Establishing an International Campus or Program in the UAE and Qatar: Corporate, Regulatory, Immigration, and Labour Law Considerations

Transcription

1 AUDIO CONFERENCE ON: Establishing an International Campus or Program in the UAE and Qatar: Corporate, Regulatory, Immigration, and Labour Law Considerations JULY 8, 2015 CERTIFICATE OF ATTENDANCE The undersigned certifies that attended Establishing an International Campus or Program in the UAE and Qatar Audio Conference sponsored by the Employment Law Alliance. The program consisted of 60 instructional minutes. The program contained no credit for continuing legal education for legal ethics, elimination of bias in the legal profession or prevention, detection and treatment of substance abuse. To be completed by Attorney or Attendee after participation in the abovenamed activity. By signing below, I certify that I participated in the activity described above and am entitled to claim the following continuing education credit hours: Total Hours Signature

2 Establishing an International Campus or Program in the UAE and Qatar: Corporate, Regulatory, Immigration, and Labour Law Considerations Wednesday, July 8, 2015

3 Speakers Moderator/Speaker Rebecca Ford Clyde & Co Dubai, UAE 1

4 Speakers Ross Barfoot Clyde & Co Abu Dhabi, UAE Samantha Ellaby Clyde & Co Dubai, UAE 2

5 Speakers Emma Higham Clyde & Co Doha, Qatar 3

6 4 Legal Structures

7 Choosing an Appropriate Structure Self establishment Expensive Time consuming Do you have resources and mindset? Local knowledge? PropCo partner? Sponsored entry NYU/INSEAD/Paris Sorbonne Identifying suitable sponsor Costs and other resources Tie in with wider Government aims Joint Venture Due diligence on JV partner Alignment with JV partner Operational issues Brand protection Licensing model Due diligence on owner Protection of standards and reputation Ability to exit if things go wrong Common K-12 and HE model Brand protection 5

8 Typical Structures Licensing Model MOU Investor Preconstruction Agreement Foreign Provider Management Agreement OpCo Lease PropCo Licence Agreement International Middle East 6

9 Typical Structures OpCo/PropCo Model Foreign Provider MOU Preconstruction Agreement Investor OpCo Lease PropCo/ Landlord Campus Land Premises 7

10 Typical Structures - Branch UAE Local Agent Foreign Provider OpCo as Branch Office Lease Landlord 8

11 Typical Structures - LLC National 51% Shareholder Foreign Provider (49%) OpCo as LLC Lease Landlord 9

12 Typical Structures - JV Foreign Provider JV Agreement Investor OpCo Lease PropCo/ Landlord Campus Land Premises 10

13 Dealing with Local Partners / Investors Collaboration Non confrontational relationship co-operative Aligned interests Value What will the local partner contribute? Don t underestimate the value you bring Land? Different perspectives Troubleshooting Recognise issues early New to education sector? MOU Realistic Expectations Academic quality Profit motive Financial vs Academic control Time involved 11

14 Generalised Regulatory Process Preliminary Application Preliminary Approval OpCo Incorporation Pre-Opening Inspection Post-Opening Inspection Academic Plan Curriculum Land allocation Design Construction After construction Before campus opens Temporary Licence 1-2 years after Education Licence Preliminary Application Commercial Licence Application Inspection Commercial Licence Education Licence Application Education Licence Relevant Education Regulator (KHDA/ADEC/MOHESR/MOSA/ACTVET/SEC) Commercial Licensing Authority (eg Onshore or Free Zone Authority) Approval Civil Defence Health Authority Food Control Authority 12

15 Employment Issues 13

16 Top 10 Things you need to know about Employment and Immigration in the UAE and Qatar 14

17 15 Employment Context: GCC

18 1. UAE and Qatar are Unique UAE Seventh highest GDP per capita 17% local population Qatar Highest GDP per capita in the world Around 10% local population Unique position = Strict immigration rules Nationalisation policies 16

19 2. Immigration Visa Requirements Mandatory for all visiting and/or working in the UAE and Qatar Various visas available depending on: o Length of stay o Place of work o Activity Business visas o Limited purposes 17

20 3. Contracts of Employment Contract with local entity Prescribed form Supplementary company contract Includes international secondees Fixed Term / Limited Term 18

21 4. Labour Laws Mandatory application Effect of supplementary contract terms Specific laws and regulations for education sector 19

22 5. End of Service Gratuity End of Service Benefit due upon termination Statutory formula based on length of service and basic salary Reduced / not applicable in certain circumstances Interaction with pension 20

23 6. Fixed-Term Contracts Fixed term contracts Requirement for teachers in private sector Implications o Terminate upon expiry o Compensation for early termination 21

24 7. Trade Unions Legal Status of Trade Unions UAE: o Illegal o Consequences: arrest, deportation Qatar: o Allowed under Labour Law o Worker s committees or Joint Committees 22

25 8. Cultural Matters Importance of sensitivity to local rules Co-habitation Dress code Religious sensitivity (e.g. Ramadan) Considerations: o Employment contract benefits o Accommodation o Policies 23

26 9. Nationalities Order of preference for employment o UAE Labour Law nationals, other Arabs, others o Qatar Labour Law nationals, others o Nationalisation Visa considerations o Certain nationalities may face issues o Policy is often unofficial and subject to change 24

27 10. Social Media Restrictions on what can and cannot be said o Cybercrime laws o Defamation o Insult to individuals or religion Examples o Insulting colleague over Whatsapp o Arrest of US employee for posting derogatory statements on Facebook regarding employer Steps for employers o Policies o Monitoring (with consent) 25

28 Please Contact our Speakers for More Information Ross Barfoot Clyde & Co Abu Dhabi, UAE Samantha Ellaby Clyde & Co Dubai, UAE Rebecca Ford Clyde & Co Dubai, UAE Emma Higham Clyde & Co Doha, Qatar 26

29 Please Complete our Survey Please complete the survey that should appear on your computer screen when you disconnect from the webinar. To listen to this webinar again or to any past ELA webinars, please visit our website at: The ELA is not authorized to give continuing education credit for its webinars; however, a Certificate of Attendance and supporting materials are posted on the ELA website (click this webinar s title; the link to the Certificate is on the landing page). Attendees seeking continuing education credit should submit these materials directly to the appropriate organization. 27