UAE reduces fines on companies violating work permit rules

The UAE has announced plans to reduce the amount of fines that companies face on violations related to work permits.

Firms with incomplete work permit registration or late renewals will now face a maximum fine of Dhs2,000 per worker, official news agency WAM quoted the Ministry of Human Resources and Emiratisation as saying.

Under the new administrative procedure, any company that fails to provide the ministry with a worker’s contract of employment within a period of 60 days from the date of entry or the residence status modification date will be fined Dhs100 for each month’s delay, with the maximum reaching Dhs2,000.

Previously, the fine was fixed at Dhs500 for each month of delay without any maximum limit.

Meanwhile if an employer fails to provide the ministry with a work permit labour contract within 30 days from the worker’s date of entry, a fine of Dhs100 will be charged for each day, again reaching up to a maximum of Dhs2,000.

Earlier, while fines were imposed at the same amount of Dhs100 per day, no maximum limit was set.

The ministry also clarified that failure to renew the work permit labour contract within seven days from the expiry date will draw a fine of Dhs100 per day, reaching up to a maximum of Dhs2,000. Again, in the past there was no maximum limit.

The ministry’s move comes after a new decree was issued by the UAE Cabinet to overlook labour affairs, administrative fines and service charge fees.

Saif Al Suwaidi, undersecretary for Human Resources Affairs at the Ministry, said: “Following the instructions of Saqr bin Ghobash Saeed Ghobash, Minister of Human Resources and Emiratisation, we have readjusted internal arrangements to ease fines per labour card with sums above Dhs2,000.”

“We want to stop companies from acquiring more fines, and simply, help them sort their dues and get them back on track,” he was quoted as saying by WAM.