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IMPACT — MEDIUM
The Emirati government has announced that it will expand its Emiratization requirements to small businesses in 2024.
Key Points:
Background: Previously, Emiratization targets only required employers with 50 employees or more to increase the number of its Emirati employees in skilled positions by 1% every six months, ultimately achieving a 2% Emiratization by the end of each year. Employers are expected to achieve a 10% Emiratization rate by the end of 2026.
BAL Analysis: The Emirati government announced the Emiratization program expansion to increase the number of Emirati nationals employed in the private sector. Employers should plan ahead to ensure they meet the new employment requirements to avoid applicable fines.
This alert has been provided by the BAL Global Practice Group. For additional information, please contact berryapplemanleiden@bal.com.
Copyright © 2023 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.
The Emirati government has extended the deadline for employers with 50 or more employees to meet the semiannual Emiratization requirement.
Background: Emiratization targets require employers with 50 or more employees to increase the number of Emirati employees in skilled positions by 1% every six months, ultimately achieving a 2% Emiratization by the end of each year. Employers are expected to achieve a 10% Emiratization rate by the end of 2026.
BAL Analysis: Emirati authorities delayed the deadline to meet the Emiratization requirement in consideration of the upcoming Eid Al Adha holiday. Employers should plan ahead to ensure they meet the new employment requirements to avoid applicable fines.
The Emirati government has ended its grace period policy for foreign nationals who overstay their visitor visa in Dubai.
Additional Information: Dubai is the last emirate to remove the 10-day overstay grace period. All visitor visas holders must leave the country or extend their visa to avoid overstay fines. This regulation does not affect nationalities eligible for 30- or 90-day visas on arrival.
BAL Analysis: The Emirati government ended the 10-day overstay grace period for visitor visas in Dubai to align its policies with the rest of the country. Visitor visa holders who need to stay in the country beyond their visa’s validity should apply for an extension to avoid fines and complications.
The Emirati government has announced that it will fine employers up to 500,000 AED (about US$136,000) for not meeting Emiratization requirements.
Background: Emiratization targets require employers with 50 employees or more to increase the number of its Emirati employees in skilled positions by 1% every six months, ultimately achieving a 2% Emiratization by the end of each year. Employers are expected to achieve a 10% Emiratization rate by the end of 2026.
BAL Analysis: Employers should plan ahead to ensure they meet the new employment requirements to avoid applicable fines.
Emirati authorities recently implemented the Wage Protection System for companies registered in the Dubai Multi Commodities Center Free Zone.
Additional Information: Emirati authorities will not fine companies that do not comply with this requirement for 2023; however, beginning in 2024, companies that do not pay their employees through the WPS will be fined.
BAL Analysis: Emirati authorities will require companies registered with the DMCC to pay employees through the WPS to ensure foreign workers’ wages are protected.
The Emirati government recently announced that it would allow foreign nationals to apply for an entry period extension if unable to enter the country.
BAL Analysis: Emirati authorities are now offering the 60-day entry validity period extension to increase flexibility and simplify immigration procedures for foreign nationals who are unable to travel to the country within the initial 60-day period.
The Emirati government launched a reentry permit for residents who stay outside of the country for more than six months.
Additional Information: More information regarding the reentry permit for residents who have been outside the UAE for more than six months is available here.
BAL Analysis: Emirati authorities are offering the reentry permit to increase flexibility and simplify immigration procedures for residents whose permits were canceled.
The Emirati government recently extended the deadline for converting unlimited-term employment contracts.
Additional Information: More information regarding the process of converting unlimited-term employment contracts to limited-term contracts is available here.
BAL Analysis: Emirati authorities extended the conversion deadline to enhance flexibility and competitiveness for private sector companies and to safeguard employee rights.
The Emirati government recently announced updated visa requirements for residents of Gulf Cooperation Council countries.
Additional Information: Passports of residents of GCC countries must have at least three months’ validity from their date of entry into the UAE. Dependents and accompanying travelers must travel with the GCC resident to enter the UAE.
BAL Analysis: Residents of GCC countries should ensure they meet the new entry visa requirements when planning travel to the UAE, including having a valid passport and a resident permit that was issued in a GCC country.
The Emirati government recently announced that it will no longer issue a UAE Residence Visa stamp in Residence Visas issued in Dubai.
BAL Analysis: Emirati authorities removed the Residence Visa stamp requirement for Dubai to align Dubai with other Emirates that have stopped providing stamps in passports. Residence Visa holders are reminded that they must now hold an Emirates Identity Card to enter the UAE.
Copyright © 2022 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.