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Dubai, UAE

Working in a company while the visa is from another company owned by the same owner

Hello,

Is it a violation when some employees work in company A (industrial license) while they have a visa and work permit from company B (professional license)?

Companies A and B have the same owner, sponsor, and brand. They are based in Dubai, mainland, and are private companies.

Mohammed Aldahbashi Advocates
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19 Jun 2022, 09:11

Dear questioner,

Yes, this is considered a violation and is punishable by law.

Article (25) of Federal Decree-Law No. 29/2021 On the Entry and Residence of Foreigners states that:

1- Whoever employs, shelters or lodges a Foreigner in violation of the provisions of this Decree-Law shall be punished with a fine of (50,000) fifty thousand Dirhams. The penalty shall be imprisonment and a fine of (50,000) fifty thousand Dirhams in case of recidivism.

2- Whoever recruits a Foreigner for the purpose of work in accordance with the provisions of this Decree-Law and does not employ him or lets him work for others without following the legal procedures prescribed for the same, shall be punished with the same penalty stipulated in Clause (1) of this Article, and in all cases, the fine shall be multiplied by the number of violators.

7- The Court shall, in all cases, order the deportation of the Foreigner in violation, as well as the deportation of the Foreigner who employed him or sheltered him in case of recidivism.

Also, article (60) of the Federal Decree-Law No. 33/2021 On Regulation of Labour Relations states that:

Shall be punished by a fine not less than (50,000) fifty thousand Dirhams and not exceeding (200,000) two hundred thousand Dirhams, whoever:

1- Employs a Worker who was not authorised to work for him.

2- Recruits or employs a Worker and leaves him without Work.

When implementing the said provisions, the court will decide on the harshest punishment among those provisions as per the Federal Penal Code rules.

On the other hand, please note that the fact that the ownership of the two companies is to the same person does not change this opinion; as each company has a personal capacity separated from its owners or shareholders.

20 Jun 2022, 08:32

Ok, thank you. But the owner, business type, and sponsor are the same.

MOHRE said to us there was no violation before for this case when these 3 conditions are the same, but now they are not sure.

Please advise.

20 Jun 2022, 08:40

You are welcome.

Since the two companies are different, the employee would be considered working for someone that is not their sponsor.

20 Jun 2022, 11:08

Clarification: both companies have the same sponsor & same owner as per license (sister companies).

Your comment is still the same in this case?

20 Jun 2022, 11:16

Is either of the companies an LLC or a sole establishment?

20 Jun 2022, 11:23

One company is LLC, another one is a civil company (partnership).

20 Jun 2022, 11:30

Noted.

My answer is still the same.

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