Ministry of Labour sanctions on UAE entities
Type
E-journal
Date
27 Aug 2013
Jurisdiction
United Arab Emirates
Taxonomy
General Employment & Labour Law, Immigration Issues Relating To Employment, Work Permits
Copyright
LexisNexis
Relevant company
Clyde & Co
Analysis
A recent Ministerial Resolution by the UAE Ministry of Labour, which imposes sanctions on UAE entities falling short of the Ministry of Labour's existing regulations and requirements, indicates that the Ministry is intent on cracking down on practices which it considers hinders the development of the UAE workforce.
Action on key violations
Ministerial Resolution No. 703 of 2013 (the Ministerial Resolution), which has been in effect since 1 July 2013, empowers the MOL to issue sanctions on UAE entities that commit one of four serious violations, which are:
• non-payment of employee wages for a period of two, or more, months;
• non-payment of administrative fines due to the MOL for a period of four months (or more);
• non-issuance/non-renewal of employee labour cards for a period of four months (or more) from the date of entry into the UAE or from the date of expiry of a previous labour card; and
• non-renewal of a company's business licence for a period of four months (or more) from the date of expiry.