New labour policy for Emiratis

Salam Hafez

• Last Updated: February 19. 2009 8:30AM UAE / February 19. 2009 4:30AM GMT

Private-sector employers may not lay off Emirati workers for anything other than exceptional misconduct, the Ministry of Labour announced yesterday.

The new policy is a response to concerns that private-sector companies could lay off staff because of the global economic downturn.

Under the policy, companies may sack Emiratis only for serious misconduct defined in labour law, such as arriving to work under the influence of alcohol, stealing from the company or forging identity documents.

Those that want to lay off Emirati staff for economic reasons must seek permission from the Ministry of Labour.

Even in cases where Emiratis underperform or their positions are scrapped in a general staff reduction, they must be retained in other roles.

“Companies must contact the ministry for any reason if they want to terminate the job of an Emirati,” said Humaid bin Demas, the ministry’s acting director.

“After the notification, the ministry will enter into a discussion with both parties to discuss the reasons behind the termination. “Based on that the ministry will inform the company of the requirements after studying all possible avenues, within two weeks.”
The ministry would also consider it unlawful if companies replaced an Emirati worker with an expatriate.

In reference to about 20 Emiratis who were made redundant last week by Al Futtaim Group, Mr bin Demas said: “It is our social responsibility to keep all Emiratis in work, and I would like to play down fears that people are losing their jobs because they are not and you can see that by the number of complaints we have had in the last year.”
He said the Al Futtaim layoffs were the only cases of Emiratis losing their jobs for economic reasons.

“Our concern is the concern of all Emiratis, all companies and expatriates and I would like to move and reassure everyone and calm down talks of hysteria.”

Mr bin Demas said the law should not deter foreign investors, noting that there are only 15,000 Emirati workers registered with the ministry, compared with three million foreign workers.

The figure does not include Emiratis who work for government-backed companies such as Emaar, Nakheel and Dubai Holding.

The National Human Resource Development and Employment Authority (Tanmia) proposed the new policy to the ministry.

“This is great news for all Emiratis concerned,” said Feddah Lootah, Tanmia’s director general. “The next step is to stop Emiratis from having to take their cases to the courts. Hopefully this law will be clear to everyone.

“There are still a lot of unemployed Emiratis that are overlooked in the job market and they need to get jobs.”

A corporate headhunter, however, said the policy was a “knee-jerk reaction” by the Government that “could backfire”.

“I have lived in Middle East and Saudi Arabia for over 16 years. where they had passed policies like this that have led to a huge problems in the workforce,” said Jack Montgomery, an independent executive-recruitment consultant based in Dubai.
“In Saudi you will find locals not hiring locals because when they do hire them they find it extremely difficult to shift them. “Companies would now avoid hiring Emiratis when once they looked for nationals as a matter of pride and as the face of the organisation.”

Mr Montgomery said companies with a large number Emirati employees – especially banks, where up to half the employees are Emiratis – would be affected the most.
“Usually when companies are laying off people it means it is either folding the company or getting rid of those who underperform. So now, where would companies get the money to retrain Emirati staff that they can’t shift to another department? Especially in a time like this it would be difficult.”

shafez@thenational.aef