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May 23, 2023

FNC Approves Proposal For 3-Year UAE Work Permit Plan

According to Khaleej Times, The Federal National Council (FNC) in the United Arab Emirates (UAE) has recently approved a proposal for a three-year UAE work permit plan. This proposal, if fully implemented, could significantly impact the lives of expatriates who work and live in the UAE.

The proposed three-year work permit would replace the current two-year work permit. Making it easier for foreign workers to plan their future in the country. Additionally, this plan could improve the UAE’s attractiveness as a destination for foreign talent. Potentially boosting the country’s economy and growth prospects.

Background Information on The Current Work Permit System in UAE

Currently, the work permit system in the United Arab Emirates (UAE) is based on the sponsorship system. Where employers act as sponsors for their employees. This means that employees cannot work for any other employer without their sponsor’s permission.

Additionally, work permits are typically issued for a period of two years and must be renewed before they expire. If a worker loses their job, they have 30 days to find a new sponsor or leave the country.

The current system has faced criticism for being restrictive and limiting workers’ mobility, especially in cases of abusive sponsors. It has also been criticized for leading to an increase in illegal employment and human trafficking.

In recent years, the UAE government has introduced several initiatives to address these issues, including:

  • The Wage Protection System and
  • The labor law reforms.

Despite these efforts, there is still room for improvement, and the proposal for a 3-year work permit plan could be a step towards addressing some of the existing challenges.

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FNC Approves Proposal For 3-Year UAE Work Permit Plan

To boost the UAE’s economy and provide greater job security to foreign workers. The Federal National Council (FNC) has approved extending the duration of work permits from two years to three. Work permits in the UAE are issued by the Ministry of Human Resources and Emiratization. And it is illegal to work in the country without a valid permit.

The FNC Committee on Financial, Economic and Industrial Affairs suggested that the duration of work permits be increased to three years, and the proposal was approved by the council. The extended permit duration offers numerous benefits, including:

  • Increased job stability for workers and
  • Cost savings for employers who will not need to renew permits as often.

Additionally, the FNC approved a recommendation to waive work permit fees for job changes. This will providing greater flexibility for workers seeking new job opportunities in the UAE. While workers must spend at least a year with an employer after the probation period, this requirement can be waived if the employer agrees.

While the new plan is expected to have a positive impact on the UAE economy. Some potential challenges and concerns must be addressed in the implementation process. Employers will need to adjust their recruitment strategies to ensure they are attracting the best candidates for longer-term employment. And the government will need to ensure effective enforcement of the new regulations.

Overall, the approval of the 3-year UAE work permit plan by the FNC is a step towards a more stable and secure workforce in the country. The next step in the process will be the development of regulations and procedures to support the new system.

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Benefits Of the Proposed 3-Year Work Permit Plan

The newly approved 3-year UAE work permit plan has the potential to bring about a multitude of benefits for both employers and employees in the UAE.

  • One of the main advantages of this plan is the fact that it would reduce the administrative burden on employers, who currently have to renew work permits every two years.
  • This would also free up resources that can be utilized in other areas, such as training and development programs for employees.
  • The 3-year work permit plan would also give employees greater job security. Which would help attract and retain talented workers in the UAE.
  • This would be especially beneficial for those who are looking to establish a long-term career in the country.
  • Additionally, this plan would help streamline the process of applying for and renewing work permits, making it less stressful and time-consuming for all involved parties.
  • Another significant advantage of this proposed plan is that it could boost the UAE economy by encouraging more businesses to invest in the country.
  • With the prospect of a longer-term work permit, employers would be more likely to consider establishing permanent operations in the UAE. This, in turn, could lead to job creation, higher levels of economic growth, and increased tax revenue for the government.
  • Overall, the 3-year UAE work permit plan has the potential to bring about significant benefits for employers, employees, and the economy as a whole.

However, it remains to be seen how this plan will be implemented, and what challenges may arise along the way. Nonetheless, it is a step in the right direction towards ensuring that the UAE remains an attractive destination for foreign workers and investors alike.

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