Planning on Breaking 5 UAE Labour Laws? Now Pay Up To AED 1 Million!
There has been a recent hike in the maximum fine for a quintet labour-related transgressions.
Capitalism can breed a lot of underhand methods to get ahead. But the UAE government is emphatic that it will not stand for sweat shops and financial malfeasance or other illegal tricks of the trade. And it is backing up its newly issued Federal-Decree Law with the warning of bumped-up fines. Now, errant employers could be shelling out between AED 100,000 and AED 1 Million for getting out of line. This is a revision from the maximum levying of AED 50,000.
Plus, multiple offences could stack up the volume of fines inflicted. UAE authorities have introduced these strict measures for facilitating transparency in the running of companies; the rights of workers and the responsibilities of employers; and the smooth and competitive nature of overall business in the Gulf country. Thus, there are accordingly 5 sacrosanct rules laid out by the Ministry of Human Resources and Emeritisation (Mohre), as per a recent ruling:
1) Engaging an employee without first attaining a work permit from the Ministry of Human Resources and Emiratisation (MoHRE).
2) Contracting employees and then leaving them or her bereft of work.
3) Making illegal use of work permits, i.e., for reasons other than they are issued for.
4) Shutting shop without providing the concerned employee with all benefits and entitlements.
5) Signing on an under-age/juvenile employee.
However, the MoHRE has provided some scope for clemency, especially for the boss of an establishment registering fake/non-existent employees. The guilty party can now pay half the imposed fine, provided he or she reimburses the government of the monies accumulated from the fictitious employment. The legal proceedings for this transgression can be initiated either by the MoHRE or an attorney representing the aggrieved party.
If either boss or worker is in disagreement with the MoHRE’s judgment, the course of law is to proceed first by the Court of First Instance and then the Court of Appeal. It goes without saying that the latter two courts have to work closes in sharing all complaints and requests. Also, the statute of limitation for the Federal-Decree is 2 years from the termination of the employment contract. It appears that those who want to circumvent the new rules will need a damn good lawyer in their corner.
