Tuesday, 24 December 2019

No compensatory benefits for terminated employee


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As per the labour rules: Upon termination from your employment or job from any of the seven Emirates of UAE, the employer/sponsor company is liable to pay the salary to their employees for the notice period served by him.

Some companies issues termination letter stating that the employee doesn't need to work for the notice period and will be paid in lieu off which means that he/she will get the salary even if they didn't work during the notice period.

Most of the enquiries by the terminated employees are following.

1. Are we eligible to get any extra payment as termination benefits?

2.  Are we eligible to get air ticket for the trip back to home country?

3. Are we eligible for the gratuity. What is the calculation?

What is the Labour rules for free-zone sponsored visas?

Most of the free-zones in UAE follow the procedures of the Federal Law No 8 of 1980 on the Regulation of Labour Relations (“Labour Law”) for labour and employment issues. ,

The employee of a free zone company's relationship lies with the employer with whom he/she had signed an employment contract. The employer will be liable to make final settlement and pay all end-of-service benefits and entitlements to the staff.

If your employment contract is signed for unlimited duration, it may be noted that such contracts can be terminated by either the employer or the employee, giving a prior notice of at least 30 days. This is in accordance with Article 117 of the Labour Law which states:

1. Both the employer and the worker may terminate a contract of employment of unlimited duration for a valid reason at any time following its conclusion by giving the other party notice in writing at least 30 days before the termination.

As such, upon termination of your employment contract, your employer is only liable to pay your salary for the notice period. There are no other compensatory benefits upon termination of a contract of unlimited duration.

Answer to the second question:

The employer/company shall be liable to pay for your airfare upon termination of your employment contract. This is in accordance with Article 131 of the Labour Law which states: An employer shall, on the termination of a worker’s contract, defray the cost of returning him to the district from which he was recruited or to any other place agreed upon between the two parties.

Where after the termination of his contract, a worker enters the service of another employer, the latter shall defray the worker’s travelling expenses on the termination of his service. Subject to the provisions of the preceding sentence, if the employer fails to return the worker or to defray his travelling expenses, the competent authorities shall do so at the employer’s expense and may then recover any expenditure incurred in this connection by attachment.

Where the reason for the termination of the contract is attributable to the worker, his travel shall be at his own expense if he has the wherewithal to pay.”

Answer for third question;

The employee/staff's are entitled to receive severance pay in accordance with the number of years of your employment with the employer. This is in accordance with Article 132 of the Labour Law which states: ‘A worker who has completed a period of one or more years of continuous service shall be entitled to severance pay on the termination of his employment. The days of absence from work without pay shall not be included in calculating the period of service. The severance pay shall be calculated as follows:

1. 21 days’ remuneration for each year of the first five years of service;

2. 30 days’ remuneration for each additional year of service provided that the aggregate amount of severance pay shall not exceed 2 years’ remuneration.”

Accordingly, you shall be entitled to gratuity/severance pay and the amount shall depend on the number of years of your continuous employment with the employer.

Sunday, 22 December 2019

New website launched for UAE long-term golden visa applications


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The UAE announced the launch of the website to enable the residents to apply by online for long-term golden visas.

The website, www.business.goldenvisa.ae, allows users to register for the service through online using the email address and password. A four-digit verification code is then sent to the email address. After entering the verification code, the user is taken to a dashboard where he/she can answer questions and attach documents.

The golden card is the recent long-term residence visa programme available in Dubai. The programme was presented by Sheikh Mohammed bin Rashid Al Maktoum, Prime Minister and Ruler of Dubai, in May.

The residency is given to investors, professionals, inventors and executives who met the criteria set by the department.

The programme aims to give residency for more than 6,800 investors which will total the investment for a net worth of 100 billion Dirhams.

Long-term residency will contribute for the country’s development and more investment in the UAE.

The golden card was known as a permanent residence system. But the GDRFA verified it that the programme is a a long-term visa which needs renewal on every 10-year.

The residency visas is issued to five categories of expatriates: investors, entrepreneurs, chief executives, scientists and outstanding students.

Golden card holders is not restricted from exiting and staying outside UAE for more than six months. The visa would be valid even if the golden card carrier exit the UAE for longer than six months.

Tuesday, 17 December 2019

Free transit visas for entering UAE


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The Federal Authority For Identity and Citizenship of UAE has announced the availability of the two different transit visas for passengers who wish to stay in one of the sevem emirates. People who are travelling through the international airports of UAE can avail this facility.

The first type of transit visa issued will be valid for 48 hours and is available as free of charge, while the other visa issued will be valid for 96 hours of stay in UAE for a fees of Dirhams 50.

The only condition for the issuance of these transit visas requires that the "sponsorship is made only by UAE-based airlines,". Thes visas must be applied by the passenger while processing and approval must be obtained before entering the UAE.

The federal authority also warned that both these type of visas are non-extendable which means it cannot be renewed.


The offers passengers traveling through its airports two types of transit which enables them to enjoy the country’s major tourist attractionshttps://www.ica.gov.ae

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