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IMPACT – MEDIUM
What is the change? In the last phase of Dubai’s health insurance law, all individuals, including foreign employees and their family members, must be covered by a health plan by June 30.
What does the change mean? All employers are required to cover employees and are encouraged to cover family members of employees. Family members of employees who are not covered by their employers must purchase health insurance coverage. Visas and work permits will not be issued or renewed if an individual does not have health insurance.
Background: Dubai passed the mandatory health insurance law in 2013 and began implementing it in three stages since late 2014 with the goal of covering all 3 million Dubai residents, including expatriates and their family members. Some free zones have already implemented the law since 2015.
BAL Analysis: Employers who do not offer health insurance to employees should develop plans to do so as soon as possible. Employers and individuals found in violation of the health insurance law are subject to monetary fines ranging AED 500 to 150,000 (US $135 to $40,000).
This alert has been provided by the BAL Global Practice group and our network provider located in the United Arab Emirates. For additional information, please contact your BAL attorney.
Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? Countries in the Gulf Cooperation Council have warned their citizens against traveling to Lebanon, and are deporting some Lebanese nationals, particularly Shiite Muslims.
What does the change mean? Bahrain, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates have urged their citizens not to travel to Lebanon except in emergencies. Qatar, Saudi Arabia and the United Arab Emirates have begun deporting some Lebanese nationals.
Background: Political tensions between Saudi Arabia and Iran worsened at the beginning of the year when Saudi Arabia executed a well-known Shiite leader, and protesters in Iran responded by setting fire to the Saudi Embassy in Tehran. The countries severed diplomatic ties in January.
In February, when Lebanon did not join a resolution condemning the embassy attack, Saudi Arabia canceled $4 billion in military aid to Lebanon. GCC countries have supported their co-member, Saudi Arabia, in the dispute. The United Arab Emirates also reduced its diplomatic staff in Beirut. The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.
BAL Analysis: GCC nationals and Lebanese nationals should be aware of the political tensions and anticipate difficulties in traveling between respective countries.
This alert has been provided by the BAL Global Practice group and our network provider located in Lebanon. For additional information, please contact your BAL attorney.
IMPACT – LOW
What is the change? Visitors in the United Arab Emirates who go to Kish Island in Iran – usually to satisfy the required exit when their current UAE visa expires while they await a new visa – are being denied re-entry to the United Arab Emirates. The policy is unofficial but is being applied in practice.
What does the change mean? Visitors intending to exit the UAE while awaiting another visit visa should avoid travel to Iran. Most foreign employees will not be affected because under a recent change they no longer have to leave the UAE to convert their visit visa to an employment visa. In addition, individuals who hold a valid UAE visa or residency permit are not affected and are able to travel to Iran and return to the UAE.
Background: Kish Island off the coast of Iran has been a customary stopping point for expatriate employees and visitors to the UAE who were required to exit at the expiration of their stay while awaiting a pending application, as Kish Island does not require visas for those individuals.
The UAE is now denying entry to individuals who have traveled to Kish Island. The policy appears to be fallout from the tense relations between Saudi Arabia and Iran, as Gulf Cooperation Council countries have supported their co-member, Saudi Arabia, in the political dispute.
BAL Analysis: Visitors to the UAE should avoid travel to Iran if they are awaiting a decision on a visa. At this time, travel to Iran is not a problem for individuals with a valid UAE visa or residency permit or those who are eligible for visas on arrival. The UAE recently changed its rules to allow foreigners holding visitor visas to convert to employment permits without having to exit the country, which eliminates the need to temporarily leave the UAE for many applicants.
This alert has been provided by the BAL Global Practice group and our network provider located in United Arab Emirates. For additional information, please contact your BAL attorney.
What is the change? Immigration authorities in the United Arab Emirates have begun allowing foreign nationals to enter the country on short-stay visit visas and apply for work permits in country, as officials seek to alleviate processing delays associated with new work permit documentation requirements.
What does the change mean? Foreign nationals may enter the UAE on short-stay visit visas and apply for work permits without having to leave the country.
Background: The measures aim to reduce delays caused in part by recent changes to work permit rules. Since Jan. 1, mainland employers have been required to issue employment offer letters that conform to the Ministry of Labour’s approved standard employment contract before work permits are issued. This has caused delays, especially for employees outside the country, because documents have to be couriered to the employee for fingerprinting and then back to the MOL before work permits can be issued. Authorities have now updated their systems to allow foreign nationals to enter the country on a short-term visa, complete the work permit application process and receive work permits without leaving the country. Officials hope the change will reduce wait times and help eliminate backlogs.
BAL Analysis: Employers facing possible delays in obtaining work authorization for foreign workers should discuss the options available to them with their BAL attorney, including the possibility of entering the UAE on a short-term visit visa and applying for work permits in country.
What is the change? Work permit applications for mainland companies in Dubai and Abu Dhabi are experiencing delays because of new rules requiring employers to complete additional steps.
What does the change mean? Mainland employers are now required to issue employment offer letters that conform to the Ministry of Labour’s approved standard employment contract before work permits are issued. The requirement has led to increased processing times, especially for overseas applicants.
Background: The employment offer letters became mandatory under recent changes to labor laws that took effect Jan. 1.
At the work permit approval stage, employers must submit a signed and stamped employment offer letter to the Ministry of Labour. The ministry then generates its own offer letter based on the letter provided by the employer, who must then sign and stamp the new offer letter and send it to the employee for his or her fingerprints and signature. The requirements add significant time to the work permit process, especially for employees outside the country, because documents must be couriered to the employee for fingerprinting and then back to the MOL before work permits can be issued.
BAL Analysis: Authorities in Dubai and Abu Dhabi are considering measures to address the delays, such as allowing applicants to enter the country on a short-term visa and complete the work permit process without having to leave the country; however, these changes have not yet been implemented or updated within the immigration system as approved procedures. BAL is following these developments and will report any additional changes in procedures.
What is the change? Several new labor laws affecting the employment and work authorization of foreign nationals in the United Arab Emirates will go into effect Jan. 1, 2016.
What does the change mean? The three new decrees cover employment offer letters, conditions allowing for the termination of foreign employees, and the criteria that are required before a new employer may obtain a work permit for an employee whose employment ended with a previous employer.
Ministerial Decrees 764, 765 and 766 were approved in September and are due to take effect Jan. 1. They are summarized as follows:
Offer letter. Under Decree 764, employers must issue to foreign employees an employment offer letter that conforms to the Ministry of Labour’s approved standard employment contract. The terms of the employment contract cannot be changed to more restrictive terms than those in the offer letter. The letter must be signed by the foreign national and lodged with the ministry before an entry visa or work permit is issued.
Termination of employment. Decree 765 redefines the conditions for termination of employment. Fixed-term contracts have a maximum duration of two years and can be terminated upon expiration, upon mutual agreement, or unilaterally if the employer or employee gives written notice at least one month (but not more than three months) in advance. Unlimited contracts may be terminated for cause, by mutual agreement, or upon notice by one of the parties at least one month (but no more than three months) in advance.
New work permits. Decree 766 removes the current requirement that employees stay at least one year with an employer and allows a new employer to apply for a work permit for the employee under the following conditions:
BAL Analysis: Employers should review their policies in accordance with the new labor rules and anticipate that foreign employees will have greater flexibility to change jobs.
What is the change? Foreigners who hold a resident permit in a Gulf Cooperation Council country are now required to apply online for a visa before entering the United Arab Emirates.
What does the change mean? Foreign residents of GCC countries who fail to apply for an e-visa before travel to the UAE risk being turned away at the border. Visas on arrival are no longer available for these travelers.
Background: In May, GCC countries, including the UAE, began requiring visas for foreign residents traveling within the GCC. In August, the UAE provided an online visa option for these travelers instead of consular processing; the transition to e-visas is complete and they are now mandatory without exception.
The e-visa application must be lodged online, and the e-visa is issued by email. It must be used within 60 days and is valid for a single entry of 30 days (extendable for an additional 30 days). If the applicant’s profession has changed after the issuance of the e-visa, he or she will not be allowed to enter the UAE. In addition, the applicant’s GCC resident permit must be valid at least three months beyond the intended arrival date and their passport must be valid for at least six months beyond arrival date.
While family members of an expatriate resident of a GCC country may obtain a 60-day visa, they will only be issued the visa if they are traveling with the GCC resident.
BAL Analysis: Expatriate employees holding a resident permit in a GCC country and traveling to the UAE can no longer rely on visas on arrival and must apply online for their entry visas.
What is the change? Government offices in the United Arab Emirates will close for national holidays Dec. 1-5, reopening Sunday, Dec. 6.
What does the change mean? Government offices will be closed for the full five days and private offices will be closed Dec. 2-3.
Background: The UAE observes a Sunday-to-Thursday work week. Martyrs’ Day, memorializing the country’s veterans, will be observed Dec. 1, followed by the Dec. 2-3 observation of National Day, which commemorates independence from Britain and formation of the federation Dec. 2, 1971.
BAL Analysis: Employers should plan ahead for the holiday break and submit time-sensitive filings in the next few weeks and preferably well before the end of the month.
What is the change? The United Arab Emirates is issuing longer-duration visas-on-arrival to nationals of most European Union member countries.
What does the change mean? EU nationals, with the exception of Irish and U.K. citizens, may apply for 90-day visas-on-arrival initially, instead of having to renew 30-day visas.
Background: The new visas follow an agreement on visa-free travel signed in May by the UAE and the EU. Ireland and the U.K. were not part of the agreement.
BAL Analysis: Extended visas-on-arrival will benefit most EU nationals, but are not available to all visa-exempt nationals. U.S. nationals, for example, are still limited to 30-day visas-on-arrival that may be extended for another 30 days.
What is the change? The Dubai International Financial Centre has introduced an online application system for residency visas, renewals, work permits and visit visa applications.
What does the change mean? DIFC is the last free zone to introduce an online application system. Other free zones and the Ministry of Labor already require electronic filing of residency visas, renewals, work permits or visit visas.
Background: Dubai moved to an online application system last year, and the independently governed free zones eventually introduced online application systems as well. DIFC recently became the last free zone to launch an online portal, making online applications for residency visas, renewals, work permits and visit visas the only option throughout Dubai.
Individuals applying for visas for dependents still have the option of submitting applications manually. And while the application process has moved online, visa and permit issuance remains manual. Dubai’s free zones temporarily experimented with electronic visa issuance last year, but abandoned the effort after running into problems coordinating with the Dubai airport.
BAL Analysis: Electronic application processes generally make it easier to submit applications and supporting documentation.