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IMPACT – MEDIUM
What is the change? A new online portal for companies operating in the Technology, Electronic Commerce and Media Free Zone is experiencing an extremely high volume of applications.
What does the change mean? The transition to the new portal – which is now mandatory for all visas, renewals, transfers and other services – is currently causing significant delays to all processing.
Background: The portal was launched in October and replaces counter service at the Government Services office. All new visa applications, renewals, transfers, document requests and other services must now be filed online. Companies no longer need to submit application documents in-person; instead, a TECOM courier service collects original documents from applicants’ offices. This is also true for employment visa cancellation, which will no longer require in-person verification by a Government Services officer.
Employers can also apply for new one-year residency permits and one-year renewals through the portal.
BAL Analysis: Once the current delays subside, the portal will ultimately benefit TECOM companies by moving all applications online and offering several new services, including the one-year residency permits and renewals, and an automatic reminder when visas, passports or trade licenses are about to expire to help companies renew on time.
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? Government offices will close for five days in early December in observance of the country’s National Day.
What does the change mean? Processing of visas, work permits and other immigration-related services will be delayed.
Background: The UAE’s National Day celebrates the unification of the seven emirates and the founding of the country in 1971. The government announced this week that most government offices will be closed Dec. 2-6, while private sector workers would be given a one-day holiday Dec. 2.
BAL Analysis: Companies should plan to build an additional week into their timeframes and, if possible, submit filings before the holiday break.
What is the change? All free zones in Dubai have abandoned electronic visa issuance; only physical entry visas are issued.
What does the change mean? Most free zones will courier the entry visas to applicants’ offices in Dubai, except Dubai Airport Free Zone, Dubai Silicon Oasis and Dubai World Central, which do not offer courier service and require someone to pick up the entry visa.
Background: Dubai implemented electronic entry visa issuance, but ran into problems in coordinating the system with the Dubai Airport. Therefore, all of the Free Zones have reverted back to the former process of physically issuing visas.
BAL Analysis: Foreign employees in Dubai should arrange to have their entry visa couriered to their office or in case courier service is not provided, arrange to physically collect the visa from the Free Zone Immigration Offices. If the employee is out of the country, the entry visa must be delivered to the airport of entry prior to arrival.
IMPACT – HIGH
What is the change? The Immigration and Labor Ministries have begun making unscheduled on-site visits to companies in Dubai.
What does the change mean? Companies located in Dubai mainland and the free zones should prepare for unannounced visits by authorities and make documents available for inspection.
Background: Companies that are visited by immigration or labor officers will be asked that their employees show their Emirates ID and Free Zone ID cards or labor cards, depending on whether they are operating in a free zone or the mainland.
Earlier this year, authorities signaled that they would conduct stronger monitoring, including on-site inspections. Dubai’s TECOM free zone began collecting data of all foreign employees in May, and UAE authorities, particularly in Dubai, increased audits in June.
BAL Analysis: The on-site visits are part of a move toward greater scrutiny and enforcement of labor and immigration regulations.
IMPACT –MEDIUM
What is the change? Government offices will close for five days in early October in observance of Eid al-Adha.
What does the change mean? Processing of work permits and other services will be delayed.
Background: Eid al-Adha, or “Feast of the Sacrifice,” is a Muslim holiday celebrating the end of the annual Hajj pilgrimage. The exact dates will not be confirmed until the lunar moon is observed on Sept. 24 or 25. The holiday, which falls on the 10th day of the lunar month, therefore is expected to start on Oct. 4 or 5.
The UAE observes a five-day national holiday, during which time government offices are closed. Private offices are also closed the first two days.
BAL Analysis: The dates are tentative, but companies should plan now to build an additional week into their timeframes and, where possible, submit filings before the holiday break.
What is the change? The Ministry of Labour in Dubai is moving to paperless labor cards and employment contracts for purposes of work permit and residency visa applications.
What does the change mean? The change will significantly streamline processing and eliminate paper.
Background: The Ministry of Labour announced paperless processing last year as part of its move toward “Smart Government,” an initiative to provide government services online throughout the UAE.
Starting July 13, the Ministry will replace plastic labor cards and paper employment contracts with electronically issued e-cards and e-contracts.
Foreign workers will be able to apply for initial work permit approval through the Ministry’s online portal, eNetwasal, and after arrival will apply online again for an e-card and e-contract that will be issued electronically and which workers can print out. The Ministry forwards electronic copies to the Emirates ID Authority and General Directorate of Residency and Foreign Affairs. The e-card and e-contract are required to obtain a residency visa or Emirates ID smart card.
BAL Analysis: The paperless processing improves processing times and allows various government offices to seamlessly integrate documentation for each step of the process.
What is the change? As part of a tougher approach on visa and immigration violations, the UAE has become more vigilant in looking for employment “workaround” arrangements.
What does the change mean? Companies who engage in the practice risk greater scrutiny by authorities and increased penalties.
Background: Companies that have not yet become legally established in the UAE may wish to secure future employees by arranging to have them hired temporarily by another company so that they can secure residency visas and work permits. However, UAE regulations require that the visas granted to those workers must be specific to the hiring company and prohibit them from working for another company. Companies that hire workers illegally face fines of AED 50,000 per worker for the first offense and AED 100,000 for a second offense.
BAL Analysis: The UAE, and Dubai in particular, is becoming more streamlined and also stricter in enforcing immigration regulations. Employers should be aware that compliance audits are increasing. Companies that are found to be employing workers without proper authorizations or visas will face fines and draw closer scrutiny from the authorities moving forward.
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? Dubai is moving to an online application system for Employment Entry and Residence Permits.
What does the change mean? Companies with more than five employees will be required to register with the government portal and file applications online for new and renewal Employment Entry and Residence Permits.
Background: Companies must now register to create an account within Dubai’s eDNRD online portal. Registration requires completion of an application form in English and Arabic, an authorization letter, a copy of the corporate agent’s passport information page and UAE ID card, and a copy of the company’s Trade License and Immigration Establishment Card. Dubai will also transition to online payment of processing fees, although an implementation date has not been set.
BAL Analysis: Companies should register to use the electronic application system as soon as possible to reduce delays. They should also plan to set up an e-wallet account to prepare for conversion to online payment in the future.
IMPACT – Medium
What are the changes? Dubai has passed a new law mandating health coverage for all, including foreign workers.
What does the change mean? Employers must pay for their workers’ health insurance, and coverage is a prerequisite to obtaining a residence visa.
Background: The Health Insurance Law was approved by the ruler of Dubai, His Highness Sheikh Mohammad bin Rashid Al Maktoum, who is also vice president and prime minister of the United Arab Emirates.
The law aims to cover all citizens, foreign residents and visitors, and will be implemented in phases beginning next year.
Under the law, employers must cover foreign employees under at least an “essential benefits package” without deducting those costs from employees’ salaries. Employers must maintain coverage throughout a worker’s employment, and if the insurance lapses, the employer must bear the full cost of a worker’s health services, including emergency care.
The essential benefits package is expected to cost about 600 dirham (163 U.S. dollars) per individual per year. The Dubai Health Authority plans to issue special permits to health insurers seeking to sell health insurance plans.
Employees who sponsor family members will be responsible for paying for their relatives’ health insurance.
BAL Analysis: The law will impose a new cost and visa prerequisite on employers with workers in Dubai. Employees on assignment in Dubai should also be aware of the mandatory requirement to cover domestic workers and dependent family members.
This alert has been provided by the BAL Global Practice group and our network provider located in Dubai. For additional information, please contact GlobalVisaGroup@bal.com.
IMPACT – Low
What is the change? Foreign workers in the United Arab Emirates who want to sponsor parents for residency must earn a minimum monthly salary of 20,000 dirhams.
What does the change mean? The sudden doubling of the minimum salary requirement will likely be prohibitive for some foreign workers who seek to sponsor their parents.
Background: Effective immediately, the Department of Immigration has raised the minimum salary requirement from 10,000 dirhams to 20,000 dirhams for expatriates applying for their parents to live in the United Arab Emirates. Alternatively, a worker can show that he or she earns 19,000 per month and lives in a two-bedroom apartment or larger.
The old rules required proof of a 10,000 dirham per month salary, or 9,000 dirhams per month plus a two-bedroom living space.
Residence visas for parents of foreign nationals are granted on a humanitarian basis and also on proof that the foreign resident is the sole provider for his or her parents. The sponsoring employee must present a salary letter or work contract showing that his or her salary meets the new minimum. The same rules apply for a foreign national seeking to sponsor his or her parents-in-law.
BAL analysis: Employers and foreign workers with dependent parents should be aware of the stricter salary requirements when planning assignments.
This alert has been provided by the BAL Global Practice group and our network partner in the United Arab Emirates. For additional information, please contact GlobalVisaGroup@bal.com.