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UAE labor law changes will prevent firms from hiring visit visa holders by imposing hefty fines

Legal analysts have stated that amendment to the UAE labor law made last week has this implication to employers with regard to visit visa holders.

Other offenses that attract fines ranging from Dh100,000 to Dh 1 million include, firstly, hiring workers without a legal permit; secondly, bringing them to UAE and failing to offer them an employment.

“Before, penalties of hiring a worker without permit were Dh50,000 to Dh200,000, while the new penalty of Dh100,000 to Dh1m reflects government’s stance towards workers,” said Ali Saeed Al Kaabi, Director, ECH Digital stating that the amendment will make the legal actions of employment.

It is common for some employers to exploit visit visa holders by making them work after their tourist permits have expired using the pretext that they would be provided with residency and work permits.

Most of the employees involved in construction projects during these months do not receive any wages for work done.

“Some visitors are abused by being promised a job offer for them to visit the country only to be told to pack their bags and go on expiry of their visit visa.” Al Kaabi told the peers.

“The move by the federal government will go a long way in reducing these vices and make sure that the laws regarding labor are complied with. ”

Working on visit visas

Kien Foudy, a South African expat, was among the many who had to bear the consequences of working on a visit visa. He arrived in Dubai in December 2023 intending to get a decent job.

The company which hired him requested him to work until his visit visa. “I worked in the marketing department for over three months, and they assured me they’ll process an employment visa once the visit visa expires,” he said.

“Every time I tried to explain to them that I am an illegal immigrant, I only got a reply from the HR to relax and that my visa will be processed soon.”

In March, Foudy was dismissed from the company to remove him from the management team. He departed on March 29 from the UAE, paying $1500 at the airport for overstaying.

“I left the country with empty hands, the last time I traveled I had to ask my father to send me the money to allow me to travel.”

UAE government goes further to declare emphatically on their official website that working under visit or tourist permit/visa is prohibited. An expat can only work in the UAE if they receive an offer letter from the UAE’s Ministry of Human Resources and Emiratisation (MOHRE).

Legal consultants have especially advised employers against allowing visitors to engage in unlawful working. Speaking to the media during the launch of the new firm, Al Kaabi said that if a company is found to be in breach of the law it will entail high risks and legal consequences.

Protecting workers’ rights

The changes of the law as spoken by Hussein, senior associate at Ahmad & Associates further insists on the fact that the amendments impose an enhanced level of compliance with the labour law among employers.

“On the fines, and the possibility of criminal proceedings, she said that the changes ‘deter any employer from failing to adhere to the labor law, because the amendments state that non-compliance to the labor regulation lead to stiff penalties that include fines and or criminal charges’.”

For the masses and the employees, the changes bring/explanations provide “improved” protection and safety.

“The employers have been made more responsible for their actions as higher penalties mean that it will be less likely for employees to face unlawful employer actions or prejudice, Further, the provisions such as doing away with the time limit for forging employment claims and ensuring continued wages during disputes add to the further security of employees”

Hussein also said that the amendment regarding small employment claims and the work of MoHRE provides ‘’fair, effective, and streamlined legal procedures for employees as well as employers.”

Employment disputes have therefore been described by Hussein as easily manageable and requiring the shortest time to sort since the ministry’s new involvement in the settlement of the disagreement and in being able to pass enforceable decisions having jurisdiction for low-value claims and disputes.

 

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