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Beginning Thursday (5th March 2015), the Ministry of Labour will begin issuing administrative fines for three types of labour-related offences, notably not issuing labour contracts, non-renewal of work permits during the grace period and a fine against non-renewal of the trade licence of private recruitment agencies, all according to the Cabinet’s decision which was issued recently in this regard.
Humaid bin Deemas Al Suwaidi, Assistant Under-Secretary of the Labour Affairs at the Labour Ministry, said that under the Cabinet’s decision, starting tomorrow, employers will have a period of 60 days from the expiry date to renew work permits or issue a new work permit from the entry date to the UAE or the adjustment of the employee’s status, which is the same period given to issue labour contracts that should be submitted by them to the Ministry of Labour, to avoid a Dh500 fine per month.
Bin Deemas stressed the importance of documenting labour contracts through the ministry, as well as the employer’s commitment to renew work permits in a timely manner, where it regulates relations between both parties and stabilises the labour market and thus protects rights.
He also added that a 60-day period is sufficient enough for the employer to apply for all the labour-related requirements through “Tas’heel” service centres or to renew the above, therefore there is no justification for any delays.
“Starting on March 5, the Labour Ministry will issue administrative fines, as approved by the Cabinet, against private recruitment agencies if found with expired licences. The decision includes both Temporary Employment offices and Mediate Offices,” he explained.
Implementing the Cabinet’s decision, which took effect on January 5, the Ministry provides temporary employment agency business owners with a 60 day grace period to renew their licences and avoid the fine. The fine used to be issued against those agencies on the day following the expiry date.
The Assistant Under-Secretary for Labour Affairs called upon private recruitment agencies to speed up renewals according to the procedures followed before March 5 in order to avoid fines, which increase by Dh1,000 for mediate agencies, and Dh2,000 for temporary employment agencies per month of delay. “The previous amount was Dh10,000 for both,” he said.
Temporary Employment offices use an employee’s services by hiring him 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 to help in the negotiation process in terms of the contract to form a business relation between them.
Courtsey : Khaleej Times