The Ministry of Labour announced today a new mechanism for settling fines of delayed labour cards which expire by the end of the year where an employer can avail the cabinet resolution no 27 of 2010 to make substantial savings on his accumulated fines.

The settlement covers labour cards and work mission cards which expire before 31 December 2010. The employer can pay a maximum of Dh 5000 against all duration before January 2011 with a maximum Dh 1000 for failing to issue or renew these cards which were overdue from 31 December 2005 or Dh 4000 for not issuing or renewing labour cards or work mission cards which were overdue from 1 January 2006 to 31 Dec. 2010.

As of 1 January 2011, the fine for not issuing or renewing the labour card will be Dh 1000 per month. Failing to issue or renew work mission card will entail a fine of Dh 100 per day.

Minister of Labour Saqr Gobash said the new resolution aims at encouraging employers to clear their accumulated fines.

“An employer who could have paid Dh 50,000 for not issuing a labour card for his employee for ten years, will only pay less than Dh 5000 in the new system, the minister clarified.

The relax of the fine system follows a series of labour measures aim at regulating the local labour market.

He urged those who had accumulated fines to seize this facility to come clean.