The lure of 0% corporation tax has attracted many foreign companies to establish offices in UAE. Yet there are so many laws in the country it is difficult to stay compliant, especially when the authorities are so vigilant. We recently reported to members the dangers of using VPN connections in UAE. The latest law to catch out the unwary foreigner is one than bans the promotion of any charity that is not locally licenced. An Australian, Scott Richards, living in Dubai faces a year in jail simply because he posted a link on his Facebook page to a US charity raising funds for blankets and socks for refugee children in Afghanistan.
Look closely and up pop a host of laws that could pose a trap for the HR professional schooled in the uncivilized west. For instance, detailed checks must be made before hiring staff – as there are hefty penalties if, for example, someone is hired using another person’s visa. Once employed, an employee has the right to take up to 30 days (unpaid) leave at least once in their employment period to go on a Haj (pilgrimage). Moreover, maternity laws are only applicable to married women and it is in fact a crime for a woman to give birth outside wedlock. Therefore employers should either require a ‘haram’ woman who becomes pregnant to get married or, if they are a foreign national, arrange for them to go back to their home state to give birth – for ‘haya’ reasons well before the pregnancy is visible. Their return to UAE after birth would not be wise if they remain unmarried – as the authorities might well imprison both mother and child.
Health and safety in UAE is on a totally different dimension from most other countries outside the middle-east. Safety notices must be in Arabic, even if a company employs no Arabic speakers. All accidents must be reported to the police and if any manager is found to be in any way responsible they may be arrested and subject to criminal prosecution. The injured employee can also claim full pay for at least six months in addition to compensation for any injury.
Last but not least, if the company wins a new order it is best not to do a spin around the office floor with a colleague, as any form of public dancing is a crime. Likewise, if the company faces closure on economic grounds, or simply has any seriously overdue debts to anyone in UAE, then managers present in the country will no doubt be considered responsible (included a visiting CEO seeking to sort out the crisis), probably be arrested and could well face lengthy prison sentences.