In an attempt to further cripple the companies operating in UAE, it is announced that residence visas / labor cards will be reduced to 2 years from January 2011. Currently the visas have to renewed every 3 years.
The new regulations would bring all private sector workers in line with drivers and domestic helpers, who only get two-year labor cards from the Department of Residency and Foreigners Affairs.
Humaid bin Deemas, the assistant undersecretary for labor affairs at the Ministry of Labor, said:
It [the decision] will have a positive impact on the labour market as it will create more flexibility in the employer-employee relationship, and will allow both parties to this relationship a shorter time,
Earlier, Minister of Labor Saqr Gobash set out new rules for Emiratization. Among the changes is a requirement for private sector firms to have no less than 15 percent of Emiratis on their workforce.
Fines for companies failing to observe the Emiratization policy are as much as AED20,000 ($5400).