Dubai, a bustling city in the UAE, has always been a magnet for expatriates seeking better job opportunities. An essential aspect of this overseas employment journey is understanding the UAE’s labour card or work permit process.
This article aims to provide a clear, concise guide on labour card fees in Dubai, its application, renewal, and cancellation.
Understanding the Cost of Work Permits in Dubai
Navigating the financial aspects of work permits is a crucial component of the employment journey in Dubai. The cost of issuing and renewing a work permit in this metropolis ranges between AED 250 and AED 3,450. However, these fees are not fixed and depend on the company’s classification, which is categorized as A, B, or C.
This classification system is a reflection of the company’s compliance level with the UAE’s labour law, the Wages Protection System, as well as the relevant MoHRE resolutions and directives. It also factors in the company’s adherence to laws concerning workers’ rights and policies promoting cultural and demographic diversity. For instance, companies with a history of violations or lack of commitment to these norms are typically placed in category C, which may influence the work permit fees.
Moreover, the government continually revises these fees to align with the dynamic labor market. For instance, Cabinet Resolution No. 37 of 2022 amended some provisions of Cabinet Resolution No. 21 of 2020 concerning service fees and administrative fines in the Ministry of Human Resources and Emiratisation. This resolution provides updated information on the fees for renewing or amending work permits and contracts and for transferring workers from one company to another.
It’s important for expatriates to stay updated on these resolutions and the associated annexes to be fully aware of the financial obligations tied to their work permits. By doing so, they can better manage their finances while working in Dubai, thereby ensuring a smooth and rewarding employment experience in this vibrant city.
The Nitty-Gritty of Labour Card Fees in Dubai
The Work Permit Application Process
To apply for a work permit in Dubai, certain prerequisites must be fulfilled by the establishment. It should possess a valid trade licence, and the application must be signed by an authorised signatory of the establishment.
However, there are instances when the Ministry of Human Resources and Emiratisation (MoHRE) may refuse to issue or renew or may cancel work permits. This typically happens when the establishment provides incorrect documents, is found to be fictitious or not engaging in its registered activity, or is not compliant with the Wages Protection System or other systems adopted for regulating the national labour market.
Cancelling a Work Permit
The cancellation of a work permit requires the establishment to acknowledge that it has paid the worker all his entitlements. The worker’s signature must be present on the permit cancellation form.
For more comprehensive details, refer to Articles 6 and 7 of the Cabinet Resolution No. 1 of 2022 on the Implementation Regulation of Federal Decree law No. 33 of 2021. It is also beneficial to understand the situations where the employer is not considered late in issuing and renewing the work permit as stipulated in Article 3 of the Ministerial Decree No. 46 of 2022.
The Cost of Work Permits
The cost of issuing and renewing a work permit can range from AED 250 to AED 3,450, depending on the company’s classification: A, B, or C. This classification reflects the company’s compliance with the UAE’s labour law, the Wages Protection System, relevant MoHRE resolutions and directives, laws relating to workers’ rights, and the policy of promoting cultural and demographic diversity. Companies with a history of violations and lack of commitment are placed in category C.
More information about the new fees for renewing or amending work permits and transferring workers from one company to another can be found in Cabinet Resolution No. 37 of 2022.
Navigating the world of work permits in Dubai can seem daunting, but with the right information and understanding, it becomes a straightforward process. As an expatriate living and working in the UAE, staying updated on the processes and costs involved in maintaining your work permit is crucial.
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