US embassy cable - 05ABUDHABI349

C O N F I D E N T I A L SECTION 01 OF 02 ABU DHABI 000349 
 
SIPDIS 
 
STATE PASS USTR 
 
E.O. 12958: DECL: 01/24/2015 
TAGS: ELAB, ETRD, TC 
SUBJECT: PROPOSED CHANGES TO UAE LABOR LAW 
 
REF: ABU DHABI 296 
 
 (U) Classified by Ambassador Michele J. Sison, reason 1.4 
(b) and (d). 
 
1. (U) Summary:  During meetings with A/USTR William 
Clatanoff on January 17(reftel), Ministry of Labor officials 
listed points that are expected to change in the revised 
labor law that is expected to be issued by summer 2005.  The 
UAEG has been working on a revision to the 1980 Labor Law for 
several years to improve compliance with ILO standards and 
market reform, and the new draft is nearly ready to be sent 
back to the Ministry of Justice for technical review.  End 
summary. 
 
2. (C)  The UAEG has been working on a revision to the 1980 
Labor Law for several years to improve compliance with ILO 
standards and market reform. Labor Minister Al Ka,abi said 
he pulled the draft revision back from the Ministry of 
Justice technical review committee, after taking office in 
November 1, 2004.  Al Ka,abi has been marking up the text, 
and the new draft is almost complete, but it still awaits 
technical review at the Ministry of Justice.  MFA U/S MFA 
Abdullah Rashid told Clatanoff that the law would be finished 
before the UAEG breaks for the summer (i.e. June). 
 
4.  (C)  Labor and legal advisors at the Ministry of Labor 
briefed on some of the proposed changes to the labor law, 
which are designed primarily to bring the law more clearly in 
compliance with ILO standards and to accomplish needed labor 
market reforms.  Specific proposed changes are listed below 
(not a fully comprehensive list): 
 
--  Repeal Article 15, paragraph 3, which currently states 
that the Ministry of Labor and Social Affairs may cancel the 
work permit issued to a non-national if it is discovered that 
a national employee is qualified to replace him. 
 
--  Amend Article 20, which currently states that juveniles 
of both sexes shall not be employed before reaching fifteen 
years of age.  The revised draft will change the minimum age 
of employment to 18 for those employed in potentially 
dangerous jobs. 
 
--  Amend Article 30, which discusses maternity leave rights 
for women.  The revised law will amend the law to increase 
the entitlement of maternity leave and benefits before and 
after the birth. 
 
--  Amend Article 42, which sets the minimum age of 12 years 
for individuals engaged in apprenticeship contracts.  The 
revised law will increase the age of eligibility to start an 
apprenticeship to 15 years. 
 
--  Amend Article 55, which currently states that wages shall 
be paid during a working day and at the place of work in the 
national currency of the country but does not specify any 
grace period.  The revised law will provide a five day grace 
period from the date of entitlement.  Thereafter, punitive 
sanctions will be applied to companies withholding wages. 
(Note:  This is designed to address the problem of workers 
going unpaid for months before filing their complaints with 
the MoL.  End note.). 
 
--  Amend Article 173, which deals with the rights of labor 
inspectors.  The revised law will increase the power of 
safety and industrial inspectors to shut down establishments 
where dangerous work situations are present. 
 
--  Amend Article 128, which states that if a non-national 
employee left his work for no valid reason before the end of 
his specified contract, he may not seek any other employment 
even with the consent of his employer for one year from the 
date of leaving his job.  The revised law will more 
explicitly discuss valid reasons that would not subject an 
employee to this law, particularly if safety standards were 
not met.  (Note:  According to MoL labor lawyers, the 
original article allows workers to leave their place of work 
if they felt it was unsafe.  They explained that this was how 
they interpreted the law, and the revision is meant to 
clarify this provision.  End note.). 
 
--  Amend the original law to endow the Ministry of Labor and 
Social Affairs with powers to organize the labor market, 
particularly adding the ability to introduce employment 
agencies that meet ILO standards. 
 
--  Amend the law to give work and safety inspectors more 
facilities and powers to conduct investigations and act on 
the results. 
 
--  Add a new section providing for the formation of labor 
unions.  The UAEG may pass a separate labor union law or may 
include it in the revised labor law (see reftel). 
 
--  Increase the time from two weeks to thirty days for the 
legal advisor to settle cases between employees and employers 
in accordance with international standards. 
 
--  Reduce the severance payment to employees from the 
current 21 days for every year or service to 15 days in 
accordance with other Arab gulf countries. 
 
--  Streamline social insurance and the severance payment 
process to avoid double payments and to simplify the process 
 
3.  (C)  Overall, these proposed amendments are meant to 
address labor market reform, bring the labor law into 
compliance with ILO standards, and streamline remuneration 
processes.  UAE labor officials tell us that they are 
attempting to revise the law without sacrificing national 
security interests, pointing out that more than 90 percent of 
the private labor force is composed of foreign workers. 
These proposed amendments are still considered informal, 
since the draft must now be reviewed by a technical committee 
at the Ministry of Justice and be approved by the Cabinet 
before the law can be published. 
SISON