Corporate Immigration 2023

Last Updated June 27, 2023

UAE

Law and Practice

Authors



Hadef & Partners is an independent, full-service business law firm with local knowledge and experience, along with international expertise, providing comprehensive, multidisciplinary legal advice specific to the jurisdiction of the UAE. Founded in 1980 by Dr Hadef Al Dhaheri, the former UAE Minister of Justice, the firm is consistently instructed on all manner and aspects of regional and multi-jurisdictional matters in the UAE onshore and the varying free zones throughout the UAE. The market-leading employment team offers a range of legal services for international and regional employers in all sectors and for the entire life cycle of the employment relationship. The team’s six lawyers advise on immigration and residency rules, Ministry of Human Resources and Emiratisation, staff benefits and incentive schemes; redundancy and termination management; end-of-service gratuity settlements; drafting and remodelling of service contracts and all other kinds of employment contract documentation; carrying out investigations in respect of suspected fraud/misappropriation of funds in an employment context; and representation in employment disputes in both the Dubai Courts and DIFC Courts.

Historically, all expatriates, in order to lawfully reside and work in the UAE, were required to be sponsored by a locally licensed and registered entity for UAE work permit and residency visa purposes. Such sponsorship was both employer and location specific, entitling the employee to work only for their sponsoring employer and at the premises under which their visa has been obtained. The UAE’s employment regime was inextricably linked to the immigration regime which was itself fairly static (very limited exceptions applied). Self-employment and consultancy were not permitted, for any individuals, within the narrow confines of the framework established by the historic labour law and immigration laws. As a result of that framework, with only a few limited exceptions, any expatriate who sought to take up employment in the UAE must have been sponsored and employed by a licensed UAE entity.

This year saw the arrival of a new immigration law, namely Federal Decree Law No 29 of 2021 Concerning Entry and Residence of Foreigners, relaxing immigration procedural requirements with the UAE Cabinet also approving the Executive Regulations to Federal Decree-Law on Entry and Residence of Foreigners (the “Regulations”). The Regulations introduce a plethora of new, flexible visas to the UAE and residency permits which include benefits for individuals and their families. They expand the eligibility criteria for the ten-year Golden Visa; introduce the new five-year Green Visa, which extends to family members and does not require a sponsor or employer; and enable a range of flexible and renewable entry visas to the UAE valid for between 60 and 90 days.

The introduction of the new system is a welcome initiative that will be of particular interest and benefit to investors, skilled employees, freelancers and their families. It will attract and retain talent to the UAE, along with easing the red tape burden of moving country.

Please refer to the recent change detailed in 1.1 Immigration Policy.

Overview of Sponsor-Based Employment Visas

In the UAE, all foreign workers must obtain an employment visa, often known as a work permit, prior to their employment. The employment visa process is primarily sponsor-based, necessitating a UAE-based organisation (with a valid trade licence) to act as the sponsor for the incoming worker. It is illegal for a person to work in the UAE without a valid work permit, issued according to the procedures set out by the Ministry of Human Resources and Emiratisation (MOHRE). The cost of issuing and renewing a work permit varies, depending on the classification of the organisation.

Types of Sponsor-Based Employment Visas

Standard employment visa

The standard employment visa is granted to foreign workers with a confirmed job offer from a UAE-based employer acting as their sponsor. This visa is valid for two years and can be renewed.

Mission work visa

For foreign employees who are required in the UAE for a specific project or a short period, the mission work visa is available. This visa is valid for a period of six months and is non-renewable.

Domestic worker visa

The UAE has a distinct category of sponsor-based visas specifically for domestic workers. This visa permits foreign nationals to work in the UAE as domestic help, such as housemaids, cooks, drivers or caretakers. The sponsor for a domestic worker visa can be a UAE citizen, a resident expatriate, or a GCC citizen residing in the UAE.

To sponsor a domestic worker, the sponsor must meet certain requirements. These include providing evidence of financial capability and providing appropriate accommodation for the worker.

The UAE has introduced various new visas, which allow individuals to reside and work inside the UAE without sponsorship from an entity, employer or individual; instead, being able to “self-sponsor” as long as they meet the requirements to procure a “self-sponsored” visa. These include the Green and Golden Visas, which embody various subcategories, including that of “investor”, and allow individuals to reside in the UAE for a period of five or ten years.

Green Visa

The Green Visa allows individuals to reside in the UAE for a period of five years, self-sponsored. This visa has three subcategories: freelancers, skilled employees and investors.

The requirements to qualify to apply for the Green Visa in each of the aforementioned categories are as follows.

Freelancers:

  • a freelance/self-employment permit from MOHRE;
  • an attested certificate of a minimum educational level of a bachelor’s degree, or specialised diploma; and
  • an annual income from self-employment for the previous two years of not less than AED360,000; or proof of financial solvency throughout their stay in the UAE.

Skilled employees:

  • a valid employment contract;
  • an attested certificate of a minimum educational level of a bachelor’s degree, or specialised diploma; and
  • minimum monthly salary of AED15,000.

Investors:

  • approval of the investment and proof of investment of at least AED1 million; and
  • approval from relevant local authorities.

Golden Visas

The Golden Visa allows individuals to reside in the UAE for a period of up to ten years, self-sponsored. This visa is similar to the Green Visa, and has multiple subcategories, all of which entail high thresholds for their requirements.

The requirements to qualify to apply for the Golden Visa, through the investor and outstanding specialised talent subcategories, which are the most common, are as follows.

Investors:

  • approval of the investment and proof of investment in real estate of at least AED2 million, and that real estate is wholly owned by the investor; or
  • the submission of a letter from an investment fund accredited in the UAE stating that the investor has a deposit of AED2 million in public investments.

Outstanding specialised talents:

  • approval and letter of recommendation from the relevant ministry;
  • minimum monthly salary of AED30,000; and
  • an attested certificate of a minimum educational level of a bachelor’s degree, or specialised diploma; as well as attested licences for executive directors, doctors, and specialists in the fields of engineering and science.

There are additional subcategories for Golden Visas, including for retired residents; as well as “self-sponsored” remote work visas, which are independently addressed in 2.4 Remote Working.

The UAE has broadened the scope of unsponsored and investment visas, to secure skilled talent. Over 150,000 residents of the UAE held Golden Visas as of December 2022, representing a shift towards an increasing proportion of residents on unsponsored visas.

To visit the UAE, individuals require visit (tourist) visas. The UAE offers an abundance of tourist visas, including 30-day visit visas on arrival for citizens of over 50 different countries, as well as a recently introduced multiple-entry five-year-long tourist visa.

Any individual travelling to the UAE on any visit visa is prevented from carrying out business activities or entering into employment with any employer, paid or unpaid; though they are permitted to seek medical treatment and attend conferences.

For individuals to be able to carry out business activities, they are required to procure a single-entry mission visa, or a work visa; after which they may enter into employment with an employer, or carry out business activities; however, even this shall be restricted to the terms of the individual’s visa.

There are many restrictions imposed upon visitors to the UAE, who are barred from carrying out any business activities, and may be subject to sanctions and deportation for doing so. Furthermore, residents are also restricted from carrying out activities and undertaking employment beyond the extent provided for by their visas.

The UAE recognises remote working, recently introducing the Dubai Virtual Working Programme for the Emirate of Dubai, and the Virtual Working Residency Visa for all other Emirates; these allow individuals who work entirely remotely for a company not based in the UAE, to be able to reside in, and work from, the UAE.

To procure either visa, the applicant is required to demonstrate that the entirety of their work is carried out remotely, that their monthly salary exceeds USD3,500, and that they maintain health insurance with UAE coverage. A successful application permits the individual to reside in the UAE for a year, renewable annually, and sponsor their family. This represents a comprehensive undertaking to recognise and facilitate remote work, from and within the UAE.

There are no prerequisite language requirements to obtain any UAE visas. Some higher education institutes require proof of English language competency; however, this requirement pertains to the institute’s policy and not the application for the student visa itself.

To secure residency in the UAE, each individual must procure a medical certificate from a health centre accredited by the relevant health authority to which Emirate they will be employed/reside, within 60 days after first entering the UAE through their entry permit.

After entering the UAE, the individual must acquire a medical certificate from an approved UAE medical centre. The medical examination to procure this certificate consists of a blood test to detect HIV, Hepatitis B and/or Hepatitis C, drug testing, and an x-ray examination for tuberculosis. If an individual fails this medical examination, they cannot acquire their residency visa.

There are no minimum thresholds for sponsor-based employment visas in the UAE. Employers can procure work permits for and sponsor any individual, as long as the employer meets all the administrative and procedural formalities before the individual commences employment with them.

Before sponsoring a foreign worker, the employer must ensure that a UAE National cannot adequately perform the same role; and in the case that the individual is being hired for a specialised profession or any other profession that requires a licence, that they have the requisite licences and qualifications, attested.

The aforementioned notwithstanding, there are no designated rules pertaining to any minimum thresholds, regarding salaries or qualifications to sponsor individuals in the UAE. Any such requirements arise from the prospective role or position, and not from the fact of the sponsorship itself.

An individual residing in the UAE on a visa sponsored by an employer is prevented from working for any employer other than the one they are sponsored by. Nevertheless, with the introduction of “part-time work permits”, through Article 7 of Decree-Law No 33 of 2021 (the “Labour Law”), individuals are permitted to work, part-time, for an additional employer; as long as their working hours with their second employer are less than their hours with their primary (sponsoring) employer. The individual must obtain a No Objection Certificate (NOC) from their primary employer, stating that they do not object to their employee working part-time with another employer.

Further, notwithstanding the aforementioned, since the employment visas of individuals are tied to their employer, an individual is only allowed to work, full-time, for the employer or entity they are sponsored by. If an individual procures a new job or intends to work for a different employer or entity, they must procure a new visa sponsored by the new employer.

The position for Golden and Green Visa holders is different, as an employer or entity does not sponsor them, but they are, instead, self-sponsored.

As of May 2023, the processing times for visas in the UAE largely depend on the type of visa sought. For employment visas, the typical processing time is between two and four weeks. However, this may extend in instances where additional documentation is required, or if there are queries from the relevant authorities. In general, MOHRE and the General Directorate of Residency and Foreigners Affairs (GDRFA) are involved in the process of granting employment visas, and their process times may vary.

The following steps must be taken in order to obtain the employment visa.

(1) Work Entry Permit

Non-national employees require a work entry permit to enter the UAE for employment purposes. The employer obtains this on the employee’s behalf by submitting an application (with MOHRE approval) to the Federal Authority for Immigration, Citizenship, Customs and Port Security (ICP). The permit will typically be issued in one or two business days. A copy of the permit will then be sent to the employee. The permit entitles the employee to a single entry into the UAE within 30 days from the date the permit was granted.

(2) Medical Examination and Certificate

Once the employee has arrived in the UAE, they will be required to undergo a mandatory medical examination at an approved hospital or medical centre, in order to obtain a medical certificate. Medical examinations (and new certificates) will be required each time the visa is renewed.

(3) Emirates ID

The employee will then apply for an Emirates ID. Biometric data (fingerprints and photograph) will be collected at an ICP service centre. It typically takes five to ten business days for the Emirates ID to be issued.

(4) Labour Card and Residency Visa

Once the medical tests and Emirates ID application are complete, the employer applies for visa stamping through the GDRFA. The GDRFA then issues the residence visa in approximately two weeks. The visa is typically valid for two years and renewable thereafter.

Please note that these processing times are estimates and may vary depending on the individual circumstances of the applicant and the current processing capacities of the UAE authorities.

During the UAE employment visa application process, travel restrictions may apply at certain stages.

Upon Entry Permit Issuance

Once the entry permit is issued, the applicant must enter the UAE within 30 days. After entry, the individual is not allowed to exit the UAE until the completion of the next stages of the process, namely the medical examination, Emirates ID registration, and residence visa stamping. This is because exiting the UAE at this point could lead to the cancellation of the entry permit.

During Medical Tests and Emirates ID Registration

Once inside the UAE, the applicant must undergo mandatory medical tests and register for an Emirates ID. During this period, the applicant is generally advised not to leave the UAE until the entire process is completed and the Residence Visa is stamped. Exiting the country during this time without having the Residence Visa stamped could lead to complications, including the potential cancellation of the employment visa process.

Once the Residence Visa is stamped, the applicant can freely travel in and out of the UAE, subject to any other relevant immigration rules or travel restrictions.

Please note that these restrictions can vary depending on individual circumstances and the specifics of each case can impact the applicability of these general guidelines.

In certain instances, visa processing times can be expedited in the UAE. This service is available for an additional fee, generally payable to the GDRFA (or Emirate equivalent authority). The fast-track service usually substantially reduces the processing time, but this can vary and is not guaranteed for every application.

While expedited options may facilitate quicker processing, these do not guarantee the approval of the visa. The decision to grant a visa still rests with the UAE immigration authorities and is based on whether all the application requirements have been adequately met.

Once an individual arrives in the UAE through their entry permit, they will have 60 days to complete the necessary post-visa immigration formalities. This includes the granting of a medical certificate following the mandatory medical examination, receiving an Emirates ID following the collection of biometric data, and, finally, the issuing of the residency visa following the application through the GDRFA.

There is no fixed cost for an employment visa in the UAE. It is comprised of, and depends on, various factors.

Work Permit Costs

Cabinet Resolution No (18) of 2022 categorises UAE private companies into three categories based on their compliance with the Labour Law and MOHRE regulations. Companies categorised in “Category 1” represent absolute compliance, whereas those in “Category 3” represent minimal compliance.

The company category determines the costs to procure work permits for new employees, which are as follows:

  • Category 1: AED250;
  • Category 2: AED1,200; and
  • Category 3: AED3,450.

Visa (Residency Permit) Costs

As of May 2023, there is a fee of AED200 to issue a residency permit for individuals working in the private sector. There is an additional “inside the Country fee” of AED500 if the individual is already based in the UAE, at the time of the application, for change of status.

Medical and EID Costs

There is no fixed fee for Emirates IDs, which vary based on the channel the application is made through, as well as the length they are applied for. Emirates ID fees start at AED100, excluding service and typing fees.

Further, each individual is required to undergo a medical examination and procure a medical certificate before applying for their Emirates ID and confirming their residency. The medical examination also does not entail a fixed cost and depends on factors, including the location where carried out, although, generally, medical fees range between AED320 and AED750.

Therefore, there is no fixed cost for sponsored employment visas. Visa costs can range between AED1,000 and AED5,000 depending on various factors, such as the sponsoring company’s category, the location of the sponsored individual at the time of the application, and medical examination fees.

Please note that visa fees in the UAE are subject to changes. The amounts stated represent the persisting positions accurate to May 2023.

If an individual is on a sponsored visa, their sponsoring entity is obligated to pay for all visa costs, including for domestic workers. However, if the individual requires a self-sponsored visa such as a Golden Visa or Remote Work Visa, their employer is not obligated to pay for it, though they are not prevented from doing so if they desire.

As long as an individual’s visa is sponsored, all visa costs must be paid by the sponsoring entity or individual; regardless of whether the sponsored individual is an employee, domestic worker or dependant, and whether the sponsor is an individual or an entity.

Circumstances Leading to Enforcement Action

The UAE authorities may take enforcement action against both the individual and the sponsoring employer in various circumstances. Common instances include violation of visa regulations, illegal employment, overstaying a visa, or providing false information in visa applications.

Consequences of Enforcement Action

In case of enforcement action, individuals could face fines, deportation, or bans on future entry to the UAE. Sponsoring employers may also face penalties including fines, restrictions on obtaining future visas, and, in extreme cases, legal prosecution. The extent of the enforcement action largely depends on the severity and frequency of the violation.

Employer Obligations in Visa Sponsorship

Sponsoring employers have several obligations under UAE law. First, they must obtain a work permit from the MOHRE. The employer must also pay all necessary fees related to the visa application process. They are responsible for providing appropriate medical insurance to the employee and must bear the costs of repatriating the employee upon termination of the employment contract or visa expiry.

Penalties for Non-compliance

The penalties for non-compliance with visa sponsorship requirements can be severe. Employers could face fines, temporary or permanent bans on obtaining future work permits, and potential criminal charges. Specific fines can range from AED500 to AED50,000 depending on the severity and nature of the violation.

The Concept of Right to Work Checks

The concept of Right to Work checks, as in jurisdictions such as the UK, differ in the UAE. The UAE employs a formal sponsorship system which indirectly serves the purpose of a right to work check. Before hiring a foreign national, an employer must first ensure the prospective employee has the right to work in the UAE by securing the necessary employment visa or work permit for them.

Process of Securing the Right to Work

The process commences with the employer applying to MOHRE for a work permit for the prospective employee. The permit serves as preliminary approval for the foreign worker to enter the UAE for employment.

Upon arrival in the UAE, the foreign worker is required to undergo a series of medical tests to ensure they are free from infectious diseases. Provided the medical tests are passed, the worker is then eligible for the issuance of an Emirates ID card and a residency visa, both mandatory for anyone intending to live or work in the UAE.

The residency visa essentially verifies that the individual has a right to work in the UAE. The employer, by obtaining this visa for the employee, ensures that they are hiring someone legally allowed to work in the country.

Verification Process

The responsibility to verify the legal status of the worker primarily rests with the employer. The employer must ensure that the work permit, residency visa and Emirates ID are valid and in force. The employer should also ensure that the employee only works in the job role and for the employer specified in the work permit.

Non-compliance with the UAE’s employment regulations can result in significant penalties, including fines and potential bans on future visa applications for both the employer and the employee. Therefore, ensuring an individual’s right to work in the UAE is a crucial part of the hiring process.

The UAE recognises spouse(s), children, stepchildren and parents, for dependant visas.

Spouse(s)

To sponsor their spouse, an expatriate resident must prove an existing marital relationship by submitting an attested marriage certificate in Arabic or duly translated into Arabic by a certified translator.

In the Emirate of Dubai, a male resident must earn a minimum monthly salary of AED4,000 plus accommodation to sponsor their spouse, and a female resident must earn a minimum monthly salary of AED10,000 to sponsor their spouse.

Children

Residents are able to sponsor their children, both sons and daughters. Slightly different rules apply to both.

Residents are able to sponsor their sons until the age of 25. Sons of determination (those with special needs) can be sponsored without restrictions pertaining to their age. However, residents with Golden Visas can sponsor their sons for the ten-year duration of their Golden Visa, even if this exceeds 25 years of age. Residents can sponsor their daughters only if, and as long as they remain, unmarried, with no restrictions regarding their age. For babies born in the UAE, a residence visa must be applied for within 120 days of their birth.

Stepchildren

An expatriate resident can sponsor their stepchildren, subject to GDRFA’s conditions which require a deposit for each child and a written no-objection certificate from their biological parent. Their residence visas are valid for one year, renewable annually.

Parents

Expatriate residents can sponsor their parents for one year, renewable annually, subject to GDRFA’s conditions which require a deposit for each parent. In the Emirate of Dubai, there is a minimum monthly salary requirement of AED20,000 to sponsor parents. Similarly to children, Golden Visa holders can also sponsor their parents for the ten-year duration of their Golden Visa and forego the annual renewal.

The minimum salary requirement for sponsoring five family members, including parents or a spouse’s parents, in the UAE is AED10,000. Additionally, the sponsor must prove family ties at residency centres and own or rent a two-bed house or flat, at least. Dependants are granted a six-month grace period from the expiry date or cancellation of their sponsor’s visa to procure a new residence permit.

Dependants and Work Rights

In the UAE, dependants on a family sponsorship visa do not have the automatic right to work. However, they can gain employment rights by obtaining a work permit, also referred to as a Labour Card, from the MOHRE.

Process of Obtaining a Work Permit

The process typically involves the prospective employer applying for the work permit on behalf of the dependant visa holder. It is noteworthy that the dependant’s visa status does not change when they obtain a work permit. They still remain under the sponsorship of the original visa sponsor (usually a family member), but the work permit allows them to be legally employed in the UAE.

Restrictions on Work Permit Holders

There are certain restrictions on dependant visa holders with a work permit. They can only work for the employer specified in the work permit, and the work should be in line with the job role mentioned in the permit.

Non-compliance with these restrictions can result in penalties, including fines and potential bans on future work permit applications. Therefore, it is crucial for both the dependant visa holder and their employer to adhere to the terms stipulated in the work permit.

Dependants Under the Golden Visa

Dependants of Golden Visa holders generally enjoy the same privileges as the main visa holder, including the right to work in the UAE without the need for a national sponsor. That being said, it is essential to remember that the right to work is subject to compliance with the Labour Law. Dependant Golden Visa holders intending to take up employment should ensure they have the appropriate work permits and licences as may be required for their particular profession or industry. 

Hadef & Partners LLC

Building 3, Level 5
Emaar Square
Downtown Dubai
PO Box 37172
Dubai UAE

+971 4 429 2823

r.hill@hadefpartners.com www.hadefpartners.com
Author Business Card

Trends and Developments


Authors



Hadef & Partners is an independent, full-service business law firm with local knowledge and experience, along with international expertise, providing comprehensive, multidisciplinary legal advice specific to the jurisdiction of the UAE. Founded in 1980 by Dr Hadef Al Dhaheri, the former UAE Minister of Justice, the firm is consistently instructed on all manner and aspects of regional and multi-jurisdictional matters in the UAE onshore and the varying free zones throughout the UAE. The market-leading employment team offers a range of legal services for international and regional employers in all sectors and for the entire life cycle of the employment relationship. The team’s six lawyers advise on immigration and residency rules, Ministry of Human Resources and Emiratisation, staff benefits and incentive schemes; redundancy and termination management; end-of-service gratuity settlements; drafting and remodelling of service contracts and all other kinds of employment contract documentation; carrying out investigations in respect of suspected fraud/misappropriation of funds in an employment context; and representation in employment disputes in both the Dubai Courts and DIFC Courts.

Introduction

The United Arab Emirates is an attractive hub of employment opportunity for expatriates, given the tax-free salary, glorious sunshine and countless employment opportunities. The UAE sits as a fairly central connection hub for the world and is therefore easily accessible for many individuals seeking to better improve their financial prosperity and future through either employment or investment opportunities.

The total expat population in UAE has now come to around 9.8 million, which constitutes approximately 89% of the population. Emiratis or UAE nationals total only 11% or 1.15 million today. The country, while relatively small, is full of personality and continues to prosper and thrive following a difficult pandemic period where the employment regulator, the Ministry of Human Resources and Emiratisation (MOHRE), together with the UAE government, successfully mitigated and relaxed various employment and immigration laws, to navigate thousands of businesses through extraordinary times. The motivator being to best protect and preserve the country’s skilled workforce and business assets. Lessons were learned and a new dawn in employment law and practice now emerges. Comprehensive immigration law changes, with the introduction of many varying forms of visa residency options and flexible working options, were embraced in 2022.

Historically, all expatriates, in order to lawfully reside and work in the UAE, were required to be sponsored by a locally licensed and registered entity for UAE work permit and residency visa purposes. Such sponsorship was both employer and location specific, entitling the employee to work only for their sponsoring employer and at the premises under which their visa had been obtained. The UAE’s employment regime was inextricably linked to the immigration regime which was itself fairly static (very limited exceptions applied). Self-employment and consultancy were not permitted, for any individuals, within the narrow confines of the framework established by the Old Labour Law and Federal Law No 6 of 1973 (as amended) (the “Old Immigration Law”). As a result of that framework, with only a few limited exceptions, any expatriate who sought to take up employment in the UAE must be sponsored and employed by a licensed UAE entity.

The Great Resignation and Its Immigration Impact in the UAE

As the world emerges post pandemic, it has become abundantly clear that employees’ priorities have shifted. Employees have begun to prioritise their mental health and well-being. This means employees are less likely to accept a work arrangement that they feel is harmful to their well-being. Employees are more likely to speak up and advocate for their rights as employees, including the right to flexible scheduling etc. This has led to the global phenomenon of “The Great Resignation”. The Great Resignation generally describes the elevated rate at which employees have voluntarily resigned from their jobs en masse. The trend started in the spring of 2021 in the wake of the pandemic.

The trend is being driven by a number of factors, including increased competition for talent, shifting worker preferences and values, and a changing job market in general. Great resignation is also being driven by the increasing availability of flexible work arrangements and remote work options. Employees are seeking more control over their work schedules and working environments, and companies that can provide this flexibility are becoming increasingly attractive to workers. Furthermore, the Great Resignation has also been exacerbated by changes in the job market, such as the shift towards a gig economy and the rise of new technologies and automation. Whilst creating new opportunities for workers, these changes also present new challenges and uncertainties for employers.

Companies now more than ever have to develop new strategies for attracting and retaining talent, and for creating a supportive and flexible work environment that meets the needs of their workforce. This means that companies now have to offer flexible working arrangements such as part-time models, work from home or flexitime. As a result of this rapidly changing business environment, companies need to be agile and flexible in order to respond to new opportunities and challenges.

Under the Old Immigration Law, the flexibility now demanded by employees was not possible for companies to provide in the UAE due to its stringent immigration laws. From a legal and political standpoint, this could result in mass resignations and a worker shortage, not to mention the repatriation of many who once called the UAE home. Essentially, the UAE could have faced a worker shortage due to the direct impact of the country’s immigration policies and regulations, which were making it more difficult for companies to recruit and retain workers from outside the UAE.

Any worker shortage would have broader implications for the economy as a whole, including lower productivity and economic growth, as more and more companies had to cut back on business due to a lack of options in terms of providing its workforce with the flexibility it now needed to satisfy the talented employees retained. The UAE government immediately noted this, and the shift in operating requirements for businesses based in the UAE, and commenced a major overhaul of its immigration procedures to enhance and progress the immigration requirements for those currently employed in the UAE and to enhance the country’s attraction to worldwide talent considering a move to the UAE.

As a result, a new immigration law was born, namely Federal Decree Law No 29 of 2021 Concerning Entry and Residence of Foreigners (the “Immigration Law”), relaxing immigration procedural requirements, with the UAE Cabinet also approving the Executive Regulations to Federal Decree-Law on Entry and Residence of Foreigners (the “Regulations”).

Immigration Landscape

The Regulations introduced a plethora of new, flexible visas to the UAE and residency permits which include benefits for individuals and their families. The Regulations expand the eligibility criteria for the ten-year Golden Visa; introduce the new five-year Green Visa which extends to family members and does not require a sponsor or employer; and enable a range of flexible and renewable entry visas to the UAE valid for between 60 and 90 days.

The UAE has recently introduced the Dubai Virtual Working Programme for the Emirate of Dubai, and the Virtual Working Residency visa for all other Emirates; these allow individuals who work entirely remotely for a company not based in the UAE, to reside in, and work from, the UAE.

Conclusion

The UAE is showing significant economic growth due to recent sweeping changes in both the labour and immigration regimes, and job opportunities are on the rise as the country welcomes more investment and business development. The UAE’s vision to ensure a labour market in the UAE that attracts talent from around the world is flourishing. The recent employment regime changes are warmly welcomed by employers and employees alike. Employers are now reviewing their staffing approach in the context of offering different employment set-ups including remote working, flexible hours, part-time working and job sharing.

What was once a fairly static and stringent employment regime is now becoming a viable global player in opening employment opportunities for many, and the country’s vision will continue to adapt to the modern day requirements of the global workforce.

The introduction of the new system is a welcome initiative that will be of particular interest and benefit to investors, skilled employees, freelancers and their families. It will attract and retain talent to the UAE, along with easing the red tape burden of moving country.

Hadef & Partners LLC

Building 3, Level 5
Emaar Square
Downtown Dubai
PO Box 37172
Dubai UAE

+971 4 429 2823

r.hill@hadefpartners.com www.hadefpartners.com
Author Business Card

Law and Practice

Authors



Hadef & Partners is an independent, full-service business law firm with local knowledge and experience, along with international expertise, providing comprehensive, multidisciplinary legal advice specific to the jurisdiction of the UAE. Founded in 1980 by Dr Hadef Al Dhaheri, the former UAE Minister of Justice, the firm is consistently instructed on all manner and aspects of regional and multi-jurisdictional matters in the UAE onshore and the varying free zones throughout the UAE. The market-leading employment team offers a range of legal services for international and regional employers in all sectors and for the entire life cycle of the employment relationship. The team’s six lawyers advise on immigration and residency rules, Ministry of Human Resources and Emiratisation, staff benefits and incentive schemes; redundancy and termination management; end-of-service gratuity settlements; drafting and remodelling of service contracts and all other kinds of employment contract documentation; carrying out investigations in respect of suspected fraud/misappropriation of funds in an employment context; and representation in employment disputes in both the Dubai Courts and DIFC Courts.

Trends and Developments

Authors



Hadef & Partners is an independent, full-service business law firm with local knowledge and experience, along with international expertise, providing comprehensive, multidisciplinary legal advice specific to the jurisdiction of the UAE. Founded in 1980 by Dr Hadef Al Dhaheri, the former UAE Minister of Justice, the firm is consistently instructed on all manner and aspects of regional and multi-jurisdictional matters in the UAE onshore and the varying free zones throughout the UAE. The market-leading employment team offers a range of legal services for international and regional employers in all sectors and for the entire life cycle of the employment relationship. The team’s six lawyers advise on immigration and residency rules, Ministry of Human Resources and Emiratisation, staff benefits and incentive schemes; redundancy and termination management; end-of-service gratuity settlements; drafting and remodelling of service contracts and all other kinds of employment contract documentation; carrying out investigations in respect of suspected fraud/misappropriation of funds in an employment context; and representation in employment disputes in both the Dubai Courts and DIFC Courts.

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