Penalty for companies in UAE that shut
down without settling dues
Dubai: Any company which closes down without
settling the dues of those it sponsors will face a penalty by Ministry of
Labour, a top official at the Ministry of Labour has said.www.dubaibusinesskey.com
The official said that they have listed companies who commit
different types of violations and will immediately stop dealing with them until
they rectify the violations.
The ministry has outlined four types of grave rule violations
which will disqualify an employer from getting work permits and opening a
register for setting up a new company or establishment.
The
new criteria will come into force late next month and it will state an employer
will not be issued the ‘Establishment card’ or issued work permits to recruit
employees for his/her company or if the person is part owner of a company.
It will also affect partners in a new company which may have
committed the violations in a company they may have previously owned or part
owned.
Humaid
Bin Deemas Al Suwaidi, Assistant Undersecretary for Labour Affairs said that a
notification will be sent to those companies and if they did not respond the
ministry will stop issuing work permits for those companies or any companies
owned by the same owner starting from next month.
He said that the step came by the ministry 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.
He said the ministry will stop dealing with any other company
belonging to the same owner which closed down without settling workers dues.
“No deadline will be given to the violators,” he said.
The serious violations include nonpayment of the wages of employees
for two months or more, nonpayment of the administrative fines due to the
Ministry of Labour for four months, non-issuance or renewal of labour cards of
employees for four months from the date the new worker has entered the country
or from the expiry date of an existing worker’s card, and non-renewal of the
trade licence of the establishment for four months from the date of expiry.
Under the resolution, the suspension of services includes
granting of work permits for hiring or bringing in a worker from abroad,
issuing a new work permit for an employee to switch to another company, issuing
of work permits to employees who are on their parents’ visa, for temporary
work, or for doing part-time jobs; and amendment of the information about the
violating company in a way that results in altering the names of its owners
whose data are registered with the ministry.
