UAE Freelance licenses in Dubai or any other emirates are now available for those who are 18 years of age and up.   

Previously, to start a business in the U.A.E., including freelance businesses, could only be done by those who were at least 21 years old. Now, the free-zones, in particular, across most of the Emirates, have extended the option of setting up the UAE freelance licenses to anyone who reaches the age of 18.

For the time being, however, for those who wish to set up on the mainland, the minimum age remains 21. Although, it should just be a matter of time before the mainland also lowers its requirement to 18. 

To clarify, the mainland is an economic zone under the jurisdiction of DED, or the Department of Economic Development. The changes to the minimum age requirement stem from the recent legislative amendments.

In particular, the new U.A.E. Commercial Transactions Law, which is the Federal Decree Law No. 50 of 2022, and Articles 18.1 and 18.2, in particular. That law replaced the previous Commercial Transactions Law No. 18 of 1993.

UAE Absconding reports, against domestic workers, which are filed fraudulently or fictitiously, are expressly against the law. And as such, are now subject to specific penalties and fines.

1. In particular, employers, who maliciously file UAE absconding reports against their domestic workers, are subject to a fine of AED 5,000 for each domestic worker.
2. Importantly, the authority that regulates employment of domestic workers is MOHRE.  3. And it is MOHRE directly, that has the ability to impose such fines on breaching employers, without the need to go to court.  

Furthermore, when an employer is fined, that employer’s file becomes suspended, preventing them from hiring new domestic helper, until the fine is paid. This provides an effective solution against fraudulent or malicious UAE absconding reports.
By not only deterring employers from such abusive practices, but also allowing domestic helpers to file such complaints more easily.
This is in line with the UAE Cabinet Resolution No. 106 of 2022, re: the Executive Regulations of Federal Decree Law No. 9 of 2022 on Domestic Workers. And, in particular, Schedule No. 2, which is annexed to the Resolution.

Health insurance for Dubai residents is mandatory. This means that all sponsors are required to provide the Dubai health insurance to their dependents.  

This is so, whether residents are sponsored by someone else or self-sponsored. Therefore, all those who sponsor their family members, including under a Golden Visa, are required to provide Dubai health insurance to their dependents. 

And for those who are sponsored by their employers, the obligation is on the company to provide the Dubai health insurance for them.

Importantly, for those employees who are sponsored by either

1) Family members or

2) Self-sponsored, the obligation for the Dubai health insurance lies on the sponsor, and not the employer.  

Furthermore, failure to provide health insurance in Dubai is subject to various penalties. For example, employers who sponsor their employees, but fail to provide medical insurance, are subject to a fine of a minimum of AED 1,000/employee.

Overall, the Dubai health insurance legislative framework in Dubai is rather extensive, with over 120 regulations, directives, circulars, notices, and guidelines issued by various authorities. But one of the most notable ones is Dubai Law No. 11 of 2013 re. Health Insurance in Dubai and, specifically, Articles 7 (1) and 9. As well as, Dubai Executive Council Resolution No. 7 of 2016 on Fees and Penalties regarding Health Insurance in Dubai.

I.            Relevant Legislation

–        Federal Decree-Law No. 9 of 2022 Concerning Domestic Workers;

–        Cabinet Resolution No. 106 of 2022 Concerning the Executive Regulations to Federal Decree-Law No. 9 of 2022 Concerning Domestic Workers;

–        Cabinet Resolution No. 675 of 2022 on Payment of Some Domestic Workers’ Salaries though the Wage Protection System.

II.              Scope of Application

The Wage Protection System, as is relevant to U.A.E. Domestic Workers, does not apply to all categories of domestic workers.  Notably, it excludes categories such as housekeepers, nannies, and gardeners.  Specifically, it is only applicable to those who fall within the following five (5) categories:

1)    Private agricultural engineers;

2)    Private tutors;

3)    Personal Trainers;

4)    Home nurses;

5)    Personal Assistants.

However, as a measure of protection, and as per Article 5 of the new U.A.E. domestic workers law, Federal Decree-Law No. 9 of 2022 Concerning Domestic Workers, licensed recruitment agencies are obligated to provide all employers of domestic workers in any category, with a booklet of wage receipts or any document to prove payment of wages.

III.            Exemptions  

Employers of the above-mentioned 5 categories of domestic workers in the U.A.E. are exempt from paying domestic worker salaries through the WPS in the following cases:

1)    If the U.A.E. domestic worker has a pending employment complaint, and does not work for the employer;

2)    If there is a report of absence from work against the U.A.E. domestic worker;

3)    If the U.A.E. domestic worker is newly employed; during the first 30 days of their employment.

IV.            WPS Requirements

–        January 1, 2023:  Employers of domestic workers in the U.A.E. have the option to register on the WPS;

–        April 1, 2023:  Employers required to register and pay U.A.E. domestic worker salaries. 

–        Salaries for a specific month are due on the first day of the following month.  And, are considered late if they have not been paid through WPS within one month of the due date. 

–        An employer is considered to have fulfilled the WPS requirement if they have paid 80% of more of the domestic worker’s salary through the WPS system.   However, if the employer has paid 75-79% of the U.A.E. domestic worker’s salary, they must submit a supporting document justifying the salary deduction (Article 3)

V.              Supervisory Authority

–        Starting in February, and at the start of every month, MOHRE is tasked with notifying and warning employers about the importance of registering in the WPS.

–        On the 2^nd and 8^th day from the salary due date, MOHRE is also tasked with notifying and warning employers about the importance of paying the relevant domestic worker salaries through WPS.

VI.            Penalties

–        If any U.A.E domestic worker’s salary has not been paid within 2 months of the due date, the employer’s file is suspended until the salary is paid.  For those U.A.E. domestic workers subject to WPS, the payment must be made through WPS.  This prevents the employer from recruiting, or hiring any additional domestic workers.

–        Employers of U.A.E. domestic workers who fall within the 5 categories who fail to register on the WPS will be fined AED 100.00 per domestic worker.