DUBAI 24 May 2019: Companies in the mainland [excluding free zones] who were administratively fined by the Ministry of Human Resources and Emiratisation (MoHRE) for non-compliance with select labour regulations can apply for full or partial exemption from payment of the fines if they meet specific conditions as determined by the Ministry.
Additionally, employers may be allowed to pay the fines in instalments, said immigration specialist firm, Fragomen.
Employers that are eligible for exemption include those who are financially insolvent due to commercial debts and those fined for non-payment of employees’ wages, among others. In most cases employers must prove that the waiver will help to restore their financial balance by submitting relevant supporting documents, before the MoHRE adjudicates the application.
Previously, only owners of local fishing businesses as well as companies that accrued fines as a result of employment of Emirati or GCC nationals could be exempt.
Background
Administrative fines for non-compliant employers are set by the labour law and can range from Dh100 to Dh50,000, depending on the violation. The MoHRE revised and reduced some of its penalties in May 2017, including fines for delay in renewing work permits and late submission of employment contracts.
