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Mecomed Employment Law Update 17 October 2019 Luke Tapp Andrea Hewitt-Sims
Mecomed
Employment Law
Update
17 October 2019
Luke Tapp
Andrea Hewitt-Sims
Introducing Pinsent Masons
Market Leaders
• FT Innovative Lawyers Europe Award 2015
• Law Firm of the Year Award Winner 2016, Legal Business Awards
• Energy & Infrastructure Team of the Year Award Winner 2016, Legal Business Awards
• Global Construction Law Firm of the Year 2016 for the last nine years – Who’s Who Legal Awards
• Act for more than 50% of the top 50 Contractors in the world
• Hong Kong Construction Law Firm of the Year – Asian Legal Business Law Awards 2015
• Construction Firm of the Year (Southeast Asia) – Asian Legal Business Law Awards 2015
• Energy and Natural Resources Team of the Year 2014 – Legal Business Awards
• Legal Advisor of the Year, Social Infrastructure – Infrastructure Journal Awards 2013
• Construction & Real Estate Winner – China Business Law Journal 2013 China Business Law
Awards
• Energy, Projects & Infrastructure Winner – China Business Law Journal 2013 China Business
Law Awards
• No.1 UK Planning Law Firm, Planning magazine 2014 & 2015
• No. 1 law firm by number of Stock Market clients in Oil & Gas sector (Adviser Rankings, Feb
2015)
• UAE & KSA – Key Update
• Hot Topics
• Case Study – Disciplinary & Grievance Procedures
UAE & KSA
Key Update
UAE
Emiratisation
• PRO
– If the company has at least 100 employees,
mandatory to have a local Emirati or GCC national as
a PRO
• Article 14 Labour Law
– Obligation to consider Emirati nationals for certain
positions before a visa is permitted
UAE
Emiratisation
• Ministerial Decree 212 of 2018 sets out private sector
rules for terminating Emirati employees
• Alignment of public and private sector holidays
UAE
Temporary (6 months) work permits – Applicable for someone holding a valid labour card and
employment visa with validity of at least 6 months at the time of
submitting the application
– Require an NOC from the current sponsor
– Technically, benefits such as medical insurance, sick leave,
annual leave and ESG are the responsibility of the sponsor (the
company on the visa of the employee, and not the company
where the employee is temporarily assigned)
– No renewal. A new application for a temporary work permit can
be made after the expiry date of the issued permit
KSA
Termination of employment – expats and KSA
nationals
• Article 77 KSA Labour Law:
– Fixed term – pay out term of contract
– Unlimited term – 15 days pay per year of service; or
– agree compensation up front of at least 2 months
gross salary
• Risk of reinstatement of KSA nationals
KSA
Termination of employment – expats and KSA
nationals
• MR 50945 (29 Jan 2017):
– Redundancy dismissals require particular notifications
• Fixed term contract or unlimited?
Hot Topics
Secondments / Hybrid Model Considerations • Visa sponsorship arrangements
• Duplication of employment rights
• Continuity of service
• Termination of employment
• End of service gratuity
Hot Topics
Record Keeping • All employers with five or more employees must keep a personal file
for each employee, detailing the employee's:
– name/ occupation/ age/ nationality
– place of residence/ marital status
– start date/ pay rate and any changes to this rate/ annual leave
entitlements
– any disciplinary penalties imposed/ any occupational injuries and
diseases suffered
– date of and reasons for the employment contract’s termination.
Hot Topics
Record Keeping • Employers with 15 or more employees must keep at their place of
business separate registers recording details of employees' wages
and occupational injuries and diseases.
• We recommend that employers keep records for at least two years
after the termination of an employment contract.
Hot Topics
Employee Handbooks
• Contractual or non-contractual
• Risk of global policies
• Policies we generally recommend including:
– Disciplinary and grievance
– Equality and non-discrimination
– IT use and security
– Anti-bribery and anti-corruption
– Maternity and paternity
Case Study –
Disciplinary &
Grievance
Procedures
Case Study
• You are an HR Manager for Dubai Co. LLC. You have just
finished the third quarter and the head of sales (Henry) has
asked to speak to you about a sales person (Simon) who has
been with the business for the past three years. Henry is
concerned that Simon has failed to hit target this quarter.
• Henry is aware of a former colleague who has just become
available in the market and who Henry thinks would be a
better sales person for the team.
• Henry would like to dismiss Simon immediately.
Case Study
• What would be your advice to Henry / what paperwork would
you wish to review?
• Henry asks whether you could make the position redundant –
what would be your advice?
• You manage to arrange a dismissal hearing. However, at the
Hearing Simon raises a grievance that Henry has been
bribing officials to win contracts – what would your next steps
be in this situation?
Poor Performance
Performance Process
• Carefully appraise employee’s performance
• Offer opportunity to improve/ support – be constructive
• Clear objectives with consequences if no improvement
• Reasonable timeframe
• Consider length of service, performance record, seniority
• Paperwork – appraisals, performance warnings, evidence of
lack of improvement
Grievance Procedures and
Whistleblowing
• No statutory grievance procedure under the UAE Labour Law
• Financial Crime Law (Dubai Law No. 4 of 2016) provides
whistleblower protection where:
– it is true;
– it relates to activity that may affect the economic security
of Dubai; and
– it is made to the Dubai Centre for Economic Security
Grievances Procedures
Role of HR and Management
• HR should:
– help managers to ask the complainant the right questions
– advise on technical/legal points
– keep centralised records re. consistency of response,
serial complainants, serial perpetrators
• Managers should:
– make decisions taking note of that advice
Q & A
Luke Tapp
Partner & Head of the Middle East Employment
Practice
D: +971 4 373 9750
M: +971 50 649 5245
Andrea Hewitt-Sims
Associate
D: +971 4 373 9780
M: +971 56 549 8675
Ruth Stephen
Associate
D: +971 4 373 9783
M: +971 56 525 1403
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