ministry of labour's new laws & regulations

8/7/2019 Ministry of Labour's New Laws & Regulations

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Date 10 .lanuary 201 1

To All Project Managers, Division & Departrncnt lie ads

From HR & Administration Division

Subject Ministry of Labonr 's NewLaws& Regallrations

In accordance with the new laws and regulations issued by the Ministry of Labour, with effect from

January I"',011, new criteria have beer established for the classification of all companies operating in UAE,

and increasing penalties shall be levied against any company in violation of these criteria.

Further, no n-compliance by any compan y with any of these law? and regulations shall result in downgrading the

violating cornpany to Classification Category (3). In this context, it is to be noted that any downgrade to

Classification Category (3) shall be valid for two full years, which will result in an increase of the labour cardrenewal fees from AED 1,500 to 5,0 00 for every employee under the violating conipany's sponsorship.

Similarly, in the event of any one of the following violations of the new laws and regulations, the violating

Company shall be downgraded to the new Classification Category (3 ) which shall carly with it increasing

penalties and operational restrictions, which shall drastically impact the violating Company's ope rations:

1, Unauthorized hire of employees and workers under the sponsorship of a third party shall result in a

penalty of AED 50,000 (Fifty "Thousand) per employee.

2, Non-attestation of any of the Company's subcontract agreements by the Ministry of Labour, which will

result in treating all company's errrployees carrying out the subcontract work as illegal manpower

(please refer to attached subcontract agreenient document and surnmary form which need to be

attested by Ministry of Labour' prior to the start of any related subcontract works). Clearly, the penalty ofAE D 50,000 p er employe e, as in itern (l),sha ll apply.

3. Providing wrorrg information to Wages Protection Sysfem (WPS) with the intent of circumventing the

system.

4. Failure to protect Company en.lployees and workers froni work hazards, or non-conformity with

high-quality h ealth, occupational and safety standards.

5. Failure to report any personal accident or death of an employee or worker withiri 48 hours from its

occurrence.

Furthermore, the new M .O. L.'s new laws and regulations stipulate that all company employees a nd workersresume duty inimediately after end of ttieir leave. Otherwise, M.O.L. shall cancel employe e's visa within one

week.We look forward to an immediate and full cornpliance by all Company's employees with all Ministry of Labour'snew laws and regulations.

Rest reggccrig. , .;I( / A,-.

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Date 10/01/2011

Subject Su bco ntrac t agreermerit

To attest' s i~b con t ra c t g reements by the Min is t ry o f Labour (M.O.L), lease prov ide th e

fo l low ing documents:

1) Original sub contract agreement.

2) Subcontractor app roval letter by the consultant and/or client.3) 3 Original copies of the 3ub contract summa w form by the M~ nis try f Labour which has to

be signed by the lMain Contractor, Sub Contractor and the Consultant and/or client (copy

attached).

4) Site handing over certificate.

5) A copy of the main contract between the parties (IVlain Contractor and the Client) which is

required by the Ministry of Labour, in order lo have a clear idea of the duration and the

scope of the project.

6) Copies of Commercial License, Chamber of Commerce certificate, power of attorney of the

Main C ontractor and the authorized person's passport copy.

7) Com pany's file number from the IVlinistry of Labo ur and the Immigration Department.

8) Total nu mber of workforce spo nsored by the main contractor.

Your im med iate cooperation and action is highly appreciated

Best Regards,.* ,J"#+&.2

Jma4~:",5 -- ."F&-(

Khaled M i ~ r a d

HR 8 Adrn~nisfrat~csn anager

ministry of labour's new laws & regulations

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