The Ministry of Labour has informed business owners with accumulated fines resulting from non-renewal of labour cards or those unextracted by 31st Dec 2014, to take advantage of the grace period to settle all fines by paying a Dhs.1,000 per labour card violaton. The move is a part of implementation of the new electronic labour card in UAE.
The Ministry notes that as of 05th March 2015, they will implement new administrative penalties, starting by a Dhs.500 fine issued for not signing an electronic work agreement with employees within 60 days from their arrival to the country or the amendment of their residency status.
Moreover, Dhs.500 fine will be imposed on firms that do not apply or renew electronic labour cards within 60 days from signing those contracts. Additionally, the above mentioned fines increase by Dhs.500 per month.
This is a part of the Ministry of Labour's earlier decision to replace the old plastic labour cards and employment paper contracts with electronic ones starting from July 13 2014. The implementation decision was then issued by HE Saqr Ghobash, Minister of Labour.
Plastic Labour cards due for renewal after July 13 will need to apply for the new system and replaced with electronic permits which are valid for two years. Electronic labour card in UAE is a part of the governments initiative to serve public through electronic systems which will reduce the time for processing documents.