The Federal National Council of UAE has approved extending the duration of work permits from two years to three

The UAE's parliamentary body, the Federal National Council (FNC), has approved raising the limit on work licences from two to three years. This followed the recommendation of a FNC committee to lower the expense of acquiring work permits.

In the UAE, work permits are now given out for two years. The Ministry of Human Resources and Emiratization is responsible for issuing the document. Without a current work permit, it is against the law to work in the nation.

The FNC Committee on Financial, Economic and Industrial Affairs recommended extending the period to three years in a report it filed. It also included additional suggestions, such as waiving work permit costs when changing jobs. The FNC also agreed with the suggestion that following the probationary term, employees should remain with their employers for at least a year. However, if the employer consents, this condition may be avoided.

The FNC was informed by the Ministry of Human Resources and Emiratization that more than 72,000 inspection visits were made throughout the nation this year. 2,300 of them are believed to be connected to fake Emiratization cases. A total of 430 instances were found, some of which were forwarded to the public prosecution.

The MoHRE has submitted 20 companies to public prosecution in January 2023 for breaking Emiratization rules the previous year. The owner and manager of a private firm were sentenced to jail by the Public Prosecution for defrauding 296 Emiratis. As part of the Nafis project, the accused stole money from the Emirati trainees.

Private sector businesses are required by federal law to boost the proportion of Emirati employees. At the end of the previous year, companies with 50 or more employees were obligated to fill skilled positions with at least 2% Emiratis. By June 30 of current year, businesses must boost this by 1%. They require 4% of Emiratis in skilled positions by the end of the year.

During the FNC meeting last week, Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, highlighted three key policies that protect employers from risks:

• Worker protection insurance system: Workers must be protected by insurance in the case of business failure or nonpayment of taxes, as required by law. Currently, this programme covers more than 96% of registered workers.
• Wage protection system: It makes sure that employee salaries are paid securely and on time. Under this arrangement, businesses and establishments must pay their employees through licenced banking institutions.
• Unemployment insurance: Over 2 million individuals have signed up for the unemployment insurance programme, including 40,000 Emiratis. To avoid fines, eligible employees in the UAE must enrol in the programme before June 30. It is a very low-cost safety net that safeguards employees in the event that they lose their employment.