Question: I am a freelancer based in the UAE. I understand companies in the country are bound to pay salaries on time as stipulated in employment contracts. How about freelancers like us? Sometimes, companies delay paying freelancers like me for weeks or even months. Do we have a complaints mechanism?

Response: Pursuant to your queries, we assume that you are employed as a freelancer by a mainland entity in the UAE and you have relevant freelance work permits issued by the Ministry of Human Resources and Emiratisation (the ‘MOHRE’). Therefore, the provisions of Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations (the ‘Employment Law’) and the Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree Law No. 33 of 2021 Regarding the Regulation of Employment Relations (the ‘Cabinet Resolution No. 1 of 2022’) are applicable.
The Employment Law includes the freelance work permit as a legal form of work permit in the UAE. The freelance model of work is defined in Article 8 of the Cabinet Resolution No.1 of 2022, which reads as:

1. Freelance is an independent and flexible work arrangement, whereby the natural person generates income by providing his services for a specified period of time or performing a task or providing a specific service, whether for individuals or establishments, whereas this natural person is in no way a worker for those individuals or establishments.
2. The Cabinet shall, based on the Minister’s proposal, issue the necessary resolutions for determining the procedures, rules and mechanisms for registering freelancers in the Ministry’s systems and for obtaining, renewing and cancelling the work permit, in a manner that ensures the enhancement of labour market flexibility and its requirements.”
Freelance work permit has been specifically mentioned in Article 6(1)(l) of the Cabinet Resolution No. 1 of 2022 and it reads as: “Subject to the provisions of Article (6) of the Decree-Law, the types of work permits shall be determined as follows:
Freelance permit: This permit is issued to individuals wishing to undertake independent self-employment without being sponsored by a specific organization or employer in the State and without the condition of having a valid employment contract, whereby the natural person earns money by providing his services for a specific period or performing a task or providing a specific service, whether to individuals or establishments, whereas this natural person is in no way a worker for those individuals or establishments.”
Based on the aforementioned provisions of law, your freelance employment in the UAE is within the purview of prevailing Employment Law, Cabinet Resolution No. 1 of 2022 and subsequent ministerial decrees if you have the relevant work permit(s) issued by MOHRE for each of the employers with whom you are working on freelance basis.
It is the responsibility of the employer to pay the salary of the employees on time in accordance with Wages Protection System as mentioned in Article 16(1) of the Cabinet Resolution No. 1 of 2022. In the event the employer does not pay the salary of the employees on time, then MOHRE may take necessary legal actions against such employer. This is in accordance with Article 16(2) of the Cabinet Resolution No. 1 of 2022.
Therefore, as a freelancer if your employer(s) delays in paying your salary, you may initiate an employment complaint against your employer with the MOHRE in accordance with the Article 54 of the Employment Law and Article 31 of the Cabinet Resolution No. 1 of 2022.

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Muscat – A strategy is being prepared for the Small and Medium Enterprises (SMEs) sector in line with Oman Vision 2040 by the Authority for Small and Medium Enterprises (ASMED).
The new strategy seeks to extend a supportive environment for SMEs through the development of mechanisms and programmes that strengthen the integration of all entities related to entrepreneurship.
It is also being prepared to augment the contribution of SMEs to the gross domestic product (GDP), raising the Sultanate of Oman’s indicators in the field of entrepreneurship and also to bring in new initiatives to generate employment opportunities in the country.

The total number of SMEs registered at ASMED at the end of May 2022 increased by 46.9 per cent to reach 78,089 compared to 53,166 SMEs during the same period in 2021, according to the data released by the National Centre for Statistics and Information.
The Governorate of Musandam recorded the highest increase by 100.5 per cent, followed by the Governorate of Dhofar by 77.7 per cent, the Governorate of Al Wusta by 70.8 per cent and the Governorate of Al Dhahirah by 32.8 per cent.
The Governorate of Muscat registered the largest number of SMEs till the end of May 2022 reaching 26,374, followed by the Governorate of North Al Batinah at 12,030 and the Governorate of Al Dakhiliyah at 8,821.
Earlier in June 2022, a raft of new measures was announced for the SME sector. It provided an additional package of subsidies for SMEs, entrepreneurs and insolvent persons. Also, to alleviate the impact of the COVID-19 pandemic, the package included a number of subsidies and payment of overdue fees by entrepreneurs.
These included waivers for entrepreneurs who are Riyada card holders (for beneficiaries of emergency loans) issued by the Authority for Small and Medium Enterprises, waivers from fines and fees payable by SMEs against delays in loans to the Lender Portfolio (earlier called the Al Raffd Fund) until the end of this year and waivers in payments of overdue fees by entrepreneurs and SME owners who face prison charges following prosecution on account of bad cheques drawn on insufficient funds.
The measures also included postponement of lawsuits against individuals/ establishments not abiding by the provisions of loan agreements signed with the Lender Portfolio until the end of 2022