New law to make it easier for workers to switch jobs

Sunday, 19 December 2010 10:13 AM

SWITCH JOBS: A new UAE law will make it easier for workers to switch jobs without the consent of their sponsor from the beginning of next year (Getty Images)

A new UAE law will make it easier for many workers to switch jobs without the consent of their sponsor from the beginning of next year.

The resolution, issued by UAE Minister of Labour Saqr Gobash, allows expatriates with expired contracts to obtain a new work permit without the letter of no objection from their employer, and without the six-month work ban.

The resolution says that a new permit will be granted to the employee if the “contracting parties have ended their relationship cordially” and that the worker should have worked for his employer for two years.

However, if the employer fails to honour legal or contractual obligations to the employer, or when the company is proved to have gone out of business for two months, the worker will also be allowed to switch jobs without the letter.

Gobash said that the new law was aimed at striking a better balance between the employer and worker.

''The Ministry will only interfere in the employer-worker contractual relationship if it detects infringement in obligations stated in the labour contract,'' he said.

''Giving the private sector more freedom of movement will have automatic impact on employers by the way of preserving their interests through creating many options for recruiting skillful workers as per the supply-demand equation.”

The change is part of a package of plans recently announced by the Ministry of Labour.

Earlier this month, the ministry announced that labour card validity will be reduced from three years to two years for all UAE private sector workers from January next year. The move will have a knock-on effect on residence visas, which will also be reduced to two years.

The ministry will also require private-sector firms to have no less than 15 percent Emiratis on their workforce.

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Posted by: Hashim Saturday, 1 January 2011 6:34 PM[UAE] - Pakistan

its really a wonderful move to lift the ban of six months,I am working as Mechancial Engineer in Qatar ,I wish that Qatari labour ministry should learn this from UAE;and they should also lift the ban and resriction of NOC which is restricting employees to change the employers and go for better options.

Posted by: Krishnakumar Wednesday, 16 February 2011 10:16 AM[UAE] - India

Great Explanations....Hashim

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Posted by: Pankaj Tuesday, 21 December 2010 3:34 PM[UAE] - India

The automatic ban on all those who canceled their visa - for what ever reason - was one of the most unfair and unjust rules put out by the ministry of labor. Even those unlucky workers who lost their jobs when their companies closed down got bans for no fault of theirs. And then the labor department demanded AED 5000 - 8000/- from these unfortunate souls to lift the ban. It is no wonder that people saw this as yet another move to make money. The new rule is really welcome. I am a partner in a small business and am desperately looking for staff with Dubai experience , but either they are too expensive or they are all facing bans. Because of this misconceived rule UAE has lost some excellent workers who have been forced to move to other GCC countries. Thanks you Mr. Minister.

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Posted by: Maroun Tuesday, 21 December 2010 9:55 AM[UAE] - U.A.E

What about us business owners who have had some employees for years and now they are allowed to leave easily without a NOB Letter and they join your competitors with all your trade secrets?
Is there a law to prohibit an employee to work for a competition after resigning?What chaos will happen if employees just left for another job without your consent?

Posted by: notneeded Friday, 31 December 2010 12:20 PM[UAE] - UAE

Maroun,

You have to stop thinking employee as slaves. I know people who have been surviving on meager salaries with ever increasing expenditures. Don't they have right to earn and save more.

This is how business works; competition. You need to provide incentive and better working culture to the employees to retain.

Posted by: The other consultant Tuesday, 21 December 2010 3:39 PM[UAE] - Dubai

Maroun,

It was like that before, but only 3 years instead of 2. Employees will always leave to other jobs, and most probably in the same line of business, since this is what they are equipped to do. There are a few things you can do to protect your business:
- Have en employee sign a NDA agreement upon entry.
- Provide a good service.
- Be a good employer so employees will not stab you in the back at every chance they get.
- Protect your sensitive information, and disclose only to trusted authorized personnel.

Chances are, your competition already have the know how and what you call "trade secrets".
Furthermore, what do you expect the employee to do after he leaves your organization? Work in some other totally different line of business?

Posted by: Badr Al Hisham Tuesday, 21 December 2010 3:33 PM[UAE] - Qatar

Probably now business owners like you will treat their employees better. Employees will stay if the employer is good to them.

Posted by: Nasir Tuesday, 21 December 2010 3:32 PM[UAE] - Qatar

Maroun... How do you think every one else deals with the same situation? Provide better working conditions and salaries for your employees than your potential competitors or they leave. Welcome to the real world.

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Posted by: Yasser Monday, 20 December 2010 5:00 PM[UAE] - Egypt

I wish it was one year only to give the market more flexibility and competition. Otherwise Qatar's 2022 will pull the professionals from UAE market.

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Posted by: j krishnan Monday, 20 December 2010 4:56 PM[UAE] - dubai

Better late than never. UAE has a lot of catching up to make in terms of real, non-oil productivity. Private companies profited without innovating. Innovating can come only from an aggressive work force that moves from one job to another, like most other successful economies in the world. It will also score points on the human rights and employee rights front.

But as usual, so many conditions - I dont know for what. If I am a business owner and if a worker wants to leave me after just 4 months, I would say let him go after refunding my expenses. Labour dept should simplify the law like this.

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