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Newsletter 17/2018

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A selection of news articles that featured in official publications in UAE and Italy related to the business, economy and culture of the two countries.

A beautiful opportunityA beautiful opportunity

An increased focus on natural skin care treatments, non-invasive beauty procedures and the growing influence of beauty and lifestyle bloggers has contributed to a steady growth in the UAE’s beauty sector. It is estimated that the retail value of the Middle East and Africa (MEA) region’s beauty and personal care market will be worth $35.9 bln in 2018 and will continue to grow at a compound annual growth rate of nearly 10% over the next 4 years. Consumers in the UAE spent $247 per capita on cosmetics and personal care, more than any other Country in the Middle East and ninth worldwide and this is forecast to grow to $294 in 2020.

Source: Khaleej Times

Beautiful things have a female fingerprint

UAE leaders have paid rich tributes to women as the Country’s ministries, government departments and private companies rolled out a string of activities for Emirati Women’s Day. “The world ‘life’ (in Arabic) is feminine. Civilization is feminine. Written words, poetry verses and beautiful wishes are all feminine. A woman is a gentle friend and companion, and a sincere teacher.
God bless you all, princesses. May you continue shining with beauty, greatness and inspiration”, said His Highness Sheikh Mohammed bin Rashid Al Maktoum.

Source: Khaleej Times

Rising through the ranksRising through the ranks

The UAE has steadily cemented its position as the destination of choice for medical tourists due to its wide range of state-of-the-art technology, affordable treatments and highly specialized doctors. Experts across the Country’s medical sector are optimistic about the UAE’s progress in becoming the world’s top destination for quality healthcare in the coming years.
The global medical tourism market is reported o be currently around $100 bln and is growing at a rapid rate of approximately 20% year on year.

Source: Khaleej Times

Gap in the sustainable sectorGap in the sustainable sector

UAE Vision 2021, launched in 2010, aims to make the UAE among the best countries in the world by 2021. the national agenda includes a focus on sustainable environment and infrastructure under the pillar “United in prosperity”. Whilst aiming to achieve a perfect balance between economic and social development, this pillar aims to ensure sustainable development in the region. Among the venues who are more in line with Vision 2021, we have the Steingenberger Hotel located in Business Bay which has become an eco-friendly advocate for top hotel businesses since its opening in 2015; JW
Marriot Marquis Hotel Dubai, which team has made an effort towards sustainability. Last one, Zero Gravity beach club in JBR which has set up a “We love our beach” campaign, cleaning up rubbish from JBR beach once a month.

Source: Khaleej Times

Confidence in Dubai growth remains strongly positiveConfidence in Dubai growth remains strongly positive

Business confidence towards growth prospects in Dubai remains strongly positive even as conditions improved at the slowest rate in three months, with growth moderating across three broad sectors. Firms continue to stimulate climate demand through price discounting, as job creation picked up, led by the construction sector, but remains relatively subdued by the standards.
At the sector level, construction companies reported the sharpest growth in July (56.9) followed by who sale & retail (56.3) and travel & tourism (54.5) respectively. However, all three sectors posted soft growth in July relative to June.

Source: Khaleej Times

Diversification makes UAE’s economy more competitive

The UAE leads the Arab world in competitiveness as increased diversification makes its economy more resilient. The UAE, ranked 17th globally in competitiveness, has been able to weather the double shock of oil and gas prices and reduced global trade and maintain a stable macroeconomic environment due to its diversification. The IMF predicts GDP growth to pick up again this year to 3.4%, driven also by the good performance of the non-oil economy. In order to further increase its competitiveness, the UAE would have to speed up progress in spreading the latest digital technologies and upgrading education.

Source: Khaleej Times

Dubai to get private hospital dedicated to cancer treatment in 2019

MBF healthcare Group has partnered with two of the healthcare providers in India and the UK to manage the hospital in JLT, Dubai. the agreement – that outlined a long-term action plan for the management and operation of the hospital – was signed by Sheikh Mohammed bin Faisal Al Qassimi, owner and chairman of MBF healthcare Group and the director of HCG International. The aim is to transform the caner treatment hospitals into day-care hospitals so patients will receive treatment within a day, leave the hospital and then follow up with the doctor’s treatment afterwards. The Dh 180-mln hospital will have 45 beds and reduce the need for patients to travel abroad for specialized cancer treatment. The group intends to establish three or four more specialized hospitals in the UAE to treat various types of cancer within the coming years.

Source: Khaleej Times

Special – Saudi Arabia

Saudi women tap US incubator for their ventures

A 22-year-old from Saudi Arabia is developing a platform for pilgrims and tourists to experience a virtual reality tour of the holy city of Madinah. Heba, 37-years –old, is working on GreenDesert, a venture that would be one of the first to help create a recycling culture in the country. Both were among 14 young women social entrepreneurs from the kingdom who recently attended an intensive program to turn their ideas into reality. The Saudi’s Government Vision 2030 aims in part to promote local businesses, including those run by women, whose participation in the workforce is expected to grow from 22% to 30% by the end of the next decade.

Source: The Big5 Hub

Saudi Arabia women compete behind the wheel for the first time

Amjad Al-Amari made history on Friday, the 31st of August, in Jeddah when she won the first karting championship for women at the IN10SO Center in Serafi Mall. The Petronim sponsored championship began in August to encourage women’s participation in motorsports by giving them an outlet to new experiences in the Kingdom. The 22-year-old won the race after overtaking her closest rival in the fifth lap.

Source: The National

THE LEGAL POINT OF VIEW Adv Antonio M. VarvaroTHE LEGAL POINT OF VIEW
Adv Antonio M. Varvaro
Legal consultant – Dubai

Antonio M. Varvaro – Legal Consultants FZCO
Al Quds st. DAFZ 6WB – Office 151
P.O. Box 371978 – Dubai, UAE
Tel. +971 4 214 6633
E-mail: antonio.varvaro@amv.eurolegal.com
Website: www.amv-eurolegal.com

Labor Law n. (8) of 1980

Working Hours, Overtime, Official Leaves & Vacation, Public Holidays, Understand more on Labor Law in the UAE.
If you are working in the UAE, you should have to get more knowledge about the labor laws of the country. It helps one clarify doubts regarding working hours, annual leave and several other job-related matters.

Working in the private sector
Federal Law No. 8 of 1980 also known as the Labor Law governs the labor rights of employees in the private sector. The labor law handles a wide range of job-related matters.

Working hours
Article 65 of the UAE Labour Law identifies the normal working hours for the private sector as 8 hours per day or 48 hours per week.
The working hours may be increased to 9 hours a day for businesses, hotels and cafes after approval from MoHRE. Government entities are not governed by the labour law and they operate for 7 hours daily.
Working for more than 7 hours a day is prohibited in arduous or unhealthy works and industries.
Normal working hours are reduced by two hours daily during the holy month of Ramadan.

Overtime
An overtime is considered if the nature of job demands working beyond normal working hours and it will entitle the employee for a pay equal to normal working hours’ remuneration plus 25 per cent of that pay. It could increase to 50 per cent if overtime is done between 9 pm and 4 am.

Official leaves and vacations
Friday is the official weekend for all workers, except for daily wage workers. If circumstances require an employee to work overtime on that day, he/she will be entitled for regular working hours’ pay, plus an increase of not less than 50 per cent of that amount.

Public Holidays
Employees are entitled for paid leave on the following public holidays: Hijri New Year – 1 day
Gregorian New Year – 1 day
Eid Al Fitr – 2 days
Waqfa day and Eid Al Adha – 3 days Prophet Mohammed’s birthday – 1 days Isra and Miraj or the Ascension Day – 1 day Martyr’s Day – 1 day
National Day – 1 day

Legal comment

Legal matter: change of job position and tasks. – Demotion. –

Questions:

According to the UAE Law, is the employee allowed to change his employee’s job position and tasks? If it is allowed, which fulfillment should be complied with?
Change of Job position and tasks for a lower one: is this a “demotion”?

Sources:
Labor contract is regulated by:
UAE Civil Transaction Law n. (5) of 1985 from art. 897 to art. 923; UAE Labor Law n. (8) of 1980
Ministerial Decrees, Circulars and Resolutions

Formal requirements of the Labor contract:

Pursuant to art. 132 of the UAE Civil Transaction Law n. (5) of 1985 “An expression of intent may be made orally or in writing”.
According to art. 35 of the above-mentioned Labor Law, Labor contract should be in writing. However, a labor contract is valid even if it has been stipulated orally.
Anyway, a Labor contract in writing is required to obtain an Employment Visa. The Labor contract is to be written according to standards of the Ministry of Human Resources and Emiratisation – MoHRE (previously Ministry of Labour) included into the Ministerial Decree n. (764) of 2015 (“Approved Standard Employment Contracts)”.

Substantive requirements of the Labor contract:

According to art. 129 of the UAE Civil Transaction Law n. (5) of 1985 the necessary elements for the making of a contract are the following:
Parties’ agreement
The subject matter of the contract must be possible and defined or capable of being defined and permissible;
There must be a lawful purpose of the obligations.
According to art. 141 of the UAE Civil Transaction Law n. (5) of 1985 “A contract may only be made upon the agreement of the two parties to the essential elements of the obligations, and the other lawful conditions which the parties regard as essential”.
According to art. 898 of the UAE Civil Transaction Law n. (5) of 1985 “A contract of employment may be for a specified or unspecified duration, and for a specified job”.
Articles from 35 to 41 of the Labor Law n. (8) of 1980 include minimum requirements tobe included in a Labor contract. For our purposes, it should be noted that art. 36 dictates that a Labor contract must specify the nature of work making evident reference to the tasks that, in concrete, the worker will have to perform.

Change of Job position and tasks for a lower one: is this a “demotion”?

In the UAE there are no trade unions and, therefore, there is no collective bargaining. Job positions and tasks of employees are not regulated neither by law nor by collective bargaining agreement. They are regulated by individual Labor contracts only.
By the beginning of December 2017, the Ministry of Human Resources and Emiratisation (MORHE) has enforced a new system for classifying companies into three categories according to the skill level and the cultural diversity of their workers.
The move is in implementation of a resolution issued by the Council of Ministers on the classification of companies, subject to the law on regulating labour relations and banking guarantees.
Under the system, new work permit fees will be applied depending on the worker’s skill level and whether he or she is outside or inside the UAE and the category of the company in the new classification system.
Accordingly, workers/employees have been categorized in five skill levels where the 1st level is the highest and the 5th level is the lowest. In each category many job positions are listed, but no related tasks are included.
Within this regulatory framework, it follows that the parties are free to change the terms of their agreement at a later stage, for example by providing for the performance of different tasks compared to the original ones.
Condition for the variation of the clauses contained in the individual employment contract to be carried out is that both parties agree: the unilateral variation is not allowed. This change must be made in writing and, where substantial variations are involved, it will be necessary to proceed with the registration of the amendments at the MoHRE.
The change in the employee’s qualification – with retributive invariance – does not determine any demotion due to the fact that this concept does not apply to the Emirate legal order. In fact, pursuant to art. 905, point 3, of the aforementioned UAE Civil Transaction Law n. (5) of 1985 “The employee must:

1….
2….
3. obey the orders of the employer relating to the performance of the agreed work….”.

The examination of the law leaves no doubt: the parties are free to agree on the tasks to which the employee will be assigned. This is also allowed during the contractual period, when new elements prompt them to renegotiate some substantial points of the original employment contract.
In other and clearer terms, the parties have wide negotiating autonomy thanks to the absence – as already mentioned – of constraints deriving from declarations of collective level, of functional qualifications and tasks.

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