Job extension after 60 not mandatory

I am writing to you with regards to the recent change in the labour law which changed the retirement age from 60 to 65. I am currently working in a private company in the Sharjah Airport International Free Zone (SAIF) . Does this change in labour law apply to free zones? Secondly, is it mandatory for employers to extend the contract after the employee reaches 60, or is it an option extended to employers which can be exercised upon their will?

Normally each free-zone authority in the UAE issues its own regulations which are independent of the provisions stipulated in Federal Law No. 8 of 1980 relating to labour relations.

The Sharjah Airport International Free Zone somewhat follows Federal Law No. 8 of 1980 concerning matters relating to employees of legal entities incorporated in SAIF. It is understood that the renewal of employment visas for employees of legal entities incorporated within SAIF Zone, who have reached the age of 60, is subject to the approval of the Ministry of Interior which may renew the employment visa of such an employee for a period of one year from the date of the visa expiry. At the expiry of the one-year period, the Ministry of Interior may, at their discretion, continue to renew the employment visa of an over-60-year-old employee on an annual basis, till the employee turns 65 or more, depending upon qualifications and expertise of such an employee.

Article 3© of Ministerial Order No. 52 of 1989 issued by the Ministry of Labour regarding “The Rules and Procedures to be adopted at the Labour Permit Sections with respect to the Recruitment of non-national labourers for employment in the UAE” states: “The labour recruited shall not be less than 18 and not more than 60 years old. The maximum age limitation, however, may be waived if the employee to be recruited shall have an extensive and rare experience in the field of his specialisation, provided the job he has been recruited for employment in the UAE shall be of economic importance and such waiver shall be sanctioned by the minister.”

The Ministry of Interior may take into consideration the provisions of the ministerial order at the time of renewal of the employment visa of an employee who has reached 60; although it is not mandatory for the Ministry of Interior to take into consideration the ministerial order provisions, as Federal Law No. 8 of 1980 pertaining to labour relations is not applicable to entities incorporated in the free zones.

In summary it is not mandatory for the employers to extend the employment contract of an employee who has reached 60.

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Visa cancellation without passport

I was working in Abu Dhabi as an engineering consultant from November 2009 to May 2011. After the end of the project, the company gave me a letter of redundancy with two options: to stay employed with the company without pay, or termination of employment. I selected the second option and they asked me to wait as the company did not have any projects. During that period, I left for India in May 2011. After two months, I sent an email to the HR manager enquiring about my employment status. He said they still didn’t have any projects and sent me a termination letter with one month notice. They asked me to send my passport to cancel the visa. As I was in India, I did not, but they settled my dues and benefits and then cancelled my visa. They sent me the scanned copy of the cancelled visa and labour contract cancellation paper. I was on an unlimited contract at that time.

I would like to know whether I am banned from entering the UAE as my visa and labour contract were cancelled without my passport. I have settled all issues with my bank and my financial slate is clean.

In the event an employee departs from the UAE, for whatsoever reason, without cancellation of the employment visa, the employer could cancel the employment visa six months after the date of departure of the employee from the country.

There should be no ban on you from entering the UAE, notwithstanding the fact that your visa was cancelled without your passport.

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Change of visa status

I came to Dubai on a three-month visit visa and was trying to acquire a job. I have now secured a job as an electrical engineer with an architectural firm here in Dubai. I want to know whether I have to exit the country before my employer can apply for an employment visa, or whether it can be done without me having to leave the country.

Your employer could apply for an employment visa for you while you are physically present in the UAE. Since you entered the country on a three-month visit visa, it is not necessary for you to exit the UAE and re-enter on your employment visa, as a change of status can be done without you leaving.

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Ashish Mehta, LLB, F.I.C.A., M.C.I.T., M.C.I.Arb., is the founder and Managing Partner of Ashish Mehta & Associates, a legal consultancy firm in Dubai. He also practises in India, United Kingdom and Singapore. He has worked with international and commercial legal procedures, providing analysis and counselling on complex legal documents and policies such as commercial transactions, securitisation, real estate acquisitions, financial restructuring for distressed assets, mergers and acquisitions, arbitration and litigation issues. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.