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Discuss this article (12 Comments)Poll shows almost 70% support end of expat sponsorship
by This email address is being protected from spam bots, you need Javascript enabled to view it on Saturday, 16 May 2009
EXPAT RULES: Majority responding to an online poll say they think ending the expat sponsorship system is a good idea. (Getty Images)
More than two thirds of responders to an online poll have called on other Gulf countries to follow the Bahrain government’s decision to end the sponsorship system for expatriates.
The survey carried out by Arabian Business of 400 people shows that 69 percent think the move is an “excellent idea" that should be matched by other countries across the Gulf.
A further 22 percent think the action to end individual sponsorship by employers, is a "good idea" that will give foreign more freedom to move jobs, which in turn will boost retention and training policies.
Altogether, those in support of ending sponsorship made up 91 percent of all responders.
Just seven percent thought the move was a “bad idea” that would only prevent more locals from being employed – a criticism levied at the Bahraini authorities.
Very few, only two percent, said it would have little effect on the way expatriates worked in the country.
The Bahrain government announced the end of thw sponsoring scheme earlier this month under regulations that will come into force this August.
Under the new rules, foreign workers will be directly sponsored by the Labour Market Regulatory Authority and therefore able to move jobs without the consent of their previous employer.
The system of sponsorship, which is common in the Gulf Arab states and under which employers do the sponsoring, has long been criticised by human rights groups for placing workers at the whim of their employers, who usually take their passports.
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
There are problems with the transfer-fee program
Posted by bob, salmiya, kuwait on Monday 18 May 2009 at 15:26 UAE time
Interesting points about paying to transfer sponsorship and such, but the "hullabaloo": People on relatively low salaries may not be able to afford AED 5,000 or be sufficiently rare that another employer will be willing to pay it. That aside, how long does it take to get through this process? Long enough that an employer won't wait around? How long does an person have to wait if the employer wants to oppose the transfer? There are other suitable candidates for about every position, to include some who don't have to deal with the transfer cost/time so the people who have to pursue transfers are at a disadvantage.
Short of people who have rare skills, are at extremely high levels, employers are likely to move on to another candidate rather than wait around.
Also, anecdotal evidence and a sense that this is rarely a problem with fundamentally honorable employers. As someone said, a person puts in good service, does not try to break a contract, isn't looking to take his/her inside knowledge of a company to a direct competitor and the employer thinks, "fair play; here's your NOC."
(As a data point, Aramco's long been good about that.)
With the more questionable employers, they have extra motivation to keep people from leaving, take an attitude of, "We don't want to lose you because we're exploiting you so we will make it difficult for you to leave and in general send that message to everyone else who might want out."
In that context, it becomes a lot harder for people to leave, all the more if people are making a low wage, supporting a family, etc.
The current system provides too much latitude to exploitative employers and provides too many prospects to exploit the relatively vulnerable people.
Posted by bob, salmiya, kuwait on Monday 18 May 2009 at 15:26 UAE time
Interesting points about paying to transfer sponsorship and such, but the "hullabaloo": People on relatively low salaries may not be able to afford AED 5,000 or be sufficiently rare that another employer will be willing to pay it. That aside, how long does it take to get through this process? Long enough that an employer won't wait around? How long does an person have to wait if the employer wants to oppose the transfer? There are other suitable candidates for about every position, to include some who don't have to deal with the transfer cost/time so the people who have to pursue transfers are at a disadvantage.
Short of people who have rare skills, are at extremely high levels, employers are likely to move on to another candidate rather than wait around.
Also, anecdotal evidence and a sense that this is rarely a problem with fundamentally honorable employers. As someone said, a person puts in good service, does not try to break a contract, isn't looking to take his/her inside knowledge of a company to a direct competitor and the employer thinks, "fair play; here's your NOC."
(As a data point, Aramco's long been good about that.)
With the more questionable employers, they have extra motivation to keep people from leaving, take an attitude of, "We don't want to lose you because we're exploiting you so we will make it difficult for you to leave and in general send that message to everyone else who might want out."
In that context, it becomes a lot harder for people to leave, all the more if people are making a low wage, supporting a family, etc.
The current system provides too much latitude to exploitative employers and provides too many prospects to exploit the relatively vulnerable people.
pay the transfer fee and stop complaining.
Posted by Mounir, abu dhabi on Monday 18 May 2009 at 01:09 UAE time
What is all this hullabaloo for? Geez, if someone wants to change their job all they need is to find another one and get an NOC from their current employer. If they dont get the NOC, they can go to the ministry of labour and pay 5,000 dirhams (for free if they belong to a professional group such as engineers or doctors) and the problem of transferring the sponsorship is resolved! In fact, most companies will pay this 5,000 dirham fee on behalf of their new employee. In the case that the employer is against a specific transfer, they will need to explain to the ministry of labour in person why they feel that the employee should not be allowed to transfer to the new company; and its up to the ministry to decide then what to do: how many companies will try to stop their average employee from switching? how many will go through that hassle?
This 'fix' has been around for several months now, so why are people moaning about the sponsorship system?
Posted by Mounir, abu dhabi on Monday 18 May 2009 at 01:09 UAE time
What is all this hullabaloo for? Geez, if someone wants to change their job all they need is to find another one and get an NOC from their current employer. If they dont get the NOC, they can go to the ministry of labour and pay 5,000 dirhams (for free if they belong to a professional group such as engineers or doctors) and the problem of transferring the sponsorship is resolved! In fact, most companies will pay this 5,000 dirham fee on behalf of their new employee. In the case that the employer is against a specific transfer, they will need to explain to the ministry of labour in person why they feel that the employee should not be allowed to transfer to the new company; and its up to the ministry to decide then what to do: how many companies will try to stop their average employee from switching? how many will go through that hassle?
This 'fix' has been around for several months now, so why are people moaning about the sponsorship system?
Training? Secrets?
Posted by The Consultant, Dubai, United Arab Emirates on Sunday 17 May 2009 at 15:30 UAE time
Maroun and Ametis, with regard to concerns over confidentiality and training, what is to stop an Emirati/GCC national employee moving to a different company? What is to stop a female employee (on husband/father's sponsorship) moving to a different company? For that matter, what is to stop an unscrupulous employee selling your secrets whether he is leaving or not? Quite simply, you cannot rely on the sponsorship laws to keep your secrets - the only way to minimise your risk is to have proper policies about whom you give information to in the first place, take the recruitment process seriously and hire the right people and, most importantly, treat your employees well so that they remain loyal.
Please also remember that the current sponsorship laws do not only apply to people who have just arrived in the UAE - many of the people who would like to move companies have worked for their current employer for years, have received very little in the way of salary increases in this time, and are now being paid well below the market rate. If someone has given several years diligent service to their employer I see no reason why they should be held to ransom and refused permission to change companies. In many cases, the employee will have been recruited in the UAE and will have had little or no money spent on them for training; in these cases the arguements about employment and training costs are not valid.
Posted by The Consultant, Dubai, United Arab Emirates on Sunday 17 May 2009 at 15:30 UAE time
Maroun and Ametis, with regard to concerns over confidentiality and training, what is to stop an Emirati/GCC national employee moving to a different company? What is to stop a female employee (on husband/father's sponsorship) moving to a different company? For that matter, what is to stop an unscrupulous employee selling your secrets whether he is leaving or not? Quite simply, you cannot rely on the sponsorship laws to keep your secrets - the only way to minimise your risk is to have proper policies about whom you give information to in the first place, take the recruitment process seriously and hire the right people and, most importantly, treat your employees well so that they remain loyal.
Please also remember that the current sponsorship laws do not only apply to people who have just arrived in the UAE - many of the people who would like to move companies have worked for their current employer for years, have received very little in the way of salary increases in this time, and are now being paid well below the market rate. If someone has given several years diligent service to their employer I see no reason why they should be held to ransom and refused permission to change companies. In many cases, the employee will have been recruited in the UAE and will have had little or no money spent on them for training; in these cases the arguements about employment and training costs are not valid.
Expat sponsorship
Posted by George Ittyarah, Dubai, UAE on Sunday 17 May 2009 at 14:41 UAE time
"Under the new rules, foreign workers will be directly sponsored by the Labour Market Regulatory Authority and therefore able to move jobs without the consent of their previous employer." Clarification of terms, conditons and procedures of new sponsorship laid down by LMRA in Bahrain will make things more transparent that will be helpful to other GCC countries & expats as well.
Posted by George Ittyarah, Dubai, UAE on Sunday 17 May 2009 at 14:41 UAE time
"Under the new rules, foreign workers will be directly sponsored by the Labour Market Regulatory Authority and therefore able to move jobs without the consent of their previous employer." Clarification of terms, conditons and procedures of new sponsorship laid down by LMRA in Bahrain will make things more transparent that will be helpful to other GCC countries & expats as well.
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