Tough new UAE labour law to 'protect vulnerable' and hold companies to account

Experts said further measures are needed to tackle recruiters taking life savings from people

The UAE has set out strict punishments for companies found in breach of labour laws. The National

A UAE crackdown on companies that fail to hire workers after promising them employment is critical to stop exploiting those who pledge their life savings for a job in the Gulf, lawyers and social workers said.

The government this week issued a federal decree specifying fines of up to Dh1 million on employers who breach labour laws, hire minors, employ workers without valid permits, bring people into the country and fail to place them in jobs or close businesses without settling dues.

The directive was welcomed by experts who handle cases of people lured into the country with the promise of high wages and pay money to recruiters, but are left to fend for themselves when their visit visas expire.

Social workers and legal experts said that people cannot pay overstay fines and are unable to return home as they have no money.

“This is a warning to companies that misuse the visit visa. They bring people in to work for three or four months and let them go when they ask for their salary,” said Hashik Thayikandy, a partner in a Dubai legal firm.

“Previously there was a Dh50,000 fine on companies now the authorities have increased it to between Dh100,000 and Dh1million. This is a strong decision to enforce the law on a person or company that tries to make someone work without a valid work permit.

“These workers approach us or the consulates as they don’t have money for food or housing.”

He said the strengthening of the law was crucial to safeguard the rights of workers.

“Protection of labour is fundamental to every country and it’s the duty of governments to protect the vulnerable especially those in the labour category.

“The announcement is a strict message to companies to obey the law and that it will be enforced.

“It will strengthen the workplace and the employment system in the UAE.

“All companies should be aware of this fine of up to Dh1 million so they don’t misuse the visit visa.”

Loans for dream jobs

Officials have often cautioned companies and recruitment firms against bringing workers to the UAE on tourist visas to search for jobs.

Despite warnings from embassies and UAE authorities, workers take significant loans to pay recruitment agencies more than Dh4,300 ($1,200) hoping to secure jobs to care for their families back home.

When they arrive, they are placed in low-paying jobs earning less than Dh1,000 – significantly less than expected for the positions they were recruited for.

Some are not paid on time and many need to search for employment.

Can Cai who works with a legal firm in the UAE said workers were often duped into signing vague contracts that would not hold up in court.

“People approach us with contracts they have signed but there is no time frame mentioned and they come to the UAE without a firm job offer,” he said.

“There are workers of all nationalities – Chinese, Indian, Pakistani who pay their life savings to recruitment companies and get stuck here without money.

“The UAE government is trying to get rid of these fraudulent companies so these workers don’t become victims.

“These fines will make the work environment more secure for workers so they are brought here on the correct work visa.”

Crackdown on companies

Girish Pant, a social worker who works with the Indian consulate, said the penalty should extend to recruitment and travel companies that issue visit visas and mislead workers by guaranteeing them jobs.

“People who come here are poor and from villages. They sell their mother’s jewellery or mortgage their family’s land hoping to get a job,” he said.

“The travel agency and the recruitment company that brings these workers should also be liable.”

He said levying fines on such companies would stem the flow of people entering the UAE as tourists but are unable to provide for themselves.

Mr Pant has handled cases of Asian workers where men have worked for three months on visit visas and wanted to return home as they were underpaid, but their return air tickets were cancelled.

“Once a worker overstays his visa, he is too scared so they hide,” Mr Pant said.

“If there is a crackdown on recruitment companies that dupe people then there will be less people deceived into coming here.

“With the new visa amnesty, we will see how many thousands now apply to return home.”

UAE authorities have announced a two-month amnesty starting in September to allow people with expired visas the opportunity to leave the country or secure their status without incurring fines.

Airport authorities in the Emirates have over the past months tightened rules requiring visitors to have a return ticket, hotel booking and a minimum of Dh3,000 to halt the entry of jobseekers who overstay their visit visas.