With the Middle East’s second largest economy behind only Saudi Arabia, the United Arab Emirates (UAE) relies heavily on foreign workers to sustain its economic growth. According to United Nations’ estimates, over 90 percent of its private market labor force is comprised of foreign workers. So any changes in immigration policies and processes always have the potential of a significant impact for companies sponsoring foreign nationals.
Two recent changes effect sponsoring employers in the UAE and the families of their foreign national employees. The first change affects employers in the instance of an unused work permit when the foreign employee or employer ends an employment relationship before the employee actually begins work. The second impacts family residence permits and the accompanying dependents of a foreign employee when the employee switches employers within the UAE after beginning work.
What’s Changed?
Employer Replacement of Unused Work Permit
Certain unused work permits may now be replaced within six (6) months of date of issue. According to the Ministry of Labour, employers may now replace work permits issued for a foreign national in the event that the employee does not begin work for the UAE employer. This new decision by the Ministry means that in the case where either the employer or the employee decides not to go forward with the employment, the employer has six months to find a replacement.
