Visa Costs recovery by Employers illegal!!

This is one of the most asked queries to me: “Can my employer recover visa costs and recruitment costs from employees?”

In short the answer is, NO.

Ministerial order 52 of 1989, Article 6, makes it quite clear that anyone seeking a job cannot be charged a fee nor can an employer ask an employee to cover this expense, even if they do leave before the contract ends. No employee should be asked to pay for their residency visa or labour card. If the employer insists on recovering the costs from the employee, you should inform the company that you are aware of the Law. And if despite this the employer persists, you should file a complaint against the company at the Ministry of Labour.

There is another situation where the employee would have signed on the contract that if you resign before the contract ends, you will pay the costs of visa and other expenses. In such case, I believe you are legally bound to pay since you have signed and agreed that you would pay such costs. But this is not legally enforceable as employers can not ask for such cost reimbursement in the first place.

As mentioned in Khaleej Times:

It may also be noted that there are no laws which prescribe that an employee should reimburse the employer towards the visa expenses. Rather it shall be deemed to be in contravention of Article 60 of the Federal Law No 8 of 1980 Re: Regulation of Labour Relations which states:

“No amount of money may be deducted from a worker’s wage in respect of private claims, except in the following cases:

1) Repayment of loans or money advances paid to the worker in excess of his entitlements, provided that the amount deducted in this case shall not exceed 10 per cent of his wage.

2) Contributions that the workers are required by law to make from their wages, towards social security and insurance schemes.

3) The worker’s contributions to a provident fund or repayment of loans due thereto.

4) Contributions towards any welfare scheme or in respect of any other privileges or services provided by the employer and approved by the labour department.

5) Fines imposed upon the worker for any offence he commits.

6) Any debt exacted in execution of a court ruling, provided, however, that the deduction made in execution thereof should not exceed one-quarter of the wage due to the worker. Where there are several debts or creditors, the maximum deduction shall be half the worker’s wage, which shall be divided pro rata among the creditors, after payment of any legal alimony to the extent of one quarter of the worker’s wage.”

UAE Visa Type and Fees:

Multiple Entry Visa
Validity: 6 Months
Each Stay in UAE should be a maximum of 14 days only
Fees: AED 2000

Long Term Visit Permission

Validity: 90 Days
Renewable: No
Fees: AED 1000

Short Term Visit Permission
Validity: 30 Days
Renewable: No
Fees: AED 500

Study Entry Permission
Validity: 90 Days
Renewable: Yes (2 Times)
Fees: AED 1000

Study Entry Permission Renewal
Fees: AED 1000

Treatment Entry Permission
Validity: 90
Renewable: Yes (Once)
Fees: AED 1000

Treatment Entry Permission Renewal
Fees: AED 500

Entry Permit to Attend Exhibitions and Conferences
Validity: 30 Days
Renewable: No
Fees: AED 100

Tourist Entry Permit
Validity: 30 Days
Renewable: Yes (once)
Fees: AED 100

Tourist Entry Permit Renewal
Fees: AED 500

Visit Permit to GCC Residents
Validity: 60 Days
Renewable: No
Fees: AED 100

Visit Permit to GCC Residents Renewal
Fees: AED 500

Entry Permit to Attend Companions of GCC Citizens
Fees: AED 100

Entry Permit to Attend Companions of GCC Citizens Renewal
Fees: AED 200

Mission Entry Visa
Fees: AED 200
Transit Visa
Fees: AED 100

Documents required for Applying Visa in UAE:
Visa Application Form
Passport copies of the Applicant and his Companion (to whom visa is applying)
A letter to specify sponsor, from Ministry of Foreign Affairs of respective Country or its diplomatic mission
Which type of Visa is required and the Duration (it should be specified in the Form)
Validity of the Passport should be a minimum of 6 Month
A Passport Size Photo
For more details about UAE Visa Application Status and Validity Online please visit http://ednrd.ae or http://www.mofa.gov.ae

Driving licence will be costing more again

UAE Driving Licence: You may have to take more than 40 classes in Dubai

Soon, new drivers in Dubai may have to take more than 40 classes before they attempt the test.

The Roads and Transport Authority (RTA) felt the number of classes is insufficient to groom new drivers, as the pass percentage for last year was low. Out of the 366,025 people who appeared for the tests in Dubai last year, only 121,151 passed. The fail percentage was 66 per cent.

Decision-makers at the RTA say they are reviewing the minimum number of driving lessons now.

To an e-mail interview with Emirates 24|7, Arif Al Malik, director of drivers training and qualification department said, “Yes. Currently RTA is reviewing the existing 40 classes for the new drivers.”

He added, “We are reviewing the minimum lessons to reflect a reasonable pace of training so that the students will be in the right frame of mind, instead of insisting to go through tests prematurely. This usually results in high failure rates.”

He, however, was unable to reveal what would be the ideal number of classes. “The study is now in progress and when completed, we will be in a position to decide,” he added.

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Parking in Dubai: complete guide

In the new parking tariff system, paid parking zones are divided into three main categories
r the old system, all parking zones were divided into A, B, E and F. E zone refers to parking at the Deira Fish Market and F zone refers to parking in the Tecom area.

Under the new parking system, all zones fall into three categories - commercial, non-commercial and special areas.

1. Commercial
Zone A
This includes all roadside parking in commercial areas and are to remain the same. Drivers with seasonal parking cards for zone A can continue to use them, until expiry, for zones A, B, C and D.

Tariff Dh4 per hour, Dh8 for two hours, Dh12 for three hours and Dh16 for four hours; you can also park for half an hour for Dh2.

Timings 8am to 10pm with no break between 1pm to 4pm like before

Zone B
This zone includes all parking lots in commercial zones and drivers holding seasonal cards for this zone can park in zones B and D.

Tariff Dh3 per hour, Dh6 for two hours, Dh8 for three hours, Dh12 for four hours, Dh15 for five hours and Dh20 for 24 hours

Timings 8am to 10pm with no break between 1pm to 4pm like before

2. Non-commercial
Zone C
This new parking code covers roadside parking in non-commercial areas and signboards have already been set up for this zone.

Tariff Dh2 per hour, Dh5 for two hours, Dh8 for three hours, Dh11 for four hours

Timings 8am to 10pm with no break between 1pm to 4pm like before

Zone D
This parking zone covers all parking lots in non-commercial areas. Signboards have been put up now in these areas. See our full story here.

Tariff Dh2 per hour, Dh5 for two hours, Dh8 for three hours, Dh10 for 24 hours

Timings 8am to 10pm with no break between 1pm to 4pm like before

3. Special Areas
Parking meters at Deira fish market

Zone E
This is the dedicated parking code for the Deira Fish Market.

Tariff Dh2 per hour, Dh5 for two hours, Dh8 for three hours, Dh11 for four hours

Timings 8am to 10pm with no break between 1pm to 4pm like before

Zone F
This is the dedicated parking code for parking in Tecom areas.

Tariff Dh2 per hour, Dh5 for two hours, Dh8 for three hours, Dh11 for four hours

Timings 8am to 10pm with no break between 1pm to 4pm like before

Seasonal parking cards that are still valid can be used as mentioned above. However, the rates for these permits as per the new tariff system are expected to go live late May or early June.

Roadside parking The new seasonal card rates for roadside parking are Dh1,400 for three months, Dh2,500 for six months and Dh4,500 for one year.

Parking lots The new rates for seasonal parking cards for parking lots are Dh700 for three months, Dh1,300 for six months and Dh2,500 for one year.

Which areas fall in each category?
In the new parking tariff system, paid parking zones are categorised into two and payments are according to these specific categories.

Category One
In Deira, it includes Abu Hail, Hor Al Anz, Al Baraha, Al Muteena, Al Khabaisi, Al Muraqqabat, Riqqa Al Buteen, Port Saeed, Al Riqqa, Naif, Ayal Nasir, Deira Fish Market, Al Ras and Al Buteen.

On the Bur Dubai side, areas like Al Shindagha, Al Souq Al Kabeer, Al Hamriya, Umm Hurair 1,2, Oud Metha, Al Karama, Al Mankhool, Al Raffa, Al Hudaiba, Al Kifaf, 2nd December street, and the sector between Dubai World Trade Centre and Interchange One on Shaikh Zayed Road fall under category one.

Also falling in category one are Jumeirah Beach Residence and the JBR Walk, as well as 308th street and Al Saada street, parallel to Shaikh Zayed Road between Dubai World Trade Centre and Interchange One.

Category Two
This category includes the rest of Dubai and rates are expected to remain the same as before.

Tariff has increased to Dh5 per hour from Dh3 per hour for RTA multi-storey parking lots.

There are six modes of payment for parking in Dubai

1. Coins You can buy your ticket using coins at the nearest paid parking machine.

2. Prepaid card The pre-paid parking cards are available at supermarkets and grocery stores in denominations of Dh30 and Dh100. The ticket amount is deducted from the balance on the card when inserted into its respective slot on the machine.

3. Seasonal parking cards Seasonal parking cards are available in different values and periods of validity. Cards fall into A , B and T categories and are available in three-month, six-month and annual validity.

4. mParking Send an SMS to 7275 in the following format: number plate-space-area code-number of hours. You can opt for hourly alerts for renewing your parking tickets at an extra charge of 30 fils per SMS.

5. Nol Card Use you Nol card to buy your parking ticket and the amount will be deducted from the card balance.

6. Smart Parking A free app for parking, Smart Parking charges no additional cost for transactions done on the app.

Can't remember your zone number? Use mparking through the RTA mobile app and you don't need to.

Read about 5 free RTA smart apps you should use

Dh150 Not paying the parking fee

Dh100 Overstaying expired time on ticket

Dh100 Exceeding the maximum allowed parking time limit

Dh200 Illegal parking

Dh500 Using parking space allotted for people with special needs without permit

Dh500 Displaying “vehicle for sale” in banned areas

Dh200 Double parking

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Evidence needed to trash absconding report.

Any worker whose work relation ended in escape, and against whom a final escape circular was issued, shall be permanently deprived from working.

In the UAE, cases pertaining to absconding or escaped employees are regulated by the Ministerial Resolution No (721) for 2006 'On Escape Report Procedures' (the "Ministerial Order"). Pursuant to this, an absconding circular results in a labour ban. This is in accordance with the Eleventh Article of the Ministerial Order which states:
"Any worker whose work relation ended in escape, and against whom a final escape circular was issued, shall be permanently deprived from working in the state in accordance with the provisions of this resolution."
A labour ban resulting out of an 'escape circular' usually restricts an individual from taking up an employment anywhere in the UAE for a certain period or indefinitely.

However, it may be noted that if an immigration ban is imposed on your entry into the UAE, you may first ascertain the duration of the ban, reason for the ban and thereafter make an attempt to get the ban lifted on the basis if your previous employer was fully aware of your whereabouts and if you can prove to the authorities in the UAE that you had communications with your previous employer during your stay outside the UAE.

You may take the assistance of a legal practitioner in the United Arab Emirates who may provide you further assistance.

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UAE Gratuity Calculator: Who gets it, how much, and can it be withheld?

UAE Labour Law specifies who is entitled, how it is calculated, what is deductible and cases when this payment is not due.
End-of-service benefits, also known as termination indemnities or end-of-service gratuities, are payable to all employees in the UAE at the end of their service – whether they quit their job on their own or their services are terminated.
The UAE Labour Law clearly specifies who is entitled to this end-of-term benefit, how it is calculated, what is deductible and cases when this payment is not due to the employees.

Are you entitled to gratuity in the UAE?

Everyone who’s worked for at least one continuous year with a UAE company is eligible for receiving gratuity.
According to Article 132 of the law (amended by Federal Law no. 12 dated 29/10/1986), an employee who has spent one year or more in continuous service shall be entitled to this payment upon the termination of her/his service.
However, the number of years in service shall not include the days of absence from work without pay.
So, when your boss or HR in your office calculates the number of years you’ve worked, your absence without pay shall not be included in the calculation of the period of service and, hence, gratuity payment.
Article 133 of the UAE Labour Law further states that a worker shall be entitled to a gratuity for the served fraction of a year, provided that s/he completes one year of continuous service.

How exactly is UAE gratuity payment calculated?

The gratuity payment as per law is calculated differently for the first five years of services as opposed to the sixth worked year and henceforth.
The wage of 21 days for each of the first five years of service is taken into account, and it is 30 days for every additional year. However, the total pay-out must not exceed the wage of two years.
The end-of-service gratuity is calculated on the basis of the last wage due to monthly, weekly and daily-paid workers.

Is it the same calculation for all kinds of contracts?

No. If any employee on an employment contract with undetermined term (unlimited contract) resigns in the first five years of employment, the end-of-service gratuity entitlement is reduced to 1/3rd if the employee has between 1 and 3 years of service, and to 2/3rd if the employee has between 3 and 5 years of service.
The employee may resign without suffering any reduction in gratuity if he has 5 years of service or more.
If an employee is engaged on a fixed term contract (limited contract), then he must complete the duration of the term in order to be entitled to gratuity.
If, however, s/he has 5 years or more of service, then s/he can resign without completing the term of his fixed term contract and will still be entitled to end-of-service gratuity as per the Labour Law.

Illustrated examples for an employee on unlimited contract

For the purpose of calculations, let’s assume the worker earns a Basic pay of Dh10,000 per month.
The daily pay would, therefore, be = (10,000*12)/365 = 328.77
And 21 days’ pay will be 328.77*21 = 6,904.17
Now, if the service is terminated before the completion of 1 year, then the employee isn’t eligible for any gratuity payment.

If the service is terminated after the completion of 1 year but before the completion of 3 years…
• The amount of 6,904.17 will be reduced to 1/3rd = 6,904.17/3 = 2,301.39
• This amount will then be multiplied by the number of years in service. For the purpose of calculations, let’s assume the service is terminated after 2 full years in service. In that case, the total gratuity payable to the employee will be 2,301.39*2 = 4,602.78
If the service is terminated after the completion of 3 years but before the completion of 5 years…
• The amount of 6,904.17 will be reduced to 2/3rd = 6,904.17*(2/3) = 4,602.78
• This amount will then be multiplied by the number of years in service. For the purpose of calculations, let’s assume the service is terminated after 4 full years in service. In that case, the total gratuity payable to the employee will be 4,602.78*4 = 18,411.12
If the service is terminated any time after the completion of 5 years…
• The full amount of 6,904.17 will be payable.
• This amount will then be multiplied by the number of years in service. For the purpose of calculations, let’s assume the service is terminated after 5 full years in service. In that case, the total gratuity payable to the employee will be 6,904.17*5 = 34,520.85

What’s excluded from the calculations?

While calculating this final payment from your company, remember it does not include everything that forms a part of your pay package.
The wage used as a basis for calculating the end of service gratuity shall not include payments made to the worker in housing, transport and travel allowance, overtime pay, representation allowance, cashier’s allowances, children education allowance, allowances for recreational and social services, and any other bonuses or allowances.

What else is deductible?

Even after excluding all the allowances that do not form a part of gratuity payment, there are certain deductions that an employer can make.
Article 135 of the law permits an employer may deduct from the end of service gratuity any amounts due to him by the worker.
For example, if you have taken any advance salary payment from the company, which has not been paid, will be deducted from the final payout to you.

In case of death of worker

In the event of the worker's death, his end of service gratuity shall be paid to the beneficiaries specified.

When can an employer withhold gratuity payment?

Article 120 of the UAE Labour Law specifies conditions under which gratuity will not be paid. These include:
• Termination during probation or on its expiry.
• If the worker has adopted a false identity or nationality or submitted forged certificates or documents.
• If a worker makes a mistake causing substantial material loss to the employer provided the employer notifies the relevant labour department within 48 hours of the accident.
• If the worker disobeys instructions regarding industrial safety or the safety of the workplace provided the instructions have been issued in writing and are posted conspicuously in the workplace in a language accessible to the employee or explained to him orally.
• If the worker does not perform his basic duties under the contract and persists in violating these despite being investigated and receiving a written warning notifying him of termination in the event of repeat offences.
• If the worker reveals his employer's trade or business secrets or confidential information.
• If the worker is finally sentenced by a competent court for an offence involving honour, honesty or public morals.
• If the worker is drunk or under the influence of an illegal drug during work.
• If while working the worker assaults the employer or his manager or a colleague.
• If the worker is absent from work without a valid reason for more than 20 non-consecutive days or more than 7 consecutive days.

Those working in another company without getting set approvals from the employer can also jeopardize their gratuity.

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Employee entitled to get salary for unused leaves

The leave salaries so accrued shall be payable even after termination of employment contract and shall be part of the end-of-service entitlements.

All employees are entitled to receiving salaries for the number of days of leave which was not availed by them. The leave salaries so accrued shall be payable even after termination of employment contract and shall be part of the end-of-service entitlements. This is in accordance with the provisions of Article 79 of the Labour Law which states: "A worker who is dismissed or who leaves his job after the period of notice prescribed by law shall be paid for any accrued annual leave days. Such payment shall be calculated on the basis of the worker's wage as on the date when the leave became due."

The entitlement for an air ticket shall depend on the policy of your employer, as there is no clear provision on the same. If your employer had specifically agreed on providing an air ticket for your annual leave, then you may claim for it. However, it may be noted that at the end of the employment, the cost for repatriation of the employee is required to be borne by the employer. This is in accordance with the provisions of Article 131 of the Labour Law which states as follows: "Upon expiry of contract, the employer shall bear the cost of the worker's repatriation to his point of hire or to any other point that was mutually agreed upon. Where a worker joins another employer upon expiry of his contract, the latter shall bear the cost of the worker's repatriation at the end of his service.

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