Visa Crunch

UAE Labour Law: Work Permit Not Renewed? Your Employer Will Face Dh200 Fine Per Month

Has your employer delayed the process of renewing your work permit?

According to a recent advisory by the Ministry of Human Resources and Emiratisation (MOHRE), the company has a period of 60 days within which it should renew electronic work permits. Beyond this grace period, the establishment will face a fine of Dh200 per month in addition to the cost of Dh2,000 per work permit.

The announcement was made by MOHRE on its official social media channels on April 13.

Exceptional cases as per the law

However, as reported by Gulf News earlier, an establishment will not be considered late in the renewal or application of a work permit in certain cases, such as when a worker has been outside the country for more than six months, or his/her residence visa expired while being outside the country. Read more about the seven exceptional instances outlined in the new UAE Labour Law, here.

Establishment fines

If you are a small business owner, it is important to note that establishments registered with MOHRE are obliged to follow the rules stipulated in the UAE Labour Law. Failing to do so will make you liable to pay penalties, as per the law.

The penalty listed above – on the late application of work permit renewal – is part of Article 3 of Cabinet Resolution No. 21 of 2020, Concerning Service Fees And Administrative Fines In The Ministry Of Human Resources And Emiratisation.

Here are the other fines an establishment may face, as per the decree:

• Failure to provide the Ministry with the employment contract, within a period not exceeding 60 days from the date of amending the worker’s status: Dh100 per month to a maximum of Dh2,000

• Failure to renew a work permit, within a period not exceeding 60 days from the date of its expiry: Dh200 per month, up to a maximum of Dh2,000

• Failure to provide the Ministry with the employment contract for a work permit, within a period not exceeding 30 days from the date the worker entered the country: Dh100 per day, up to a maximum of Dh2,000

• Failure to renew a work permit, within a period not exceeding seven days from the date of its expiry: Dh100 per day to a maximum of Dh2,000

• In case the establishment obligates workers to sign fictitious documents stating that they have received their wages or entering incorrect data into the wages protection system to circumvent the provisions thereof: Dh5,000 per worker, maximum of Dh50,000 in case of multiple workers.

• Failure to pay worker’s wage via the wages protection system, within the periods specified by a decision of the Minister: Dh1,000 per worker

• Labour accommodation is not in conformity with the standards approved by the Ministry: Dh20,000 for each case

• Obliging the worker to pay recruitment expenses and sponsorship fees prescribed by the Ministry or deducting from his/her wages without a legal basis: Dh5,000 per worker

• Submitting a fictitious document about the worker’s absence: Dh5,000 per worker

Submitting incorrect documents to the ministry to obtain a service or benefit: Dh20,000

• Failure to inform the Ministry about work injuries or occupational disease: Dh10,000 per case

Legal Disclaimer: This article is provided for information purposes only.

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