Labour Ministry implements new fines on firms

The Ministry of Labour enforced with effect from August 1 the Cabinet resolution number 10 of year 2012 [amendment of some provisions of the Cabinet resolution number 27 of year 2012], on mandatory fees and fines on services provided by the Ministry.

They include fines on 20 types of violations, of which three have been implemented since 2011 regarding the errant labour cards.

The Council of Ministers' resolution includes three offences regarding the labour cards. These offences, which entered into force as of January of 2011, include the issuance or renewal of a labour card after 60 days from the date of entry of worker. In case of expiration date of labour card, fine of Dh1,000 will be charged for each month delay in issuing labour card.

It also includes two offences implemented as of August 1 concerning emiratisation: the nominal emiratisation whose fine is Dh20,000 for each worker and violation of non-compliance with the procedures required to employ the citizens. The fine of 20 Dh20,000 will be charged for each case.

Emiratisation is one of the top priorities that the UAE leadership takes interest in, indicating that the nominal employment of Emiratis in private sector firms is unacceptable.

On the fines related to the employee salary and end of service dues, the salary is the basis of labour contractual relation, therefore, non-adherence of employer to payment of a salary in time is a violation to this relation.

Mubarak Saeed Al Dhahiri, Undersecretary of the Ministry of Labour said the Ministry will not slap the administrative fines on a firm, unless it verifies it has violated the Cabinet resolution.

He added that the administrative fines come within the system of standards, policies and regulatory tools that streamline the labour market to achieve the protection, flexibility and attract talent, and establish stable labour market and productive workforce so as to promote knowledge-based and competitive economy that centred on the citizen, who embodies the strategy of the Ministry of Labour that emanates from the government's good governance strategy.

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