52,765 companies fined in the UAE

The UAE fined more than 50,000 private sector companies for incomplete work permit registrations or late renewals, the Ministry of Human Resources and Emiratisation announced over the weekend.

The ministry confirmed that a total of 141,500 fines have been issued and additional work permits will not be granted to companies that fail to settle their dues.

Gulf News reported the Undersecretary of Human Resources at the ministry, Saif Al-Suwaidi, saying: “These firms make up just 15 per cent of all the private sector companies recorded in the ministry’s database, showing that the majority of companies abide by labour laws and regulations.”

Companies that failed to adhere are now advised to approach the ministry and pay the fines, which have been discounted following the Cabinet’s recent decree to cut all fines to Dh2,000 per worker  

he added.

Violations of summer midday breaks, failure to pay salaries on time and Dubai’s mandatory insurance, were cited by one analyst as the reason why so many fines were issued.

A three-month regulation for a mandatory summer midday break for labourers across the country will start from 15 June, a decree from the ministry stated on 24 May.

The law bans most labourers from working under direct sunlight between 12:30 and 15:00 during the summer months (June-August). Companies failing to comply are fined $1,361 dollars.

In addition to this, according to a wage protection law that came into effect last October, companies that don’t pay the wages to the employees ten days after the due date face punitive actions.

The Dubai Health Authority (DHA) had made it compulsory to have insurance cover for every visa holder in the emirate. It added that companies that fail to provide medical insurance could face fines of up to 5,000 dirhams ($1,361) after the deadline.