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Punitive steps on job-visa violation to hit companies

posted on 28/01/2001: 718 views


Private sector firms hiring employees not under their sponsorship, or allowing those sponsored by them to work for others, will face rigorous penalties once the proposed labour ministry punitive regulation comes into effect. The Ministry of Labour and Social Affairs is considering a set of punitive measures against companies which employ workers sponsored by others.



The new punitive measures aimed at curbing the increase of labour disputes. They are also meant to check the existence of bogus companies. The labour file cards of erring companies will be suspended for three months as a punitive measure for employing workers not under their sponsorship. Similarly, companies which allow their workers to be hired by other companies without reporting the matter to the labour ministry as required by the Federal Law No. 8 of 1980, will also have their cards suspended for three months. In all cases, the company hiring workers illegally, or those allowing its workers to float in the labour market, will be denied new employment permits for three months.



If a UAE national is sponsoring a number of companies and one of these companies is found to have violated the country's labour laws, all companies under the sponsorship or ownership of this national will be barred from getting new fresh recruitment visas for three months. Transfer of sponsorship from or to the defaulting company will be suspended for three months, according the impending punitive regulation. The three-month bank will remain in place until the ministry is satisfied that the company has rectified the violation, after a report by the ministry's inspectors.



The penalties become even more stringent in the case of companies which have closed down, or which are not actually practising any commercial activities. Owners of such companies will be denied new recruitment visas for six months. This will encompass all other companies owned or under the sponsorship of defaulting firm. They will be denied new visas and no sponsorship transfers to or from such company will be accepted for six months. Companies involved in labour disputes and have repeatedly been summoned by the ministry for settlement of the disputes can also be banned for six months if they continue to ignore ministry summons. They will neither be allowed to recruit new workers nor release and sponsor new workers. The company can only appeal against the ban after rectifying the violation and acquiring a report from a labour ministry inspection team. (The Gulf Today)

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