A Dubai-based construction company’s owner has been hit with a Dh1.075 million fine for neglecting to pay employees their salaries, as revealed by Dubai’s Public Prosecution on Saturday.
Case Details
The accused, the company’s director, was taken to court by the Dubai Naturalisation and Residency Prosecution over the non-payment of wages. It was uncovered that 215 workers of the firm were not paid their salaries for a span of two months.
The director admitted that they could not pay the staff due to financial difficulties within the company.
Court Ruling
After deliberating on the case, the court imposed a penalty of Dh5,000 on the company owner for each worker who hadn’t received their wages. This resulted in a hefty fine amounting to Dh1.075 million.
This case serves as a cautionary tale for businesses to uphold their obligations to their employees and fulfill their commitments regarding wage payment, regardless of any internal financial challenges they might be facing. Non-compliance with labor laws can lead to severe penalties and damage the company’s reputation.
