ABU DHABI // A six-month grace period for employee card fines has saved sponsors more than Dh1.8 billion in six months, the Ministry of Labour says.
And the ministry has warned that a crackdown on companies that did not take advantage of the offer will begin next week.
Between January and June, 27,962 companies with penalties for 58,365 employees paid a total of Dh37.5 million because of expired cards.
Under the deal, employers had to pay a maximum of Dh1,000 a fine, regardless of the normal penalties.
The ministry said that 12,038 companies and 36,635 employees now face harsh penalties.
“The faltering companies’ activities will be halted and the ministry will take necessary actions against them who blatantly break labour rules,” said Humaid bin Deemas, assistant undersecretary at the ministry.
“Seventy per cent of the total number of establishments in UAE benefited from the grace period, while more than 61 per cent of their workers have resettled card fines.
The grace period was approved on December 31 last year.
For those who took advantage of the amnesty, 43,914 cards were cancelled, 13,221 were renewed and 1,230 employees were reported as off duty. The amount of fines due before the grace period was Dh1.85bn.
“All companies that benefited from the grace period achieved financial savings worth Dh1.812bn by just paying Dh37.5m,” Mr bin Deemas said.
Companies that chose to shut down without paying employees’ rights or cancelling their cards “will be slapped a Dh50,000 fine for each worker”.
“Such companies cases will be referred to the Public Prosecution to take necessary action against them.”
Mr bin Deemas said that the clampdown came from a need to monitor and stabilise the labour market, and guard against the effects unemployed workers could have on the community.
Companies found to be breaking the rules will be denied any further employee cards.
From this month companies that ignored the grace period for fines issued before December 31 will be penalised Dh4,000 for each employee card.
That amount will increase each month by Dh1,000, so by January next year they will face fines of Dh10,000 for each employee card.
The ministry advised those who did not benefit from the deadline to visit Tas’heel service centres to complete employee card cancellation or renewal.
anwar@thenational.ae
