IMPACT – MEDIUM

The Ministry of Human Resources and Emiratisation recently announced that it has issued 141,500 fines to 52,765 private businesses for immigration-related infractions. The ministry urged those who have accumulated fines to pay them as soon as possible, noting that authorities have capped fines at 2,000 dirham (about US$545) per worker.

Saif Al-Suwaidi, the ministry’s undersecretary of human resources, said that 15 percent of private companies in the ministry’s database had been hit with fines. The fines were mostly for incomplete work-permit registration or late work-permit renewal. Al-Suwaidi said the fact that only 15 percent of companies were fined “confirms the majority’s abidance to set laws and regulations.”

Authorities urged companies that have received fines to pay them as soon as possible, noting that those with outstanding fines will not be able to obtain additional work permits.

The ministry recently lowered fines for a number of violations. The new fines are as follows:

Violation Fine
Failure to provide employment contracts within 60 days Dh100/month, up to a maximum of Dh2,000
Failure to renew work permits within 60 dates of expiry Dh200/month, up to a maximum of Dh2,000
Failure to submit a Mission Work Permit application within 30 days of a worker’s date of entry Dh100/day, up to a maximum of Dh2,000
Failure to renew a Mission Work Permit within seven days from the date of expiry. Dh100/day, up to a maximum of Dh2,000

BAL Analysis: While the ministry did not specify the period of time over which the fines were issued, they show how serious UAE authorities are about enforcing work-permit rules. Anyone with questions on remaining in compliance should contact BAL.

This alert has been provided by the BAL Global Practice group. For additional information, please contact your BAL attorney.

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