Unfair Gaps๐Ÿ‡ฆ๐Ÿ‡ช UAE

Household Services Business Guide

13Documented Cases
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All 13 Documented Cases

ุนู‚ูˆุจุงุช ุนุฏู… ุงู„ุงู…ุชุซุงู„ ู„ุชุฃู…ูŠู† ุงู„ุนู…ุงู„ ุงู„ู…ู†ุฒู„ูŠูŠู†

Primary: Fines + visa rejection losses (estimated AED 5,000โ€“15,000 per worker non-compliance incident). Secondary: Cost of emergency insurance procurement and visa re-application (AED 500โ€“1,500 per case). Tertiary: Lost productivity per worker (AED 2,000โ€“5,000/month during visa processing delays).

Employers who fail to provide or properly document health insurance for domestic workers face rejection of work permit applications, visa non-renewal (forcing workers to leave UAE), and administrative penalties. The requirement applies nationwide (Dubai via DHA, Abu Dhabi via DOH). Non-compliance is now a prerequisite blockerโ€”no live policy = no visa.

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ุงู„ุชุฒุงู…ุงุช ุงุณุชุจุฏุงู„ ุงู„ุนุงู…ู„ ูˆุงู„ุชุนูˆูŠุถุงุช (Worker Replacement & Compensation Liability)

Per violation: Full refund of recruitment fees (typically 10โ€“20% of annual worker salary = AED 2,000โ€“8,000 per case) plus estimated damages (AED 5,000โ€“15,000 per employer claim for placement delay and hiring costs)[4]; Typical agency loses 2โ€“5 cases/month = AED 34,000โ€“115,000/month opportunity cost

Agencies must ensure domestic workers meet all employer-specified conditions (experience, educational qualifications, certificates)[1]. Failure to match worker profile to job offer, or misrepresentation of worker qualifications, triggers refund and compensation obligations[4]. Legal disputes over 'breach of contract' claims extend the cost impact.

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ุฎุณุงุฑุฉ ุงู„ู…ุฎุฒูˆู† ุจุณุจุจ ุงู„ุณุฑู‚ุฉ ูˆุงู„ุชู„ู (Inventory Shrinkage Due to Theft and Damage)

Estimated 2โ€“5% of inventory cost annually; for AED 500,000 inventory value = AED 10,000โ€“25,000/year loss.

Inventory shrinkage caused by theft, unauthorized usage, damage, or misplacement in household services supply chains. Manual record-keeping delays detection of losses until year-end audits.

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ุบุฑุงู…ุงุช ุงู„ุงู…ุชุซุงู„ ู„ุถุฑูŠุจุฉ ุงู„ู‚ูŠู…ุฉ ุงู„ู…ุถุงูุฉ (VAT Compliance & Filing Penalties)

VAT penalties: AED 5,000โ€“50,000 per audit finding; Administrative labor: 40โ€“80 hours/quarter ร— AED 150/hour = AED 6,000โ€“12,000/quarter.

VAT filing penalties and audit failures caused by poor inventory documentation and mismatched supplier invoices. Unreconciled inventory purchases affect VAT input credit claims.

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