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Monday, October 2, 2023

3-year UAE work permit scheme: FNC approves proposal


UAE – The Federal National Council (FNC), the UAE’s parliamentary body, has approved an extension of the duration of work permits from two to three years. This comes after the FNC committee recommended actions to reduce the financial costs associated with obtaining work permits.

Currently, work permits in the UAE are valid for two years. The document is issued by the Ministry of Human Resources and Emiratisation. It is illegal for a person to work in the country without a valid permit.

A report by the FNC’s Financial, Economic and Industrial Affairs Committee recommended extending the period to three years. It also made other proposals, including waiving work permit fees for job changes. Another proposal approved by the FNC is that workers must work for the employer for at least one year after the probationary period. However, this requirement can be waived if the employer agrees.

check access

The Ministry of Human Resources and Emiratisation told FNC that it conducted more than 72,000 inspection visits across the country this year. These included 2,300 cases related to suspected cases of fake Emiratisation. Some 430 cases were identified, some of which were referred to the Public Prosecution.

In January 2023, the MoHRE will prosecute 20 companies for violating the Emiratisation policy last year. The public prosecution also ordered the imprisonment of the owner and manager of a private company for defrauding 296 Emiratis. The accused took money from the trainees as part of the Nafis scheme.

Federal law mandates private sector companies to increase the number of Emiratis in their workforce. Late last year, companies with 50 or more employees had to employ at least 2% of Emirati skilled workers. This year, by June 30, companies must increase that rate by 1%. They need to have 4% of Emiratis in tech jobs by the end of this year.

flexible policy

At last week’s FNC meeting, Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, highlighted three key policies to protect employers from risks:

Workers’ protection insurance system: Employers are required to provide insurance to protect workers if the company goes bankrupt or is unable to pay dues. Currently, the program covers more than 96 percent of registered workers.

Paycheck Protection System: It ensures timely and secure payment of employee wages. The system requires companies and institutions to meet their payroll obligations through authorized financial institutions.

Unemployment Insurance: More than 2 million people, including 40,000 Emiratis, have joined the unemployment insurance scheme. Eligible workers in the UAE must enroll in the scheme by June 30 to avoid penalties. It’s an ultra-low-cost safety net that protects workers when they lose their jobs.


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