United Arab Emirates: New Regulations Enable Skilled Foreign Workers to Change Jobs More Easily

Flag of the United Arab EmiratesBeginning January 1, 2011, skilled and professional foreign workers in the United Arab Emirates (UAE) will no longer need to obtain a no-objection certificate from their former employer in order to take a new position elsewhere, reports The National. Instead, the only requirement will be to obtain a visa stamp from the Ministry of Labour. The change is significant: previously, employers could refuse to issue a no-objection certificate, which forced workers to exit the UAE for six months before they could take a new position.

As for unskilled and semi-skilled workers, the employer’s consent is required for a worker to change jobs, but only during the first two years of employment. Also, the consent requirement is waived if the employer does not meet basic employment standards.

The new regulations, intended to improve the labor market and discourage wrongful employment practices, were welcomed by foreign workers. Unfortunately, because many workers access news in languages other than the official Arabic (e.g., Urdu, Hindi, Farsi), some misinterpreted the regulations and breached their contracts by resigning prematurely, according to Emirates 24/7 News. As a result, the Labour Minister clarified the new regulations as follows:

“Workers who are contracted on fixed-term contracts cannot breach the contract and resign on grounds that they have completed a period of two years. If those workers are called to cancel their labour cards they will be subjected to a one-year ban according to terms of the contract. But if the contract is of an indefinite duration, and two years have been completed with the sponsor, they have the right to change their job without objection.”

In order for a worker to move to another employer, the employment relationship must cease cordially, after having lasted at least two years. However, a worker may unilaterally obtain a new work permit without these conditions being met if: (1) the employer fails to honor its legal or contractual obligations, or (2) the employment ended without any fault on the worker’s part.

IT Firms Look to NAFTA to Offset Proposed Limit on H1-B Visas

Anticipating greater restrictions on H1-B visas, Indian IT firms operating in the United States are considering utilizing NAFTA provisions to avoid staffing shortages. The strategy arose in response to proposed U.S. legislation that would, among other provisions, limit the number of employees on H1-B visas in a company to 50% of its total U.S. workforce. Indian IT firms would be impacted because the majority of their U.S. staff work under H1-B visas. 

Design by Alex Covarrubias

As reported by Computerworld, instead of sending Indian professionals to the U.S., they would go to Mexico, and Mexican employees would work in the United States under a TN professional visa, which is easier to obtain than the H1-B. No limit applies to TN visas; they are valid for three years, and they are renewable.

United Arab Emirates: New Visa Regulations Taking Effect in July

Under new United Arab Emirates visa regulations effective at the end of July, jobseekers from India, Pakistan, Nepal, the Philippines and Bangladesh, who currently are not subject to visa fees, will have to pay a refundable deposit of Dh1,000 ($272) and secure health insurance while they look for work. One likely result of the new regulations, as reported at portstrategy.com, is a rush of would-be workers in the port of Dubai in the spring and early summer. Another probable consequence is that potential employers and recruitment agencies will need to search abroad to find workers in order to avoid a labor shortage. Anyone found working while on a visit visa can be fined more than Dh50,000 ($13,617) and banned from re-entering the UAE. Employers also will be subject to strict penalties for violations.

United Kingdom: New Tax on Visa Applicants

The Economic Times reports that Britain is preparing to impose a tax of up to £50 on applicants for student or work visas. The fee will go into a “transitional fund” to support government bodies dealing with the impact of immigration, including local authorities and police. Additional details about the fee are forthcoming; UK ministers are expected to make an announcement shortly.