UAE: Council of Ministers Decision No. 26 of 2010 Regarding the Rating System of Establishments Subject to the Law Regulating Work Relationships and the Bank Guarantees Imposed Upon Them

 

Title

 

  

UAE: Council of Ministers Decision No. 26 of 2010 Regarding the Rating System of Establishments Subject to the Law Regulating Work Relationships and the Bank Guarantees Imposed Upon Them

 
 

Date of adoption

 

 11 August 2010
 

Entry into force

 

 01 January 2011
 

Text versions

 Arabic

Source:
 

Abstract

 
Art. 1 of this decision establishes a three-tiered ratings system for establishments which are subject to Federal Law No. 8 of 1980: Category 1, Category 2 – divided into a,b&c, Category 3.

The criteria for rating depend on compliance with the following criteria among others:

  1. Complying with the standard of multiculturalism in accordance with the relevant Ministerial decision
  2. Paying workers’ wages on time in accordance with the law or agreed upon procedures
  3. Providing worker accommodations which meet agreed upon standards and criteria
  4. Reaching the required nationalization quota

Art. 5 sets the bank guarantee which must be submitted by each category before recruiting foreign workers.

Art. 8 lists the situations in which the Ministry may liquidate the bank guarantee or deduct amounts from it for the benefit of the worker:

  • Paying for the worker’s return ticket
  • Paying the worker’s dues
  • Receiving a court order from any of the UAE courts requiring the settlement of a worker’s rights.
  • In case the bank guarantee is liquidated, the employer shall pay back the amounts deducted in order to restore its value.

 

In accordance with Art. 9, the employer may recover the bank guarantee or part of it in any of the following cases:

  • The cancellation of the worker’s labour card and his return home, upon submitting the removal document.
  • The death of the worker, upon submitting a death certificate and the removal document.
  • Upon approval of the worker’s transfer to another employer.
  • Any other cases in which the employer submits a removal

 

This decision repeals Council of Ministers Decision No. 19 of 2005 Regarding Fees and Bank Guarantees, excluding the part that relates to licensing of nurseries.