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Labour Ministry to penalize companies violating settlement dues of workers

A top official at the Ministry of Labour said that any company that shuts down without settling the dues of those its workers will have to face penalty.

The official said that the Ministry has listed out companies that commit various types of violations and will immediately stop dealing with them until they rectify the violations.

The Ministry has outlined four types of major violations that will disqualify an employer from obtaining work permits and opening a register for establishing a new company.

The new criteria will be implemented from late next month. It states that an employer will not be issued an Establishment card or work permits to recruit employees for his/her company, or if the person is part owner of a company. The law also affects partners in a new company who may have committed the violations in a company they may have previously owned or part owned.

The Assistant Undersecretary for Labour Affairs, Humaid bin Deemas Al Suwaidi said that a notification will be sent to those companies or companies owned by the same owner beginning next month.

According to Deemas, the step comes in implementation of the decision of Saqr Ghobash Minister of Labour, which was issued recently to regulate the procedures for issuance of labour permits and opening the establishment card.

Further, the Ministry will stop dealing with any other company belonging to the owner whose company was shut down without settlement of worker dues. No deadline will be given to the violators, he added.

Among other serious violations are the non-payment of employee wages for two months or more, non-payment of administrative fines due to the Labour Ministry for four months, non-issuance or renewal of labour cards of employees for four months from date of entering the country or from expiry date of existing worker card, and non-renewal of trade license of establishment for four months from date of expiry.

According to the resolution, the suspension of services include granting of work permits for hiring a worker from abroad, issuing new work permit for an employee to switch to another company, issuing of work permits to employee who are on the parents’ visa for temporary work, or doing part-time jobs, amendment of information about violating company in a way that results in altering the names of its owners, whose data are registered with the Ministry.

Posted on 18/7/2013

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