Friday, September 30, 2011

A Review of UAE’s 2011 Residence Visa’s Two Year Reduction


Many have been surprised by how the Department of Labor in Dubai, UAE had cut short the residence visas and labor cards among the working force in the private sector which rule was aimed to be implemented and applied effectively January of this year. With this new rule, all those employed in the private sector will be treated no less than any other domestic helpers who also have the same visa term. While many have been overtaken by this news, there are somehow varying reactions towards the passage of this new law. Some businessmen believe that the reduction of residence visa to two years from three years can raise hopes for a more fluid yet controlled game play in the labor market. Others however show insurgent reactions because they believe that a two-year residence is never enough to satisfy the demand for quality services considering that it can take 4-6 months before one can finally learn to adapt to their jobs. Yet, reviewing the aims of the Labor Department last year when the news broke out, they say that the aim of the government is to consolidate and collaborate both – residence visa and labor card in order to effectively control the labor market and offer greater security to the country all at the same time. Let’s review what happened in UAE since January of 2011 to now.


Taking that rule today, the Dubai Chamber of Commerce and Industry has stated that Dubai has greatly suffered losses and is deeply hurt in terms of retail. Can there be a relation somehow to this press release to that “new rule” that has become effective eight months ago? Adding insult to injury so to speak, the rule has never taken aback its toll towards businesses in Dubai when since it has been passed as the new governing rule among workers in the private sector, there has been a great leap in terms of labor costs and expenses (hiring a single worker now costs Dh9, 000) that many business owners these days have developed some fear not to be able to sustain even the primary and basic demands of workers under them. This rising labor cost has been confirmed by no less than the Chairman of the Dubai Business Retail Group, Mohideen Bin Hindi.

The thing is should a country want to achieve a more developed economic plan by controlling the labor market, why not take a more careful move on it rather than surprising everyone? Not all fresh news can be good news and not everyone can definitely be happy about a new economic plan guised under the veils of residence visa two year reduction especially when it’s a plan aimed at the moon. Now the new rules’ unveiling effects can never be denied. As to whether you are among those affected by it or you belong to those who benefit from its passage, perhaps you can now call it a day.


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