New labour cards to take two days

Fifteen per cent of the applications the Ministry of Labour and Social Affairs receives are for amendments of details stipulated in the labour cards, arising from new designations or change in salary structures, Dr Khalid Mohammed Al Khazraji, Undersecretary for Labour Affairs, stated yesterday.

Unveiling details about the streamlined fee structure being instituted, he said amendment of details to the labour card will be done on the spot and can be obtained on the same day, while processing a new labour card will take only two days.

He said the new system may take some time to prove its efficiency, while noting the ministry will assess it as regards strengths and weaknesses after a certain period of operation.

He added ministry officials will be briefed on the new system.

He pointed out establishment owners hitherto had to pay different types of fees: for cancellation of a company's card; for changing the name of the establishment; for selling a business; or for the registration of partners.

Under the new system, the owner of an establishment has to pay only a unified fee.

"The ministry has simplified the fee structure and will not charge other kinds of fees," Al Khazraji explained.

He noted the ministry will accept all the transactions that are typed and prepared before the implementation of the new computerised system.

Companies will be given a 30-day grace period after which no applications under the old system will be accepted.

He added that all transactions under the previous system are changed but there are some remaining procedures such as issuance of labour card for the purpose of sponsorship transactions.

In this case, Dh1,000 will be levied on sponsorship transfer out of the Dh2,000 application fee.
Fees for labour cards, meanwhile, will be changed according to the new system.

The ministry accepts changes in the work permit provided the new applicant has the same gender, nationality and profession of the previous applicant. No charges are levied on the new permit.

Al Khazraji said applications for a new work permit requires a Dh1,000 fee to be paid by e-stamp.

Exemption from paying this fee may be for: cancellation of the firm's card; changing of the firm's name; withdrawal of partner; sale of the firm and registration of new partners.

The cost of the e-signature card will be Dh200, to be paid via the e-stamp.

Each e-signature card costs Dh200. Once approved, the applicant has to pay the remaining Dh1,000 by e-dirham.

Companies who wish to change the work permit of an expatriate worker are allowed to do it only once, provided they also hire the same nationality, the same gender and for the same profession.

Labour permit for companies who recruit workers from overseas has been raised to Dh1,200. This includes approval for work permit, labour card and employment contract.

But the new rules stipulate that those who applied and paid for their work permit but did not use it are exempted from paying the said fees.

A sponsor who applies for a permit for an investor or a self-employed will have to pay Dh1,200, the processing deposit of Dh200 to be paid by e-stamp. Once approved, the remaining Dh1,000 can be paid by e-dirham. This fee also covers the work permit, the labour card and the employment contract.

Moreover, for those applying for a new labour card for a partner or investor, the fees will be lumped together with the work permit. As such, no fees will be paid for the work permit.

Establishments or companies applying for transfer of sponsorship must pay Dh1,700. A Dh200 processing fee can be paid upfront via e-stamp, and the Dh1,500 can be paid via e-dirham once the application is approved.

Those applying for transfer of sponsorship will be considered the same as those applying for a work permit.

A committee that deals with work permit applications in different emirates will be authorised to approve or reject applications for sponsorship transfer.

Under the new system, applying for a new labour card or new employment contract will entail no extra fees, as they have been subsumed with the work permit fees.

The labour permit application number must also be mentioned in the application for a new labour card.

The Ministry's computer system synchronise discrepancies in the dates of the labour card and work permit.

The work permit application number must also be mentioned in the application form for a new labour card.

Under the new system, renewal of the labour card and employment contract will cost Dh500, to be paid via e-stamp upon their release.

Workers who change their employment contract to reflect the increase in their salary are exempted from payment of any fees.

Those who apply for their labour cards on their parents' sponsorship must pay a fee of Dh1,200, of which Dh200 must be paid via e-stamp upon submission of application form. The rest can be paid by e-dirham once the application is approved.

The non-renewable labour card is valid for only one year and will be cancelled automatically. Once the validity expires, the bearer is required to apply for a new one, with the same procedures and fees. A no-objection letter from the parent or guardian to work in a company will entail no extra fees.

Renewal of the labour card for a business or investment partner costs Dh500, also to be paid by e-stamp.

Replacement for a lost or spoiled labour card costs Dh500 payable by e-stamp and will be based on the date it was reported lost or spoiled.

Under the new system, no fees will be charged for changing the salary scale or designation stipulated in the original contract or labour card. But separate application forms have to be filled up for salary change in the contract and change of designation.

No fees will be charged when one seeks to change the designation before the labour card expires. An applicant who wishes to change the designation, however, is required to submit a no-objection certificate from the employer.

An applicant with an expired labour card who gets a higher salary and new designation can renew the card for a Dh500 fee, payable by e-stamp. Any changes or amendments to be made after paying this fee will be free of charge.

These changes are, however, not considered as renewal of the labour card.

A no-objection letter from the employer is required to get exemptions from fees for change of salary and designation.

REVAMPED MINISTRY CHARGES:

Type of Transaction/Fees

Opening a company's card Dh1,000
E-signature card Dh200
Work permit Dh1,200
Work permit for partner/investor/self-employed Dh1,200
Internal work permit (sponsorship transfer) Dh1,700
Labour card and employment contract (included in WP fees)
Labour card for partner/investor/self-employed (included in WP fees)
Renewal of labour card and employment contract Dh500
Labour card for those sponsored by relatives Dh1,200
Renewal of labour card for partner/investor/self-employed Dh500
Replacement of lost or spoiled labour card Dh500
Chang