UAE pays wages of 1,200 workers after boss flees

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(Photo for illustrative purposes only)

(Photo for illustrative purposes only)

The UAE's Ministry of Labour has said it has liquidated bank guarantees worth more than AED4m to pay the salaries of 1,200 workers after their employer fled the country.

The employer, an Asian investor who has not been named, fled, leaving them unpaid for three months, a senior official said in comments published by news agency WAM.

Humaid Rashid bin Demas, Acting Undersecretary at the Ministry of Labour, told WAM: "Under the directives of the Minister of Labour, Saqr Ghobash, the said establishment's case was referred to Dubai Public Prosecution to take the necessary legal action against it, while the Ministry today liquidated the bank guarantees valued at over AED4m to pay delayed salaries of three months."

He said that the ministry would guarantee the right of any worker who wished to file a case against the fugitive employer.

He added that officials contacted at Dubai Courts have shown their readiness to form a special juridical committee to look into cases and speed up the verdict.

The undersecretary also confirmed that the ministry will work with Dubai police and the Permanent Committee for Labour Affairs to facilitate travel procedures for workers who would like to travel home or provide approvals should they wish to transfer to other companies.

"The Asian investor was called after the workers stopped their activities and filed a complaint against him regarding delay in their payments," he was quoted as saying by WAM.

"After an inspection conducted by the ministry, the investor has presented a written pledge to deliver the payments according to a schedule which was signed by the worker, but he has fled the country right before the payment was due."

The ministry has stopped issuing work permits for workers coming from the investor's establishments, he added.

"The ministry will not be lenient with any establishment that delays salaries of workers," he said.

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Posted by: javeed

the ministry of Interior must also take all out efforts to bring back the owners to UAE to face the charges against them in UAE .
if this country is able to do this , then it will win the confidence in doing business in the UAE.

how is the goverement going to help the suppliers who will be more affected .

Posted by: Business Man

The Local Sponsor should take responsibility. He is after all the majority shareholder.

Posted by: Ambuj

While the MOL has done a commendable job of encashing the guarantee and making the workers payment, the news headline is misleading as nowhere does the article say that the money paid was from the UAE govts own resources.

Posted by: syed

Good to protect the employees, but which is the agency that will protect the suppliers who have delivered raw materials for such companies and the due payments for such supplies. Its time that support should be given to suppliers to protect their interests and bounced cheques.

Posted by: Ambuj

While the MOL has done a commendable job of encashing the guarantee and making the workers payment, the news headline is misleading as nowhere does the article say that the money paid was from the UAE govts own resources.

Posted by: Anon

Lest we forget somewhere hiding behind the scenes is the UAE national sponsor. No doubt he / she will be exonerated beyond all doubt?

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