9.2 Sponsorship 9.2.

1 Under Article 4 (3) of the Decree for the establishment of the Free Zone Authority in Jebel Ali Port 1985 the Free Zone Authority is permitted to sponsor staff who are to be engaged to work for Licensees in the Jebel Ali Free Zone. 9.2.2 A company, wishing to take advantage of this facility, will be required to sign a Personnel Secondment Agreement with Jafza. This agreement lays down the conditions under which Jafza will act as sponsor for a Licensees employees. A Licensees employees must not exceed the figure approved from time to time by Jafza (e.g., according to office area, machinery installation, etc.). 9.2.3 The Personnel Secondment Agreements (PSAs) signed by Licensees require a Bank Guarantee in accordance with para 3 (b) of the PSA in respect of each employee sponsored by Jafza. However, a single Bank Guarantee to cover the anticipated total number of employees may be lodged with the Free Zone Customer Service Department. This Bank Guarantee shall be in line with the standard format approved by Jafza. 9.2.4 Jafza will waive the requirement for a Bank Guarantee in respect of a maximum of two company officials selected from any of the following grades: Owner, Partner, Director, General Manager, Manager. 9.2.5 For the purpose of calculating the value of the Bank Guarantee for sponsored staff, it is essential to account for one and half months basic salary plus the cost of a one way air ticket to the employees point of origin at the published IATA rate. It is essential to note that the Bank Guarantee requires to be increased in value to meet subsequent increases in salaries or airfares. 9.2.6 Jafza will act as sponsor to obtain Entry Permits and Residence Visas for employees: a) Recruited by Licensees, - OR b) Engaged by Jafza on behalf of Licensees.

25
9.2.7 Licensees wishing to employ staff, other than nationals of GCC countries, and who are to be sponsored by Jafza, are required, in the first instance, to apply for an Entry Permit through Free Zone Customer Service Department. Payment for Entry Permits is due in advance and is normally required at the time of submitting the Application. 9.2.8 Jafza will provide some Investors with an Investors Visa. In order to qualify, an individual must have invested in a building in the Free Zone and his share of the investment must not be less than Dhs 500,000/-. This type of visa is restricted to land Lessees and shall be issued after the money has been invested and the building is constructed. 9.2.9 Staff sponsored by Jafza may only work in the Jebel Ali Free Zone. But they may live in Dubai and move freely within the United Arab Emirates. However, there may be occasions when a Licensee requires an employee to work outside the Free Zone. [e.g. installation, repair, or maintenance of specialist equipment]. For such work, Jafzas prior approval is required. 9.2.10 Sponsored employees are only allowed to work with the companies they are seconded to. Under no circumstances they will be allowed to work for other companies, even during their free time or holidays. Licensees shall not recruit, employ or make use of employees of other Companies. 9.2.11 Jafza will accept requests to transfer employees between Licensees within the Free Zone provided both Companies are agreeable and the receiving Company has a valid Personnel Secondment Agreement. Jafza does not accept applications to transfer sponsorship to a company outside the Free Zone in the UAE. An Entry Permit must be obtained from the new employer and Jafza will cancel its sponsorship in the usual way. However, in some cases Jafza may consider such applications. 9.2.12 Jafza cannot continue to sponsor an employee, who is seeking alternative

employment, being no longer employed by the Licensee. 9.2.13 All unused Entry Permits (visit, transit, employment) need to be returned to Free Zone Customer Service for cancellation. 9.3 Employing Non Sponsored Staff 9.3.1 Licensees can employ non sponsored staff in the Free Zone, either temporarily or permanently, providing certain conditions are fulfilled, i.e., employment is permitted for the following: a) A female sponsored by a relative, b) Employee of a parent Company registered in the UAE, c) In some cases where employees are sponsored by Sister Companies of Licensees. Licensees wishing to employ anyone in the above categories must initially seek the approval of the Jafza through Customer Service Department.

26
Approved non-sponsored staff must however, acquire the appropriate ID card or pass (see Clause 9.4), for entry into and out of the Free Zone. 9.3.2 Licensees wishing to employ non sponsored staff on a temporary basis, must apply to the Free Zone Customer Service Department for prior approval to obtain a temporary pass (see Clause 9.4.4). 9.4 Passes for Working and Visiting in the Free Zone 9.4.1 Company Employment Card (CEC) All sponsored employees are issued with a CEC which provides a unique identification for each employee. This card serves as permit to work in the Free Zone, allows access into the Free Zone and also is the source of identification in lieu of the employees passport. If a card is lost, then a replacement cannot be issued without police clearance. 9.4.2 Temporary CEC A temporary CEC will be issued to an employee in the following circumstances: * Upon arrival of the employee (until the permanent CEC is ready). * Upon withdrawal of the employees passport (until the passport is returned). * In the event of loss of the CEC (until the replacement is issued). 9.4.3 ID Cards ID Cards will be issued to female employees of Free Zone Companies, not sponsored by Jafza, but who are sponsored by a relative. 9.4.4 Access Passes Access Passes are issued to employees not sponsored by Jafza, but who have been approved to work for Free Zone Companies, see Clause 9.3. (However, this excludes non-sponsored female employees, see above for ID cards). 9.4.5 Temporary Pass Temporary passes are issued to employees not sponsored by Jafza and who have been approved to work on a temporary basis for a Free Zone Company. 9.4.6 Day Pass Day Passes are issued to visitors to the Free Zone. 9.4.7 Obtaining Passes All the above types of pass, with the exception of the Day Pass, need to be acquired by applying to Customer Service Department. Day passes however require the Licensee to forward the details of the intended visitor to Security, i.e., date, time, company and name and if required, vehicle registration.

27
In the case of ceasing employment, the Licensee must ensure that all passes are returned to Free Zone Customer Service Department. Failure to do so will result in a fine being imposed as per violation of Clause 14.3.6.

9.5 Employment 9.5.1 Free Zone Licensees who will be recruiting employees under the sponsorship of Jafza are responsible to bear the following costs: * Cost of processing the Entry Permit * Cost of air ticket from the employees point of origin to Dubai * Cost of processing the Residence Permit * Cost of Health Card * Cost of renewal of Residence Permit and Health Card including the cost of Medical Fitness Certificate. 9.5.2 Under no circumstances will these expenses be charged to the employee or deducted from his/her salary. 9.5.3 The Licensees can, if they wish, deduct an amount monthly from the employees salary in the way of deposit to ensure that the employee does not abscond. However, this deduction should follow the following rules: a) The employee should be well aware of this arrangement and this should be included in his Employment Contract before he signs. b) The amount deducted each month shall not exceed 20% of the basic salary and the total amount deducted during the full term of employment shall not exceed AED 1,500/-. c) For any month in which deduction is made, the employee should be issued with an appropriate receipt giving date, amount deducted and signed by the Licensees Authorised Signatory. d) The Licensee undertakes to pay the total amount deducted from the employees salary during the term to the employee upon completion of his contract. 9.5.4 The terms and conditions for staff recruited by Licensees, but sponsored by Jafza, are a matter of negotiation between the employer and employee. However, as sponsor, Jafza is responsible for ensuring that rules relating to employees (given herein) are observed. 9.5.5 Licensees should note that the minimum salary acceptable to Jafza for sponsored staff is AED500.00 plus food, accommodation and transport. 9.5.6. All sponsored employees shall sign an Employment Contract prescribed by the Free Zone which shall offer the minimum acceptable conditions of employment. However, companies are at liberty (encourage) to provide better conditions if they wish. Those who are exempted from providing a Bank Guarantee are required to sign an undertaking in lieu of the Employment Contract to the effect that they cannot make any claims against Jafza as Sponsor.

28
The effective date of the contract shall be coincident with the date of entry on the employment visa, or with the transfer date at Immigration. 9.5.7 The Licensee shall submit the Entry Permit, Passport and Contract, for all new employees, within 48 hours of arrival, to Free Zone Customer Service Department. 9.6 Passports 9.6.1 Employees of Licensees, who are sponsored by Jafza, will have their passports retained by Customer Service Department. A Company Employment Card (CEC) will be issued in its place as an identity document (See Clause 9.4). 9.6.2 Jafza will allow senior staff for whom the Bank Guarantee requirement has been waived (see Clause 9.2.4), to retain their passports. 9.6.3 If necessary, passports can be withdrawn by individuals for specific purposes. To do so however, a Request for Withdrawal of Passport form must be completed and signed by an authorised signatory and submitted to Free Zone Customer Service Department for approval. The agreed date for return must be complied with.

However, an authorised signatory cannot approve withdrawal of his/her own passport. This must be authorised by another authorised signatory (see Clause 9.1.1), or directly by Free Zone Customer Service Department. 9.6.4 In case of emergency outside normal working hours, e.g. death of a close relative, it is possible to withdraw a passport. The procedure is to ring DPAs Telephone Exchange (8815000) or DPA Security (8816846) and explain the situation. The Telephone Operator or Duty Security Supervisor will arrange for the attendance of a Free Zone staff member who can issue the passport in exchange for the Company Employment Card. If possible a Request for Withdrawal of Passport form should be completed and signed by an authorised signatory and then presented to Customer Service. However, a request on company notepaper with an authorised signature will be accepted if the proper request form is not available to the applicant. 9.6.5 When passports are withdrawn, the Company Employment Card must be surrendered in exchange for the passport. However this is not required by senior staff who are allowed to retain their passports. 9.7 Medical Cover for Free Zone Sponsored Employees 9.7.1 Medical cover for sponsored employees can be arranged through the Department of Health and Medical Services (DOHMS) at the Out-patient Clinic in the Jebel Ali Village, who can also provide a hospital service if required in Dubai. This service is available on payment of the required fees as per the Tariff. 9.7.2 Companies requiring Medical Cards for their employees should apply to the Free Zone Customer Service Department. Two stamp size photographs will be required and a note of the district in which the employee resides. This does not apply to companies making their own arrangements for medical cover.

29
9.7.3 In cases where a Licensee employs more than 40 people, he may apply to Jafza for permission to make private arrangements for the provision of medical cover instead of using the facilities of the Department of Health and Medical Services. However, the Licensee must be able to demonstrate that the medical cover to be provided is adequate for both outpatient and hospital treatment. Note: A Health Card is still nevertheless required in order to obtain a Medical Fitness Certificate from Government Hospitals / Clinics, which is mandatory for stamping the Residence Permits. 9.8 Salary Certificates 9.8.1 The Free Zone Customer Service Department will provide companies with computer reports, which will give the name of the company and the date and list the names of the sponsored employees, against which employee signatures are required to confirm all emoluments due have been paid. These will constitute the Salary Certificates, which must also be certified by the Company. Any Certificate not signed by an employee must be annotated with the reason (e.g., on leave). 9.8.2 The Certificates will be made available at the end of each month and will be automatically faxed to those companies with fax facilities, and with over 50 employees. Otherwise they can be collected up to the 5th of each month from the Customer Service Department. Any Certificates not collected after the 5th will be posted. However, if any company has not received their Certificate by the 10th of the month, then a copy must be personally collected from the Customer Service Department. 9.8.3 The signed and certified Certificates must be returned to Customer Service Department before the 15th of the month. Claims that the Certificates have not been received will not be accepted as an excuse for failing to return them on time. 9.8.4 Failure to provide the Salary Certificate by the 15th of the month will result in

sanctions and fines as per Clause 14 on Violations. 9.9 Rules Governing Termination of Contracts of Employment 9.9.1 A contract of employment may be terminated as follows: a) By mutual agreement between the employer and employee and with the approval of Jafza. b) By the employee or employer during, or at the end of the probationary period (without notice). c) By the employee or employer giving 30 days notice in writing (after the probationary period). d) On expiry of the service period prescribed in the contract, provided 30 days notice NOT TO RENEW is given by either party. 9.9.2 A contract of employment shall be terminated in either of the following cases: a) If the employee dies during service. b) Illness of, or injury to, the employee resulting in a total incapacity to work (which is subject to the provision of a medical report by an acceptable authority).

30
9.9.3 An employee shall be entitled to a period of notice before termination of service as laid down in the Employment Contract. The employee shall be entitled to full pay during the prescribed notice period. The employee may be required to work during the notice period should the employer so wish. 9.9.4 If an Employer reduces the notice period the employee will be entitled to payment for the full notice period as prescribed in the employment contract, even if only part of the full period is worked. 9.9.5 If an Employee wishes to reduce the notice period the employer will be entitled to receive payment from the employee for any portion of the prescribed notice period not worked. On compassionate grounds the employer may waive the right to receive this payment. 9.9.6 An employees service may be terminated without notice for any of the following reasons : a) If the employee is ill disciplined, or fails adequately to perform the duties as defined in the Employment Contract (three written warnings with copies to Jafza must be given before this rule is activated). b) If the employee is sentenced by competent court of a civil misdemeanour or criminal act. c) If the employee is found drunk or under the influence of a drug at work. d) If the employee is absent from work without valid reason for more than seven continuous days in any one year. e) If the employee, while at work, assaults the employer, a responsible manager, a workmate, or a visitor. f) If any action by the employee results in substantial loss to the company (provided that the employer notifies Jafza within 48 hours of discovering the loss). g) If the employee fails to comply with health and safety regulations (provided that such regulations are prominently displayed in writing and, in the case of illiterate employees, that they have been explained orally.) h) If the employee falsifies his / her identity details. 9.9.7 An employee may cease work without notice if : a) The employer fails to fulfil the terms of the contract of employment. b) The employer, or his representative, assaults the employee. 9.9.8 Termination under clauses 9.9.6 and 9.9.7 are subject to agreement by Jafza before the Employment Contract is cancelled. 9.9.9 Dismissal for any reason other than those in clause 9.9.6 shall be deemed to be an arbitrary dismissal. In such cases the employee shall be entitled to compensation in addition to severance payments due under the terms of the Employment Contract.

31
9.9.10 The amount of compensation to be paid: a) Shall be assessed by Jafza b) Shall not exceed three times the basic monthly wage specified in the Employment Contract. Jafzas decision shall be final. 9.9.11 Where a change occurs in the form or legal status of an establishment, Employment Contract that were valid at the time of the change shall remain in force between the new employer and the existing employees of the establishment and their service shall be deemed to be continuous. 9.9.12 If an employee transfers to another employer, service will NOT be considered to be continuous unless special arrangements to the contrary are agreed. 9.9.13 An employee whose service exceed one year shall be entitled to a gratuity payment on termination of service at the rate of seven days pay (or more if the employment contract so specifies) for each year of service. After the first year payment will be pro-rata for the period served. 9.9.14 The gratuity shall be calculated at the basic pay rate as defined in the employment contract. 9.9.15 Entitlement to gratuities (end of service benefits) shall be forfeited if the employee : a) Is dismissed in accordance with one of the clauses in clause 9.9.6. b) Resigns before completing one years service. 9.9.16 In case of death during service, the gratuity due will be payable as part of the employees estate. 9.9.17 On termination of service, (at end of contract or if the contract is terminated by the employer prior to completion of contract), an employer shall provide an air ticket to the International Airport nearest to the employees home. However, an air fare will not be provided in the case of dismissal under clause 9.9.6 or where the employee terminates employment prior to end of the contact. 9.9.18 If an employees contract is automatically renewed in accordance with the Contract of Employment, then having completed his initial contract, he is entitled to an air fare either in the event of submitting his own resignation or on his dismissal, whenever this occurs. Note: In the case of the employee having already availed himself of his air fare entitlement for the completed contract period, then he is not entitled to the air fare. 9.9.19 The employee, on termination of service may request, and the employer shall provide if so requested, a Service Certificate to show: a) Period of service b) Work performed while employed

32
c) Final rate of pay and bonus, if any d) A character reference Such service certificate shall be provided free of charge. 9.10 Implementing Termination of Employment 9.10.1 Jafza is to be notified of any disciplinary action taken against seconded staff within ten days of the action being taken. The following information is to be provided to Customer Service Department: - Name and CEC number - Date of offence - Nature of offence - Disciplinary action taken - General Managers signature 9.10.2 Upon termination of employment, the Company is required to submit a statement in the prescribed form (copies available from Customer Service Department), of

the final dues, giving sufficient details to determine how the final dues have been calculated. This statement shall be signed by the employee and by an authorised signatory of the Company. A copy shall be given to the employee and a further copy, after signature by the employee, is to be presented to the Customer Service Department. At the same time the Company is to either lodge with Jafza a sum in cash equal to the total of the final dues, or an official receipt showing that the employee has received his final dues. 9.10.3 Jafza reserves the right to calculate terminal benefits itself and to require the Company to provide cash and air tickets for distribution to departing employees. In such cases the Jafzas signature shall be deemed to replace the Companys authorised signatory. 9.10.4 In all cases when a seconded staff employee is separating from the Company, Jafza, acting as sponsor, will arrange to cancel the employees residence