The United Arab Emirates (UAE) Ministry of Finance and Industry (MoFI) in cooperation with Mashreqbank has introduced a new smart-card procedure to replace the existing process of issuing labor guarantees lodged with the Ministry of Labor (MoL).
In line with the government’s e-initiative to enhance procedural efficiencies, the ministries involved have decided to utilize pre-paid Government Client Cards (GCCs) for issuing guarantees digitally, a move that will further ensure the rights of employees as well as tighter regulatory control.
The smart card solution is being spearheaded by the Ministry of Finance, which also pioneered the introduction of the government’s E-Dirham card in 2001 to facilitate and regulate payments for routine government services.
Explaining how the service works, Mohammad Shazly, head of the Wealth Management Division of Mashreqbank, said “Initially two locations have been selected and Mashreqbank has established counters for issuing E-Guarantees within the Ministry of Labor offices in Abu Dhabi and Dubai.”
The labor approval letters issued by the MoL for renewing or issuing new visas are bar coded with all the relevant information for issuing the guarantee electronically. Any MoL approved company holding a Gulf Cooperation Council (GCC) card may utilize the E-Guarantee procedure.
Additionally, any walk-in customer may buy an E-Guarantee from the Mashreqbank counters for the face value of the guarantee plus a charge of 100 Emirati dirhams, which is significantly less than the current Letters of Guarantee system.
The new system is designed to ease the procedures for obtaining the E-Guarantee. It saves time as the E-Guarantee can be obtained from Mashreqbank within the ministry building itself. Turn-around time is also reduced as it delivered on the spot, once the required documents are presented. Moreover the new procedure is flexible in allowing partial or complete refunds of the guarantees upon the instructions of the MoL.
Initially the E-Guarantee is available at Mashreqbank counters in the premises of the Ministry of Labor in Abu Dhabi and Dubai only. The project will be rolled out to other emirates in the near future. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
