GCC Immigration and Employment roundup - November 2021

The United Arab Emirates (UAE)

Applications Open for Five-Year Tourist Visas 

The UAE has announced the introduction of a five-year multiple entry visit visas for all nationalities. The application process is now open, and applicants can apply via the Federal Authority for Identity and Citizenship (ICA). If successful, individuals will be able to spend 90 days in the country, in one year. This can be extended for a further period of 90 days, via application to the ICA.

Applicants will need to submit evidence to the authorities as part of their application, including medical insurance, bank statements and a certain minimum level of funds in their account. This multi-entry visa will enable regular or frequent visitors from countries that are required to apply for a visa prior to travelling and entering the UAE, to re-enter the country freely and without submitting a visa application for each trip. The availability of a multi-entry tourist visa is an exciting opportunity especially at the start of Expo which is being held in Dubai, and will be running until April 2022.

Digital Emirates IDs

The UAE Government unveiled a “new generation” of Emirates ID cards in August, containing enhanced data such as employment information, and an extended service life beyond ten years.

Electronic versions are available to download from the Federal Authority of Identity and Citizenship (ICA) app or smart services website, or the UAE Pass app, whilst individuals wait for their physical ID cards following the successful processing and stamping of their UAE residence visas. Expired Emirates ID cards will remain valid until individuals receive their new cards, and digital versions are valid for identification and employment purposes.

DIFC Employment Law Amendments 

Following consultation earlier this year in respect of proposed amendments to DIFC Law No. 2 of 2019 (as amended) (the Law) and associated Employment Regulations (the Original Regulations), the DIFC Authority has enacted: 

•  DIFC Law No. 4 of 2021 (the Amendment) which amends the Law; together with

•  Employment Regulations 2021 (Qualifying Scheme requirements under Article 66 of the Law) (the Regulations),

both of which are effective as of 21 September 2021. 

The key changes which employers in the DIFC should be aware of are set out below. 

Statutory limitation period

The Amendment has not changed the six month statutory limitation period during which employees may file claims following termination of employment. However, clarification has been provided in relation to the issuance of claims during service, particularly in respect of disputes over unlawful deductions and discrimination/victimisation. 

Short term working and probation

Where an employee is engaged on a short term basis (i.e. six months or less), probation may not exceed half of the agreed fixed term period. This impacts both termination considerations and entitlements for the DIFC Employee Workplace Savings Plan or equivalent qualifying scheme(s). 

Atypical working

Employers continue to be responsible for employees’ health and safety in the workplace. However, the Amendment clarifies that all obligations in that regard do not extend to remote workers. Employers are however required to ensure that protections in respect of discrimination and victimisation extend to employees working remotely as well as those seconded to a DIFC employer whilst continuing to be employed by a non-DIFC entity and therefore not governed in entirety by the Law. 

“Additional Payments”

DEWS payments and contributions (for the purposes of equivalent qualifying schemes) must be calculated with reference to an employee’s ‘Basic Wage’, excluding ‘Additional Payments’. The definition of ‘Additional Payments’ has been amended to specifically include profit shares or drawings, thereby excluding any such amounts from DEWS contributions. Importantly, the Amendment specifically provides that employees who receive drawings or similar from an ‘Affiliate’ are exempt employees for the purposes of DEWS or equivalent. It is important to note that the changes under this part cannot be used to enable parties to reduce or otherwise manipulate an employee’s basic wage by making regular payments appear to be discretionary and thereby excluding them from contribution calculations.

DEWS and alternative qualifying schemes

Employees are still required to obtain a certificate of compliance for the purposes of an alternative qualifying scheme. However, a certificate will be issued only where the scheme meets certain requirements. Notably, the scheme must take the form of a DIFC Trust and it is not longer permissible for the operator and administrator of the trust to be established outside of the DIFC. Instead, both must be established in the DIFC and regulated by the DFSA. 

In addition, exemption certificates will be issued in limited circumstances. Broadly, an employer must be able to show that there is a statutory duty to make pension, retirement or similar contributions in respect of a particular employee to a scheme in another country or that the employer makes contributions to a “Group Scheme” (available in at least 4 countries) on behalf of the employee. Such contributions must exceed the Core Benefits payable pursuant to the Amendment (exclusive of any employer related costs of the “Group Scheme”). 

Employers holding existing exemption or compliance certificates issued under the Original Regulations which would not meet the new requirements brought about by the Regulations have a 12 month grace period to put in place arrangements which will satisfy the new requirements. 

Finally, a fee of USD 500 shall be payable for applications for a certificate of compliance or exemption.

The Kingdom of Saudi Arabia (KSA)

Extension of Visit Visas until 30 November

Saudi Arabia’s Ministry of Foreign Affairs has announced the extension of visit visas until 30 November 2021. This only applies to individuals who were in the country when their visit visas expired, during the period that a travel ban from their home country to the Kingdom was in place. 

Visas will be extended free of charge. Those countries facing a travel ban at present are: India, Pakistan, Indonesia, Egypt, Turkey, Brazil, Ethiopia, Vietnam, Afghanistan and Lebanon.

Saudisation Update

Saudi Arabia’s Minister of Human Resources and Social Development, has issued several decisions to saudise jobs in the following sectors, in an aim to create further employment for Saudi nationals. Minimum salary levels have been set, along with dates that these changes will come into effect:

Marketing and Administrative Support Jobs

Thirty percent of jobs in the marketing and administrative support sectors will be saudised from 8 April 2022, and it is expected that this decision and implementation will lead to the creation of 12,000 positions for Saudi nationals. A minimum of SAR 5,500 will also apply to calculate hiring one national under the Nitaqat programme. This change will apply to companies that employ five or more employees in marketing professions. The professions that are captured by the MHRSD’s decision are: Manager, marketing specialist, advertising and public relations manager, marketing sales expert, advertising designer, and commercial advertising photographer.

Medical Laboratories,Radiology, and others

The Minister of Human Resources and Social Development has also announced a decision to localise jobs in medical laboratories, radiology, physiotherapy, and therapeutic nutrition departments in all medical facilities in Saudi Arabia. The target Saudisation rate in speciality health care areas is sixty-percent, and this will take effect on 11 April 2022. The minimum salary will be set at SR 7,000 for a specialist and SAR 5,000 for a technician in this space.

Private Medical Equipment and Appliances Sector

Sales and Advertising positions in the private medical equipment and appliances sector, will also be subject to Saudisation from 11 April 2022. The Saudisation rate will start at forty-percent, increasing to eighty-percent by way of a phased approach. Engineering and technical professions with respect to medical appliances in the private sector, will be subject to a thirty-percent Saudisation rate initially, increasing to fifty-percent in a second phase. In calculating ratios, the minimum salary level for engineers, specialists and degree holders will be SAR 7,000, and SAR 5,000 for technicians and diploma holders

Dentists and Pharmacists

Minimum salary levels for dentists and pharmacists have also been announced, and will take effect on 11 April 2022. In order to be counted in the Nitaqat programme, dentists and pharmacists must be earning at least SAR 7,000. This decision will apply to all private sector organisations - for the dental profession this is organisations employing three or more dental workers. Organisations employing five or more individuals in the pharmaceutical profession. Individuals who are not accredited by Saudi Commission for Health Specialties, will not be considered as part of the Saudisation calculations.

The MHRSD has emphasised that any violation of Nitaqat programme will lead to penalties, and therefore it is crucial that companies understand and adhere to the requirements when they take effect next year. The Kingdom has stressed that support and incentives will be given to organisations that comply with regulations with respect to  employing Saudi nationals in specialised healthcare.

Relaxation on Transfers of Employment

There has been a further announcement in relation to the ability of expatriate employees to transfer from one employer to another. Earlier this year, we reported that employees would be able to transfer sponsorship to another company after spending twelve months with their employer, subject to meeting certain criteria. Amendments to labour law mean that expatriates no longer need to wait for a year, before applying to transfer their employment to another company, provided that consent is obtained from their present employer. More details should be published in due course, but this is a further step towards allowing flexibility for expatriates and companies in Saudi Arabia sourcing foreign talent.

How can we help?

We understand that this is a challenging and unpredictable time for many companies and their employees.We can help to:

• Advise on changes highlighted in this round-up, from the introduction of an investor residency programme in Oman, to the impact of Saudisation measures;

• Assist with advising stakeholders and drafting communication to employees on travel and visa requirements as they change in the region (in compliance with Government announcements and immigration requirements);

• Provide detailed support and advice to plan for new Saudisation calculations that have already been introduced, and are due to take effect in 2022;

• Provide advice with respect to Employment law changes in the DIFC.