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Emirati representative mandatory for large companies

Emiratization

In a bid to further tighten the Emiratization policy, Ministry of Labor has clarified hat it will not deal with large companies that don’t have UAE nationals as their representatives.

Humaid bin Deemas, executive secretary of the ministry said that The ministry would also ensure that the Emirati representative is genuine, and not employed to meet the requirements.

As per the rule, any company with more than 100 workers must have an Emirati representative. [PRO]

Any attempt to present an Emirati, who is not on the company’s rolls, would attract 100 black points and penalty of Dh20,000.

Similar action will also apply to companies that indulge in human trafficking or employing illegals.

Companies that do not follow the Wage Protection System to transfer workers’ salaries, as instructed by the ministry, would also be dealt with seriously.

Insisting that companies that do not issue labour cards for workers will be fined, the ministry has recently slapped a fine of Dh1,000 on a violator.

The official said there would be no let in penalising companies that fail to follow the requirement since the grace period allowed ended on December 31, 2010.

Fines of Dh1,000 for each month of non-renewal is now being applied for each month that passes.

From: Emirates 24|7

UAE Residence Visas to be reduced to 2 years from January 2011

uae residence visa

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).