MoL uses bank guarantees to repay 13,616 workers.
The Ministry of Labour has settled about Dh42.3 million from bank guarantees of 43 companies in order to pay dues to 13,616 workers since 2010.
The Ministry of Labour has settled about Dh42.3 million from bank guarantees of 43 companies in order to pay dues to 13,616 workers since 2010.
Maher Al Obed, Assistant Undersecretary for Inspectional Affairs, said: "The Ministry looked to the guarantees due to the lack of commitment by many companies in paying workers' wages for more than two months, after approaching the business owners. The businessmen had agreed to use the bank guarantees which they had handed the ministry before recruiting workers in implementation of the Cabinet decisions issued in 2010 regarding the facility classification system and bank guarantees."
The resolution stipulates that companies must hand bank guarantees of Dh3,000 for each worker, according to the classification registered in the Ministry of Labour.
"8,493 workers who benefited from bank guarantees settlement during the past six years, preferred to return to their home countries after being given the financial dues, while 5,123 desired to move to other facilities after receiving their dues. The ministry issued them new work permits for this purpose," Al Obed said.
"Settling bank guarantees helped the ministry over the past six years to solve group complaints made by a number of workers who were suffering due to late wages. The step also enabled the ministry to end work stoppage situations for the same reason," he said
"The Ministry of Labour is always aware of issues related to rights and receiving wages and will not tolerate any delays in payments. It shall take necessary action, such as stopping the granting of new work permits until settlements are done," said Al Obed.
The Cabinet's decision authorises the ministry to use bank guarantees or deduct some amounts from them in cases of paying airline ticket expenses or paying dues to workers after reaching an agreement with the business owner, or a court ruling.
The value of the bank guarantees that have been settled during the past year reached more than Dh7.67 million in favor of 1,714 workers working at nine facilities. - Wam.
YEARNo of workers benefittedDues Settled
20151,714 Dh7.67 million20146,067 Dh13.68 million2013 1,053 Dh4.52 million2012 169 Dh918,0002011 999 Dh3.36 million2010 3,813 Dh12.13 million
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