Labor Relations in Different Organizations in The United Arab Emirates - Essay Example

Labor relations in different organizations in the United Arab Emirates (UAE) revolve around the regulations imposed by the Ministry of Labor. Meaning, they apply to both employees and employers working the various industries in the UAE. The UAE has traditional values compared to other modernized nations. Therefore, this affects its labor relation policies and their implementation by the various organizations based in the UAE. It is also necessary to note that the policies imposed by the Ministry of Labor are federal meaning they apply to all the Emirates in the UAE. The following paper analyses, types of work permits, the different categories of violations, and the human rights of laborers in the UAE. A look at the Dubai bank also provides input on the above issues (Allāh 1978, p. 78). The beginning of 2011 saw the introduction of work permits in the UAE via the Cabinet Resolution No. 25 of 2010. They include; work transfer, temporary, part-time juvenile persons and personnel sponsored by kin work permits. The work transfer permit covers non-nationals working in the UAE transferred between organizations within the UAE of which must be registered by the Ministry of Labor. Temporary work permits, on the other hand, cover both national and non-national personnel working on a project for less than six months. Part time work permits cover individuals working part time for few hours compared to full time workers who work for extra hours (Allāh 1978, p. 156). The number of hours specified by the Ministry of Labor for full time employment includes eight hours excluding lunch breaks; therefore, hours worked less than the outlined eight hours constitute part time employment. This allows both national and non-national personnel to take up more than one job unlike in the past, whereby, people were only allowed to have one job at a time. However, changes of the intricate details of this permit are still underway. This is because various issues keep arising with the encountering of different milestones. Juvenile persons’ permits cover young individuals between 15 to 18 years seeking employment within organizations. Permits for personnel sponsored by their kin cover dependants sought to work for an organization. Meaning expatriates finally have the opportunity to act as their dependants sponsors. This allows their kin to acquire work permits despite them not being eligible for any of the above listed permits (Allāh 1978, p. 198). Therefore, the introduction of different types of work permits made it easier for the Dubai Bank Human Resource managers to recruit personnel in an easier way. For example, they were able to capitalize on the permits for personnel sponsored by their kin. This is because; they used these permits as incentive when soliciting the services of expatriates. These permits allow dependants of an expatriate to get employment easily because getting a work permit ceases to be an obstacle. Therefore, Dubai bank officials continue to embrace the gradual changes implemented by the Ministry of Labor (Pawan 2007, p.77). With the recent global recession, violations of labor regulations in the UAE increased dramatically. As a result, the Ministry of Labor came up with policies which sought to address these violations. Companies like the Dubai bank, therefore, readjusted their labor relation policies to accommodate the reevaluated regulations from the Labor Ministry. The Ministry made three categories of violations known to the public. Black points awarded by the Ministry showed the seriousness of these violations. The more the black points earned by an organization, the severe the penalties imposed. Penalties were either fines or the organization would be downgraded in severe cases. The latter’s imposition occurred when a firm acquired more than 100 black points in any given year (Pawan 2007, p.119). The first category has a maximum of thirteen violations. Examples of labor violations in this category include; recruitment of illegal immigrants, forcing employees to compensate them for recruiting them, misrepresentation of remuneration accounts, delaying employee payments, trafficking people, and falsification of documents like Emiratisation compliance forms. The first category attracts the severest of penalties which includes the receiving of 100 black points which automatically translates into a downgrade. Besides a downgrade humiliation to the third class category, the Ministry further imposes monetary fines. The second category has a maximum of six violations, which include; failure to respond absconding employees, falsifying documentation presented to the Ministry, and, failure to comply with the summons, applicable procedures given by the Ministry. The outcome of these violations includes; the earning of Black points and monetary fines (Pawan 2007, p.167). The third category has 4 violations, which include; non-participation in WPS, failure to notify Ministry about injuries, and, failure to apply to expected standards like health and safety regulations of the work place. These violations attract 70 black points and a monetary fine from the Ministry. The Dubai bank had to re-evaluate their labor relations polices ensuring they were in line with the regulations given by the Ministry. This affected the personnel in this organization because of the strict policies imposed within the organization. Both employers and employees, therefore, had no choice but to understand the Ministry’s expectations. Failure to comply resulted in devastating consequences, which could affect the business of the organization. One of the affected areas included the bank guarantees sector. Just like all the other banks, the Dubai Bank re-adjusted its bank guarantee policies to fit the expectations of the Ministry (Elhais 2012, p.187). The UAE constitution values Human rights; therefore it safeguards them in all of the government's aspects. This includes; the imposition of laws which protect the right of workers and employees within different organizations. For example, the UAE’s constitution has extremely strict policies regarding the use of child labor without credited working permits and the unlawful employment of illegal immigrants. Companies found violating these policies and regulations face dire penalties in the form of monetary fines or a downgrade to the third class level. However, it is essential to note that the UAE’s transformation from the traditional society it once was had not been successfully completed. Meaning, UAE is still yet to sign other international treaties which impose further regulations on labor relation policies implemented by various companies. For example, restriction on the freedom of speech, media and censorship of information is still prevalent in the UAE. As a result, such impositions hinder the growth of external labor within different organizations. Dubai Bank; is, therefore, no exception to these drawbacks brought about by the steady pace with which the UAE government uses in its attempt to conform to the rest of the countries around the world (Cevik 2011, p.107). In conclusion, the labor relation policies found in the Dubai Bank; reflects the policies found in most of the organizations within the UAE. This is because; most organizations in the UAE structure their policies around the entire nation’s policies and regulations. Unlike most modernized nations, the UAE; prides itself in being a more traditional state with unified policies barely affected by international influences. Meaning, the UAE crates and upholds its own values including their labor relation policies, whereby, they reinforce them by ensuring all organizations are aware of the consequences of going against the government’s expectations (Carroll 2002, p.57). This proves beneficial in that the management of different organizations’ policies by the government ministries become easier. Despite the convenience brought by such a system, this might also prove disadvantageous in that organizations within the UAE might miss out on many opportunities as enjoyed by other conforming modern nations. Organizations like the Dubai Bank, therefore, make the most of what they have striving for successes bearing in mind the continuous nature in which the labor relation policies keep changing (Carroll 2002, p.57). Bibliography Allāh, M. M., 1978, The United Arab Emirates: A Modern History, New York: Taylor & Francis. Carroll., 2002, Carroll's federal directory: executive, legislative, judicial, New York: Carroll Pub. Cevik, S., 2011, Policy Coordination in Fiscal Federalism: Drawing Lessons from the Dubai Debt Crisis, Switzerland: International Monetary Fund. Elhais, H., 2012, February 27, United Arab Emirates: Labour Law In The UAE. Retrieved from Labor and Employment: http://www.mondaq.com/x/162800/Employee+Rights/Know+Your+Labor+Rights Pawan S. Budhwar, K. M., 2007, Managing Human Resources in the Middle East, New Jersey: Routledge. Read More