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Easier company transfer and unified labour contracts in Dubai

Companies will now find it easier to transfer between Dubai’s free zones while employees may soon have a unified labour contract.

The Dubai Free Zone Council (DFZ) has agreed to facilitate the seamless transfer of companies and people among free zones in the Emirate, providing the necessary financial and administrative stability.

Companies wishing to relocate to a new free zone can now transfer their complete registration and record to the new hub, without having to cancel the outstanding registration and/or liquidate the business.  With over 20 free zones in Dubai, this should increase competitiveness, not only as a significant commercial advantage but also developing competition between the free zones themselves and also with office space cost.

Meantime the unification of labour contracts for employees in all of Dubai’s free zones is on the cards, with DFZ Council Chairman Sheikh Ahmed bin Saeed Al Maktoum directing Council members to compile a sample contract for workers in these hubs.  This would increase efficiency with the immigration and Ministry of Labour process with one recognisable contract, it should also increase clarify for employees who move or change jobs. The development follows the 1 January 2016 implementation of the updated UAE Labour Law which noted that employment contracts should be standardised to ensure employment terms are transparent and understood by the employee.

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TMF UAE can assist with the renewal of employee contracts in line with the new laws once the agreed standards are released.  Our experts can also assist with a company's move from one free zone to another, completing all the legal documentation, application and release documents and obtaining a license in the new zone along with all of the corporate document updates.

Need more information? Get in touch with our experts.

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