Monday, December 8, 2014

UAE labour card fines cut to Dh1,000 for 6 months,starting January 4 till June 30 2015.

The UAE’s Ministry of Labour has announced granting all employers a reduction to all issued fines, regardless of their amounts per employee, to Dh1,000 for a grace period of six months starting January 4 till June 30 2015.

“Electronic labour card offences have all been dropped to a Dh1,000 per employee,” said Humaid bin Deemas Al Suwaidi, Assistant Undersecretary of the Ministry’s Labour Affairs, said during the press conference which was held at the ministry’s headquarters on Sunday.

"The deadline include electronic labour cards that have not been issued or renewed until the end of this current month which mount to 100,000 electronic cards from 40,000 facilities, marking 13 per cent of the total registered facilities in the ministry," he said.

He pointed out that about 95,000 fines were issued for not renewing workers cards and 5,000 have been fined for entering the country without applying for new labour cards or for not cancelling their work permits, or reported missing from duty.

He revealed that fines have reached a total amount of Dh2.85 billion which will settle to around Dh100 million after the application of the decision. “This confirms the government's keenness to support employers and motivate them to settle those fines, which is a tool used by the ministry to control and regulate the labour market and provide protection to the workers," Bin Deemas added.

He explained that there are thousands of cards, of which some have fines reaching up to Dh53,000. “Now that big fine has been settled and reduced to only a thousand dirhams, this is an opportunity for all employers and business owners to settle those fines imposed on them and remove any restriction in their records at the ministry," Humaid said.

Offenders during the grace period, will be stopped from obtaining all kinds of labour permits until they settle all the above mentioned fines. “Starting July 2015 employers will be asked to pay the reduced amount of Dh1,000 fine per card in addition to another Dh500 for each month of delay,” Bin Deemas pointed.

Employment contract fines

Meanwhile, Humaid bin Deemas Al Suwaidi said stated that the Ministry of Labour, starting January 4, 2015, a Dh500 per month will be imposed on employers who fail to provide employment contracts to the ministry (signed by the employee) within a 60 day period starting from the entry of the employee to the country."

He said that the period of 60 days is sufficient enough for the employer to sign a contract with his new employee through Tas’heel service centres to properly document it and any excuses for delay will not be accepted.

He announced that there is coordination between the Ministries of Labour and Ministry of Interior to not to issue a visa, unless the employer signs that agreement during the specified period.