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uplock
24th Jun 2006, 12:15
Article in Emirates Today Front page (http://213.132.44.184/emiratestoday/default.aspx?selpg=289&page=24_06_2006_001.jpg&artHigh=7)


A clampdown on employers banning staff who try to leave has led to firms increasingly asking new recruits to sign illegal contracts, Emirates Today can reveal.
Last night, Minister of Labour, Dr Ali Abdullah Al Kaabi, urged anyone who has received a contract tying them to their company for more than three years to report the matter, so that it can be investigated by the ministry.

The Ministry of Labour’s legal department confirmed to Emirates Today that contracts exceeding a 36-month term of employment are in breach of regulations.

“An employee who wants to leave a company should be allowed to do so freely, as long as they honour the notice period and do not owe their employer any money,” Dr Al Kaabi explained.

“Contracts of six or seven years are not allowed. The public need to tell us it is happening, so we can do something about it.” With the clarification of when bans can and cannot be imposed, employers in the UAE fear that they will struggle to hold on to suitable staff.

They also feel that time and money spent to bring in quality workers from abroad will be wasted if staff leave after a short period of employment.

However, Dr Al Kaabi added: “I realise companies want to keep staff and short contracts are fine, as long as both sides agree to the conditions. We will not tolerate illegal contracts.

“I tell anyone to whom this has happened to contact the ministry, so that action can be taken.” An employee, who is seeking to change his jobs and who did not want to be named for fear it would jeopardise his chances of future employment, said: “Many companies who have job openings are asking me to sign long-term contracts of six years or more.

“They also insist I agree to contracts with heavy penalty clauses for leaving.” On that subject, the Labour Minister added: “If an employer has invested money in training someone who uses that training to get a better job, the employer does have the right to ask for the money back from the employee as long as this falls within the terms of the employment contract. But they can never just put in penalty clauses demanding money. It has to be justified.” Edwin Rasquinha, general manager at leading Dubaibased recruitment agency Lobo Management, said: “Companies in the UAE are looking for those candidates who will pledge some time to them and enter into a longterm commitment.

“Nobody wants to lose staff after recruitment. However, I will not work for those companies that insist on six- or seven-year contracts.”

uplock
25th Jun 2006, 07:18
After reading the artlicle from the Government Newspaper it would appear that we as pilots have signed a 7 year contract when it comes to The Company Provident Fund and Company contributions.

Now the government are saying contracts which penalise employees over 3 years and above they would like to know about.

Unfortunatley this will be filed along side with the "Rent will not be increased above 15% " and Government workers salaries will rise by 25%.......
From the Emirates company web site

Provident Fund
Emirates provide a company sponsored Provident Fund.

Company Contributions:
First 10 years - 12% of basic salary
After 10 years - 15% of basic salary

Entitlement on Resignation:
Within the first 5 years - No entitlement to Company Contributions - End of Service Benefit applies
Between 5 and 7 years - The entitlement is 75% of the company's contribution
After 7 years - The entitlement is 100% of the company's contribution



From todays Government paper (http://213.132.44.184/emiratestoday/)the star letter to the editor mentions Most of these contracts have heavy penalty clauses warning workers of severe consequences like salary cuts, no gratuity and bans if they chose to leave their jobs.

break dancer
25th Jun 2006, 10:31
The Provident Fund is just a bonus paid if it is greater than the minimum required by UAE law - 21 days per year up to 3 years blah blah blah

On leaving you would only be paid the minimum amount due if leaving before 5 years.

411A
25th Jun 2006, 12:47
The poor dears who think that the Emirates are somehow 'discriminating' against the employees who work there with the provident fund contributions, should realise that many other airline companies in other countries have some of the very same arrangements, whereby you must remain continuously employeed for a certain period, even though you might sign back-to-back employment contracts of a shorter duration.

It generally pays rather big time to stay for the required period to collect these benefits, unless of couse you might receive a better offer somewhere else...which sometimes results from a leap from the frying pan to the fire, in some circumstances.

uplock
25th Jun 2006, 20:27
411A The Minister of Labour highlighted the point in the newsaper not as you say The poor dears who think that the Emirates are somehow 'discriminating' against the employees who work there with the provident fund contributions,


Minister of Labour, Dr Ali Abdullah Al Kaabi, urged anyone who has received a contract tying them to their company for more than three years to report the matter, so that it can be investigated by the ministry.

The article was submitted for constructive comments.

411A
25th Jun 2006, 22:02
Makes no difference whatsoever, uplock, as length of employment contracts generally has no bearing on the length of service required for provident fund company contributions, with interest, to be awarded to the respective employee, upon resignation.

Apples and oranges, old boy.