We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Wed 7 Jan 2009 06:28 AM

Font Size

- Aa +

UAE gov't mulls plan to help redundancy victims

Proposals could allow expats to stay in emirates while they look for new employment.

The UAE government is mulling new proposals aimed at making it easier for skilled expats who have been made redundant to stay in the UAE to find a new job.

As increasing numbers of companies in the region let people go amid the global economic crisis, job loss victims currently face having their visas cancelled and being ordered to leave the country within one month.

But new proposals before government officials will mean it is likely that either companies will be told not to cancel the visas of sacked skilled workers or permission will be granted for them to remain in the emirates while looking for work, UAE daily The National reported on Wednesday.

A decision is expected to be made within 7-10 days, sources at the Ministry of Labour told the paper.

In November, Ahmad Saif Belhasa, chairman of the UAE Contractors’ Association and an adviser to the Ministry of Labour, urged companies still in a position to hire to consider recruiting people who were already in the country and had lost their jobs instead of choosing applicants from overseas.

A ministry source said there would be no official comment until a “viable transparent policy” was decided by the departments involved.

“We have plans and a vision in place and we want to encourage opportunity and that will be met,” he said.

Among the high profile redundancies announced recently in the UAE have been developers Nakheel, which cut 500 staff, and Damac Properties which let 200 people in November.

Arabian Business: why we're going behind a paywall

Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.
UK 11 years ago

It is a good move and must be implemented ASAP. It is high time to acknowledge the problem and take actions that will minimise the impact. I understand that companies have to pay a compensation of 3 months total salary to the staff terminated from jobs. A strict implementation of this rule will be of great help to those who lose their jobs.

BV 11 years ago

Well done to the UAE Government. Fantastic news for all those who have been made redundant, and for all those affected by friends' or relatives' redundancies. Let's hope the outcome is one that everyone can benefit from. At times like there, everyone needs to have compassion for everyone, and lending anyone a helping hand is now more likely than ever to come back and help everyone in the long run. Well done, and good luck.

John Doe 11 years ago

It's been years maybe since the UAE govt did anything for the cream of the population here, which are mostly expats. Nothing to get too excited about after all we are the engine that drives this place! But nonetheless a very welcome move for everyone...bravo!

MH 11 years ago

It is well appreciated recommendation, UAE govt should consider it and implement it asap.

Osama 11 years ago

Hope this move is accepted! Thank you.

Shak 11 years ago

If implemented, I think this would be one of the best initiative of the Govt. This would not only help the people who has been or going to face redundancy but also more importantly, to the business community from losing the best talent, which is very difficult to find and hire. I hope Govt. will implement this initiative at the earliest.

hank 11 years ago

How funny.. Bravo UAE Govt for making it pretty clear that your nationalization project is not feasible. Rather than taking the opportunity to start putting your own nationals into these companies, you have opted to make the expats stay longer to find work. Effectively, you've just conceded to the long debate about using more national resources in international companies and said 'Expats are the better professionals'. took a while, now you're also just expanded every expats ego even further. Well done.

paul 11 years ago

It seems the UAE would face quite a sudden exodus of people if the old policies were continued. Few would find new jobs within one month, and the pressure of people leaving would further deepen the economic problems in the country. But unless those people can find jobs in a reasonable period of time, it will only delay the inevitable. With rents and costs as they are in Dubai, few expats will have the luxury of staying 2 or 3 months to find a new job. The other issue I wonder about as an employer - if I was asked/forced not to cancel an employees visa, what about the deposit paid by the employer? And is the employer still on the line to lose this if the employee goes AWOL? If I get rid of someone, I don't want to continue to carry responsibility for them.

Ramuj 11 years ago

Laudable humanitarian gesture. Will bring relief to thousands of families who now live in uncertainity.

Akil 11 years ago

It's definitely a great idea. But the actual reason is total market failure, every company is getting rid of liabilities and not assets. And tell me who is hiring in today? Are the people coming out here ready for reduced salary and perks ??????? If yes, than certainly they may replace an expensive one otherwise one month is not enough they have to wait for another boom People have to understand why they are redundant today...