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

Transcription

1 Establishing an International Campus or Program in the UAE and Qatar: Corporate, Regulatory, Immigration, and Labour Law Considerations Wednesday, September 9, 2015

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

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

4 Speakers Emma Higham Clyde & Co Doha, Qatar 3

5 4 Context: GCC

6 5 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 6

8 Typical Structures Licensing Model MOU Investor Preconstruction Agreement Foreign Provider Management Agreement OpCo Lease PropCo Licence Agreement International Middle East 7

9 Typical Structures OpCo/PropCo Model Foreign Provider MOU Preconstruction Agreement Investor OpCo Lease PropCo/ Landlord Campus Land Premises 8

10 Typical Structures - Branch UAE Local Agent Foreign Provider OpCo as Branch Office Lease Landlord 9

11 Typical Structures - LLC National 51% Shareholder Foreign Provider (49%) OpCo as LLC Lease Landlord 10

12 Typical Structures - JV Foreign Provider JV Agreement Investor OpCo Lease PropCo/ Landlord Campus Land Premises 11

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 12

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 13

15 Employment Issues 14

16 Top 10 Things you need to know about Employment and Immigration in the UAE and Qatar 15

17 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

18 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

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

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

21 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

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

23 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

24 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

25 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

26 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

27 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

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