UAE work permit updates: What employers need to know

The UAE Federal National Council (FNC) has given its approval for an extension of work permits from two years to three.

This decision was made following a recommendation from an FNC committee, which aimed to reduce the financial burden associated with obtaining work permits.

Currently, the UAE issues work permits that are valid for a period of two years. These permits are issued by the Ministry of Human Resources and Emiratisation, and it is illegal for individuals to work in the country without a valid permit.

According to a report presented by the FNC Committee on Financial, Economic, and Industrial Affairs, it was suggested that the duration of work permits be increased to three years. The report also included other recommendations, such as waiving work permit fees for job changes. Additionally, the FNC approved a requirement stating that workers must spend at least one year with an employer after completing the probation period. However, this requirement can be waived with the consent of the employer.

At the recent FNC meeting, Minister of Human Resources and Emiratisation, Abdulrahman Al Awar, emphasised three key policies aimed at safeguarding employers from potential risks:

1. Worker protection insurance system: Employers are legally required to provide insurance coverage to ensure the protection of workers in case of company insolvency or failure to pay dues. Presently, more than 96 percent of registered workers are covered by this scheme.
2. Wage protection system: This system ensures that employee salaries are paid in a timely and secure manner. It mandates companies and establishments to fulfill wage obligations through authorized financial institutions.
3. Unemployment insurance: With over 2 million individuals, including 40,000 Emiratis, already enrolled, the unemployment insurance scheme serves as a safety net for eligible workers who face job loss. To avoid penalties, eligible workers in the UAE must subscribe to the scheme before June 30. It provides an affordable and reliable form of protection in the event of unemployment.