Revised fines cost labour ministry Dh1.25bn

Ministry of Labour stands to lose about Dh1.25 billion due to revised fines in the recent past.

According to ministry statistics, there were about 30,000 expired cards before May 31, 2005. At a value of Dh2,000 per card, this will cost the ministry about Dh1.10bn, according to a report in 'Emarat Al Youm'.

Similarly, between 2005 and December 31, 2010, there were 17,000 labour card violations. At a cost of Dh5,000 per card, the ministry stands to lose Dh150m during the period.

Humaid bin Dimas Al Suwaidi, Executive Director, Work Sector, Ministry of Labour, said the move to reduce fines aims to encourage private sector to rectify their status and integrate quickly with the ministry standards.

There are many facilities that could not cope with the fines and as a result where functioning illegally as they neither could transfer employees on to their sponsorship. The decision also gives certain kind of flexibility in the relationship between employers and employees.

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