Labour ministry liberalises penalties

The Ministry of Labour today announced a new mechanism for settling fines of delayed labour cards which expire by the end of the year where an employer can avail the cabinet resolution No 27 of 2010 to make substantial savings on accumulated fines.

The settlement covers labour cards and work mission cards which expire before December 31, 2010.

The employer can now settle the issue by paying Dh5,000 before January 2011, with Dh1,000 for failing to issue or renew these cards which were overdue from December 31, 2005.

A fine of Dh4,000 can be paid for not issuing or renewing labour cards or work mission cards which were overdue from January 1, 2006 to December 31, 2010.

From January 1, 2011, the fine for not issuing or renewing the labour card will be Dh1000 per month. Failing to issue or renew work mission card will entail a fine of Dh100 per day.

Minister of Labour Saqr Gobash said the new resolution aims at encouraging employers to clear their accumulated fines.

"An employer who could have paid Dh50,000 for not issuing a labour card for his employee for ten years, will only pay less than Dh5,000 in the new system," the minister clarified.

The relaxation of penalties follows a series of labour measures aim at regulating the local labour market.

He urged those who had accumulated fines to grab this facility to come clean.

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