Procedures to employ Emiratis in the private sector
Ministry of Human Resources and Emiratisation (MoHRE) introduced a new system for hiring and firing Emiratis in the private sector. As per this new system, citizens will be employed only at those businesses that are registered with the ministry in accordance with the following steps:
- The employer should submit the required documents to issue the citizen, a work permit. Then, MoHRE will issue to the citizen a package of documents, including the work permit, labour contract, Absher card and work duties and rights guidelines. MoHRE will provide the citizen with guidance and training services needed as per the requirements of the labour market.
- Work permit and labour contract information will be sent to General Authority of Social Insurance and Pensions or any other local or insurance fund within 6 months from the date of the work permit to update the citizen file.
- Submission of complaints, whether by a citizen or an employer should be done via a form prepared for this purpose. The complaint will be sent to the labour relations department at the ministry to be discussed and settled, or referred to the court.
- The decision defines four scenarios under which the termination of the citizen’s service is considered without a legitimate cause. They are:
- If the termination of the service of the citizen is not based on Article 120 of the Labour Relations Regulation Law, which allows the employer to terminate the worker’s services if the worker impersonates a false person, submits false certificates or documents or if the worker breaks the instructions regarding the safety of the work provided that these instructions are written and posted in a visible place
- If it is proven that the owner of the company has retained a foreign worker who performs the same work as the citizen whose service has been terminated or if it has been proven that the termination of the citizen’s service was for the purpose of replacing him with a foreign worker to take the same job
- In the event the employer terminates the employment relationship for a reason not related to the work, especially if the termination of the service of the citizen is due to submitting a serious complaint to the competent authorities or to file a lawsuit against the employer
- If the employer fails to abide by the regulations of ending the service of Emirati workers
- The employer shall submit an end of service report to the citizen at the end or termination of the work relationship between the parties, by filling out a special form that includes reasons for ending the relationship including improper work environment, a better career opportunity, or other reasons whether by the employer or the citizen
- If the ministry was certain that the employment relationship was terminated for an illegal reason by the citizen or the employer and was unable to resolve the dispute and return the citizen to his work, the dispute will be referred to the competent court after five working days from the date of notifying the parties involved to resolve the dispute amicably but efforts proved futile
- Reducing the level of priority of the citizen in the register of job seekers for a period not exceeding six months from the date of illegally ending the employment relationship by him
- Suspending issuance of new work permits to the company for a period of not more than 6 months from the date of judging the complaint in favour of the citizen
- In all cases of termination of the service of the citizen, the employer must pay its share and the share of the insured (the citizen) in the contributions due for pensions and social insurance approved in the country and in any other fund required by the legal systems in force in the ministry
- The ministry will re-register the citizen after the end of his service in the register of job seekers as long as he is able and willing to work and seeking a job. The priority in the appointment will be determined in accordance with the qualifications and experience and the circumstances of termination of services.
According to Federal Law No. 7 of 1999 for Pensions and Social Security and its amendments, a contribution equal to 20 per cent of the employee’s salary must be made to GPSSA on a monthly basis. While the employee must contribute 5 per cent of his/her salary, the employer must contribute 12.5 per cent of the employee’s salary, and the government must contribute 2.5 per cent.
Private Sector Youth Council
In May 2018, Ministry of Human Resources and Emiratisation launched the ‘Private Sector Youth Council’, which will have 18 individual members working in the private sector, under the umbrella of the ministry.
The council will provide a dialogue platform for the UAE’s youth in private and semi-government entities, enabling them to express their opinion on rules and policies regulating work in private sector and plans related to Emiratisation.
The council’s roles include:
- Suggesting initiatives and ideas to achieve its goals and representing the UAE’s private sector employees in local, regional and international conferences and training programmes
- Organising youth forums to guide youth regarding policies and laws regulating companies of private sector
- Developing training programmes in cooperation with the private sector to enrich the skills of the Emirati employees.
Updated on 09 May 2022