The UAE's parliamentary body, the Federal National Council (FNC), has given the green light to extend work permits from two years to three, reducing financial burdens. Learn more about the approved recommendations and flexible policies that protect employers and workers.
The Federal National Council (FNC), the UAE's legislative assembly, has granted approval for the extension of work permits from two years to three. This decision stems from a recommendation made by an FNC committee to alleviate the financial costs associated with obtaining work permits.
At present, the Ministry of Human Resources and Emiratisation is responsible for issuing two-year work permits in the UAE. It is essential for individuals to possess a valid permit to work legally within the country.
A report submitted by the FNC Committee on Financial, Economic, and Industrial Affairs suggested extending the work permit duration to three years. Additionally, it proposed several other recommendations, such as waiving work permit fees for job changes. The FNC also approved a recommendation that workers spend a minimum of one year with an employer following the probation period, with the possibility of waiving this requirement upon employer agreement.
According to the Ministry of Human Resources and Emiratisation, over 72,000 inspection visits have been conducted nationwide this year. These visits included approximately 2,300 investigations related to suspected cases of fraudulent Emiratisation. Among these cases, 430 were identified and referred to the public prosecution.
In January 2023, the Ministry of Human Resources and Emiratisation referred 20 firms to the public prosecution for violating Emiratisation policies in the previous year. The public prosecution took action against the owner and manager of a private company that deceived 296 Emiratis participating in the Nafis program, resulting in their imprisonment.
A federal law mandates that private sector companies increase the number of Emiratis in their workforce. As of the end of last year, companies with 50 employees or more were required to hire a minimum of 2% Emiratis in skilled roles. By June 30 of this year, this requirement must be increased by an additional 1%. By the end of the year, these companies must have 4% Emiratis in skilled positions.
During a recent FNC meeting, Abdulrahman Al Awar, the Minister of Human Resources and Emiratisation, emphasized three key policies that safeguard employers against risks:
Worker Protection Insurance System: Employers are obligated to provide insurance coverage to protect workers in case of company insolvency or the inability to pay dues. Currently, more than 96% of registered workers are covered under this scheme.
Wage Protection System: This system ensures the timely and secure payment of employee salaries. Companies and establishments are required to fulfill wage obligations through authorized financial institutions.
Unemployment Insurance: Over 2 million individuals, including 40,000 Emiratis, have subscribed to the unemployment insurance scheme. Eligible workers in the UAE must subscribe to the program before June 30 to avoid penalties. This ultra-low-cost security net provides protection for workers in the event of job loss.
By implementing the 3-year work permit plan and adopting flexible policies, the UAE aims to enhance its employment landscape while safeguarding both employers and employees.