Under the Decree of November 1995, investors may set up
factories and industrial manufacturing processing and assembly uni4s and
commercial enterprises carrying on trading, financial, and professional
activities an$ services. Goods within free zone are exempted from custom and
import and export duties. Products of factories in the free one (licensed by
the Ministry of Finance and Industry and in which the participation of UAE or
AGCC nationals is no less than 51 per cent) are considered to be national
products, and no business duties are levied thereon (on
entering the UAE.
Tuesday, 9 October 2012
Company Formation in Al Saadiyat Free Zone (Abu Dhabi)
A free zone area has been set up on Al Saadiyat land pursuant
to Local Law Number 6 of 1996. Trading, financial, and services companies may
be incorporated or establish branches in the free zone area. Goods in transit
through the free zone will be exempted from custom duties and . Custom duties
will only be levied on goods entering the UAE.
Free Trade Zones-UAE
Free trade zones have been set up in the Emirates of Abu Dhabi, Dubai, Sharjah, Fujairah, Ajman, Umm Al Quwain and Ras Al Khaimah. Incentives for investment in free trade zones comprise:
• One-hundred per cent foreign ownership;
• No corporate taxes for 15 years, renewable for an additional 15-year period;
• One-hundred per cent repatriation of capital and profits;
• No personal income taxes; and
• No currency restrictions.
Jebel Ali Free Zone (Dubai) The Free Zone Authority in Jebel Ali Port issues four types of licenses categorized by nature of the activity, explicitly:
• The trading license permits its holder to import, export, sell, distribute, and store all items specified on the license. However, sales of the company’s products in the UAE may be carried on only through an mediator or distributor.
• The industrial license permits its holder to import raw materials and manufacture and export the finished product to any country. The manufactured product may be sold in the UAE through a distributor or agent.
• The holder of a service license must be licensed in one of the Emirates to render the same services intended for its free trade zone operations.
The national industrial license is issued to companies meeting the requirements for a National Production Certificate, Ie, 40 per cent value added and 51 per cent Arabian Gulf Cooperation Council (AGCC) ownership` (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE). Companies holding this type of license qualify for customs duty exemption on their products imported into any of the above countries.
The Jebel Ali Free Zone Authority offers factory and warehousing services on lease to tenants. Buildings to lessee’s specifications can be constructed under a long-term land leads. Under Act Number 9 October 1992, a free zone establishment may be incorporated in the Jebel Ali Free Zone. It is a one-person or more company with a legal identity where the owner’s liability is limited to the paid-in capital. The owner may be an individual or a company. The capital may not be less than Dhs 1 mill0on paid into a bank account in the fame of the proprietor at the time of incorporation. The capital may be divided into shares of equal value.
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• One-hundred per cent foreign ownership;
• No corporate taxes for 15 years, renewable for an additional 15-year period;
• One-hundred per cent repatriation of capital and profits;
• No personal income taxes; and
• No currency restrictions.
Jebel Ali Free Zone (Dubai) The Free Zone Authority in Jebel Ali Port issues four types of licenses categorized by nature of the activity, explicitly:
• The trading license permits its holder to import, export, sell, distribute, and store all items specified on the license. However, sales of the company’s products in the UAE may be carried on only through an mediator or distributor.
• The industrial license permits its holder to import raw materials and manufacture and export the finished product to any country. The manufactured product may be sold in the UAE through a distributor or agent.
• The holder of a service license must be licensed in one of the Emirates to render the same services intended for its free trade zone operations.
The national industrial license is issued to companies meeting the requirements for a National Production Certificate, Ie, 40 per cent value added and 51 per cent Arabian Gulf Cooperation Council (AGCC) ownership` (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE). Companies holding this type of license qualify for customs duty exemption on their products imported into any of the above countries.
The Jebel Ali Free Zone Authority offers factory and warehousing services on lease to tenants. Buildings to lessee’s specifications can be constructed under a long-term land leads. Under Act Number 9 October 1992, a free zone establishment may be incorporated in the Jebel Ali Free Zone. It is a one-person or more company with a legal identity where the owner’s liability is limited to the paid-in capital. The owner may be an individual or a company. The capital may not be less than Dhs 1 mill0on paid into a bank account in the fame of the proprietor at the time of incorporation. The capital may be divided into shares of equal value.
Our Services:Business Setup|Offshore Company Formation|Freezone Company Formation|Visa Assistance|Pro Services|Paralegal Services|Document Clearing|Business Consultancy|Language Services|Employment Visa|Transit Visa|Maid Visa|Visit Visa|Abu Dhabi Visa|Schengen Visas|Company Formation|Hospitality Services|Trade Services|Managed IT Services|Outsourcing Services|Healthcare Services|Logistics services|Intellectual Property|Offshore Company Formation|Financial Services|Accounting Services
FAQs on Employment Contract (Labour Agreement)
FAQs on Employment Contract (Labour Agreement)
1) Individual employment contract:
1. Is the worker entitled to obtain an employment contract?
Yes … the worker is entitled to obtain the employment
contract concluded between the two parties and issued and attested by the
ministry of labor signed by the two parties as the employment contract shall be
in writing and each of the worker and employer shall have a copy respectively..
And the approved language in the state is the Arabic language. In case the
worker does not receive the employment contract, he shall resort to the
ministry of labour.
2. If the employment contract has not been issued from the
ministry, can I prove my service with employer or not?
Evidence shall be conducted by the legal evidence means …
for example: internal contract concluded between the two parties, appointment
letter, payment statement or book of attendance and going out of the work ………..
etc. , if the worker has one of them.
3. What is the necessary information that shall be available
in the employment contract?
The employment contract shall contain the following:
- Date of signing the contract.
- Date of starting the work
- Type of the contract, either it is (a limited or unlimited
contract)
- Place of signing the contract
- Period of the contract: if it is a limited contract there
shall be a date of the
commencement and end
of the contract. In the unlimited contract only the commencement shall be mentioned therein.
- Amount of the payment: the basic salary, allowances and
bonuses shall be specified
- Occupation
Note: if there are any other conditions agreed upon between
the parties of the contract to be added at the date of signing the contract
provided that they are not in contradiction with the labor law
4. How long the period of probation that shall be approved
in the contract of
employment?
Article (37): The worker shall be appointed under a
probation period, which shall not be more than six months. This period shall not
be extended for another one.
5. Is it permitted to exclude the probation period?
Yes it is as the probation period is optional.
6. Is it permitted to reduce the probation period?
Yes it is. But the probation period shall not exceed (6)
months.
7. Is the employer entitled to dismiss the worker during
probation period?
Yes he is. As this period is given to the employer to
evaluate the worker's performance. Therefore, he is entitled to dismiss the
worker during this period without a notice and without end of service benefit.
8. If the worker has passed the probation period, does this
period is calculated
within service period?
This period shall be calculated when the worker successfully
passed it and continued the service.
Important: (is the period of visit calculated within period
of service?)
Legally, it is.
9. What are the types of employment contracts?
Types of employment contracts:
First: Limited Contract
Second: Unlimited Contract
First : Limited Contract:
10. What is the limited contract? Article (38):
It is the contract the period of which has been specified, and
it shall not exceed (4) years. Such contract may be extended by agreement of
the two parties for less period once or several times.
It is usually the limited employment contract to be for a
period of (3) years in order to conform with the labor card and the period of
residence.
Example: to be printed in the contract: (the limited
contract) started from 10/ 10/ 2005 to 9/ 10/ 2008. i.e. it has a date of
commencement and date of expiry.
11. Is the period after renewal of the contract considered
as an extension to the original one, or each contract is calculated separately?
The said period is considered as an extension to the
original one and calculated within the total period of the worker.
Example: a limited contract, the contract which began in 4/
4/ 2004 and expired at 3/ 4/2007 and it was renewed for another (3) years so
that the concluded contract is expires at 3/ 4/ 2010.
At this example, the period of service shall be calculated
since the beginning of his work with the employer in 4/ 4/ 2004 up to the last
day of work.
Second: The Unlimited Contract:
12. What is the unlimited contract?
Article (39): The unlimited contract is concluded in the
following case:
- If it is not written namely (there is no contract issued
between the two parties)
- If it is concluded for unlimited period example: the
unlimited contract of employment starts at the date of (2/5/ 2007) to (..) i.e
there is no expiry date.
- If the concluded contract is a written contract with a
limited period and they
continued in execution of the contract after its expiry or
end of its period without a written agreement the contract is deemed limited
and it was renewed for one year and after end of the renewed period the
contract shall be considered unlimited contract.
As it is obvious, the clause (b) in all employment contracts
issued from the ministry of labor provides for the following:
"The limited contract shall be expired at the
expiration of its period. If the two parties continued in its execution, it
shall be considered renewed for one year as from date of expiry of the contract
and with the same conditions therein" .
- If the contract is concluded for performance of a certain
work with no limited period and it is, according to the nature of the work,
renewable, and the contract continued between them after end of the work agreed
upon between them.
Example: an engineer entered into a contract with an
employer for completion of a certain project the period of completion of the
project has not been specified after the end of the project, the engineer
continued in the work with the employer ( here, the contract is considered
unlimited because the contract did not specify a certain limited period for its
expiry ).
If the employer
terminates the contract for reasons other than those specified in Article 120
of the Law, he will be liable to pay compensation to the employee. This
compensation is determined on the basis of the wages due for a period of three
months or for the remaining period of the contract, whichever is less, unless
an article in the contract states otherwise.
If the contract is
terminated by the employee for reasons other than those stipulated under
Article 12l of the Law, the employee will be liable to compensate the employer
against any loss resulting from the termination. The amount of compensation
payable is calculated on the basis of the employee’s salary for one month and a
half or the salary payable for the remaining period of the contract, whichever
is less, unless the contract states otherwise.
13- What about the limited contract the period of which was
expired and the contract was not renewed, but the worker continued in the work?
The Article (40). The original contract is deemed a limited
contract and renewed explicitly for one year under the same conditions provided
therein.
This is What is provided in the clause (b) in all employment
contracts issued from the ministry of labor, which provides for the following:
"The limited contract shall be expired at the
expiration of its period. If the two parties continued in its execution, it
shall be considered renewed for one year as from date of expiry of the contract
and with the same conditions therein" .
14- What about the worker who works with a sub- contractor
or in a (sub- contract)?
Article (41): If the employer agreed with another employer
(contractor of works) by a contract concluded between them called (sub-
contract) and the first party's workers shifted to the second party (the second
employer) the second employer shall be responsible for the rights of those
workers And according to the international work agreements: The main employer
and sub- employer shall be both liable for the rights of the workers jointly
and severally.
And in the practical fact, the damaged party shall submit a
complaint against the original employer.
15- is there any difference between the contract of those
working in education and other contracts?
Yes there is, as the contracts of education have a special
nature and special conditions. These contracts are issued under coordination
between the ministry of labor and ministry of education and the person who has
enquiry shall first resort to the ministry of education.. then, to the ministry
of labor, in case there is a dispute .
16- How the teacher's leave is calculated?
Contracts of education have special conditions and special
rules because they are issued from the ministry of labour and ministry of
education; therefore, the person who has enquiry shall first resort to the
ministry of education then, to the ministry of labor, in case there is a
dispute.
Family Visa Cancellation in Dubai
Required Documents:
• Original Passport
• Passport copy of sponsor
• Typed Application
Application Fee:
Dh70 to be paid at typing centre (service charge extra).
STEPS TO FOLLOW
• Put signature of the sponsor on the application.
• Submit the application along with original passport at the
Immigration. Visa will be cancelled the same time.
There are 30 days
grace period from the date of Visa expiry.
Applicant can stay in
UAE 30 days from the date of cancellation if his/her visa was not expired at
the time of cancellation. If the cancellation done during the grace period,
remaining days will be allowed to stay without fine. If the the cancellation
done during overstay period, 6 days will be granted from the date of
cancellation.
Fine Dh15 per day
will be calculated for Residence visa overstay if change status inside the
country. Dh25 per day to be paid if exits.
Fine can be paid at
Immigration or Airport at the time of exit.
No Ban will put for
residence/family visa holders at the time of cancellation.
OUT OF COUNTRY CANCELLATION
• If the family members are out of UAE, apart from the above
mentioned procedures, Dh130to be paid at Immigration office to take print out
of exit details. Original passport of family members are not required. Dhs130
can be saved if the original passport brought.
Employment Visa shifting based on qualification and salary
Employment Visa shifting based on
qualification and salary
As per the latest rule, employment visa transfer has been
stopped. If the employee resigns before the completion of two years, a
six-month ban shall be compulsory. But the same may
be lifted without any
charges or NOC from the employer if the employee managed to get a new job
opportunity, taking into account that the salary of such worker with the new
company
shall be in accordance with the skill level
specified by the Ministry of Labour:
1- First skill level: which means that if the employee is
having university degree and above, his salary with the new company shall not
be less than Dh 12,000.
2- Second skill level: if the employee is having diploma,
his salary with the new company shall not be less than Dh 7,000.
3- Third skill level: if the employee is having high school
degree, his salary with the new company shall not be less than Dh5,000.
If these three skills have not been met by the employee, he
may not lift the ban and he shall wait until the completion of the ban period
and then he may work with a new sponsor, moreover,
the NOC from the earlier sponsor has no effect based on the
Ministry of Labour’s new decisions.
Above mentioned salary can be in total. It is not necessary
to put as basic salary. New profession must be compatible with educational
certificate. For secondary certificate holder, the new profession
code shall end with
0000003.
Employment Visa Expense;
DESCRIPTION AMOUNT
in AED NOTE
E-QUOTA APPLICATION 15
INITIAL APPROVAL 200 Typing charge extra
LABOUR CARD FEE 600 Second Category 2-A
1500 Second Category 2-B
2000 Second Category 2-C
5000 Third Category
300 First Category
BANK GUARANTEE 3000 Commission varies depends on Bank
IMMIGRATION FEE 220 720 If the person is inside UAE
570 For visa position amendment Typing charge extra
MEDICAL CERTIFICATE 300 Amount varies depends on Hospital
VISA STAMPING 270 100 extra for Urgent submission Typing
charge extra
Emirates ID 270 Two years
LABOUR CONTRACT 50 To be submitted through Tas'heel
Centre.
TOTAL 4925 Typing charge extra
DOCUMENTS REQUIRED;
For E-quota Application Copy
of Trade License, Labour Establishment Card, Immigration Establishment Card,
Sponsor's Passport copy, Sponsor's E-signature Card copy, Tenancy Contract,
Electricity Bill and Location Map.
DOCUMENTS REQUIRED
For Work Permit Application Passport
Copy, one photo with white background,
Attested Certificate Copy for certain professions,
Trade Licence Copy, Labour Computer Card Copy,
Profession + Salary with allowance (if any)
GCC Driving License copy for Driver Visa application (Vehicle
list from RTA also to be attached for Driver Visa).
After Entry Two
Photographs for Medical Test
o
One Photograph (white background) for Visa
Stamping
o
One Photograph (white background) for Labour
Card/Contract
Steps to follow
Type e-quota application.
• Documents required for e-quota: Copy of Trade License,
Labour Establishment Card, Immigration Establishment Card, Sponsor's Passport
copy, Sponsor's E-signature
Card copy, Tenancy
Contract, Electricity Bill and Location Map.
• Project Agreements to be scanned for Contracting
Companies.
• Number of required workers, Gender and profession to be
mentioned. Dh15 to be paid for Quota request application.
• Quota approval will come online soon.
• Wait for payment request which will come online within
24hours. Dh200 to be paid for each worker (Service charge extra). Approval will
come after 24 hours.
• Again Work Permit application to be typed. Passport copy
of worker, Photo and Certificate (for certain professions) are required.
Approval will come soon.
• Then, bank guarantee (Dh3000 for each) and Labour Card Fee
to be paid as per the company category).
• Pay Dh220 immigration fee for each visa and collect visa
from Immigration.
NOTE:
• Original e-signature card of the authorized signatory is
must to complete employment visa process.
--------------------------------------------------------------------------------------------------------
Application status
can be tracked through www.mol.gov.ae by entering MB number which is printed on
the application.
After approval, Bank
guarantee to be paid in the Bank, if required.
All government Fees
to be paid at Typing Centre.
If the applicant is
inside the country, type Visa Position Amendment application and pay Dh530 at
Typing Centre (Typing charge extra).
There are 60 days time from the
date of Visa Position Amendment to complete Medical and visa stamping. If the
visa holder is out of country 60 days will be calculated from the
date of entry.
AFTER ENTRY
Apply for Medical
and Type Labour Contract and Visa Stamping application.
Get seal and
signature of the sponsor and employee on the Labour Contract and submit through
Tas'heel Centre.
Get seal and
signature of the sponsor on Visa stamping application, Attach Tas'heel receipt
and submit at Immigration Department along with Original Passport.
Pay Dh20 for Courier
if the Application is Normal and Passport will be delivered after Two days.
Visa stamped
Passport can be received by hand if the Application is Urgent.
Labour Contract will
come through Post Box after 10 days. Application status can be tracked through
www.mol.gov.ae by entering IN number which is printed on the application.
Dubai Employment Visa Procedures for person who is having 6 months Ban
Dubai Employment Visa Procedures for person who is having 6
months Ban
Based on the Ministry of Labor’s new decision if the
employee resigns before the conclusion of two years, a six-month ban shall be
imposed. But the same may be lifted without any charges or NOC from the
employer if the employee managed to get a new job opportunity, taking into
account that the salary of such worker with the new company shall be in
accordance with the skill level specified by the Ministry of Labour:
1- First skill level: which means that if the employee is
having university degree and above, his salary with the new company shall not
be less than Dh12,000.
2- Second skill level: if the employee is having diploma,
his salary with the new company shall not be less than Dh7,000.
3- Third skill level: if the employee is having high school
degree, his salary with the new company shall not be less than Dh5,000.
If these three skills have not been met by the employee, he
may not lift the ban and he shall wait until the completion of the ban period
and then he may work with a new sponsor, moreover, the NOC from the earlier
sponsor has no effect based on the Ministry of Labour’s new decisions.
Above mentioned salary can be in total. It is not necessary
to put as basic salary. New profession must be compatible with educational
certificate. For secondary certificate holder, the new profession code shall
end with 0000003.
Employment Visa Expense
DESCRIPTION AMOUNT
in AED NOTE
E-QUOTA APPLICATION 15
INITIAL APPROVAL 200 Typing charge extra
LABOUR CARD FEE 600 Second Category 2-A
1500 Second Category 2-B
2000 Second Category 2-C
5000 Third Category
300 First Category
BANK GUARANTEE 3000 Commission varies depends on Bank
IMMIGRATION FEE 220 720 If the person is inside UAE
570 For visa position amendment. Typing charge extra
MEDICAL CERTIFICATE 300 Amount varies depends on Hospital
EMIRATES ID 270
VISA STAMPING 270 100 extra for Urgent submission. Typing
charge extra
LABOUR CONTRACT 50 To be submitted through Tas'heel
Centre
EmiratesID 270 Two years
TOTAL 4960 Typing charge extra
DOCUMENTS REQUIRED
For E-quota Application Copy
of Trade License, Labour Establishment Card, Immigration Establishment Card,
Sponsor's Passport copy, Sponsor's E-signature Card copy, Tenancy Contract,
Electricity Bill and Location Map.
DOCUMENTS REQUIRED
For Work Permit Application Passport
Copy, one photo with white background,
Attested Certificate Copy for certain professions,
Trade Licence Copy, Labour Computer Card Copy,
Profession + Salary with allowance (if any)
GCC Driving License copy for Driver Visa application
(Vehicle list from RTA also to be attached for Driver Visa).
After Entry One
Photograph for Medical Test
One
Photograph (white background) for Visa Stamping
One
Photograph (white background) for Labour Card/Contract
Steps to follow
Type e-quota
application.
• Documents required for e-quota: Copy of Trade License,
Labour Establishment Card, Immigration Establishment Card, Sponsor's Passport
copy, Sponsor's E-signature Card copy, Tenancy Contract, Electricity Bill and
Location Map.
• Project Agreements to be scanned for Contracting
Companies.
• Number of required workers, Gender and profession to be
mentioned. Dh15 to be paid for Quota request application.
• Quota approval will come online soon.
• Wait for payment request which will come online within
24hours. Dh200 to be paid for each worker (Service charge extra). Approval will
come after 24 hours.
• Again Work Permit application to be typed. Passport copy
of worker, Photo and Certificate (for certain professions) are required.
Approval will come soon.
• Then, bank guarantee (Dh3000 for each) and Labour Card Fee
to be paid as per the company category).
• Pay Dh220 immigration fee for each visa and collect visa
from Immigration.
NOTE:
• Original e-signature card of the authorized signatory is
must to complete employment visa process.
--------------------------------------------------------------------------------------------------------
Application status
can be tracked through www.mol.gov.ae by entering MB number which is printed on
the application.
After approval, Bank
guarantee to be paid in the Bank, if required.
All government Fees
to be paid at Typing Centre.
If the applicant is
inside the country, type Visa Position Amendment application and pay Dh530 at
Typing Centre (Typing charge extra).
There are 60 days
time from the date of Visa Position Amendment to complete Medical and visa
stamping. If the visa holder is out of country 60 days will be calculated from
the date of entry.
STEPS TO FOLLOW (AFTER ENTRY)
Type Medical and
Emirates ID application and first go for Medical Test and then for Emirates ID
fingerprint
After receiving
Medical Certificate type Labour Contract and Visa Stampingapplication
Get seal and
signature of the sponsor and employee on the Labour Contract and submit through
Tas'heel Centre
Get seal and
signature of the sponsor on Visa stamping application, Attach Tas'heel receipt
and submit at Immigration Department along with Original Passport
Pay Dh20 for Courier
if the Application is Normal and Passport will be delivered after Two days
Visa stamped
Passport can be received by hand if the Application is Urgent.
Labour Contract will
come through Post Box after one week. Application status can be tracked through
www.mol.gov.ae by entering IN number which is printed on the application.
Frequently Asked Question
Six month ban
Q: I work as a mechanical engineer in Abu Dhabi. I have
completed nine months in service. I am planning to change my job. I received a better
job offer from a Jebel Ali Free Zone Company. I have not completed two years in
service. Will a six-month labour ban be enforced even if the new job is in a
free zone company? Is there a way to lift the ban?
A: Since you have not completed two years with your current
employer, a ban for the period of six months will be automatically imposed on
you by the Ministry of Labour.
Furthermore, avoiding a ban does not depend upon the
designation of employment; rather it depends upon the qualification and the new
salary offered.
If your qualification and new salary offered falls under any
of the below categories as mentioned in the Cabinet Resolution No 25 of 2010
regarding internal work permit at the Ministry of Labour, then, you may join
your new job without any ban. The cabinet Resolutions states:
In order to remove the ban, an employee must prove
qualifications by presenting a duly attested educational certificate as
mentioned herein:
i) If an employee holds a university degree (master), and
earns a minimum of Dh12,000 per month;
ii) If an employee holds a Diploma (post secondary) and
earns a minimum of Dh7,000 per month; and
(iii) If an employee has passed high school and earns a minimum
of Dh5,000 per month. (KT)
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