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Global rules on foreign direct investment (FDI)
Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements.
Middle East | Update | mayo 2020
The UAE Ministry of Human Resources and Emiratisation (the “Ministry”) has recently issued the following three Ministerial Decisions:
Decision 279 applies to all companies and establishments registered with the Ministry, and was issued to “safeguard both employers and non-UAE national (expatriate) employees during the period in which precautionary measures are being taken”. This Decision applies only to non-UAE nationals during the implementation period of the precautionary measures referred to in the Decision.
Decision 279 came into effect the day it was issued (i.e. March 26, 2020).
A summary of this Decision can be found at: Employment update in the United Arab Emirates.
Decision 280 came into effect the day it was issued (i.e. March 26, 2020).
Article 1 of Decision 280 provides for the creation of a Committee to observe the stability of working UAE nationals in the private sector (the “Committee”) within the Ministry. The Committee is comprised of nine members, with Mr Nasser Abdallah Bin Kherbash appointed as its Chairman.
Article 2 of Decision 280 tasks the Committee with, among other things:
Article 4 of Decision 280 requires the Ministry’s organisational units to support the Committee’s work and objectives.
Decision 281 also came into effect the day it was issued (March 29, 2020). The Decision includes an annex titled “Temporary guide regulating remote working in private establishments”, which seeks to ensure continuity of business during the period of precautionary measures to limit the spread of the novel coronavirus (the “Guide”).
Application
Decision 281 applies to all companies and establishments operating in the private sector, with some exceptions, as set out below.
Limiting footfall of employees and customers
Article 1 of Decision 281 requires companies operating in the private sector to limit the number of employees physically coming to work to the maximum extent possible and necessary and, in any case, to no more than 30 percent of the total number of employees. Companies are also required to limit the number of customers entering their business premises by limiting seating capacity to 30 percent of capacity, and to maintain a safe distance between customers in attendance. The Decision does not, however, define what constitutes a “safe distance”.
Exempt from the requirements of Article 1 are companies and establishments that operate in, and conduct business related to infrastructure projects, catering, telecommunications, power, health, education, financial services, food processing, hospitality, health supplies, manufacturing, and cleaning services.
Controls
Article 2 of Decision 281 requires companies and establishments operating in the private sector to take precautionary measures to limit the spread of the novel coronavirus, including:
Working remotely
Article 4 of Decision 281 requires companies and establishments in the private sector to apply remote working systems to “all workers whose jobs do not require a physical presence at workplaces”, with priority given to pregnant women, workers over the age of 55, those with disabilities, employees with chronic or respiratory illnesses, and mothers of children in Grade 9 and below.
Obligations of employers and employees
The Guide requires employers to:
The Guide requires employees working remotely to:
On Sunday, April 5, the Ministry published on its website the “Procedures for enabling foreign labour to leave the country and return home” (the “Initiative”). The Ministry website states that the Initiative was issued “further” to Decision 279, although Decision 279 does not make any reference to the Initiative in and of itself.
The Initiative provides that employers and expatriate employees can agree, at the employee’s request, to an unpaid period of leave during which the employee may travel to his/her home country at the expense of the employer. The contractual relationship between the employer and employee is not severed during the time the employee is in his/her home country.
We understand from informal discussions with relevant officials at the Ministry, that there have already been a number of requests from employees under the Initiative.
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