UAE Labor Regulation

Supervised By: DR. Abu Elias Sarker

Student Name: Morshed Abdulqader Parkook

UAE Labor RegulationStudent Name: Morshed A. Parkook

Supervisor Name: Dr. Abu Elias Sarker

• In this project we will go through Ministry of labor regulations, rules and laws. (MOL) has lunched hundreds of regulations since its establishment and has done the best effort it can to make labor rights protected. The main issue in this project is about the linkage of regulations the (MOL) has make and the social responsibility it have created in corporations by applying and conducting to these rules. We will show how each single rule have an effect on the society and on the individual labor, and how it have facilitated the labor life and the society welfare too. The objective of this project is based on showing how regulations by the (MOL) will cost or make benefits for society, consumers, and industry. We will show the rationale of the interventions and why (MOL) had to lunch each of its regulations. Our scope in this study is to show how (MOL) regulations are socially related to each member in the society. Our purpose of the study will be to show the effectiveness of each regulation the (MOL) have lunched. The source of data we used varies from amount and source, we used articles news from the past and statistical review of the ministry rules in the society.

• Key Words: (MOL), Labor law, cost and benefit analysis.

What is Business, Government and Society?

• social contract. • countervailing forces model

The pluralist theory

• business power+ legal power=pluralistic society

Is a society with multiple groups and institutions through which power is diffused

Four major boundaries of managerial power

• Government and laws.• Social interests groups.• Social values &public opinion. • stakeholders

Corporate social responsibility

• is the duties of a corporation to create wealth in ways that avoid harm to protect or enhance social assets

• There are three elements of social responsibilities:

– Market actions– Mandated actions– Voluntary actions

Principals of corporate social responsibility

• Corporations are economic institutions run for profit• All firms must follow multiple bodies of law• Managers must act ethically• Corporations have duty to correct adverse social impacts they

cause• Social responsibility varies with company characteristics.• Managers should try to meet legitimate needs of multiple

stakeholders• Corporate behavior must comply with norms in an underlying

social contract• Corporations should accept a measure of accountability toward

society

Sources of pressure for social responsibility

(CSR) Implementation

GOVERNMENT REGULATION

• Regulation & Deregulation There are two types of regulations, Economic and social

• Economic regulations: Aim to modify the normal operation of the free market and the forces of supply and demand

• Social regulations: Aimed at such important social goals as protecting consumers and the environment and providing workers with safe and healthy working conditions

Regulation has helped to:

– Improve the position of minorities– Clean the environment– Prevent monopoly– Reinforce free competition– Prevent corruption– Strengthen the banking system– Reduce industrial accidents– Provide resources for the elderly– Control communicable diseases

Ministry of labor

• one of the most important ministries in United Arab Emirates, it had been focusing on labors and their law, also they were under pressure from other ministry to grantee labor right of safe work place, paid wages on time and other important rights.

Rational for interventions

• A 2006 Human Rights Watch, reported “Building Towers, Cheating Workers: Exploitation of Migrant Construction Workers in the United Arab Emirates,” highlighted significant labor abuses, such as extremely low wages, routine withholding of wages for months at a time, and the confiscation of worker passports as “security” to keep workers from quitting.

(MOL) Action• (MOL) has taken very important action regarding this

report, and has taken a big step further to announce new regulations and laws. For example:

– Article 15 requires employers to pay the expenses of migrant workers’ travel; employment permits, medical examinations, and other require administrative costs.

– Article 85 requires employers to cover the cost of workers’ health care, including coverage of migrant workers upon arrival in the country.

Continue• Wage protection system (WPS), its objective is to provide safe, secure,

efficient and robust mechanism to streamline the timely payment of wages to employees by their employers. This is done by cooperation between (MOL) and central bank with an arrangement with any bank or exchange institutions.

• All laborers seeking employment in the UAE will have to apply through the Ministry of Labor rather than gaining work directly through recruitment agents. The new labor measures come at a time when the ministry is implementing other means to clamp down on companies that contravene labor regulations and undermine laborer’s rights.

• The Ministry of Labor is set to increase its number of inspectors from 100 to 650 at the federal level in an attempt to enforce labor regulations more extensively and efficiently.

Continue• The ministry is currently promoting and implementing the noon break, which forbids

contracting laborers from working between 12.30 pm and 3.00 pm during the peak summer months of July and August. The penalties for first time offenders include being moved to category C under which no work permits or visas will be granted to the company for a minimum of 3 months. Alternatively, the offending company can pay a fine of Dh10000 ($2700).

• The ministry's pro-active approach to enforcing labor regulations can also be seen in efforts to make companies adhere to minimum standards of housing provision for workers.

• Meanwhile, the ministry is keen to formalize the provisions for rights to protest in the UAE. Laborers are allowed to protest over poor living conditions, unpaid wages and lack of provision for safety considerations.

• (MOL) will investigate a wide range of labor issues including working hours and wages, labor inspection and occupational health, employment of women, children’s, management of foreign labor and finally training and productivity.

Assessment of regulations

• we will assist the cost and benefits of the intervention (Regulation) for consumers, the industry and society as a whole. We shall assist and evaluate multiple regulations and laws of (MOL)

Employees expenses

Wage protection system (WPS)

(MOL) decision to increase its number of inspectors

(MOL) decision to set a noon break for labors

Evaluation and recommendations

• Rights to Freedom of Association and Collective Bargaining

– Collective bargaining is a process of negotiations between employers and the representatives of a unit of employees aimed at reaching agreements which regulate working conditions.

• Right to Strike and protest• Repeal Gender Discrimination• Prevention of Deception, Restrictions on

Movement, and Forced Labor• Penalties for Violation of Law

Conclusion

• After you have gone through our report, you must have realized that (MOL) have lunched multiple bodies of regulations and law since it establishments. We have encountered with only the most appropriate one that our project is looking for, that’s it- in case of consumers, industry and society as a whole. We have mentioned the benefits and costs for each group spritely from each other.