How can I resign from a company during my probation period under the UAE's new Labour Law? I want to ensure that I do not receive a ban and can accept a job with another employer. At present, my visa profession is skill level 5. My probation period is six months, which I will complete in the middle of March next year. AS, Abu Dhabi
There has been a recent announcement, Federal Decree – Law 33 of 2021, about changes to the UAE Labour Law but this is not due to come into effect until February 2, 2022, with final confirmation of the executive regulations being prepared and still to be issued. Until this time, the current rules apply.
At the present time, all employees, whether on probation or permanent, must provide 30 days’ notice when resigning as per Article 117 of the Labour Law, which states: “The employer and the worker may terminate the employment contract with undetermined term for valid grounds at any time subsequent to the conclusion of the contract, and such after notifying the other party thereof in writing at least 30 days prior to the termination thereof.”
This is generally also the case for fixed-term contracts, although other restrictions will apply.
Should AS resign with less than a year of service, the employer can apply for an employment ban as his visa is for skill level 5, the lowest level.
Once the new rules come into effect next year, the situation will be different and will depend on the reason for an employee wanting to leave service during a probation period and also whether they want to change employers or to leave the country.
If AS wishes to change employers after the changes come into effect, he will still need to give 30 days’ notice but his new employer will be required to compensate the previous company for costs incurred in employing him, such as visa fees or any recruitment fees.
The proposed new legislation is intended to make it easier for employees to change jobs without disadvantaging employers. While it will prevent employers from forcing people to leave the country, there is no specific mention of whether there will be any change in employment bans.
I am facing some issues with my previous company. They are delaying the cancellation of my visa and the company I need to join is saying it cannot wait any longer. What can I do? IC, Sharjah
When an employee resigns and has completed their notice period, the employer should cancel their visa and work permit at the time the person stops working for them. No employer should delay cancellation.
If the company fails to act promptly, employees can contact the Ministry of Human Resources and Emiratisation on their helpline number, 800 665, or via the online chat function on its website.
If an employer does not come under the jurisdiction of the ministry, which covers all mainland employers and many of the free zones, the employee can contact the dispute centre of the free zone for assistance.
I came to Dubai on a visit visa and 10 days later I joined a five-star hotel as a waiter. They are applying for a free zone employment visa for me. I have now resigned as my wife had an accident and I need to go back to India but the company has said that if it cancels my visa, I will be banned from working in the UAE. I only worked for two days and have not had the visa medical test. Is it possible for the company to ban me in this situation? AB, Dubai
Firstly, I am sorry to read about your wife and hope she recovers soon.
If someone has not undergone a medical examination, they do not have a UAE residence visa or a work permit. Without these, they are not officially an employee of a company and the employer is not able to request an employment ban.
AB has stated that the application is for a visa in a free zone, which is irregular as nearly all hotels in Dubai have mainland licences.
If this is the case, he can check with the free zone itself to confirm whether a visa is in process. It is worth noting that a ban is not relevant should he return for another job in the same free zone.
The proposed new legislation is intended to make it easer for employees to change jobs without disadvantaging employers
Keren Bobker
If this hotel has a mainland licence, which is far more likely for a five-star venue, then the visa is under the Ministry of Human Resources and Emiratisation and AB can check with them.
Given the circumstances, this seems a rather mean threat from the company and while it may be inconvenient, it would be nice if some humanity prevailed.
Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with more than 25 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE
The advice provided in our columns does not constitute legal advice and is provided for information only.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
On Instagram: @WithHopeUAE
Although social media can be harmful to our mental health, paradoxically, one of the antidotes comes with the many social-media accounts devoted to normalising mental-health struggles. With Hope UAE is one of them.
The group, which has about 3,600 followers, was started three years ago by five Emirati women to address the stigma surrounding the subject. Via Instagram, the group recently began featuring personal accounts by Emiratis. The posts are written under the hashtag #mymindmatters, along with a black-and-white photo of the subject holding the group’s signature red balloon.
“Depression is ugly,” says one of the users, Amani. “It paints everything around me and everything in me.”
Saaed, meanwhile, faces the daunting task of caring for four family members with psychological disorders. “I’ve had no support and no resources here to help me,” he says. “It has been, and still is, a one-man battle against the demons of fractured minds.”
In addition to With Hope UAE’s frank social-media presence, the group holds talks and workshops in Dubai. “Change takes time,” Reem Al Ali, vice chairman and a founding member of With Hope UAE, told The National earlier this year. “It won’t happen overnight, and it will take persistent and passionate people to bring about this change.”
