Like its neighbors Saudi Arabia and the United Arab Emirates, the governments of fellow GCC members Kuwait and Qatar are undertaking legislative reforms aimed at supporting a more sustainable and streamlined domestic labor market. - http://www.zawya.com/story/GCC_employment_in_2014_Saudi_and_UAE_Part_1_of_3-ZAWYA20140209083726/
In the second of a three-part analysis, industry experts review the regulatory changes that are expected to significantly impact foreign nationals living and working in these hydrocarbon-rich Gulf nations.
EMIRATE OF KUWAIT
Deportation of foreign nationals
In common with the Kingdom of Saudi Arabia, 2013 saw the government launch a concerted effort to crackdown on illegal workers. A crackdown by Kuwait authorities on foreign nationals illegally working or residing in Kuwait started in March 2013 when the minister of social affairs and labor Thekra Al-Rasheedi, announced a plan to reduce the number of foreign expatriates by half, from 2 million to only 1 million by 2023, culling about 100,000 expatriates per year.
"This is part of the ministry's efforts to regulate the labor market, curb the phenomenon of marginal labor and restore the demographic equilibrium of the country," Al-Rasheedi said in a statement to the Kuwait News Agency.
So far, thousands have been arrested and forcibly deported for an array of violations. The campaign is being coordinated by a number of ministries and security departments, and is being spearheaded aggressively by assistant undersecretary for traffic affairs Major General Abdul Fattah al-Ali, with the objective of "cleaning" the country. This campaign has left Kuwait's foreign labor force living in fear of deportation.
An easing of the arrests and deportations has been observed by the expatriate community in the last three months of 2013 as heated debate on the ethics and legality of the procedure adopted by Kuwait authorities raged in the media and in the diwaniyas of the local population.
Age 65 limit - no transfer of employment; non-renewal of contracts
There is no mandatory retirement age for employees working in Kuwait. Generally, an employee's age is significant only as it relates to the benefits that may accrue to employees who contribute to the Social Security fund, which applies only to Kuwait nationals.
Regarding expatriate employees who are 65 years and above, who continue to work in Kuwait, for the same employer may renew their work permit/visa automatically without any issue. However, they cannot transfer sponsorship to another employer unless an exception is expressly obtained from Kuwaiti authorities. Similarly, expatriates from outside Kuwait who have reached the age of 65 or more will not be given a work permit unless an exemption is obtained from the Kuwaiti authorities.
There are quite a number of employees working in government departments and ministries and government owned and controlled corporations that are above the age of 65. Recently, there have been reports that the contracts of these "above-65" expatriate employees are no longer being renewed or that the employees are being asked to retire at age 65. This has given rise to the belief that expatriates working in government entities would no longer be allowed to work past the age of 65. However, no formal confirmation of this policy has been issued by the Kuwaiti authorities.
Restrictions on driver's license
This resolution has affected many foreign nationals working in Kuwait on a practical basis. Ministerial Resolution No. 393 of 2013, "Amending Certain Provisions of Ministerial Resolution No. 81/76 Regarding the Executive Regulations of Traffic Law" (New Traffic Rules) was passed recently and is being implemented by Kuwait's Traffic Department.
The New Traffic Rules impact all holders of driver's licenses in Kuwait; it applies to all persons applying for new licenses as well as those renewing their licenses. For example, parties who are seeking to renew their licenses, which are about to expire would have to comply with the new requirements, i.e. they would have to show that they have two-year residency, a monthly salary of at least KWD 400 (USD 1,413) and have a university degree except if they are able to prove that they fall under any of the exemptions stated in Article 1 of the New Traffic Rules. These exemptions are as follows: (Informal translation)
"First: Categories exempted from the conditions set forth in paragraph (d):
1. The male Kuwaiti citizen's foreigner wife, widow or divorcee who has children from him;
2. The female Kuwaiti citizen's foreign non-resident husband and children;
3. Non-residents holding valid security cards;
4. Students enrolled in a university or applied institute inside Kuwait;
5. Housewives who have children provided that their husbands are authorized to hold driving licenses provided they are not drivers and messengers;
6. Diplomatic corps staff members;
7. Professional players in sporting clubs and federations and governmental bodies;
8. Drivers and messengers who have legal valid driving licenses issued from their country of origin or any other country;
9. Private domestic helpers and their equivalents who have been employed for minimum five successive years provided that the profession will be changed to driver;
10. Technicians specialized in oil activities in oil companies;
11. Undertakers;
12. Nursing staff members including male and female nurses, physiotherapists and artificial limbs technicians; and
13. Medical emergency technicians, ambulance attendants and lab and radiology arrangers;
Second: Categories exempted from the residency and salary conditions set forth in paragraph (d):
1. Judges, public prosecution members, counsels and experts;
2. The faculty members in universities and applied institute;
3. Managers of companies and establishments, journalists and media people;
4. Pilots, captains and their assistants;
5. Physicians, pharmacists, engineers, associate engineers and accountants of different titles;
6. Teachers and social workers;
7. Legal researchers, translators, librarians and mosque Imams employed by governmental bodies; and
8. Sport trainers employed by sporting federations and clubs and governmental bodies."
Commercial visit visas - processing of work authorizations and work permit
Foreign nationals who enter Kuwait on business or commercial visa of a corporate sponsor had previously been allowed by Kuwaiti authorities to stay in the country while processing their work permit for the same sponsor. This process was suspended by Kuwaiti authorities. As such, all foreigners seeking to work in Kuwait would have to undergo the standard process of entry; they would have to remain outside of the country while their work authorizations are processed at Kuwait's Ministry of Social Affairs and Labour (MOSAL).
After receipt of the work authorization, the sponsor on behalf of the foreign national will apply to the Ministry of Interior (MOI) for a working (no-objection) visa. It generally takes up to two weeks to receive a working visa. Before arriving in Kuwait the foreign national will be sent two originals of the working visa in his/her home country. The foreign national will contact the Kuwait Embassy in their home country and will be directed to undergo medical tests. He/she then submits the results of these tests to the Kuwait Embassy along with a copy of his/her passport. If the medical tests are in order, the Kuwait Embassy will stamp the working visa. This may take from two to three weeks to complete.
Upon the foreign national's arrival in Kuwait, the sponsor may begin the process of applying to the MOSAL and subsequently to the MOI, to obtain a work permit and residency stamp to enable the foreign national to legally work and reside in Kuwait.
STATE OF QATAR
In late 2013, Qatar announced the implementation of compulsory private health insurance for employees.
Legislative changes in 2014 involve an overhaul of policy and implementation of immigration regulations; in particular the recognition of certain professions; experience and qualifications (engineering being a principle focus).
Rob Little is a member of the Al Ruwayeh & Partners (ASAR). Prior to joining ASAR, he practiced law in Canada, where he also lectured at the Bar Admission Course and published papers on various aspects of commercial law. In Kuwait, he specializes in general corporate commercial, capital markets, project work and financial transactions.
Edlyn Verzola is an associate at Al Ruwayeh & Partners (ASAR). Prior to joining ASAR in 2002, she had a varied practice in the Philippines, namely as associate in a top law firm in Manila, law clerk to the chief justice of the Philippine Supreme Court, legal counsel for the Philippine Stock Exchange and vice president and general counsel of General Electric subsidiaries in Manila.
Sara Khoja is partner at the Dubai office of Clyde & Co. She qualified in England and Wales in 2002 and specializes in employment law. She joined Clyde and Co's Dubai office in 2008, establishing the specialist team. She provides employment advice for the Middle East region, in particular the Arabian Gulf Cooperation Council member states.
Zawya 2014
