Firm owner can handle transactions by proxy

DUBAI — The Ministry of Labour and Social Affairs will allow company owners, partners and managers to authorise any person chosen by them to sign on the ministry's transactions on their behalf.

By Eman Al Baik

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Published: Mon 30 Jan 2006, 9:48 AM

Last updated: Sat 4 Apr 2015, 7:03 PM

This move is aimed at facilitating the transactions, which will not require the personal involvement of the company owners.

"Having an authorised person will solve problems that result from the inability of the employer to sign on transactions for reasons beyond his control," a ministry source held.

The new facility came in ministerial circular No 2 of 2006 issued by Dr Ali bin Abdullah Al Kaabi, Minister of Labour and Social Affairs. However, the ministry made it clear that this does not absolve the owner of his responsibility towards his workers and compliance with the labour laws.

According to the ministry, the selected person need not be under the sponsorship of the company, or any of the employer's companies. The owner can choose any person whom he feels to be trustworthy, from inside or outside the company, to sign on the transactions.

"The rule gives the employer the freedom to authorise any person he feels to be reliable and whom he can trust," added the source.

The national owner — partner or manager-in-charge — has to merely sign an undertaking, Form 1, prepared by the ministry that the authorised person is his agent for signing on all the ministry's transactions. The authorised person should also sign an undertaking, Form 2, taking complete judicial responsibility for signing on the ministry's transactions. The two forms of the undertaking should be signed in front of the Notary Public and duly attested by him.

A similar facility was granted to companies, which require a local agent in order for a licence to be issued to the establishment. Form No 3 has been prepared by the ministry for the undertaking for this type of company. The national local agent can authorise either the owner of the company or any of the senior employees to sign on the company's card and the ministry's transactions. Even in this case, the local agent will be held responsible for, ensuring the workers' rights or any violation of the ministry's rules and the labour law.

However, in all cases, the authorised person should have a valid residency and the authorisation, authenticated by the notary public.

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