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    Cabinet and Ministerial resolutions on Transfer of

    Sponsorship

    Cabinet resolutionsResolution No. 30, For 2001

    Ministerial resolutionsResolution No. 123 for 2001Resolution No. 565 FOR 2005

    Resolution No.826 FOR 2005

    Resolution No.18 FOR 2005

    Ministerial DecreeDecree No. 86, for 2006

    UNITED ARAB EMIRATES

    THE COUNCIL OF MINISTERS

    COUNCIL OF MINISTERS RESOLUTION NO 30, FOR 2001,

    REGARDING TRANSFER OF SPONSORSHIP,

    CATEGORIES ALLOWED TO TRANSFER SPONSORSHIP,

    AND PERTINENT CONDITIONS

    The Council of Ministers;

    After having reference to the Constitution;

    And to the Federal Law No 1, for 1972, on the functions of the

    Ministries and the powers of the Ministers, and the amending laws

    thereof;

    And to the Federal Law No 8 for 1980, on regulation of Labor

    relations, and the amending laws thereof;

    And to the Council of Ministers resolution No 17 for 1993, on

    converting visitors visa into employment visa;

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    And to the Council of Ministers resolution No 559/29 for 2001, on

    the transfer of sponsorship, the categories permitted to transfer

    their sponsorship, and the pertinent conditions;

    And based on the submission of the Minister of the Interior andthe Minister of Labor and Social Affairs and the approval of the

    Council of Ministers;

    RESOLVES AS FOLLOWS

    ARTICLE ONE

    First: Categories Permitted to Transfer Sponsorship:

    1. Engineers.2. Physicians, pharmacists, and nurses.3. University and higher college teaching staff.4. Legal, economic, financial and management experts and advisors

    holding post-graduate degrees.

    5. Electronic information systems analyzers and programmers holdinguniversity degrees in these areas.

    6. Specialists and technicians engaged in extraction and refining of oiland gas and related industries.

    7.

    Sports coaches in the various sports and educational activities.8. Specialists in marine and air navigation and in ship and planepilotage.

    9. Any other categories within the above mentioned rarespecializations, to be mutually agreed between the Ministry of the

    Interior and the Ministry of Labor and Social Affairs.

    Second: Conditions for Transfer of Sponsorship:

    1. The laborer or employee must work with the new employer in thesame occupation he was engaged in with the former employer.

    2. The laborer or employee must have a valid residence permit affixedto his passport.

    3. The laborer or employee must have worked for at least two yearswith his former employer.

    4. The laborer or employee must obtain his sponsors consent to thetransfer of his sponsorship after the lapse of two years.

    5. If a UAE National or a GCC citizen cannot fill up the post registeredas job seeker with the concerned authorities in the UAE.

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    Third: Notwithstanding the above conditions, transfer of

    sponsorship may be permitted in the following cases:

    1. Transfer to another firm owned by the same firm owner(s).2. Transfer from one branch to another in the same company or

    establishment, or from a company/establishment to anothercompany/establishment owned by the same employer.

    3. Transfer as a result of transfer of the companys/establishmentsownership to another company, establishment or individual.

    Fourth: Without prejudice to the above provisions on transfer of

    sponsorship, the residence permit of those who can not meet the

    prescribed conditions for transfer of sponsorship shall be cancelled.

    Those shall not be issued new residence permit or entry visa except

    after the lapse of six months from the date of last departure from theUAE or after the lapse of the embargo period specified in the laws in

    force. The one-year embargo stamp shall continue to apply to

    household servants and related categories. The precondition ofcanceling the residence permit shall apply to the workers who have

    suit cases before the courts and do not meet the conditions of transfer

    of sponsorship.

    Fifth: The Ministry of Labor and Social Affairs and the Ministry of

    the Interior, each in its respective area, and in coordination between

    them, shall issue an explanatory memorandum on the job categoriesfor which transfer of sponsorship is permissible and the conditions

    applicable to transfer of sponsorship.

    ARTICLE TWO

    Any provisions contrary to this resolution shall be null and void.

    ARTICLE THREE

    The authorities concerned, each in its respective area, shall implementthis resolution, which shall be published in the official Gazette and

    shall come into force on its date of issue.

    Issued in Abu Dhabi on the 3rd of Shaban 1422, corresponding to the

    20th of October 2001.

    The Deputy Prime Minister

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    United Arab Emirates

    Ministry of Labor and social Affairs

    Ministers Office

    Date; 27.7.2001

    Ministerial Resolution No. 123 for 2001,

    Amending Ministerial Resolution No 230 for 1997,

    on Transfer of Sponsorship

    The Minister of Labor and Social Affairs;

    After having reference to Federal Law No. (1) For 1972, on the

    functions of ministries and the responsibilities of ministers;

    And to the Federal Law No. (8) for 1980, on regulation of labor

    relations, and the amending laws thereof;

    And to the ministerial resolution No 230 for 1997 on rules of shifting

    of non-national labor from one employment to another and the

    procedures to be followed pending transfer of their sponsorship.

    And based on the submission of the Ministrys Under-Secretary forthe Labor Sector

    Resolves as follows:

    Article (1)

    It is a precondition for transfer of non-National labor from their present to

    another employer- pending transfer of their sponsorship in the

    exceptional cases specified under clauses C, D, and E of Article 3

    of the Ministerial Resolution No 230 for 1997- that the request for

    transfer of sponsorship be submitted within six months at most from the

    date on which the firm is closed down or declared bankrupt, liquidated or

    wound up by court ruling, or the employer dies and the firm is closed

    down as a result.

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    Article (2)

    This resolution shall take effect as of the date hereof and all concerned

    organizations shall implement it, each in its respective area.

    Mattar Humaid Al-Tayer

    inister of Labor and Social Affairs

    Date; 27.7.2005

    MINISTERIAL DECISION NO. 565 FOR 2005,

    REGARDING THE RIGHTS OF WORKERS

    RENTED OUT TO OTHER COMPANIES

    The Minister of Labor and Social Affairs;

    After having reference to the Federal Law No.( 1) for 1972, on thefunctions of ministries and the responsibilities of ministers;

    And to the Federal Law No. (8) for 1980, on regulation of Laborrelations, and the amending laws thereof;

    Decides as follows:

    Article 1

    The working conditions offered to rented workers should be the same or

    better than those in the company renting out its workers.

    Article 2

    A rented workers term of service shall extend for a fixed period of time

    not exceeding 12 months.

    Article 3

    A rented workers service with the new and original employers shall beconsidered uninterrupted term during which the worker will be entitled to

    his salary and other benefits as per the provisions of the Labor law.

    Article 4

    The application presented to the Ministry shall particularly indicate the

    starting date of renting out, type of work, location, duration and the salary

    in accordance with the forms specified by the competent undersecretary.

    Article 5

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    Both the borrowing and original sponsors shall be responsible, together

    and separately for the workers rights according to the Labor law and the

    work contract.

    Article 6The service of a rented worker shall terminate upon the expiry of its

    period or one year after its commencement. Thereafter, his contract with

    the original employer shall remain valid without interruption.

    Article 7

    No commission, fees or any financial charges shall be imposed on a

    rented worker.

    Article 8

    In the event a conflict arises, the worker may place a complaint against

    the new and original employers, who shall be obliged to fulfill all ensuingrights entitled to the worker as per the provisions of the law and the work

    contract.

    Article 9

    It shall not be permissible to hire workers, allow their work with parties

    other than the original employer, or otherwise perform any act that

    contravenes the provisions of this decision.

    Article 10

    Without prejudice to any penalties provided in the law and the executive

    regulations, any firm that violates the provisions of this decision shall

    have to pay double official transaction fees for every application to the

    Ministry, and shall forfeit its eligibility for a license to bring in foreign

    workers to the country for at least six years from the date on which such

    double payment was made.

    Article 11

    The competent undersecretary shall issue decisions and measures in

    respect to the implementation of this decision in the best manner.

    Article 12

    This decision shall take effect as of the date of its issue and shall be

    published in the official gazette.

    Dr. Ali bin Abdulla Al KaabiMinister of Labor and Social Affairs

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    MINISTERIAL DECISION NO. 826 FOR 2005,

    REGARDING THE EXECUTIVE REGULATIONS

    FOR LABOR SPONSORSHIP TRANSFER

    The Minister of Labor and Social Affairs;

    After having reference to the Federal Law No.( 1) for 1972, on thefunctions of ministries and the responsibilities of ministers and the

    amending laws thereof;

    And to the Federal Law No. (6) for 1973, regarding expatriatesentry and residence and the amending laws thereof;

    And to the Cabinet Decision No. (3) for 1977 regarding therecruitment of expatriate workers;

    And to the Federal Law No. (8) for 1980, on regulation of Laborrelations, and the amending laws thereof;

    And to the Cabinet Decision No. (18) for 2005 regardingsponsorship transfer and renting of sponsored workers and payable

    fees;

    And based on the submission presented by the undersecretary forLabor sector;

    Decides as follows:

    Article 1

    The transfer of workers sponsorship shall take place in compliance with

    conditions, rules and procedures stipulated in this decision.

    Article 2

    Expatriate workers can change their sponsorship under the following

    conditions:

    1. The worker must have a valid residence visa stamped in hispassport.

    2. The worker must have valid Labor card.3. It should be insured that the job for which the change of

    sponsorship is required cannot be filled by UAE nationals or GCC

    jobseekers registered with competent authorities.

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    4. Workers shall have spent a specific period of time with theircurrent sponsors. The period is calculated from the date the

    workers Labor card was issued and will be as follows for all

    categories:

    a. One year for professionals with Masters and PhD degrees.They are allowed to transfer their sponsorship for unlimitednumber of times during their tenure in the UAE.

    b. At least two years for workers with Bachelors degree or itsequivalent. They are allowed to change their sponsorship

    twice during their stay in the country.

    c. At least three years for other categories with lowerqualifications. They are allowed to transfer their sponsorship

    only once during their tenure in the country.

    d.

    The job to which the sponsorship transfer is required mustcomply with the qualifications and experience of the worker,

    as well as with the firms activity.

    5. 5 The worker must get the consent of both the original and newsponsors.

    Article 3

    The fees for sponsorship transfer shall be as follows:

    Value in DurhamsType of FeeCategory

    A

    Category

    B

    Category

    C

    Approval of internal work permit for

    Masters and PhD holders

    1500 2500 3500

    Approval of internal work permit for

    holders of Bachelors or equivalent

    3000 3500 4000

    Approval of internal work permit for

    other Labor categories

    5000 5500 6000

    Approval of internal work permit forworkers above 60 years, including the

    issue of a one-year Labor card for all

    categories

    5000 5000 5000

    Approval of internal work permit for

    workers moving within firms owned bythe same sponsor

    500 500 500

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    Article 4

    In the event of non-compliance with the period of service condition

    stipulated in Article (2) above, and upon the consent of the new sponsor,

    workers other than Masters and PhD holders can be exempted from this

    condition after spending at least one year in their job, provided they payDh 3,000 in addition to fees payable for sponsorship transfer.

    Article 5

    All Labor categories can be exempted from the condition of service

    period provided they pay Dh 3,000 in addition to fees payable for

    sponsorship transfer prescribed in Article (3) above , and without

    spending one year period of service with their sponsors as stipulated in

    Article (4) above, under the following conditions:

    1.

    if the company announces its bankruptcy, is closed down orliquidated as a result of a court ruling;

    2. in the event the Ministry of Labor cancels the companyslicence (firm card);

    3. if the ownership of a company has been transferred toanother owner;

    4. if a company has been merged or incorporated withinanother company;

    5. if the company has been divided to heirs after its ownersdeath or any other reason;

    6. in case a stake of the company has been sold to anothercompany; or,

    7. If the companys owner dies, leading to its closure.Article 6

    The Ministry may decide to transfer the sponsorship of all Labor

    categories without referring to the current sponsor or taking his consent,

    upon a request from the new sponsor, and without applying the condition

    of the service period or the minimum period of service provided in

    Article (4), provided that fees payable for sponsorship transfer stated inArticle (3) thereof, in addition to exemption fees are fully covered.

    However, such decision should be specifically based on the following

    criteria:

    1. If the current employer fails to pay salaries for three months ormore according to reports presented by the Labor Inspection

    Department or Labor Relations Department of the ministry.

    2. If ownership of a company has been transferred to another owner.3. If the company is closed down administratively, by a court ruling

    or upon a report by the Labor Inspection Department.

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    4. If it is proved by documents that the companys owner has died,leading to the closure of the company.

    5. If workers file a complaint against their employers at the Ministryand their complaint is referred to the courts. In this case the courts

    may decide to grant workers permission to change sponsorship.6.Any other cases approved by the Minister.

    Article 7

    According to the provisions of this decisionofficials of Labordepartment are authorized to approve sponsorship transfer and exempt

    from the service period.

    Article 8

    Applications for sponsorship transfer shall be submitted in accordancewith the following procedure:

    1. The new sponsor or his representative must submit the transferapplication to the local Labor office, along with required

    documents, whether through the normal post or the Ministrys

    counter assigned for receiving transactions.

    2. The required documents to be attached along with the sponsorshiptransfer transaction are as follows:

    a. the application for sponsorship transferaccording to the Ministrys form;

    b. a copy of the signature authorization form for each thecurrent and new sponsor;

    c. a copy of the workers passport and a copy of his Laborcard; and

    d. Copies of academic qualifications duly certified bycompetent authorities and evaluated by the Ministry of

    Higher Education.

    3. The concerned Ministrys official scrutinizes the application forsponsorship transfer to ensure the correctness and accuracy of the

    attached documents, and make sure that they fulfill the conditionsrequired. The transaction is then referred to the counter to be

    approved, rejected or returned to the applicant for further

    verification.

    4. The new sponsor must pay the fees for sponsorship transferand deposit the bank guarantee amount for each worker

    sponsored by him.

    5. The company for which the sponsorship transfer is requiredmust complete the procedure for registering the worker and

    submit the following documents:

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    a. the application for canceling the previous Labor card, whichmust be certified by the former sponsor ( attached with

    sponsorship transfer consent);

    b. an application for a new Labor card;c. the old Labor card;d. the bank guarantee, if required; ande. Receipt of fees paid for sponsorship transfer.

    6. The Ministry counter employee must enter the application data inthe ministrys computer system and ensure the availability of the

    above-mentioned documents.

    Article 9

    The new sponsor shall complete the procedure for sponsorship transfer,

    including the payment of fees and registration of the worker, within amaximum period of sixty (60) days from the date the ministrys approval

    is received, and upon failure to do so the application will be cancelled.

    Article 10

    All Labor categories can be exempted from the provisions of clause (2)

    and clause (4) of Article (2) provided that the new sponsor pay Dh 500

    for each worker, under the following circumstances:

    1. If the transfer is from an establishment to another located in thesame emirate and owned by the same person.

    2. If the transfer is from an individual establishment or one of itsbranches to another branch in the same emirate.

    3. If the transfer is from a company or one of its branches toanother branch in the same emirate.

    In case of expired Labor cards, all fines and payable fees should be paid

    as a condition before the issuance of the approval of the

    sponsorship transfer.

    Article 11

    Notwithstanding sponsorship transfer cases provided in this decision, theMinistry is not allowed to issue new Labor permits to workers whose

    Labor contracts have been cancelled, before at least six months from the

    date the Labor card was cancelled.

    Article 12

    This decision shall take effect as of the date of its issue and shall be

    implemented by all concerned authorities.

    Dr. Ali bin Abdulla Al KaabiMinister of Labor and Social Affairs

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    MINISTERIAL DECISION NO. 18 FOR 2005, REGARDING

    SPONSORSHIP TRANSFER AND RENTING OF

    SPONSORED WORKERS AND PAYABLE FEES

    The Cabinet of Ministers;

    After having reference to the Constitution;

    And to the Federal Law No.(1) for 1972, on the functions of ministries

    and the responsibilities of ministers and the amended laws thereof;

    And to the Federal Law No. (6) for 1973, regarding expatriates entry and

    residence and the amending laws thereof;And to the Federal Law No. (8) for 1980, on regulation of Labor

    relations, and the amending laws thereof;

    And to the Cabinet Decision No. (30) for 2001 regarding sponsorshiptransfer and categories allowed to be transferred;

    And to the decision No. (360) for 1997 by the Minister of Interior, issuing

    the Executive Regulations of Federal Law No. (6) for 1973, regardingexpatriates entry and residence ;

    And to the Cabinet Decision No. (466/9) for 2005, setting a new system

    of sponsorship transfer for all labor categories and renting of construction

    workers and payable fees;And based on the submissions presented by the Minister of Labor and

    Social Affairs and approved by the Cabinet;

    Decides as follows:

    Article 1

    Sponsorship may be transferred upon the approval of the Minister of

    Labor and Social Affairs or an authorized representative thereof, underthe following conditions:

    1. The worker must have a valid residence visa stamped in hispassport.

    2. It should be insured that the job for which the change ofsponsorship is required cannot be filled by UAE nationals or

    GCC jobseekers registered with competent authorities.

    3. Workers must have spent a specific period of time with theircurrent sponsors, as shown below for each category:

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    a. Al least one year for professionals with Masters and PhDdegrees. They are allowed to transfer their sponsorship for

    unlimited number of times during their stay in the UAE.

    b. At least two years for workers with Bachelors degree or itsequivalent. They are allowed to change their sponsorshiptwice during their stay in the country.

    c. At least three years for other categories with lowerqualifications. They are allowed to transfer their sponsorship

    only once during their stay in the country.

    d. The job for which the change of sponsorship is requiredmust comply with the qualifications and experience of the

    worker, as well as with the firms activity.

    However, the Minister of Labor and Social Affairs, or an authorizedrepresentative thereof, may exempt workers from the condition of service

    period against a fee of Dh 3,000 for each worker, along with the other

    payable fees as stipulated in Article (2) of this decision.

    Article 2

    The fees for sponsorship transfer shall be as follows:

    1. Dh 1,500 for PhD and Masters degree holders.2.

    Dh 3,000 for holders of Bachelors degree or equivalent.3. Dh 5,000 for other labor categories.

    Article 3

    The Minister of Labor and Social Affairs or an authorized representative

    thereof may decide to waive the service period condition stipulated in

    Article (1) therein to transfer the sponsorship of all Labor categories froman establishment to another one, if both establishments are owned by the

    same person and are located in the same emirate, provided that the

    sponsor pays Dh 500 for each worker.

    In case of sponsorship transfer from an emirate to another one, the

    sponsor must pay the fee stipulated in Article (2) therein.

    Article 4

    The Ministry of Labor and Social Affairs or an authorized representative

    thereof may allow the renting out of construction workers from a

    company to another provided that:

    1. their number must not be less than twenty (20) workers;2. the company requesting them must be in real need of Labor

    according to information available to the Ministry;

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    3. the current employer agrees to rent out these workers to the otheremployer;

    4. the new company must submit an application to the Ministryindicating its commitment to pay the following fees:

    Dh 1500 for each worker in case the renting period does notexceed three (3) months.

    Dh 2000 for each worker in case the renting period exceedsthree months up to six (6) months maximum.

    Dh 2500 for each worker in case the renting period exceedssix months up to nine (9) months maximum.

    Dh 3000 for each worker in case the renting period exceedsnine months up to one year maximum.

    Any company failing to abide by these conditions shall have its fees

    doubled for every application to the Ministry and shall not be allowed to

    bring in new expatriate labor into the country before six months at least

    from the date of paying the doubled transaction fees. The Ministry of

    Labor and Social Affairs shall issue necessary rules and measures for

    renting workers, in coordination with the Ministry of Interior.

    Article 5

    The Ministry of Labor and Social Affairs shall be authorized to draw upnecessary rules and standards for the implementation of this decision.

    Article 6

    The Cabinet Decision No. (30) for 2001 regarding sponsorship transfer

    and categories allowed to be transferred shall be repealed.

    Article 7

    This decision shall take effect as of the date of its issue and shall be

    implemented by all concerned authorities.

    Dr. Ali bin Abdulla Al Kaabi

    Minister of Labor and Social Affairs

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    Ministerial Decree No. 86, for 2006,

    Dated 25.1.2006,

    Amending the Executive Regulation of Sponsorship Transfer

    The Minister of Labour and Social Affairs;

    After having reference to Federal Law no 1 for 1972, asamended, on the functions of the ministries and powers of

    the ministers;

    And to federal law no 8 for 1980, as amended, on regulation ofwork relations;

    And to the Cabinet Resolution no 18, for 2005, on transfer ofsponsorship and seconding of employees, and the applicable fees;

    And to the Ministerial Decree no 826, for 2005, on the Executiveregulation of sponsorship transfer;

    And based on the submission of the concerned Under Secretary ofthe Ministry;

    Resolves as followsArticle One

    Requests by employers for finalizing sponsor transfer registration

    procedures may be accepted after the lapse of the period for approval of

    sponsorship transfer, which is sixty days from the date of issue of the

    initial approval.

    Article TwoApproval of requests for extension of validity of sponsorship transfer

    shall be subject to the following conditions:1. Payment of a fee of AED500 for an additional respite of ten days

    from expiry of the sponsorship transfer validity date or the

    extension, and for each subsequent respite, subject to a maximum

    of three respites (30 days), for a fee of AED500 for each 10-day

    respite.

    2. Procedures for sponsorship transfer shall be finalized after paymentof the prescribed fees.

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    Article Three

    This decree shall go into force as on 11.2.2006 and shall be strictly

    adhered to.

    Dr. Ali Abdullah Al KaabiMinister of labour and Social Affairs