DAFZA
Rules and Regulations
Rules
for Operating in the Free Zone
Employee Affairs
1.1
General:
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1.1.1 |
The Free Zone Authority requires recording the names of a
License's Staff that are authorized to sign entry permits and other
administrative correspondence with the Company's operations. The names
shall be recorded on a "certificate of Authorization" to be lodged with
Free Zone Commercial Operations. |
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1.1.2 |
Any Licensee wishing to claim a refund for a service which has been
cancelled (either by the License or by the Authority) must apply in
writing to the Commercial Operations Department within 6 months of the
invoice date. Details must include the full reason of the refund and the
date on which the original payment was made. In response, the Authority
will provide the applicant with a Credit Note after taking account of
the expenses incurred before the refund claim was received. The
Authority's decision on the amount to be refunded is final. |
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1.1.3 |
Working hours for Employees will be 8 hours per day, plus one-hour lunch
break, six hours per week. |
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1.1.4 |
During the Holy Month of Ramadan, the
working hours shall be reduced from 8 hours per day to 6 hours per day
and this will apply to all Employees of the Free Zone Companies,
regardless of their religion. Any additional working hours shall be
entitled to overtime payments. |
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1.1.5 |
Overtime shall be paid at the rate of 125% of the basic hourly rate, and
overtime on public holidays shall be paid at the rate of 150% of the
basic hourly rate. |
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1.1.6 |
Public holidays for Employees in the Free Zone Companies will be in line
with the public holidays announced by the UAE Government for Employees
of the private sector in the UAE. |
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1.1.7 |
Any requirement for shift working must be notified to the Free Zone
Authority, Commercial Operations Department, in respect of number of
shifts, hours and number of employees per shift. Otherwise, the
necessary increase in staff may not be approved on the grounds that the
space available is inadequate for the number of employees. |
1.2
Sponsorship
|
1.2.1 |
The Free Zone Authority is permitted to sponsor staff
who are to be engaged to work for Licensees
in the Dubai Airport Free Zone. |
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1.2.2 |
A
company wishing to take advantage of this facility,
will be required to sign a "Personal Secondment
Agreement" (PSA) with the Free Zone Authority". This agreement lays down
the conditions under which the Free Zone Authority will act as sponsor
for a Licensee's employees. A Licensee's employees must not exceed the
figure approved by the Free Zone Authority ( e.g.
according to office area, machinery installation, etc.). |
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1.2.3 |
The (PSA) signed by Licensees require a Bank Guarantee in accordance
with (-----) of the PSA in respect of each employee sponsored by the
Free Zone Authority. However, a single Bank Guarantee to cover the
anticipated total number of employees may be lodged with the Free Zone
Commercial Operations Department. This Bank Guarantee shall be in line
with the standard format approved by the Authority. |
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1.2.4 |
For the purpose of calculating the value of the Bank Guarantee for
sponsored staff, it is essential to account for one and half months
basic salary plus the cost of one way air ticket to the employee's
point of origin at the published IATA rate. It is essential to note that
the Bank Guarantee requires an increase in the value to meet subsequent
increases in salaries or airfares. |
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1.2.5 |
The Free Zone Authority will act as sponsor to obtain Entry Permits and
Residence Visas for employees recruited by Licensees. Licensees wishing
to employ staff, other than nationals of GCC countries, and who are to
be sponsored by the Free Zone Authority, are required to apply the Visa
procedure through Free Zone Commercial Operations Department. |
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1.2.6 |
Staff sponsored by the Free Zone Authority may only work in Dubai
Airport Free Zone. However, there may be occasions when a Licensee
requires an Employee to work outside the Free Zone. (eg.
installation, repair, or maintenance of special equipment). For such
work, the Free Zone Authority's prior approval is required. |
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1.2.7 |
Sponsored employees are only allowed to work with the Companies they are
seconded to. Under no circumstances they will be allowed to work for
other companies, even during their free time or holidays. Licensees
shall not recruit, employ or make use of employees of other companies. |
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1.2.8 |
The Free Zone Authority will accept requests to transfer employees
between Licensees within the Free Zone provided both employees are
willing to issue no objection letter and the receiving company has a
valid "Personal Secondment Agreement" (PSA). |
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1.2.9 |
The Free Zone Authority cannot continue to sponsor an employee, who is
seeking alternative employment, being no longer employed by the
Licensee. All unused entry permits (Visit, Transit, Employment) need to
be returned to Free Zone Administration for cancellation. |
1.3
Employing Non-Sponsored Staff
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1.3.1 |
Licensees can employ Non Sponsored Staff in the Free Zone, either
temporarily or permanently, providing certain conditions are fulfilled,
i.e. employment is permitted for the following:
a.
A female sponsored by
a relative.
b.
Employee of a parent
company registered in the UAE.
c.
Employee of a sister
company registered in the UAE.
Licensees wishing to employ anyone in the above categories must
initially seek the approval of the Free Zone Authority through the
Commercial Operations Department. Approved Non Sponsored Staff must
however acquire the appropriate ID card or pass. |
1.4
Passes for Working and Visiting the Free Zone
|
1.4.1 |
Company Labor card
All sponsored employees are issued a Labor Card which provides a unique
identification for each employee. This card serves as permit to work in
the Free Zone, allows access into the Free Zone, and it is the source of
identification in lieu of the employee passport. In case of loosing the
Card, then a replacement can be issued only with a Police Clearance
Report. |
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1.4.2 |
SPECIAL Identification
card
ID cards will be issued to female employees of the Free Zone Companies,
not sponsored by the Authority, but who are sponsored by a relative. |
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1.4.3 |
Temporary gate pass
This gate passes are issued to employees not sponsored by the Authority
and who have been approved to work for Free Zone Companies. |
1.5 Employment
|
1.5.1 |
Free Zone Licensees who will be recruiting employees under the
sponsorship of the Authority are responsible to bear the following
costs:
a.
Cost of processing the
Entry Permit.
b.
Cost of air ticket
from the employee's point of origin to Dubai
c.
Cost of Health Card
and Medical Fitness Certificate
d.
Cost of Residence Visa
Stamp
e.
Cost of renewal of
Residence Visa, Health Card, and the Medical Fitness Certificate.
f. cost of Residency
Cancellation
Under no circumstances will these expenses be charged to the employee or
deducted from his/her salary. |
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1.5.2 |
The Terms and Conditions for staff recruited by Licensees, but sponsored
by the Free Zone Authority, are to be negotiated by the employer and the
employee. However, as sponsor, the Free Zone Authority is responsible
for ensuring that rules relating to employees are observed. |
|
1.5.3 |
All sponsored employees shall sign an Employment Contract prescribed by
the Free Zone which shall offer minimum acceptable conditions of
employment. Companies are at liberty to provide better conditions, if
they wish. |
|
1.5.4 |
Those who are exempted from providing a Bank Guarantee are required to
sign an undertaking in lieu of the Employment Contract to the effect
that they cannot make any claims against the Free Zone Authority as
sponsors. |
1.6
Passports
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1.6.1 |
Employees of Licensees, who are sponsored by the Authority, will have
their passports Transferred to the company. A Labor Card will be issued
in its place as an identification document. |
|
1.6.2 |
All Passports + other personal /official documents will be collected and
handed-over to company authorized PRO or authorized trade name
individual |
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1.6.3 |
Passports can also be withdrawn by individuals for specific purposes. A
request for Release of Passport Form must be completed and singed by an
authorized signatory and submitted to Free Zone Commercial Operations
Department for approval. The agreed date for return must be complied
with. |
|
1.6.4 |
In case of emergency
outside normal working hours, it is possible to withdraw a passport. The
procedure is to ring the Authority's Security (+971-4-2027240) and
explain the situation. The Security Supervisor will arrange for the
attendance of a Free Zone Staff Member who can provide the passport in
exchange for the Labor Card. |
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1.6.5 |
If possible, a Request
for Passport Release Form should be completed and signed by an
Authority's signatory and then presented to the Commercial Operations
Department. However, a request on company notepaper with an authorized
signature will be accepted if the proper request form is not available
to the applicant. |
1.7
Medical Cover for
Free Zone Sponsored Employees
|
1.7.1 |
Medical cover for sponsored employees can be arranged through the
Department of Health and Medical Services (DOHMS). This service is
available on payment of the required fees as per the Tariff. |
|
1.7.2 |
Companies requiring Medical Cards for their employees should apply to
the Free Zone Commercial Operations Department. One stamp size
photograph will be required and a note of the district which the
employee resides.
§
A Health Card is still required in order to
obtain a Medical Fitness Certificate from government hospitals / clinic,
which is mandatory for stamping the Residence Permits. |
1.8
Termination Rules of
Employment Contract
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1.8.1 |
A
Contract of Employment may be terminated as follows:
a.
By mutual agreement
between the employer and employee according to Commercial Operation
approval
b.
By the employee or
employer during or prior to the end of the probationary period (without
notice).
c.
By the employee or
employer giving 30 days notice in writing (after the probationary
period).
d.
On expiry of the
service period prescribed in the contract, provided 30 days notice of
non-renewal is given by either party. |
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1.8.2 |
A
Contract of Employment shall be terminated in either of the following
cases:
a.
If the employee dies
during service.
b.
Illness of or injury
to the employee resulting in a total work incapacity (which is subject
to the provision of a Medical Report by an acceptable authority). |
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1.8.3 |
An employee shall be entitled to a period of notice before termination
of service as laid down in the Employment Contract. The employee shall
be entitled to full pay during the prescribed notice period. The
employee can be requested to work during the notice period should the
employer so wish. |
|
1.8.4 |
If an employer reduces the notice period, the employee will be entitled
to the full notice period payment as prescribed in the Employment
Contract, even if only part of the full period is worked. |
|
1.8.5 |
If an employee wishes to reduce the notice period, the employer will be
entitled to receive payment from the employee for any portion of the
prescribed notice period not worked. On compassionate grounds the
employer may waive the right to receive this payment.
|
|
1.8.6 |
An employee's service may be terminated without notice for any of the
following reasons:
a.
If the Employee is
ill- disciplined, or fails adequately to perform the duties as defined
in the Employment Contract (three written warnings with copies to the
Free Zone Authority must be given before this rule is activated).
b.
If the employee
sentenced by competent court of a civil misdemeanor or criminal act.
c.
If the employee is
found drunk or under the influence of a drug at work.
d.
If the employee is
absent from work without valid reason for more than seven continuous
days in any one year.
e.
If the employee, while
at work, assaults the employer, a responsible
Manager, a workmate or
a visitor.
f.
If the employee
falsifies his / her identity details. |
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1.8.7 |
An employee may cease work without notice if:
a.
The employer fails to
fulfill the terms of the Contract of Employment.
b.
The employer or his
representative assaults the employee. |
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1.8.8 |
Termination under clauses (1.8.6) & (1.8.7) are subject to agreement by
the Free Zone Authority before the Employment Contract is cancelled. |
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1.8.9 |
Dismissal for any reason other than those in clause (1.8.6) shall be
deemed to be an "arbitrary dismissal". In such cases the employee shall
be entitled to compensation in addition to severance payments due under
the terms of the Employment Contract. |
|
1.8.10 |
The amount of compensation to be paid:
a.
Shall be assessed by
the Free Zone Authority.
b.
Shall not exceed three
times the basic monthly wage specified in the Employment Contract.
c.
The Authority's
decision shall be final. |
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1.8.11 |
Where a change occurs in the form or legal status of an establishment,
Employment Contracts that were valid at the time of change shall remain
in force between the new employer and the existing employees of the
establishment and their service shall be deemed to be continuous. |
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1.8.12 |
If an employee transfers to another employer, service will not be
considered to be continuous unless special arrangements to the contrary
are agreed. |
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1.8.13 |
An Employee whose service exceed one year shall be entitled to a
gratuity payment on termination of service at the rate of 21 days for
the first 5 years of services & 30 days for each year after 5 years , or
as per gratuity articles issued in UAE labor law |
|
1.8.14 |
The gratuity shall be calculated at the basic rate of the monthly basic
salary as defined in the Employment Contract. |
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1.8.15 |
Entitlement to gratuities (end of service benefits) shall be forfeited
if the employee:
a.
Is dismissed in
accordance with one of provisions in clause (1.8.6)
b.
Resigns before
completing one year's service. |
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1.8.16 |
In case of death during service, the gratuity due will be payable as
part of the employee's estate. |
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1.8.17 |
On termination of service, (attend of contract or if the contract is
terminated by the employer prior to completion of contract), the
employer shall provide an air ticket to the International Airport
nearest to the employee's home.
However, an air fare will not be provided in the case of dismissal under
clauses (1.8.6) or where the employee terminates (break) employment
prior to end of the contract. |
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1.8.18 |
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