent tasks. The visa will have to be used within 14 days from date of issue, as it is non-renewable. This type of entry permit will be issued only for urgent purposes, and the holder may enter and depart the UAE through any airport. The Entry Service Permit Visa can also be availed by nationalities authorized to obtain a tourist visa, as per the decision by the Ministerial Council.

Visa delivery service to airport:

Visit visas and entry permits obtained by sponsors for visitors to UAE should be normally delivered minimum three hours in advance to the airport before the arrival of the visitor. Visitors will have to look for a DNATA or DNRD visa delivery counter at the Dubai International Airport or near the arrivals area.

Short Term Visa Types:

Other visit visas all of which require a deposit of Dh.1000 include:

Student Visit Visa

The student must be registered at the UAE University (for short-term courses) and should already hold a residence visa (for long-term course). It can be renewed twice for Dh.500.

Conference/Exhibition Visa

Is valid for 30 days for Dh.100 and is non-renewable

Medical Visit Visa

Is renewable for 90 days for Dh.500 and costs Dh.1000.

Property Visa

For most if not all of Dubai Property purchases, these pieces were suspended. Inquire with the appropriate government authority in Dubai with the master developer. Do not however take the word of the property developer or the real estate agent.

Investor Visa

For Expats who invest a minimum of Dh.70,000 share capital under a business partnership with a UAE national. This visa has a 3-year validity with a visa fee of Dh.300.

Mission Visa

There are a couple of types of mission visas in Dubai and UAE area. A 90-day visa (be careful, that’s not necessarily three months) is called a mission visa and it is for the express purpose of permitting expats to be employed there for short time; it is also for probationary workers. The sponsoring company applies for it at the department of labor. It may be multi-entry and/or renewable. A visa for special mission entry is good for 16 days and is referred to as a Dubai transit visa (do not confuse this with the transit visa that is good for 96 hours). It is good only for single entry and cannot be renewed.

Parent Visa:

UAE residents can sponsor parents for a period of one year, which could be renewed under special permission from the FNRD. A refundable deposit of Dh.5000 (per parent) and visa fee of Dh.100 will be charged.

Kindly note: Visa rules are subject to sudden change without warning. The UAE Embassy in your country or the Dubai Naturalisation and Residency Department (DNRD), the relevant authority in the UAE, is the only source of information that can be relied upon. The validity period for a free visit visa on arrival change often.