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06 December 2023

Fine cut to maximum of Dh1,000 on lapsed labour cards

Dh500 fine will be imposed on firms that do not apply for, or renew electronic labour cards within 60 days from the date of signing contracts. (Supplied)

By Wam

Beginning today (Sunday, January 4, 2015), the federal Ministry of Labour (MoL) will implement the UAE’s Cabinet decision on the six-month grace period for settling all electronic labour cards fines by paying only Dh1,000 per fine instead of the cumulative amount. The decision will remain effective until end- June 2015.

Employers who have failed to issue or renew electronic labour cards for their employees will have to pay this maximum amount for each labour card that has not been issued or renewed until end-December 2014.

The ministry will also begin the implementation of new administrative fines, approved recently by the Ministers Cabinet, including a Dh500 fine for not signing an electronic agreement with employees within  60 days from their arrival in the country or the amendment of their residency status.

Furthermore, a Dh500 fine will be imposed on firms that do not apply for, or renew electronic labour cards within 60 days from the date of signing contracts. Imposing the two fines will be effective March 5, 2015.

Humaid bin Deemas, MoL's Assistant Undersecretary for Labour Affairs, called upon all employers to take advantage of the time limit and speed up the payments of those fines by the end of February so as to avoid the Dh500 fine per month in case of non-compliance, as stipulated by the decision, following the deadline of the first two months’ notice period, which will be applied as from March 5 and increase by Dh500 monthly.

He also urged company owners to properly check the electronic labour permits conditions regularly through ‘e-netwasal’ service on the ministry's website (www.mol.gov.ae) or through the MoL Mobile app which could be downloaded from Apple Store, Google Play in addition and BlackBerry World. The app is in both Arabic and English.

Employers can also use the ‘Tas’heel’ service centers across UAE or labour offices in order to check if there were any fines issued against their firms and benefit from the grace period and settle the fines as soon as possible.

He pointed out that the ministry has taken measures to implement the fine settlement deadline and amount payment arrangements through "Tas’heel" systems.

MoL said around 100,000 fines were issued against 40,000 facilities and that  the total amount was reduced, for the grace period, to Dh100 million from around Dh2.8 billion.

"The six-month notice period does not exempt employers from the fines stipulated for delay in issuing or renewing labour cards or for not submitting employment contracts to the ministry within a period of 60 days. A fine of Dh500 will be issued against any employer who will have not done so after March 5," added Bin Deemas.

He also said 60 days is enough time for employers to meet all the labour-related requirements through "Tas’heel" service centers or renew the permits. "So, there is no justification for any delays," added Bin Deemas.