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Date 10 .

lanuary 201 1
To All Project Managers, Division & Departrncnt lieads
From HR & Administration Division
Subject Ministry of Labonr's New Laws & Regallrations

In accordance with the new laws and regulations issued by the Ministry of Labour, with effect from
January I"', 201 1, 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, non-compliance by any company 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 card
renewal fees from AED 1,500 to 5,000 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 operations:
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 of
AED 50,000 per employee, as in itern (l),shall 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 health, 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 and workers
resume duty inimediately after end of ttieir leave. Otherwise, M.O.L. shall cancel employee's visa within one
week.
We look forward to an immediate and full cornpliance by all Company's employees with all Ministry of Labour's
new laws and regulations.

Rest reggccrig. , .;I


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Date 10/01/2011
Subject Subcontract agreermerit

To attest' si~bcontractagreements by the Ministry of Labour (M.O.L),please provide the


following documents:

1) Original sub contract agreement.


2) Subcontractor approval letter by the consultant and/or client.
3) 3 Original copies of the 3ub contract summaw form by the M~nistryof 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 Contractor and the authorized person's passport copy.
7) Company's file number from the IVlinistry of Labour and the Immigration Department.
8) Total number of workforce sponsored by the main contractor.

Your immediate cooperation and action is highly appreciated

Best Regards,
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Khaled M i ~ r a d
HR 8 Adrn~nisfrat~csn
Manager

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