The UAE will reduce the quantum of fines that companies face on violations related to work permits, it said this week.
According to official news agency WAM, which quoted the Ministry of Human Resources and Emiratisation, incomplete work permit registration or late renewals will now face a maximum fine of Dhs2,000 per employee.
Under the new regime, any business 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.
This to a maximum of Dhs2,000.
This fine was previously fixed at Dhs500 for each month of delay without any cap.
Also, a fine of Dhs100 per day, again reaching up to a maximum of Dhs2,000, will be charged on businesses that fail to provide the ministry with a work permit labor contract within 30 days from the worker’s date of entry.
This type of fine had no maximum limit under the old regulatory regime.
Failure to renew the work permit labor contract within seven days from the expiry date will draw a fine of Dhs100 per day, again to a maximum of Dhs2,000—this type of violation too had no cap in the past.
The new rules come after a new decree was issued by the UAE Cabinet to overlook labor affairs, administrative fines, and service charge fees.
“We want to stop companies from acquiring more fines, and simply, help them sort their dues and get them back on track,” Saif Al Suwaidi, undersecretary for Human Resources Affairs at the Ministry, was quoted as saying by WAM.