Complex Made Simple

2 new key fee-related UAE labor laws employers need to know about

UAE employers can rejoice at the latest UAE labor fee decisions

UAE companies fined by the Ministry of Human Resources and Emiratisation for non-compliance with select labour regulations can apply for full or partial exemption from payment 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 exemp Members of a newly formed category within Emiratisation Partners Club (EPC) will receive the chance to pay lower fees for the recruitment of foreign workers

When it comes to labor fees, employers are always looking for a break, and they just got it

1- More Companies Can Apply for Exemption from administrative fines

International immigration firm Fragomen said UAE companies in the mainland who were administratively fined by the Ministry of Human Resources and Emiratisation 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.  

“Companies in the mainland 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,” Fragomen said.

“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 AED100 ($27.24) to AED 50,000 ($13,625), 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.

 2- Lower fees for recruitment 

Members of a newly formed category within Emiratisation Partners Club (EPC) will receive the chance to pay lower fees for the recruitment of foreign workers, according to a decision issued by the UAE’s Minister of Human Resources and Emiratisation, Nasser bin Thani Al Hamli, as reported by Constructionweekonline.

Foreign worker fees for two-year permit applications and renewals will be reduced to $82 (AED300), based on the firm’s Emiratisation rate and its membership in the club, for example.

Al Hamli’s decision is expected to encourage establishments to hire Emiratis and help achieve the National Agenda of the UAE’s Vision 2021.

Organisations outside of the UAE labour ministry’s domain can join the EPC programme by registering through its Tatween portal, Constructionweekonline said.

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