Cabinet Decision No. 18/2007

Concerning the Implementing Rules for the Application of the Provisions of the Regulation of the Insurance Protection System to the GCC Citizens Working outside Their States in any other GCC State

The Cabinet,

After perusal of the Constitution;

Federal Law No. 1/1972 on Competencies of the Ministries and Powers of the Ministers and its amendments;

Federal Law No. 6/1999 on the Establishment of the General Pensions and Social Security Authority (GPSSA);

Federal Law No. 7/1999 on the Issuance of Pensions and Social Security Law and its amendments;

Federal Law No. 2/2000 on the Civil Retirement Pensions and Benefits in the Emirate of Abu Dhabi;

Decision of the Supreme Council of the GCC in its twenty fifth session held in the Kingdom of Bahrain in December 2004 concerning the approval of the Draft Unified Regulation of the Application of the Insurance Protection System to the GCC Citizens Working outside their States in any other Member State of the Council;

Cabinet Decision No. 139/7/2007 on the approval of the Implementing Rules for the Application of the Provisions of the Regulation of the Insurance Protection System to the GCC Citizens, and

Based on the proposal of the Minister of Finance and Industry, Chairman of the General Pensions and Social Security Authority (GPSSA) and the approval of the Cabinet thereon:

Issued the following Decision:

The Unified Regulation of the Application of the Insurance Protection System to the GCC Citizens Working outside their States in any other Member State of the Council

Title 1 - Definitions, General Provisions and Scope of Application

Article 1

In applying the provisions of this Regulation, the terms and expressions used shall have the following meanings:

1- Regulation: The unified Regulation for the application of the Insurance Protection System to the GCC Citizens working outside their States in any other Member State of the Council.

2- Council: Cooperation Council for the Arab Gulf States.

3- GCC States: The Member States of the GCC.

4- State of Employment: One of the GCC States where the work of the Employee/Worker subject to this Regulation is located.

5- Home Country of the Employee/Worker: One of the GCC States whose nationality is held by the Employee/Worker.

6- GCC Citizens: The Employees/Workers holding the nationality of one of the GCC Citizens working outside their States in any of the Member State of the Council.

7-Civil Retirement/Social Security Agencies: The agencies in the relevant GCC States, competent in the application of the Civil Retirement/Social Security Law/Regulation.

8- Civil Retirement/Social Security Law/Regulation:

• a- Laws/Regulations of Civil Retirement applied in the GCC States.
• b- Laws/Regulations of Social Security applied in the GCC States, including the insurance system, to the workers outside the States.

9- Employee: Any of the GCC Citizens working at any of the administrative apparatus units of the State as well as at the public authorities and bodies in any of the GCC States, concerning which the rules of the Civil Service Law/Regulation in the State of Employment are applied.

10- Worker: Any of the GCC Citizens working at a natural or legal employer in any of the GCC States in consideration of remuneration and is subject to the Labour Law/Regulation in force therein.

11- Employer: Any natural or legal person hiring one employee/worker or more from amongs those subject to the provisions of this Regulation and falling under the following categories:

• a- The administrative apparatus units of the State as well as public authorities and bodies subject to the provisions of the Civil Retirement Law/Regulation.
• b- The companies, facilities and entities operating in the private sector and other sectors subject to the provisions of the Labour Law/Regulation.

Article 2

Pursuant to the provisions of this Regulation, the Civil Retirement/Social Security laws and regulations in force shall be applied in GCC States to citizens working in other GCC States.

Article 3

The Civil Retirement/Social Security Agencies in the GCC States shall be entrusted with the application of this Regulation.

Article 4

The application of the provision of this Regulation shall be compulsory for GCC Citizens working outside their States in any Member State of the GCC, provided that they fulfill the following conditions:

1- He shall be subject to the terms and conditions set forth in the Civil Retirement/Social Security Law/Regulation of its State.

2- He shall work for an employer subject to the provisions of the Civil Retirement/Social Security Law/Regulation in the State of Employment.

3- He shall hold the nationality of one of the GCC States and submit the evidentiary documents proving the same.

Article 5

The application of this Regulation shall be confined to pension/old-age, disability, illness and death insurance. This shall not prevent the application of work injury and occupational diseases insurance for the Employee/Worker according to the provisions applied at the State of Employment.

Article 6

The civil retirement/social security agencies in the Home Country of the employee/worker shall commit to conduct the following:

1- Preparing a guide for introducing the provisions of the Law/Regulation applicable therein and including the subscription rates to be paid as well as the procedures to be taken to provide the employee/worker with the insurance according to the Law/Regulation of the Home Country of such employee/worker; circulating the same among the civil retirement/social security agencies in the GCC States.

2- Providing the civil retirement/social security agencies of the GCC States with the insurance forms used thereby, for the purposes of this Regulation.

3- Opening a bank account in the State of Employment in order to enable employers and civil retirement/social security agencies to deposit the amounts due to them pursuant to this Regulation.

4- Determining the administrative entity or unit in charge of following up the application of the requirements of this Regulation with the administrative entities or units at the civil retirement/social security agencies in the GCC States.

Article 7

The civil retirement/social security agencies at the State of Employment shall commit to the following:

1- Taking the procedures compelling the employers to implement the provisions of this Regulation.

2- Taking the procedures that ensure raising the awareness among employers concerning the provisions of this Regulation and providing them with the guide prepared by civil retirement/social security agencies at the Home Country of the employee/worker, along with the insurance forms used for the purposes of implementing this Regulation.

3- Determining the administrative entity or unit in charge of following up the application of the requirements of this Regulation with the administrative entities or units at the civil retirement/social security agencies in the GCC States.

Title 2 - Registration Procedures

Article 8

The employee/worker subject to the provisions of this Regulation shall be insured by the competent insurer - civil retirement/social security agencies- according to the procedures and forms approved in the Civil Retirement/Social Security Law/Regulation of the Home Country of the employee/worker.

Article 9

The employer in the State of Employment shall commit to insure the employee/worker and provide the civil retirement/social security agencies in the State of Employment with the insurance forms of the GCC Citizens working at its establishment after completion of data, provided that such agencies communicate such matter to the civil retirement/social security agency at the Home Country of the employee/worker, according to the principles and controls agreed upon between the civil retirement/social security agencies in the Member States of the GCC.

Article 10

The civil retirement/social security agencies in the State of Employment shall keep private records and statistics concerning the GCC Citizens working therein, in the light of data received from employers.

Title 3 - Subscriptions Collection Procedures

Article 11

Subscriptions shall be collected according to the following principles:

1- Both the employee/worker and employer shall commit to bear their share in the subscriptions from the salary/wage subject to subscription according to the rates applicable in the Law/Regulation of the Home Country of the employee/worker, provided that the share of the employer does not exceed the rate applicable at the State of Employment. In the cases where the contribution of the employer is less than the rate required, the employee/worker shall cover this difference to ensure the payment of all subscriptions to the civil retirement/social security agency whose Law/Regulation is applied to said employee/worker. The employer shall commit in this case to deduct this difference from the wage or salary of the employee/worker, unless the Home Country of the employee/worker decide to bear this difference instead of its citizens.

2- The employer shall deduct the share of the employee/worker from the wage or monthly salary, including the subscriptions differences set forth in the previous paragraph, and deposit this amount altogether with its share at the bank account specified by the civil retirement/social security agencies whose Law/Regulation is applied to the employee/worker, on the dates prescribed by law and according to the procedures and controls applicable in the State of Employment.

Article 12

Should the employer fail to pay the subscriptions due according to the provisions of this Regulation on the dates legally prescribed, the civil retirement/social security agency in the Home Country of the employee/worker shall communicate this matter to its counterpart in the State of Employment, in order to follow up the employer in default and take the legal actions that ensure the collection of such subscriptions as well as any additional ensuing amounts on behalf of the civil retirement/social security agency in the Home Country of the employee/worker, and that according to the rules and provisions applicable at the State of Employment and without the emergence of any liability resting with the civil retirement/social security agency in the State of Employment should there be a failure to collect subscriptions and any ensuing amounts for any reason whatsoever.

Article 13

Should the employer fail to pay the subscriptions within the periods prescribed by law, register some or all of its employees/workers subject to the provisions of this Regulation, or send a notification of the end of service of any of them or should it pay subscriptions based on unreal wages, it should be subject to the penalties set forth in the civil service/social security Law/Regulation in the State of Employment. The amounts resulting from the application of the requirements of this Article shall be considered as rights belonging to the civil retirement/social security agency in the Home Country of the employee/worker and they shall be deposited at the bank account allocated for this purpose.

Title 4 - Termination or Expiry of Subscriptions

Article 14

The subscriptions of the employee/worker may be terminated according to the provisions of this Regulation should any of the conditions of applicability of its provisions set forth in Article (4) herein be lost.

Article 15

Without prejudice to the provisions of Article (19) of this Regulation, the employer shall notify the civil retirement/social security agency in the State of Employment of the end of service of any of its employees/workers subject to the provisions of this Regulation within the periods prescribed by the Law/Regulation of the State of Employment, on the form set for this purpose. This agency shall communicate such matter to the civil retirement/social security agency in the Home Country of the worker.

Article 16

In case of disability, illness or death of the employee/worker, the employer shall commit to notify the civil retirement/social security agency in the State of Employment which is responsible for completing the reports and medical certificates required for proving the case of disability, illness or death and sending the same to the civil retirement/social security agency in the Home Country of the employee/worker, in order to present them to medical committees according to the controls and procedures applicable in the Law/Regulation of the Home Country of the employee/worker in preparation for the settlement of the entitlements due to him or to his beneficiaries, as the case may be, according to the Civil Retirement/Social Security Law/Regulation in his Home Country.

Article 17

Should the employee/worker lose the ability to work, the controls and provisions of the Civil Retirement/Social Security Law/Regulation in his Home Country shall be applied. This case shall be evidenced according to the procedures applicable in the State of Employment.

Title 5 - Final Provisions

Article 18

The entitlements due to the employee/worker or his beneficiaries shall be settled according to the provisions applicable in this regard in the Civil Retirement/Social Security Law/Regulation of the Home Country of the employee/worker.

Article 19

The employee/worker shall be subject to all the provisions set forth in the Civil Retirement/Social Security Law/Regulation in his Home Country concerning what was not provided for in this Regulation and consistently therewith.

Article 20

No financial obligations incumbent on the civil retirement/social security agency in the State of Employment shall result from the application of this Regulation towards the employee/worker, his beneficiaries or employer.

Article 21

This Regulation shall not affect any rights or privileges guaranteed by the laws/regulations applicable in the State of Employment of the employees/workers, unless such laws/regulations stipulate otherwise.

Article 22

The employers as well as the employees/workers subject to the provisions of this Regulation shall be penalised, in case of violation of such provisions, by sanctions set forth in the Civil Retirement/Social Security Law/Regulation in the State of Employment.

Article 23

The GCC Member States shall issue the legislations needed for the application of this Regulation in a way that guarantees its commencement as of the first of January 2006.

Article 2

The General Pensions and Social Security Authority (GPSSA) shall be entrusted with the application of the Unified Regulation of the Application of the Insurance Protection System to the GCC Citizens Working outside their States in any other GCC States.

Article 3

The Unified Regulation here-enclosed shall be applied to employers in both public and private sectors in all the Emirates of the State, provided that the Authority issue the necessary guides.

Article 4

This Regulation shall not be applied to the State nationals working in other GCC States and entitled to pensions from one of the retirement funds operating in the State.

Article 5

The UAE nationals working in another GCC State may add the previous service periods to the date of application of this Regulation at the current employer and they may add their previous service periods in the State according to the addition conditions set forth in Federal Law No. 7/1999 on Pensions and Social Security.

Article 6

The Chairman of the Board of the Authority shall issue, based upon the proposal of the Director-General of the General Pensions and Social Security Authority (GPSSA) the decisions and instructions needed for the application of the provisions of this Regulation in coordination with the competent authorities.

Article 7

This decision shall be applied to those targeted in its provisions as of the first of January 2007. It shall be published in the Official Gazette.

Issued by us on 8 Rajab 1428 H

Corresponding to: 22 July 2007

Mohammed bin Rashid Al Maktoum

Prime Minister

This Decision was published in Official Gazette No. 467, P. 40.