Firms rewarded for paying guarantees

Construction firms that have been fulfilling their financial obligations have been exempted from paying absconding fees due to their compliance with labour regulations.

  • E-Mail
By  Rhys Jones Published  July 10, 2004

Construction companies that have been fulfilling their financial obligations by depositing a bank guarantee of Dhs 3000 for each labourer have been exempted from paying absconding fees due to their compliance with labour regulations. The exemption was announced last week by Jassim Al Bannay, deputy director, Labour Affairs Department at the Ministry of Labour & Social Affairs. “Establishments that showed compliance with the bank guarantee system set by the ministry will be exempted from paying the absconding claims fee, which was entitled to be paid by companies for covering the travel expenses of a labourer in case of absconding,” said Al Bannay. The compliant companies will no longer have to pay the absconding claims fee, while the travel expenses of absconding labourers will be completely covered by bank guarantees. Furthermore, the companies which are under the jurisdiction of the executive guarantee article of the modified cabinet’s have been ordered to abide by the terms and articles of the issued order. Meanwhile, Al Bannay has advised labourers to abstain from signing any papers before they get their benefits and rights, and urged to read the terms of their contracts and verify its content before signing. He said that the ministry will follow up cases of labourers who have been exploited by construction firms, adding that some workers have also taken advantage of the ministry’s action to allow them to remain in the country.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code