Private engineering firm suspended due to no-pay scandal

A Dubai-based private engineering firm has been suspended by the Ministry of Labour after refusing to fulfil its part of an agreement regarding unpaid wages.

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By  Eudore Chand Published  January 13, 2004

A Dubai-based private engineering firm has been suspended by the Ministry of Labour after refusing to fulfil its part of an agreement regarding unpaid wages. The company, which for legal reasons cannot be named, had only recently reached a settlement with its employees. It now faces tough sanctions. The company’s failure to meet the terms of the deal prompted 250 of its workers to walk out and stage a protest in front of the Ministry of Labour & Social Affairs in Dubai. The workers had, earlier this year, filed a complaint with the Labour Relations Department of the ministry regarding the non-payment of wages, but the problem was amicably resolved with the signing of an agreement in October 2003 in which the company made a commitment to pay one month’s late salary on the 20th October, which it eventually did. However, under the agreement the company was supposed to pay another month’s salary on the 30th October 2003, but failed to do so. In addition, the company failed to pay a third month’s salary on 23rd November despite the terms of the agreement, which binds the company to pay the workers’ salaries during the final third of every month. Workers who went back to their jobs after the initial complaint hoping to get all their dues as per the settlement, have vowed not to resume work this time until they receive their full dues and payments. The workers are each paid Dh800 per month. The Ministry of Labour & Social Affairs suspended the company in accordance with the ministerial order 851, under which the ministry will not issue any new employment visas, will not process sponsorship transfer applications or labour card renewal transactions until the company pays its workers.

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