DUBAI 10 September 2017: The Ministry of Human Resources and Emiratisation (Mohre) has reduced administrative fines for companies in violation with select work-permit regulations.
The affected violations include employers who fail to renew employee work permits beyond 60 days of expiry and those delaying submissions of a fully executed employment contract within 60 days of a change in immigration status or the arrival of an expatriate employee.
In both cases, the penalty has been decreased from Dh500 to Dh100 per month of delay. In further efforts to facilitate overcoming immigration obstacles for employers, a maximum penalty cap at Dh2,000 per employee for these common violations has been put in effect.
While 60 days seems like ample time to prepare and to submit the contract for approval, there is a condition that employees are given the opportunity to sign the contract within two weeks of either arrival to the UAE or an immigration status change. This clause is often overlooked by employers and can lead to complications if the deadline has been missed.
Settling any outstanding dues with the authorities is important not only from the perspective of compliance with the law but also because it may have an impact on business operations. Companies with unresolved fines will not be able to prepare or file certain applications as their access to the Mohre transactions will be blocked. This puts businesses at risk of delays and disruption in the operations should they needed, for instance, to urgently complete a recruitment process of a foreign national.
Employers with unsettled fines may regulate them directly at the Tash’eel Service Centres before typing a Mohre application, while those with access to the Smart Tash’eel portal can pay the fines online.
The reduction of fines will have a positive impact on businesses as settling any outstanding dues will now cost less. It is also clear that the Mohre is working with employers to promote a more effective and business-friendly environment however strict measures are still in place to ensure the rights of employees and compliance with regulations.
Note: Marcin Kubarek, Manager Knowledge and Content at Fragomen