Three new Ministerial Decrees came into effect on 1 January 2016 in the UAE which impact upon the way job offers are made and have implications regarding certain terms of the employment arrangement.
Three new Decrees impacting upon the way job offers are made and which have implications regarding certain terms of the employment arrangement came into effect in the UAE on 1 January 2016. Currently the Decrees do not apply to freezone entities. Nonetheless, we recommend that freezone entities remain aware of the developments.
The key features of the Decrees is as follows:
- Offer Letter Required - it has become a mandatory requirement for the employer and prospective employee to enter into an offer letter. A standard form which must be used for this purpose has been created. The offer letter must be filed with the Ministry of Labour and the future contract of employment must adhere to its terms. This is relevant for employers as they will now need to tailor their recruitment processes around the new requirements.
- Visas and Work Permits – there are new provisions on granting work permits for UAE employees and these are intended to provide a more flexible and mobile workforce across the UAE. In brief, new UAE work permits may be granted to employees in many instances of termination from their previous employment including those circumstances listed above in paragraphs 2 and 3 above.