Home / Economy / Mohammed bin Rashid chairs UAE Cabinet meeting, approves Optional System for End-Of-Service Gratuities for private sector Employees

Mohammed bin Rashid chairs UAE Cabinet meeting, approves Optional System for End-Of-Service Gratuities for private sector Employees

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, chaired the UAE Cabinet meeting at Qasr Al Watan, Abu Dhabi, in the presence of His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister and Minister of the Presidential Court; H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance; and H.H. Lt. General Sheikh Saif bin Zayed Al Nahyan, Deputy Prime Minister and Minister of the Interior.

His Highness Sheikh Mohammed bin Rashid Al Maktoum said: “Today, I chaired the UAE Cabinet meeting at Qasr Al Watan, Abu Dhabi. We affirm our commitment to continue the UAE ambitious strategy for space sector. The UAE will carry on qualifying Emirati astronauts for more missions to the International Space Station (ISS). We welcome Sultan AlNeyadi, the first Arab Astronaut on long mission at ISS after conducting multiple experiments, supported by the Mohammed Bin Rashid Space Centre (MBRSC) which oversees the National Space Programme and future space missions… Sultan is a role model for millions of youth in the UAE and in the Arab region.”

Sheikh Mohammed bin Rashid said: “During the meeting, we approved an Optional System for End-Of-Service Gratuities for private sector and free zones Employees… The system is optional for employers to join, and includes establishing private sector investments and savings funds supervised by Securities and Commodities Authority in coordination with the Ministry of Human Resources and Emiratization.”

His Highness added that through these funds, employees can invest and save their end-of-service gratuities according to various investment options. “The aim is to safeguard workers’ savings, which constitute the end of service gratuities, and to ensure that they are safely invested in order to guarantee their rights and to achieve the stability of their families…Also, government sector employees can participate in the System, for savings and investment purposes.”

His Highness noted: “Today, we also approved a federal law restricting the maximum weight that can be carried by heavy vehicles in the UAE. By next year (2024), heavy vehicles with a total weight exceeding 65 tonnes will be banned from using the roads, in order to protect our advanced infrastructure and raise safety levels on UAE roads.”

His Highness Sheikh Mohammed added: “During the Cabinet meeting today, we approved the establishing of the ‘Federal Regulatory Bureau for Electricity and Water’… The Bureau aims at regulating the electricity and water trade in the UAE and abroad, in addition to regulating the production, transmission and distribution of electricity and water in the country. The Bureau will work under the Ministry of Energy and Infrastructure”.

His Highness said: “Also today, we approved a new Rewards and incentives System for the employees of the Federal Government, within three categories: employee’s outstanding annual performance, exceptional achievements at the entity level, or employee’s contribution to a national achievement for the nation. The goal is to ensure a flexible reward system that enhance the competitiveness and achievement of our federal government cadres.”

His Highness Sheikh Mohammed bin Rashid Al Maktoum concluded: “As part of our continuous development of federal legislative system, the UAE Cabinet today adopted 11 new federal laws, including the new E-commerce law; new law regulating the media sector; Reproductive Health law; Space Sector Regulation law; Human Genome use law and other socio-economic, health and technological laws… The aim is to strengthen the legislative environment in the UAE and promote social stability, economic growth and better quality of life.”

During the 6-month space mission, Emirati astronaut Sultan AlNeyadi conducted over 200 advanced research experiments and studies under the supervision of the Mohammed Bin Rashid Space Centre, in the longest ever Arab space mission.
In collaboration with international space agencies and UAE universities, Al Neyadi succeeded in conducting a number of scientific researches and experiments in various fields, including: plant cultivation, humanities, space exploration techniques, behaviour of fluids in space.
MBRSC adopts the “UAE Astronaut Programme”, which provides the UAE’s space projects with national competencies. The first Emirati astronaut, Hazzaa AlMansoori, who undertook a scientific mission to the International Space Station (ISS) in 2019, was a graduate of the programme. Emirati astronauts that have graduated from the Programme include Sultan AlNeyadi, Mohammed AlMulla, and Nora AlMatrooshi, the first Arab female astronaut.

Optional System for end-of-service gratuities
The UAE Cabinet approved a new Optional System for end-of-service gratuities substituting the existing End of service system for workers in the country. The Optional System allows all employees in the private sector and free zones to participate in it, and is considered optional for employers.
As per the law, all employment of different occupational levels and working patterns can benefit from the new Optional System. Also, government sector’s employees are entitled to join the system, for savings and investment purposes.

The Ministry of Human Resources and Emiratisation in coordination with the Securities and Commodities Authority will be supervising the system and its funds all over the Emirates.
The system includes three main investment options: Risk-free investment that maintains capital; risk-based investment where the risk varies between low, medium and high; and the sharia-compliant investment.
The system sets mechanisms for each option to contribute to the achievement of the associated objectives and to enhance the competitiveness and stability of the UAE’S labour market.
Employers participating in the System, have the right to choose the employments’ categories to benefit from the system, and are asked to pay a monthly contribution. Upon termination of service, the beneficiary (employee) receives his savings under this system.
Legal financial benefits will be paid to the beneficiaries, including accrued returns on participation in the system’s investment funds, after the termination of the employment relationship. If an employee dies, financial benefits will be given to the eligible person.
Developing the labour complaint system
The UAE Cabinet approved a decision regulating labor relation and the Federal Decree Law concerning Domestic Workers. as per the law, the Ministry of Human Resources & Emiratisation will be responsible of issuing decisions regarding labor disputes in which the value of the contested claim do not exceed AED 50,000; in addition to handling friendly settlements, and a number of other disputes.
Federal Regulatory Bureau for Electricity and Water
The UAE Cabinet meeting approved the establishing of the ‘Federal Regulatory Bureau for Electricity and Water’ under the Ministry of Energy and Infrastructure. The Bureau will coordinate with relevant authorities to regulate the electricity and water trade between the UAE and abroad; create a competitive environment among the electricity and desalination companies working in the country; and apply the governmental directives on the energy and water sector. In addition, the Bureau aims at protecting consumers rights, and regulating the production, transmission and distribution of electricity and water in the country.

Weights and Dimensions of Heavy Vehicles
During the meeting, the UAE Cabinet approved the amendment of the federal law restricting the maximum weight that can be carried by heavy vehicles in the UAE. as per the amendments, heavy vehicles with a total weight exceeding 65 tonnes will be banned from using the roads by next year (2024). In coordination with the relevant federal and local authorities, a smart electronic gate system will be installed to measure and monitor the weights and dimensions of heavy vehicles, in order to protect the UAE’s advanced infrastructure and to raise safety levels on the roads.

Developing UAE’s legislative system
The Cabinet meeting also approved amendments to a number of federal laws, including Federal law on Road transportation; federal law on Medical Products the Profession of Pharmacy and Pharmaceutical Facilities; federal law on judicial fees in federal courts; and federal law on Mediation for the Settlement of Civil and Commercial Disputes.
The amendments also included the E-commerce; media regulation; Reproductive Health; Space Sector Regulation; Human Genome use; competitiveness; auditors’ profession; insurance; UAE Space Agency; and the Exam Testing System in the UAE.

Within the UAE’s commitment to meet the requirements and standards for countering money-laundering, countering the financing of terrorism, and supplementing the recommendations and methodologies issued by the Financial Action Task Force (FATF), the Cabinet approved amendments on the decision of activating the real beneficiary at all registered and licensed establishments in the country.

New framework for a proper use of the Hydrofluorocarbons (HFCs)
The Cabinet assigned the “UAE Council for Environmental and Municipal Work” to develop a framework for a proper use of the Hydrofluorocarbons (HFCs) and reducing its resulting climate impacts, in coordination with concerned federal and local authorities.
Also, the ministry in coordination with concerned federal and local authorities, is assigned to study the ratification of the Kigali Amendment to the Montreal Protocol on the phasedown of HFCs.

New Rewards and incentives System for employees of Federal Government
The UAE Cabinet approved a new Rewards and incentives System for the employees of the Federal Government, in order to motivate them and recognize their contributions and achievements.
The system identified three categories, including employee’s outstanding annual performance, exceptional achievements at the entity level, or employee’s contribution to a national achievement for the nation.

The UAE Cabinet approved a number of international agreements with friendly countries including Kingdom of Cambodia, Republic of Côte d’Ivoire, Republic of Mozambique, and the Republic of Türkiye, in addition to an agreement with the World Organisation for Animal Health (WOAH) on the establishment of the sub-regional office of the International Office of Epizootics.

The Cabinet approved the UAE hosting of the third edition of the ICAO Conference on Aviation and Alternative Fuels. Represented by the General Civil Aviation Authority, the UAE will host the conference between 20th to 24th November 2023.

The meeting reviewed the Emirates Tourism Council’s Report 2022, showing that the UAE attracts more than 20 million visitors annually. as per the report, 10 percent is the tourisms of the gross domestic product (GDP), about 170 billion dirhams. The tourism sector contributes nearly 750 thousand jobs to the country’s labour market.

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