UAE Ministry of Labour begins grace period for electronic labour card fines

Of the some 100,000 fines that have been issued, the total amount to be paid back has been reduced, for the grace period, from Dh2.8 billion to Dh100 million.

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ABU DHABI // The Ministry of Labour is giving a six-month grace period for settling all electronic labour card fines, beginning today. Instead of the full amount, just Dh1,000 can be paid per fine until the end of June.

About 100,000 fines have been issued against 40,000 facilities and the total amount has been reduced, for the grace period, to Dh100 million from about Dh2.8 billion.

Employers who have failed to issue or renew electronic labour cards for employees will have to pay this maximum amount for each card that has not been issued or renewed as of the end of December 2014.

The ministry will also begin the implementation of new administrative fines, including a Dh500 fine for not signing an electronic agreement with employees within 60 days of their arrival in the country or the amendment of their residency status.

A Dh500 fine will be imposed on firms that do not apply for or renew electronic labour cards within 60 days of signing contracts. The fines will take effect from March 5.

“The six-month notice period does not exempt employers from the fines for delay in issuing or renewing labour cards or for not submitting employment contracts to the ministry within a period of 60 days,” said Humaid bin Deemas, assistant undersecretary for Labour Affairs. “A fine of Dh500 will be issued against any employer who will have not done so after March 5.”

He also said that 60 days was enough time for employers to meet all the labour-related requirements through Tas’heel service centres or renew the permits.