New sponsorship law in force

ABU DHABI - Labour authorities implemented the new sponsorship transfer system yesterday with Dr Ali bin Abdullah Al Kaabi, Minister of Labour and Social Affairs, expressing confidence that the new policy would ease restrictions on movement of human capital in the local labour market and curb violations related to procedures.

By Nada S.mussallam

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Published: Sat 23 Jul 2005, 11:38 PM

Last updated: Thu 2 Apr 2015, 7:53 PM

The minister said the new system was in line with the flexible rules and dynamic business environment in the UAE and would streamline sponsorship transfer operations while safeguarding the interests of both employees and employers.

"Under the new system, post-graduates and Ph.D holders are allowed to transfer their sponsorship after one year of continuous service. However, fees levied for this category might amount to Dh2000 to Dh2500 depending on the type of the labour contract, weather it was limited or unlimited. Employees in this category are allowed to transfer sponsorship several times without restrictions once they complete one year service as they are labourforce of high calibre and in specialised professions," Dr Al Kaabi said, adding that the transfer process, howver, requires approval of the old and new sponsors.

"As for bachelor's degree holders or its equivalent, the system allows employees to transfer sponsorship twice after paying Dh3000. They should have completed at least two years in service," Dr Al Kaabi said.

Those who have certificates lower than a degree, the minister said a fees of Dh5000 will be levied and they should have completed three years in service.

This category would be allowed to transfer sponsorship only once, he said.

"The door was not opened for sponsorship transfer earlier only to avoid misuse of the system. Now we have made it permissible while imposing high fees as one of the measures to ensure efficiency of the system besides safeguarding the interest of employers," the minister said.

He said the system underlined the need for less qualified category workers to spend sometime serving the employer as they usually come fresh to the country and get trained and acquire skills in their first work place. "We should be fair with employers as they recruit and train this category. Therefore, they should avail of this labourforce for at least three years," he said.

To a question on the ministry's survey to assess compliance of companies with government conditions to facilitate different labour transactions, the minister said: "Initially, the survey which was launched yesterday showed a high percentage of compliance by companies."

He reiterated that the ministry will reward companies complying with set criteria in terms of fees and various labour transactions.

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