According to the new resolution issued by the Minister of Labour, Saqr Gobash, which was reported by WAM, the new employment permit will only be granted to the worker provided that the two contracting parties ended their work relationship amicably and that the worker has worked with his or her employer for at least two years. The new rule will come into effect on January 1, 2011.
Some businesses welcomed the lifting of the six-month period said it would create a more liberal labour market, but on the other hand they said it would be more challenging for employers. Now it would be according to world standards, they said.
Yusuff Ali MA, Managing Director, Emke Group, said: “This new labour regulation will definitely streamline the UAE labour market in line with the International Labour Organization (ILO). This will help in further opening the UAE labour market thereby attracting more skilled workers, which in turn will boost the productivity level. Now the employer can get efficient manpower more easily from the local market itself.”
Dr Ram Buxani, President, Cosmos-ITL Group, said: “Principally it is a welcome step and it will liberalise the labour market. The UAE is adhering to what needs to be done. Although it is a good step, it will create more challenges for employers. Having invested initially in bringing the newcomer after research and investment, if the employee is simply allowed to leave after the initial contract of two years that is going to bring challenges to the employers.”
Rizwan Sajan, Chairman, Danube Building Material, said: “It is a very good step taken by the government and will provide more skilled labour for the country. From next year the second largest economy in Gulf will join the club of developed countries by following ILO standards. It will be a more competitive market and will allow for the faster movement of workers from one company to another, but smart employers will try to keep their employees happy by continuing to avail of their services.” Deepak Babani, Chief Executive Officer, Eros Group, said: “The lifting of the six-month ban is not a serious issue, but the reduction of the visa period from three years to two years is too short. Generally, there is a free labour market all over the world and in this perspective it is a good step. It takes six months to train new employees and by the time they are ready for this market, they will be allowed to shift jobs.”
Vipen Sethi, Chief Executive Officer, Landmark Group: “It is good. It will allow people to seek job easily, but on the other hand employers will have to make sure that they keep their people happy.”
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