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Abu Dhabi, UAEFriday 16 November 2018

Labour ministry to start issuing new fines

Administrative fines will be handed out to companies that fail to issue labour contracts, the non-renewal of work permits during the grace period and non-renewal of the trade licence of private recruitment agencies.

ABU DHABI // The Ministry of Labour will begin issuing fines for a range of labour offences from Thursday, state news agency Wam reported.

Administrative fines will be handed out to companies that fail to issue labour contracts, the non-renewal of work permits during the grace period and non-renewal of the trade licence of private recruitment agencies.

“Starting March 5th, the Labour ministry will issue administrative fines against private recruitment agencies if found with expired licences,” said Humaid bin Deemas Al Suwaidi, assistant under-secretary of Labour Affairs at the ministry.

“The decision includes both temporary employment offices and mediate offices.”

Mr Al Suwaidi warned employers now have 60 days to renew work permits from the expiry date and issue a new work permit from the entry date to the UAE.

This is the same time-frame given to issue labour contracts that must be submitted to the ministry to avoid a Dh500 fine per month.

The 60-day period is sufficient time for companies to apply or renew contracts through Tas’heel service centres, he said.

Mr Al Suwaidi also urged private recruitment agencies to speed up renewals to avoid the fines, which increase by Dh1,000 for mediate agencies, and Dh2,000 for temporary employment agencies per month.

“The previous amount was Dh10,000 for both,” he said.

Temporary employment offices use their employees by hiring them out to work for a third party, where they carry out the work or service under the supervision of the third party.

Mediate offices act as a third party between both the employee and the employer.

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