Companies that violate the midday break rule face a Dh15,000 fine, up Dh5,000 from last year.
Companies that violate the midday break rule face a Dh15,000 fine, up Dh5,000 from last year.
Companies that violate the midday break rule face a Dh15,000 fine, up Dh5,000 from last year.
Companies that violate the midday break rule face a Dh15,000 fine, up Dh5,000 from last year.

1000s of Abu Dhabi companies tested on workers' midday break


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ABU DHABI // A vast majority of companies are complying with the midday break for outdoor workers, according to the Ministry of Labour.

During the first two weeks of the break, from 12.30pm to 3.30pm, which began on June 15, 7,569 companies were inspected, of which 99.6 per cent were found to be in compliance.

Action has been taken against the few offenders.

Maher Al Obed, assistance undersecretary of inspections at the ministry, said the ministry has 19 inspection teams which will pay 60,000 visits to work sites until the break ends on September 15.

The ministry also plans to conduct 20,000 awareness visits and hold 81 lectures and seminars to educate workers on ways to stay healthy in the heat.

All consultants and contractors operating in building and construction sectors across the country must observe the work ban.

Mr Al Obed said the inspectors visit work sites more than once a day to ensure workers get proper breaks. Inspections are conducted daily from 10.30am to 12.30pm.

Companies that break the rule face a Dh15,000 fine, up Dh5,000 from last year. Repeat offenders will not be allowed to hire new workers or issue new labour cards.

Abdul Aziz Zurub, director of health, safety and environment at Abu Dhabi Municipality, said: "So far we have witnessed that some 99 per cent of construction sites are conforming with the midday rules of the country, whereas one per cent of firms reportedly had small lapses, which were dealt with [by] warnings.

"Nine inspectors, including 40 experts in the field of construction, are carrying out inspections in Abu Dhabi that will continue until September 15," he said.

"As of now, everything at work sites is going on smoothly. We haven't noticed any major violation to the midday rules of the country."

Mr Zurub said inspection teams carry out systematic surveillance of construction sites and serve first warnings if they find violations. The recurrence of violations on the part of contractors and consultants may evoke a penalty that includes halting the project.

Abu Dhabi municipality called on consultants and contractors to take appropriate precautionary arrangements such as the provision of suitable shaded areas, rest areas and cold water.

It also asked them to provide first aid kits in the workplace to raise the awareness of risks associated with working under direct sunlight and methods of preventing heat stress among all employees.

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Favourite team: Bayern Munich

Favourite player: Franz Beckenbauer

Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates 

 

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1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Our legal advisor

Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.

Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation. 

Education: Sagesse University, Beirut, Lebanon, in 2005.

MATCH INFO

Kolkata Knight Riders 245/6 (20 ovs)
Kings XI Punjab 214/8 (20 ovs)

Kolkata won by 31 runs