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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