Dear all,
This is Patel from Bangalore. We have recently started our operations in the Middle East. I wanted to inquire about the terms of employment and if I could obtain appointment letter copies or a specific format for the UAE. Since I have details for India, I am specifically looking for information related to the UAE.
Regards, Patel
Email: cjpatel@hotmail.com
From India, Bangalore
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This is Patel from Bangalore. We have recently started our operations in the Middle East. I wanted to inquire about the terms of employment and if I could obtain appointment letter copies or a specific format for the UAE. Since I have details for India, I am specifically looking for information related to the UAE.
Regards, Patel
Email: cjpatel@hotmail.com
From India, Bangalore
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Hello Mr.Patel, Here the employment contract is done by the PRO of the company with dubai labour office. as for appointment letter is concerned i can send you a copy of the same. reg Rajeshwari
From United Arab Emirates, Dubai
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1From United Arab Emirates, Dubai
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Please check the Government of Dubai Labour Department/Ministry site. It has updated information regarding Labour laws etc. Priti V.Quinn
From United Arab Emirates, Dubai
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From United Arab Emirates, Dubai
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Hi,
Attached is the draft letter for labor law. You can search for labor law information on Google. For visa processing formalities, please check the website www.mol.gov.ae for detailed information.
I work in the HR department in the UAE. If you need any assistance, feel free to get in touch with me.
Regards,
Marina
From United Arab Emirates, Dubai
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Attached is the draft letter for labor law. You can search for labor law information on Google. For visa processing formalities, please check the website www.mol.gov.ae for detailed information.
I work in the HR department in the UAE. If you need any assistance, feel free to get in touch with me.
Regards,
Marina
From United Arab Emirates, Dubai
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Hi Priti, Could you share the URL please. Also would like to know how many holidays does dubai goverment allows to the companies. regards, CJ Patel
From India, Bangalore
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From India, Bangalore
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Hi
I was working in Dubai.Plz find the terms & conditions on the appointment letter of Dubai.
Job Description :
Reporting to : Director
Department : Marketing
Location : Sheikh Zayed Office
The company expects you to work in the Department, in which you are placed with high standard of efficiency and economy.
Basic Salary : Dhs. /- per month
House Rent Allowance : Dhs. /- per month
Special Allowance(Mobile) : Dhs. /- per month
Conveyance Allowance : Dhs. /- per month
Medical reimbursement Limit : Dhs. /- per annum
Motor Vehicle The Company will supply a fully financed car in Dubai, at up to a cost of 1,750 Dhs per month, for your personal and business use, including funding the costs involved with all reasonable mileage. (depends upon the position of the employee)
Accommodationa. Whilst based in Dubai, the Company shall supply such accommodation for the you, your spouse and dependant children up to a cost of 45,000 Dhs per annum. (depends upon the position of the employee) b. You should treat the accommodation and furnishings provided in a proper manner and undertakes to meet the cost of any damage caused (fair wear and tear excepted). c. The cost of electricity, gas and mains water will be met by you for the supply of these utilities. d. You shall be responsible for his own catering arrangements.
The working hours are 9:00 a.m. to 6:00 p.m.
Lunch timings: 1:00 p.m. to 2:00 p.m.
6. Leave & Holidays:
You will be entitled to following leave:
a. Annual Leave:
You will be entitled to 30 calender days of paid leave. If however you fail to report back to work after the expiry of your leave period, your remuneration will automatically be forfeited for the days you are absent.
(For your help)An employee is paid his basic wage plus the housing allowance, if applicable, and any other allowances which he receives in the normal working month exclusive of any bonuses received.)
Leave TravelYou shall be supplied with airline tickets to facilitate leave travel to the home country at the time of annual leave for yourself, your spouse and immediate dependant children.(ticket to family depends upon the position of the employee)There will be no entitlement to cash in lieu of any unused leave travel tickets. The travel class adopted will be Economy and the type of ticket issued will be at the Company's discretion on an airline nominated by the Company.
Sick Leave:
You will be not entitled to any paid sick leave during the probation period. However, after a period of three months continuous service following the probation period, you are entitled to sick leave (continous or intermittent) wages as follows:
(1) Full wage for the first 15 days.
(2) Half wage for the next 30 days.
(3) Any following period will be without wage.
Sick leave beyond two (2) days would require a medical recommendation.
An employee will not be entitled to any paid sick leave during probation period. Any sick leave taken during the probation period will be leave without pay.
Official Holidays:
You will be entitled to official holiday with full wage on the following occasions:
Occasion Time Off
1. Hijri New Year's Day one day
2. Gregorian New Year's Day one day
3. Eid Al Fitr (end of Ramadan) two days
4. Eid Al Adha and Waqf three days
5. Prophet Mohammed's Birthday one day
6. Isra and Al Miraj one day
7. National Day one day
8. Termination of Employment This Agreement may be terminated by three(depends upon company)months notice in writing on either side. Notwithstanding point above, the Company may summarily dismiss or suspend you from your duties without pay and allowances, including any terminal gratuity On the termination of contract for any reason the Employee shall deliver to the Company all books, documents, papers, materials and other property of the Company or any of its parent, associated or subsidiary companies in the Employee's possession or under his control.
From United Arab Emirates, Dubai
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I was working in Dubai.Plz find the terms & conditions on the appointment letter of Dubai.
- Nature of the work.
Job Description :
Reporting to : Director
Department : Marketing
Location : Sheikh Zayed Office
The company expects you to work in the Department, in which you are placed with high standard of efficiency and economy.
- Wages payable.
Basic Salary : Dhs. /- per month
House Rent Allowance : Dhs. /- per month
Special Allowance(Mobile) : Dhs. /- per month
Conveyance Allowance : Dhs. /- per month
Medical reimbursement Limit : Dhs. /- per annum
Motor Vehicle The Company will supply a fully financed car in Dubai, at up to a cost of 1,750 Dhs per month, for your personal and business use, including funding the costs involved with all reasonable mileage. (depends upon the position of the employee)
Accommodationa. Whilst based in Dubai, the Company shall supply such accommodation for the you, your spouse and dependant children up to a cost of 45,000 Dhs per annum. (depends upon the position of the employee) b. You should treat the accommodation and furnishings provided in a proper manner and undertakes to meet the cost of any damage caused (fair wear and tear excepted). c. The cost of electricity, gas and mains water will be met by you for the supply of these utilities. d. You shall be responsible for his own catering arrangements.
- Date of Joining and hours of work.
The working hours are 9:00 a.m. to 6:00 p.m.
Lunch timings: 1:00 p.m. to 2:00 p.m.
- Probation:
- You will be on probation for an initial period of three (3) months, which may be extended. If you are not confirmed in writing by us on or before the expiry of the original period of probation mentioned above, your probation shall be deemed to have been extended even though no intimation is given to you in writing to that effect, which shall be in no event be more than six(6) months.
- During the probation period (original or extended) your services are liable to be terminated without assigning any reason or notice or compensation or payment in lieu of notice.
- If your services are approved and if you are confirmed in our service in writing, you will be paid AED (same salary or increased) per month and you will be entitled to all the benefits prevailing in the company and eligible to your category of permanent employees.
- You will not be eligible to the benefits, which are enjoyed by the permanent employees of the company during your probationary period.
- Nature of the contract (limited or unlimited).
6. Leave & Holidays:
You will be entitled to following leave:
a. Annual Leave:
You will be entitled to 30 calender days of paid leave. If however you fail to report back to work after the expiry of your leave period, your remuneration will automatically be forfeited for the days you are absent.
(For your help)An employee is paid his basic wage plus the housing allowance, if applicable, and any other allowances which he receives in the normal working month exclusive of any bonuses received.)
Leave TravelYou shall be supplied with airline tickets to facilitate leave travel to the home country at the time of annual leave for yourself, your spouse and immediate dependant children.(ticket to family depends upon the position of the employee)There will be no entitlement to cash in lieu of any unused leave travel tickets. The travel class adopted will be Economy and the type of ticket issued will be at the Company's discretion on an airline nominated by the Company.
Sick Leave:
You will be not entitled to any paid sick leave during the probation period. However, after a period of three months continuous service following the probation period, you are entitled to sick leave (continous or intermittent) wages as follows:
(1) Full wage for the first 15 days.
(2) Half wage for the next 30 days.
(3) Any following period will be without wage.
Sick leave beyond two (2) days would require a medical recommendation.
An employee will not be entitled to any paid sick leave during probation period. Any sick leave taken during the probation period will be leave without pay.
Official Holidays:
You will be entitled to official holiday with full wage on the following occasions:
Occasion Time Off
1. Hijri New Year's Day one day
2. Gregorian New Year's Day one day
3. Eid Al Fitr (end of Ramadan) two days
4. Eid Al Adha and Waqf three days
5. Prophet Mohammed's Birthday one day
6. Isra and Al Miraj one day
7. National Day one day
- You shall not take any presents, commission or any kind of gratification or benefit in cash or kind from any person, party or firm having connection with the company. In case if you get, you must possess a certificate from the person that it is presented to you.
8. Termination of Employment This Agreement may be terminated by three(depends upon company)months notice in writing on either side. Notwithstanding point above, the Company may summarily dismiss or suspend you from your duties without pay and allowances, including any terminal gratuity On the termination of contract for any reason the Employee shall deliver to the Company all books, documents, papers, materials and other property of the Company or any of its parent, associated or subsidiary companies in the Employee's possession or under his control.
From United Arab Emirates, Dubai
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Dear Sirs,
I am forwarding some facts on employment for expatriates in the Gulf, especially in the UAE as follows:
The real expat package, which was an all bells and whistles package, still exists but is no longer so prevalent. You still do get a number of companies posting employees for a stint in the UAE for anything up to 5 years and compensating them accordingly. The reason why they have to do that is that there is no one who understands their current business and has the skills and ability to apply that to a new environment, in a growing, dynamic country.
I have tried to break down the components of salary to give you a basic understanding of what to expect when trying to negotiate your contract.
Basic Salary
This is obviously the main component of your compensation package and is paid monthly. Other components of your compensation may be based on this amount, such as an annual bonus, for example.
Accommodation
While the trend is moving to paying all cash packages, there are still a number of companies that provide actual accommodation in lieu of a housing allowance. The housing allowance component is to compensate you for the rent of the accommodation that you take. This is usually paid monthly and more and more does not actually cover the actual rent, due to the significant increases in the cost of housing in recent years. Furthermore, despite the allowance being paid monthly, landlords usually require payment of rent on an annual, bi-annual, or quarterly basis. This may require you either having the cash upfront or taking a loan for the amount payable, and so interest would increase the actual cost to you. For those that receive accommodation in lieu of a housing allowance, this is paid for by the company and covered to a limit. This, of course, is significant considering the rising cost of housing and will only start to settle at some point about 2008 when housing supply starts to meet the ever-growing demand of workers. If accommodation is taken above the limit, the employee would pay the difference, either in cash upfront to the employer or landlord, or is taken monthly from the employee's salary. Some firms even offer a shifting grant to cover the costs involved in moving home if your rent is increased, although this is usually offered once every 4 years, if at all. Finally, there may be an option of accommodation or cash, and some companies force one of the options dependent on certain criteria.
Transport Allowance
Companies provide a transport allowance to cover general traveling considerations to and from work and inclusive of travel with regard to work. Significant other travel on behalf of work would be covered by a separate per diem policy, mission allowance, or paid expenses. For more senior staff, there may be a car allowance either in provision of a car to a certain level or an allowance for the purchase of a car depreciated over two to four years, along with a fuel allowance. The cars are either linked to the status of the position or to tasks undertaken. For example, sales jobs may require that you have a car to travel between certain pitches, whereas a director may need to display a certain status indicative of position, and have to be seen driving a new Mercedes. Some companies make it a requirement for you to have your car already and as part of the job requirements and compensate you accordingly for petrol used at around 60 fils per kilometer.
Utilities
To cover the cost of water and electricity, some senior employees receive a utility allowance or a payment of actual bills. This is, on occasion, applicable to telephones, both land and mobile, as well.
Education Allowance
Due to the nature of the education system, some payment could be made to cover the education of the employee's children. This could be limited by the number of children, location (i.e., only UAE-based children), or nationality. So typically, you could receive fees coverage of 2 or 3 children to a maximum limit of, say, 10,000 Dhs per child per year, provided that they study in the UAE. Of course, the range is wide with this, from nothing at all to unlimited children with full fees paid. This all depends on the employer. It is worth noting that adopted children are neither covered here nor recognized as legitimate within the confines of the UAE; however, this is increasingly being ignored.
Furniture Allowance
While this allowance used to be more of a norm, it is less and less prominent, and provided more at a senior level, if at all. The amount is usually paid as a one-off lump sum on engagement, to be repaid on a depreciation level of four years if the employee was to leave during this time. Some companies pay this amount on a monthly basis, with no repayment required, and some pay it every four years. (It may also only be applicable for those on a transfer basis to the UAE for a period of time. However, in this instance, staff is sometimes provided with furnished accommodation).
Bonuses
It is more usual than not for companies to offer bonuses, even some of the Dubai Government companies such as Dubai Holding, for example. However, bonus specifics are usually not stated in contracts. Bonuses are essentially wide-ranging, from performance-related bonuses linked to your meeting of specific objectives to company-wide schemes. In some cases, both are applicable. However, it is never safe to assume that you will receive a certain amount unless it is explicitly stated. In some instances only senior staff at director level and above will receive a bonus. Again, this all depends on the company - and the calculation of set bonus versus performance could be linked to basic salary or gross salary. Typically, if a performance-related bonus is offered, it would be linked to a multiple of basic salary, from one time for average performance to three times for overperformance of objectives. To be safe, assume in your calculations you will receive nothing, and then any bonus will be just that, a bonus!
Vacation Allowance
This is sometimes known as Annual Ticket and after a year of service allows you to travel back to your home country or point of origin as defined by your passport. Most companies pay this in some form, but in different ways. The different options are as follows: a cash allowance based on a set rate; the payment of the actual ticket; whether the rate used is a certain level of IATA economy or business (for reference there are numerous levels of IATA; whether it is a peak, off-peak, or average rate); whether you receive a set predetermined amount; whether your family is covered. A typical allowance would be cash in lieu of tickets at payment of standard IATA covering the spouse and up to three children, assuming the spouse does not already receive payment from another employer. Also, different rates and criteria could be used for different levels of the organization.
Insurance
Everyone receives the standard government healthcare, but many companies opt to provide some private coverage to either the employee or the employee's family with some level of restriction. In some cases, a premium would be paid by the employee on the use of a doctor or medical service. With regards to life insurance, more and more companies are offering this at different amounts relative to the monthly basic salary, anything from 1 to 3 years.
Holidays
The typical number of days holiday that companies give is 30 days, which could be inclusive or exclusive of some public holidays and weekends. For example, if you were to take two weeks of holiday and were to leave at the end of one week, you may have to include the middle weekend as part of your holiday entitlement. What you thought of as 10 days off may have to be counted as a 12-day holiday. This needs to be checked specifically in your contract. However, holidays can range from 25 to 60 days and it would not be atypical to receive 40 days leave. Many people take these holidays in one batch during the year, often during the summer periods when it is very hot, though increasingly, due to set manpower plans, people are splitting up their holidays, as per usual Western practices.
End of Service Benefit
Since there is no real retirement system per se, the labor law states that an end of service benefit must be paid after a year of service. This is usually 21 days a year after you have worked a year which rises to 30 days for any additional year above that. Some companies pay more than this, and typically at 30 days per year. This is usually based on basic salary, though can include other allowances as part of the calculation.
Starting and Ending Service
Usually, you are covered for coming here and returning, by means of a ticket. Above this, some companies pay for extra elements, including shipping of items, and tickets for the families. Obviously, if you do not return home after you finish your job, then this is not applicable.
In sum
We have tried to give you an outline of what you might expect, but, of course, each company is different and you would need to check each of these points separately. Do not be surprised if you only receive a couple of the elements listed. What we have done is covered all the elements so that you can get a fuller picture.
There may be other benefits or allowances that some companies provide such as health clubs and share options but our foremost intention is to provide the main information that will help you to ask the right questions if you are offered a position to really determine your total compensation package, and decide whether moving your family here is the move for you. Our advice would be to go into detail and clarify each point, especially if the contract is a translation of a set Arabic contract. Flexibility with regards to negotiating contracts is now more accepted but do not be surprised if you cannot get them to budge. Just be clear what you are signing, because once your contract is signed you are more or less bound by the agreement.
Some additional notes
Not all companies will pay all the allowances. Indeed, some companies will provide just an all-in-cash salary, with no breakdown of allowances,
From Saudi Arabia
Acknowledge(0)Amend(0)
I am forwarding some facts on employment for expatriates in the Gulf, especially in the UAE as follows:
The real expat package, which was an all bells and whistles package, still exists but is no longer so prevalent. You still do get a number of companies posting employees for a stint in the UAE for anything up to 5 years and compensating them accordingly. The reason why they have to do that is that there is no one who understands their current business and has the skills and ability to apply that to a new environment, in a growing, dynamic country.
I have tried to break down the components of salary to give you a basic understanding of what to expect when trying to negotiate your contract.
Basic Salary
This is obviously the main component of your compensation package and is paid monthly. Other components of your compensation may be based on this amount, such as an annual bonus, for example.
Accommodation
While the trend is moving to paying all cash packages, there are still a number of companies that provide actual accommodation in lieu of a housing allowance. The housing allowance component is to compensate you for the rent of the accommodation that you take. This is usually paid monthly and more and more does not actually cover the actual rent, due to the significant increases in the cost of housing in recent years. Furthermore, despite the allowance being paid monthly, landlords usually require payment of rent on an annual, bi-annual, or quarterly basis. This may require you either having the cash upfront or taking a loan for the amount payable, and so interest would increase the actual cost to you. For those that receive accommodation in lieu of a housing allowance, this is paid for by the company and covered to a limit. This, of course, is significant considering the rising cost of housing and will only start to settle at some point about 2008 when housing supply starts to meet the ever-growing demand of workers. If accommodation is taken above the limit, the employee would pay the difference, either in cash upfront to the employer or landlord, or is taken monthly from the employee's salary. Some firms even offer a shifting grant to cover the costs involved in moving home if your rent is increased, although this is usually offered once every 4 years, if at all. Finally, there may be an option of accommodation or cash, and some companies force one of the options dependent on certain criteria.
Transport Allowance
Companies provide a transport allowance to cover general traveling considerations to and from work and inclusive of travel with regard to work. Significant other travel on behalf of work would be covered by a separate per diem policy, mission allowance, or paid expenses. For more senior staff, there may be a car allowance either in provision of a car to a certain level or an allowance for the purchase of a car depreciated over two to four years, along with a fuel allowance. The cars are either linked to the status of the position or to tasks undertaken. For example, sales jobs may require that you have a car to travel between certain pitches, whereas a director may need to display a certain status indicative of position, and have to be seen driving a new Mercedes. Some companies make it a requirement for you to have your car already and as part of the job requirements and compensate you accordingly for petrol used at around 60 fils per kilometer.
Utilities
To cover the cost of water and electricity, some senior employees receive a utility allowance or a payment of actual bills. This is, on occasion, applicable to telephones, both land and mobile, as well.
Education Allowance
Due to the nature of the education system, some payment could be made to cover the education of the employee's children. This could be limited by the number of children, location (i.e., only UAE-based children), or nationality. So typically, you could receive fees coverage of 2 or 3 children to a maximum limit of, say, 10,000 Dhs per child per year, provided that they study in the UAE. Of course, the range is wide with this, from nothing at all to unlimited children with full fees paid. This all depends on the employer. It is worth noting that adopted children are neither covered here nor recognized as legitimate within the confines of the UAE; however, this is increasingly being ignored.
Furniture Allowance
While this allowance used to be more of a norm, it is less and less prominent, and provided more at a senior level, if at all. The amount is usually paid as a one-off lump sum on engagement, to be repaid on a depreciation level of four years if the employee was to leave during this time. Some companies pay this amount on a monthly basis, with no repayment required, and some pay it every four years. (It may also only be applicable for those on a transfer basis to the UAE for a period of time. However, in this instance, staff is sometimes provided with furnished accommodation).
Bonuses
It is more usual than not for companies to offer bonuses, even some of the Dubai Government companies such as Dubai Holding, for example. However, bonus specifics are usually not stated in contracts. Bonuses are essentially wide-ranging, from performance-related bonuses linked to your meeting of specific objectives to company-wide schemes. In some cases, both are applicable. However, it is never safe to assume that you will receive a certain amount unless it is explicitly stated. In some instances only senior staff at director level and above will receive a bonus. Again, this all depends on the company - and the calculation of set bonus versus performance could be linked to basic salary or gross salary. Typically, if a performance-related bonus is offered, it would be linked to a multiple of basic salary, from one time for average performance to three times for overperformance of objectives. To be safe, assume in your calculations you will receive nothing, and then any bonus will be just that, a bonus!
Vacation Allowance
This is sometimes known as Annual Ticket and after a year of service allows you to travel back to your home country or point of origin as defined by your passport. Most companies pay this in some form, but in different ways. The different options are as follows: a cash allowance based on a set rate; the payment of the actual ticket; whether the rate used is a certain level of IATA economy or business (for reference there are numerous levels of IATA; whether it is a peak, off-peak, or average rate); whether you receive a set predetermined amount; whether your family is covered. A typical allowance would be cash in lieu of tickets at payment of standard IATA covering the spouse and up to three children, assuming the spouse does not already receive payment from another employer. Also, different rates and criteria could be used for different levels of the organization.
Insurance
Everyone receives the standard government healthcare, but many companies opt to provide some private coverage to either the employee or the employee's family with some level of restriction. In some cases, a premium would be paid by the employee on the use of a doctor or medical service. With regards to life insurance, more and more companies are offering this at different amounts relative to the monthly basic salary, anything from 1 to 3 years.
Holidays
The typical number of days holiday that companies give is 30 days, which could be inclusive or exclusive of some public holidays and weekends. For example, if you were to take two weeks of holiday and were to leave at the end of one week, you may have to include the middle weekend as part of your holiday entitlement. What you thought of as 10 days off may have to be counted as a 12-day holiday. This needs to be checked specifically in your contract. However, holidays can range from 25 to 60 days and it would not be atypical to receive 40 days leave. Many people take these holidays in one batch during the year, often during the summer periods when it is very hot, though increasingly, due to set manpower plans, people are splitting up their holidays, as per usual Western practices.
End of Service Benefit
Since there is no real retirement system per se, the labor law states that an end of service benefit must be paid after a year of service. This is usually 21 days a year after you have worked a year which rises to 30 days for any additional year above that. Some companies pay more than this, and typically at 30 days per year. This is usually based on basic salary, though can include other allowances as part of the calculation.
Starting and Ending Service
Usually, you are covered for coming here and returning, by means of a ticket. Above this, some companies pay for extra elements, including shipping of items, and tickets for the families. Obviously, if you do not return home after you finish your job, then this is not applicable.
In sum
We have tried to give you an outline of what you might expect, but, of course, each company is different and you would need to check each of these points separately. Do not be surprised if you only receive a couple of the elements listed. What we have done is covered all the elements so that you can get a fuller picture.
There may be other benefits or allowances that some companies provide such as health clubs and share options but our foremost intention is to provide the main information that will help you to ask the right questions if you are offered a position to really determine your total compensation package, and decide whether moving your family here is the move for you. Our advice would be to go into detail and clarify each point, especially if the contract is a translation of a set Arabic contract. Flexibility with regards to negotiating contracts is now more accepted but do not be surprised if you cannot get them to budge. Just be clear what you are signing, because once your contract is signed you are more or less bound by the agreement.
Some additional notes
Not all companies will pay all the allowances. Indeed, some companies will provide just an all-in-cash salary, with no breakdown of allowances,
From Saudi Arabia
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