The Ministry of Labour has warned companies not to issue work permits if they are no longer operating, after three businesses were fined a total of Dh1 million and referred to the courts.
Mohsen Al Nasee, director of inspections at the ministry, said companies could be fined up to Dh5m if they broke the laws.
They would also be denied work permits in the UAE and would not be given labour cards for any future businesses.
Inspectors found an oilfield equipment company, a carpentry and blacksmith firm, and a ceramics and marble business had issued labour cards to their employees after they had gone out of business.
“We’ve issued letters to the public prosecution after confirming that each of these three facilities were found to be violating labour laws by registering workers under its cancelled establishment cards,” Mr Al Nasee said.
The oilfield equipment firm was fined Dh450,000, the carpentry company Dh200,000 and the ceramics company Dh350,000.
Mr Al Nasee said companies would be fined Dh50,000 for each employee to the maximum of Dh5m.
He urged workers who lost their jobs after companies closed to change their status at the ministry.
He also told employees not to hold labour cards of any defunct firm to avoid penalties.
Saqr Ghobash, Minister of Labour, has ordered the department to increase inspections and not tolerate breaches.
“The Minister of Labour has pushed the ministry to intensify inspections and refer the affected parties to the public prosecutor to settle their concerns against the owners according to issued laws,” the ministry said.
“The ministry will not reduce punishments … as it reflects negatively on the labour market and the society in general.”
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