UAE Business Alert: Fines cut by up to Dh2,000 per employee

Ministry announces reduced fines on work permits

Basic health insurance package is mostly held by blue collar workers: Illustrative Image

ABU DHABI 28 May 2017: Companies accumulating fines due to incomplete work permit registration or late renewals will obtain fine reductions to a maximum of Dh2,000 per worker, the Ministry of Human Resources and Emiratisation has announced.

Following the cabinet’s recently issued decree, which overlooks labour affairs administrative fines and service charge fees, the Ministry of Human Resources and Emiratisation reduced all fine sums on work permits and labour contracts to Dh2,000, said Wam.

Saif Al Suwaidi, Undersecretary for Human Resources Affairs at the Ministry, said, “Following the instructions of Saqr bin Ghobash Saeed Ghobash, Minister of Human Resources and Emiratisation, we have readjusted internal arrangements to ease fines per labour card with sums above Dh2,000.”

Al Suwaidi added, “We want to stop companies from acquiring more fines, and simply, help them sort their dues and get them back on track.”

New Fine Procedure

According to a press statement, the new administrative fine procedures indicate that failure to provide the ministry with the worker’s contract of employment within a period not exceeding 60 days from the date of entry or the residence status modification date is fined Dh100 for each month delay up to a maximum of Dh2,000. The previous fine was Dh500 for each month of delay without specifying a maximum limit.

The statement further explains that if an employer fails to provide the ministry with a work permit labour contract within a period of 30 days from the worker’s date of entry, charges of Dh100 are to be incurred for each day and up to a maximum of Dh2,000. Previously, fines were also Dh100 per delay, yet without setting a maximum limit.

In addition, failure to renew the work permit labour contract within a period of seven days from the expiry date, incurs a Dh100 fine per day to a maximum of Dh2,000, the previous fine did not set a maximum limit.

By Rajive Singh