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Labour Ministry issues fresh warning to dormant firms

The Ministry of Labour has warned again that it would not tolerate violations by dormant companies which fail to report the closure of any of their units, leading to loss of jobs by their workers, Alkhaleej newspaper reported .Companies violating existing rules would be fined Dh50,000 for each sacked worker while all establishments sponsored by the owner of the abusing firm would be blacklisted by the government, the paper said.
The Ministry issued the warning during an open meeting organised by the Ministry of Labour on Monday for employees and private sector representative.
Officials said the Ministry had received several applications from dormant or shut firms reporting their new status and asking for permission to transfer the visas of labourers of such firms to other establishments belonging to the same owner.
“In case employers or workers do not inform the Ministry that such an institution no longer exists and that they are not employed any more, then the Ministry will transfer their visas to other establishment belonging to the employers without prior request or approval by the owners,” the paper quoted Mohammed Jameel, Director of the Guidance Section at the Ministry, as saying.He said workers laid off as a result of a shut firm must inform the Ministry within three months of the date of closure.“Should they do so more than three months after the closure, then the Ministry will consider them as jobless and violators of the residence law…in this case, we will cancel their visas and give them a work ban for one year.”