New UAE Labour Law 766: Work Permit Granting (approval) Labour Ban 2016

No Labour Ban!!

MOL has issued 3 new rules through official Decrees:

Ministerial Decree 764: Standard Work Contracts
Ministerial Decree 765: Termination of Limited Contract and Unlimited Contract
Ministerial Decree 766: Granting of New Work Permits

Under this post, I will explain further about Ministerial Decree 766: Granting of New Work Permits

new labour ban rules 2016 uae labor law

Extract from the Ministerial Decree 766: Granting of New Work Permits

Ministerial Decree (766) of 2015 on Rules and Conditions for granting a permit to a worker for employment by a new employer

The Minister of Labour:

Upon review of Federal Law (1) of 1972 on the mandates of ministries and the powers granted to ministers and of Federal Law (8) of 1980 and its amendments on the regulation of labour relations;

And of the Council of Ministers’ Decree (25) of 2010 on internal work permits that are granted by the Ministry of Labour to workers who are active in the labour market;

And of Decree (826) of 2005 issued by the minister of Labour on rules implementing the transfer of sponsorship;

And of Ministerial decree (707) of 2006 on terms and procedures for granting non-nationals permits to engage in employment in the UAE;

And of ministerial Decree (724) of 2006 on administrative termination of sponsorships;

And of Ministerial Decree (1186) of 2010 on the rules and conditions for granting permission to a worker whose employment relation has ended to work for a new employer;
And of Ministerial Decree (422) of 2015 on the rules and conditions governing the termination of an employment relation.

Decrees:
Article (1)

A new work permit may be granted to a worker upon the termination of the said worker’s employment relation in the following instances:

I. Term contracts

1. The term of the contract has expired and not been renewed.

2. The two parties (worker and employer) mutually consent to terminating the contract during the course of its term, provided the worker has completed a period of no less than six months with the employer; the latter provision is waived for workers that qualify for skill levels 1, 2 and 3, as per the ministry’s classification.

3. The employer initiates the termination of the employment relation, without reason of non-compliance on the part of the worker, provided the worker has completed a period of no less than six months with the employer; the latter provision is waived for workers that qualify for skill levels 1, 2 and 3, as per the ministry’s classification.

4. Either party acts unilaterally to terminate the employment relation following its renewal (irrespective of the period the worker has been in the employment of the employer and irrespective of the date of renewal) provided that:

a. The terminating party notifies the other party in writing of his/her intent to terminate the contract in accordance with the notice period that was agreed to by the two parties, not to be less than one month and not to exceed three months. If renewal of the contract occurs prior to this decree entering into effect, and the two parties had not agreed to a notice period, then the notice period shall be three months.

b. The terminating party continues to honor the contractual obligations for the duration of the notice period.

c. The terminating party indemnifies the other party in the amount that was agreed to by the two parties, not to exceed the equivalent of three months of gross wages; if renewal of the contract occurs prior to this decree entering into effect, and the two parties had not agreed to the amount of indemnification, indemnification is set at the equivalent of three months of gross wages.

II. Non-term contracts

1. The two parties (worker and employer) mutually consent to terminating the contract provided the worker has completed a period of no less than six months with the employer; the latter provision is waived for workers that qualify for skill levels 1, 2 and 3, as per the ministry’s classification.

2. One of the parties acts to terminate the contract and notifies the other party and continues to honor his/her obligations under the contract for the duration of the notice period which shall be no less than one month and no more than three months, provided the worker has completed a period of no less than six months with the employer; the latter provision is waived for workers that qualify for skill levels 1, 2 and 3, as per the ministry’s classification.

3. The employer acts to terminate the contract without reason of non-compliance by the worker, provided the worker has completed a period of no less than six months with the employer; the latter provision is waived for workers that qualify for skill levels 1, 2 and 3, as per the ministry’s classification.

III. For all contracts: term and non-term

The instances described in I- and II- of this article notwithstanding, a worker may be granted a new work permit:

1. It is determined that the employer has failed to meet his legal or contractual obligations, including but not limited to when the employer fails to pay the worker’s wages for more than 60 days.

2. When a complaint is filed by the worker against a business entity that has not provided for the worker to perform work due to its shutting down, provided an Inspection report is produced that attests that the business entity has been inactive for more than two months and the worker has reported to the Ministry during this period.

3. When a labour complaint is referred by the Ministry to the labour court, provided a final ruling in favuor of the worker is issued that attests that the worker is owed wages for no less than two months of work or indemnity for arbitrary or early termination, or any other rights that the employer has abstained from granting, or dues of end-of-service.

In all of cases described in this article, the worker must have met all conditions and requirements of the provisions of the law before being granted a new permit.

Article (2)

No new work permit shall be granted except in the cases described in Article (1)

Article (3)

All those empowered to issue new work permits to workers in educational institutions during the school year shall obtain the approval of the relevant government agencies prior to issuing such permits in accordance with the provisions of article (1) of this decree.

Article (4)

A work permit that is granted in application of this decree shall be made null and void if it is established by the ministry that information the approval of the permit was based on was falsified.

Article (5)

Ministerial Decree (1186) of 2010 on the rules and conditions for granting permission to a worker whose employment relation has ended to work for a new employer is hereby nullified, as are any texts or provisions that are contrary to provisions of this present Decree.

Article (6)

This Decree shall be published in the Official Gazette and become effective on January 1, 2016.

By Saqr Ghobash, Minister of Labour
Issued in Abu Dhabi on September 27, 2015
—————————————–

Explanations

Article 1
Part 1: Limited Contracts

You can join a new company when:

-your Limited Contract expires;
-Both you and your employer mutually agree to end the limited contract if you have completed at least 6 months on the job. The condition of 6 months does not apply for Skill Levels 1,2 and 3. Although MOL has not mentioned what these skill levels are, I think it is referring to: Professionals like Doctors, Nurses, Engineers, Graduates, Technical Skill Workers etc. I will write more about this shortly after I have clarification. But note that your academic certificates will need to be attested as per the existing practise.
-Employer initiates the termination of Limited Employment contract provided you have at least completed 6 months.
-Both you and your employer mutually agree to end the limited contract if you have completed at least 6 months on the job. The condition of 6 months does not apply for Skill Levels 1,2 and 3.(Refer to the precious point). This POINT is a bit confusing to me because this means that your employer or your company can terminate you after 6 months of employment under limited contract. In the previous law, if the employer terminates the contract prematurely, they were supposed to compensate the employee for 3 month salary. Not sure what MOL means by this clause.
-Either you or your company terminates the limited contract after renewal:
-Whoever terminates the contract should provide notice period as per the contract or 3 months if notice period is not mentioned in the contract.
-The terminating party should adhere to contractual obligations; meaning, you should keep working and your employer should pay you salaries and other benefits.
-The terminating party should compensate the other party with 3 month gross salary.

Part 2: Unlimited Contract

-Both you or your employer mutually agree to terminate the employment contract provided you have been employed at least for 6 months. The condition of 6 months does not apply for Skill Levels 1,2 and 3.
-Either you or your employer terminates the contract by informing other party provided you have been employed at least of 6 months; You or your company must serve the notice period. The condition of 6 months does not apply for Skill Levels 1,2 and 3.
-The employer can terminate the contract provided you are employed at least 6 months previously; The condition of 6 months does not apply for Skill Levels 1,2 and 3.

Meaning if you are in Skill Level 1, 2 or 3, you will not face labour ban if both the parties agree to terminate the contract with mutual understanding

Part 3: For Limited Contract and Unlimited Contract

a worker may be granted new work permit:

-If your company has failed in its legal and contractual obligations including not paying salary for 60 days continuously;
-If a business closes and it is confirmed by MOL inspection team;
-If the court rules in favour of employee that he/she has not been paid wages for 2 months or no compensation has been paid for arbitrary dismissal; or company has not paid employee benefits like EOSB.

You as an employee must meet all the conditions and requirements of the law before you can apply for new work permit.

Article 2

No new work permit would be granted except in cases described in Article 1.

Article 3

Educational institutions must obtain other relevant permissions from respective government agencies prior to applying for work permits. This means, a school in Abu Dhabi must obtain ADEC approval prior to applying for work permits for the teachers.

Article 4

The work permit becomes null and void if the claims in the application are false.

Article 5

All previous laws regarding granting of work permits are cancelled after the implementation of the new law.

In totality MOL has removed the 6 month labour ban. This means, you will not face labour ban if you change your job before completing 2 years of service. Note that labour ban will be applicable for Level 4 and 5 under various circumstances.

Do you have further queries? Let us discuss at: http://forum.emiratesdiary.com

About Deepak 505 Articles
Deepak is a passionate blogger with interests in bitcoin, online marketing, and writing.
  • -The terminating party should compensate the other party with 3 month gross salary.

    That means if the employer resigns he need to pay 3 month salary to the employer if they mutually agree ?

  • Dear Deepak,

    I’m unable to register to your website. It keeps saying ip address not allowed. I just have a question in regards to the labor ban. I’m on a limited contract and currently found a new job with 5000 AED can I use a school leaving certificate and transfer certificate to remove it since I lost my tenth and twelfth marksheets from chennai but only have the xerox.

    Regards,
    Lopez

    • Lance,
      I don’t think that is possible. You could face labor ban.
      Please consult with MOL.

  • hi,deepak
    i want little information about 6 month ban on visa changing.
    my visa is expiring in april 2016, my qualification is intermediate (f.a), and my salary limit is 3000-aed,
    i want to change visa in other company,i have other new company offer lettter with 3000-aed salary package,and i have previous company NOC, if i change visa then i have ban.
    can i change visa to other company, in january 2016 without 6 month labour ban.
    please reply

  • Sorry to said that; Mr.Dipak.. But I need to talk with you about my Vacation paid from my LLC company. Can I have your mobile number??? If you don’t want to poblist you personal number,, give me the 1 call,, 0502089447 it’s argent,,,I send some reply also before 10 min ago,but it’s not sowing here. I don’t have a time because I fix my ticket this Saturday already,,,, I need some advice ,, or you can give me your personal email ID as msg at my mobile.

    Please please please,,,,,

  • Dear Deepak,

    I am working in my LLC company more than 5 years (limited contract, renewing every two years) and now i am thinking about a job change. So is there any labour ban applicable?

    Thanks & Regards

    Ajil

  • Hi!my name is aris, i work in llc company and i have a limited contract, i finnish my first 2 years contract and continue the another 2years contract after 13 month in my second contract i file my 1month notice and got resigned wich is i dont finnish my second contract because one company gave me 300 basic salary 1500 acc.alowance 500 transport all. Cross pay 5000,and this company also is llc.
    My question should i face the ban
    If yes how can i lift my ban

  • Hi Deepak…
    First of all i appreciate ur kind efforts for supporting all.

    Under new rules in Nov 2015 Is my Abu-dhabi employment visa processing possible if i stay in UAE (On Visit Visa) not to go back to my home country Pakistan or exit and going back to my home country is must and then company will send me entry permit.

    Thanks…..

  • sir,

    My name is shahid. I’m working in a cargo company. my contract is limited contract. i have some personal issues. so idecided to resign from my company. now i’m gonna finished 6months. my probation period is 6months. if i resign after 6months any problem or any penalty ? pls advise me sir

  • Heard that Under the new law, the no ban is only applicable after completing your first limited contract. is that true? You can move only after completing your first limited contract term(2 year)?

  • Hi deepak, im working for a private security company for a year now under an agency and im thinking of resigning aftee a year (my contract is for 2 years). I wanna know if i will face a labor ban if i found a new job that would pay me higher than my salary? Or it must be 5000 aed and up? Im a bachelor degree holder and i know i can find more good opportunity in other employer. Hope you will answer my question. Thank you.

  • i just want ask regarding labour ban I am now 7 months working in my new company llc under unlimited contract.and i intend to resign.would i face labour ban?if i will be able to look for job that would provide a higher compensation would ly ban will he lifted?appreciate your feedback.

  • sir
    i want to ask that im working in construction LLC company i complete 1 year and 5 month my contract is limited before 5 days company terminate me when i sign cancellation paper there is mention 6 month no entry ban is it possible even company terminate me i face ban ?
    and if i face ban then my new company give me 5000 aed basic selery offer latter so can i lift ban ? im diploma holder pls pls reply me fast i dont have more time if possible reply me by email [email protected] or send me msg on my number 0509673083
    pls pls pls help me faster
    thanks

  • Dear Sir;
    I am civil engineer holding B.tech degree. Currently i am working with a construction llc company on a limited contract bases since last 8 months. The company is not paying sufficient salary and facilities so if i leave the company to join somewhere else with better salary will labour ban be imposed on me or how i can avoid labour ban?
    Thank you

  • Hey
    I working last 17th month
    I want to change the job
    From 2016 it is possible and no ban

  • Hey sir
    I working in the dubai last 17th month but
    I want to change the job From 2016
    It is possible and no ban
    My contact is unlimited

  • Good day Deepak, I really appreciate your efforts towards making things easy for the less privileged.
    I have a similar case just like some has mentioned.

    I am working in a construction company for one year and eight months now. I have just five months left. I joined my company with ordinary labor visa, but I have a professional skill. I decided to cancel when I noticed that my salary is just 800dh. After my 6months, the company fixed me to my profession, but in another company ( Quality Aluminium and Glass Co. LLC ) Aluminium and Glass work has been my job right from my home country. Could it still be considered as my skill since my visa is ordinary labor?

    And again, I have O’ level certificate, West Africa Examination Council (WAEC). Please tell me what my situation is like. Shoud I be considered as a skill professional or one with educational qualification?

    Finally, if I get a new job, should I be banned?

  • Hello Mr. Deepak.
    I have indefinite term contract. I work like a seller.
    I have 6 months of probation period, finished 2 months. If I resins before 6 months
    Will I get ban ?

  • hi mr. deepak.
    I am currently in an unlimited contract, i started working for the company may 2015 but the validity of my work visa was on july 04,2015, which makes my 6 months probation effective until january 04,2016 if im correct. if i send my resignation letter before end of my probation period will i get ban? like for example last week of december 2015? or it’s safe to wait until january 2016 before i file?
    thanks and hope to hear from you soon.

  • Greetings
    My company has no projects and they are ready to give me NOC, to work in other companies.
    Do I get ban,
    I have completed only 6 months now, and my visa is a Engineer visa and other companies are giving me offer up to 4500. So do I get ban if I cancel this visa for joining new non freezone company.
    Please reply

  • Mr.Deepak
    I got terminated from my company after 14 months on unlimited contarct.and company provide me NOC letter also. I got a new job but salary is below 5000. I heard that while processing visa if my new company provide orginal noc to mol.then i can get a visa. Is it true ?
    Or how i can remove the ban

  • sir,
    i have doubt, i am under limited contract, but my management said i need to finish 4 years contract with them, since i remember i signed their internal agreement stated if did not completed the 4 year contract with them i need to pay AED10,000/-, now they give me a paper and marked the non renewal of my visa, and it is stated that all dues under my name should be clear upon expiration of my visa. then the manger spoke to me and said i am resigning, but as far as i know im not reisgning, im only not renewing my contract since i will finish 2 years to this company. Can you please help me?

  • I had completed 14 months and i want to change my Job so can i swtich now or i will be ban 06 months

  • I AM WORKING IN ONE COMPANY AS A ACCOUNTANT GENERAL BUT THEY GIVE ME VISA TRUCK DRIVER AND THEY SIGN FROM ME AGREEMENT 4 YEARS
    NOW I DO”NT KNOW WHAT I DO BZ ME NOT INTRESTED IN THIS JOB
    IF ANY ONE KNOW ABOUT SOLUTION FOR THIS PROBLEM PLEASE SEND ME MAIL ON [email protected]
    ME COMPLETE 14 MONTHS IN THIS COMPANY
    PLEASE HELP ME IF ANYONE KNOW ABOUT THIS SOLUTION
    THNX ALL OF U

  • Hi,
    I was banned by the company on May2015 (1 year Ban),Can you tell me i have to wait till May2016 or it is removable according to new labor law?

  • My employer did give my 2 month salary, so I decided not to work for him. My employer does not want to cancel my visa and does not want to return my passport as well. He told me he will give me my passport If i bought a ticket for exit. He wants me to cancel my complaints against him in labour department. I’m desperate right now. 4 months no work. Please I need your advice Mr. Deepak.

  • Sir. I am new visa only 2 month. My profession is sales. Now I have to cancel my visa and put new visa. I am studied 12 standard and my new salary is 5000.so I want to know… If I cancel my visa.. is there any labour ban

  • I am in Dubai From six month and contract of 2 year with the company,I want to change my job.plz informed me whether I can or not according to new rules.

  • Dear Sir,

    One of big reputed industry giving 700 AED basic salary only since 30 yrs every yr increment added but shows in others allowance instead of basic.
    Pls look above said matter and do the needful.

    Thanks
    XYZ

  • Sir deepak.

    I have a question..im working as a cook..i finish 18months now in my company..i got offer in other company but only 3000 salery..sir if i resign in my company i will have lavor ban?

  • I have worked for acompany for 2 years .they made me sign anew contract yet i had applied for anew job and i got the new job.can i resign before finishing six months

  • Sir
    I have completed my two year contract as a plumber. Am I able to join new company without any ban? Iam having degree certificate.

  • Pls help me
    I work a company in Dubai for past 10months with 5000salary. I have an offer for 12000 in Alain. I am a Physiotherapist ( BPT), wen I asked my HR, she s saying company will put 1year ban on me. Is that ban still applicable, can I join new company without any ban?
    Waiting for ur guidance.
    Many thanks

  • Sir Deepak.. I worked for unlimited contract.

    Hi sir! I am an Electronics Engineer. I am currently hired in Electronics Workshop for almost 4 months with 1500 hundreds salary plus 2% commission which iz almost nil .i am working with him on the archieved (multi) clerk visa… I am planning to resign sir to practise my degree. My queation sir is do i have a ban if ever i resigned now? And should i have to pay my company for the expenses they spent for my visa and will face a ban?? I read some of your artucle regarding of this and also your refernce law but i want to know also the accurate law for this. Thank u and more power to you sir!!

  • Dear sir I am finished 2 years still i am coming vacation 4 month I have found new job good salary.if I am change company bend problem or not

  • Sir i just wanna ask,what is the meaning of fourth/fifth skill level on my visa???ist an ordinary labourer will appear on my employment visa???

  • Sir,

    I am working in a llc company for 2 months, i am planning to quit in this company and look for another job. I think im in skill level 2 or 3. Is there any consequence i will face if i will push my plan of quiting?

  • Sir…I’m working here in Dubai already 7year…same company.. Last September I join new company..this new company 1st give me 2 month visa from September 1st till October 30th..after that they not yet chang my visa..now I’m still working same company but overstay…now I have offer from new company..I want to join new company..if I cancil visa previous company and pay overstay still I have band..?plzz kindly reply…thanks…

  • Hi deepak..goodmorning!
    I have a job now and a have also may working visa for just a week..if it is okay if i give a resignation letter to my boss..because i work for almost 13-14 hour a day..the question is do i have a ban if i resign?

  • Dear sir
    I m labour in llc company for 8 month.can I change my company as one an other company offer me.

  • From August 2006 to may 2009 I work in transguard (uae). Llc
    In June 2009 I leave uae in absconding case. B,coz I leave company without any notice.
    Now since from June 2012 I am living in Kingdom of bahrain.
    But I want to go back UAE. So is it possible to go back uae?

  • Deepak Jee :

    Need your help.I had a job offer from UAE & my prospective employer applied for my work/entry visa which was rejected with the reason “Security Ban”. This is shocking as I have never traveled outside India & I do not have any criminal record. How can we get this ban lifted. I am also worried if this Ban is also applied at international level ? Please help & guide.

  • Hi Deepak
    I m working with Perfume company I complete 3 months now I want to join another company, Is it possible to change.
    I m on Husband’s sponsorship. Wat kind charges I hav to pay. Isit possible to change another company.

  • DEAR SIR ,
    MY NAME IS ZEESHAN I AM WORKING IN ONE CONSTRACTION COMPANY SAWAEED EMPLOYMENT LLC , ACTUALLY I WAS COME IN ABU DHABI AS SECURITY OFFICE BUT MY AGENT GAVE ME FALSE VISA AND GAVE ME LABOUR CONSTRACTION VISA MY 17 MONTHS HASS BEEN COMPLETED IN THIS COMPANY . I WANT TO CHANGE MY JOB I DID COMPLETE B.COM AND HAVE SOME COURSES CAN I CHANGE MY JOB ,SIX MONTH LABOUR BEN CHARGE OR NOT , TOLD ME HELP ME , BECAUSE ONE COMPANY IS GIVING ME OFFER LETTER BUT I AM WORRIED ABOUT SIX MONTHS BEN HOW I CAN LIFT AND HOW I CAN CHANGE JOB

    THANKS
    00971526792357

  • Hi sir,
    I’m nazar srilankan I have a uae immigration ban last year June can I enter uae again please advise me…please

  • Recently I have found a new job in Abu Dhabi, but unfortunately while applying for my visa my company have found that my visa get rejected and also that I am black listed.
    While we both werr anxious that what was the reason behind because in my life I have never been to UAE.
    PLEASE ADVICE ASAP.

  • I have completed 19 months in my current company and will I get Ban if i change my job now kindly advise me

  • Good day sir,
    I discover that I have 1 year labour ban during my new employer processing my new employment visa. But before my previous employer going to cancel me I’m already consult in Rak mol then they answered that I have no longer ban because my employer is the one who cancelled me even I’m almost 2months working his company.. He cancelled me without any valid reasons. Then I’m going to overstay so that’s why I’m going to exit to get new tourist visa.. And I returned safe in uae ( this is my 1st exit after the cancellation) but now I’m here in exit again due to finish my uae visa and we just discover that I have 1 year labour ban.. My question is there is no problem to come back in uae as tourist/ visit.. I’m worried because of the info I read that 1 year labour ban not allowed to visit uae until he didn’t finish the 1 year ban.. Please advice me because I’m worried to get problem when I’m in the borders. Thank you..

  • I am indian person I living in dubai Emirates.I staying 45 days till now.company doesn’t like stamp my visa in passport.becz they have some personal issues.in this time I got new offer from another company from abudhabi Emirates.please if anyone who know about ban if I change the new company.

  • Dear deepak,

    I am having master degree, but my current visa is wing ward worker. completed 6 months. so i am aware that i may come in skill 4 or 5 . so any ban comes if i resign now means after completion of 6 months ?? visa stamped on 27 th dec 2015. Kindly reply

  • dear sir,

    im john,i would like your advice my company now started already to apply my visa and my work permit is already been approved and im waiting for the entry permit but another company has given me a good offer and the skill set classification is 3 or 2. can i still transfer?my current skill category now is 4th.