UAE Approves New Proposal for 3-Year Work Permit Plan

The government of the United Arab Emirates (UAE) has given its approval to the proposed plan for a work permit that is valid for three years.

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The Federal National Council (FNC), which serves as the parliamentary body of the UAE, has given its approval to increase the amount of time that work permits are valid for from two to three years. This came about as a result of a recommendation made by a FNC committee to implement this change in order to lower the financial costs connected with acquiring work permits. The validity period for work permits in the UAE is currently set at two years. The Ministry of Human Resources and Emiratisation has produced this paper for public use. Without the proper authorization, it is against the law for a person to engage in gainful employment in the nation.

UAE Approves Proposal for 3-Year Work Permit Plan

According to a study that was presented by the FNC Committee on Financial, Economic, and Industrial Affairs, the period should be raised to three years. In addition to this, it provided a number of additional proposals, such as the elimination of expenses associated with changing jobs requiring a work permit. The FNC also agreed with the idea that workers must be employed by the same company for a minimum of one year following the completion of the probationary term. However, if the employer so chooses, this prerequisite might be omitted entirely.

According to information provided to FNC by the Ministry of Human Resources and Emiratisation, this year the ministry carried out more than 72,000 inspection visits around the nation. Among these are 2,300 believed to be connected to fraudulent emiratization applications. Approximately 430 instances were found, some of which were handed over to the appropriate authorities for further investigation.

The Ministry of Human Resources and Emiratization (MoHRE) submitted twenty companies to the public prosecution in January 2023 for breaking Emiratisation rules in the previous year. In addition, the Public Prosecution had issued an order mandating the incarceration of the proprietor and manager of a private firm for defrauding 296 citizens of the UAE. Within the context of the Nafis initiative, the accused stole money from Emiratis who were participating as trainees. To comply with the requirements of the legislation, businesses in the private sector must raise the percentage of their employees who are nationals of the UAE. At the end of the year before last, businesses that had 50 workers or more were required to hire at least 2% Emiratis in skilled jobs. This requirement went into effect on January 1 of this year. Companies are required to implement this increase by 1% by the 30th of June of this year. They have till the end of the year to reach their goal of having 4% Emiratis working in skilled professions.

During the meeting of the Federal National Council (FNC) that took place the week before last, the Minister of Human Resources and Emiratisation, Abdulrahman Al Awar, emphasised three important measures that protect companies from risks:

— Worker protection insurance system: Employers are required to offer insurance coverage for their employees in order to safeguard them in the event that their business goes bankrupt or they are unable to pay their membership dues. More than 96% of registered workers are presently protected by this programme in its current iteration.

— Wage protection system: This system guarantees that employees will be paid in a timely manner and in a secure manner. Under this system, businesses and other types of facilities are required to meet their wage responsibilities by working with recognised financial institutions.

Insurance against unemployment: More than 2 million individuals, including 40,000 Emiratis, have signed up for the insurance against unemployment initiative. Workers in the UAE who are eligible for the programme must enrol in it by the 30th of June in order to avoid being penalised. It is an extremely inexpensive safety net that protects employees in the event that they lose their jobs.

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