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UAE firms in a bind Gulf round-up

Dubai: Companies in the UAE are in a bind following the government’s decision to impose penalties on firms that hire people who are on visit visas. Sponsors and companies feel the move will have diverse effects on the labour market. Many people who are working in the UAE despite being on visit visas fear that they would be thrown out by their employers and face at least a one-year ban, if not a life ban, Khaleej Times reported. One worker felt the move might protect the employees’ rights because many firms bring workers on visit visas and delay their wages and financial dues such as overtime and end-of-services benefits. “The stiff penalties will force the companies to bring workers either on temporary work permits or employment visas,” he said.

Many sponsors and companies are bracing themselves for disruption in their work as they would have to terminate the services of visitors on the payrolls. — PTI

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