Many enter arrangements that appear practical and harmless: a worker taking on work for someone other than their sponsor in their free time, an employer using labour registered to another establishment for an urgent task, or a person obtaining residency for payment without actual work. These are not minor administrative breaches but among the most heavily penalised violations in the employment and residence framework, and both parties answer for them. This article explains these forms, their penalties, and how to regularise, under Labour Law No. 6 of 2010 and the residence rules.
Working for Another Employer
- The rule: a work permit is tied to a defined establishment and occupation, so a worker may not work for another entity even outside their normal hours.
- The worker's liability: the worker answers for the violation and faces penalties extending to cancellation of residency and deportation.
- The engaging party's liability: a person employing a worker sponsored by another faces financial penalties usually calculated per worker, together with suspension of the establishment's file.
- The original employer's liability: may answer where knowledge, collusion, or negligence in supervising their workers is established.
- Regulated part-time work: schemes exist permitting forms of additional or temporary work with prior authorisation, the only lawful alternative to irregular arrangements.
Trading in Work Permits
The gravest form and the most heavily penalised:
- Its form: recruiting labour or issuing permits without genuine need for the work, then leaving them to work in the market for sums paid to the establishment's owner.
- Shell establishments: forming establishments with no activity in order to obtain permits, a pattern pursued seriously.
- The worker's position: a worker in such arrangements is not always an offender and may be a victim recruited on false promises and then left without work or wages, so their position must be examined carefully.
- Penalties: substantial fines, suspension of the file, and licence revocation, extending to criminal liability.
- Other dimensions: these practices may intersect with other offences such as human trafficking where accompanied by exploitation or restriction of the worker's freedom.
Unlicensed Self-Employment
- The common pattern: a resident carrying on a commercial or craft activity on their own account without a licence, from online selling to providing services directly.
- A double violation: this conduct breaches both the residence and employment rules and the rules on carrying on commercial activity without a licence.
- Selling through platforms: the digital character does not remove the activity from licensing. Regular selling through social accounts is a commercial activity requiring a licence.
- Lawful routes: licences exist for small, home-based, and digital activities, and obtaining one costs far less than facing a violation.
- Effect on status: the violation may lead to cancellation of residency in addition to fines and confiscation of goods.
Concealment and the Worker's Position
- Distinguished from commercial concealment: concealment concerns enabling an unauthorised person to carry on business under a licensed name, a separate matter with its own rules that may intersect with employment violations.
- Offender or victim: in every case it must be examined whether the worker participated in the arrangement or was exploited by it, as the characterisation differs entirely.
- Rights despite the violation: breaching the residence rules does not of itself extinguish the worker's financial rights for work actually performed, since wages are consideration for work done.
- Reporting exploitation: an exploited worker may report to the competent authorities, and mechanisms exist to protect those reporting exploitation.
Regularising the Position
- Amnesty periods: the authorities announce periods from time to time allowing violators to regularise on favourable terms, the best opportunity for anyone in breach.
- Voluntary initiative: regularising before detection is far preferable to awaiting inspection and is reflected in the assessment of any penalty.
- Settling entitlements: a worker's entitlements must be settled before any termination step, as an administrative violation does not justify withholding their wages.
- Voluntary departure: may be the most appropriate solution in some cases and is subject to rules differing from administrative deportation and its consequences.
- Advice before acting: choosing the wrong route to regularise may worsen the position, so advice before acting is recommended.
Practical Guidance
- Workers should not accept work for anyone other than their sponsor whatever the payment, as the risk far outweighs the return.
- Verify that your recorded occupation matches your actual work, as a violation may occur unintentionally.
- Do not pay for residency without genuine employment, as you will be the first to bear the consequences.
- Employers should verify each worker's status before engaging them even for a single day, as the responsibility is yours.
- Document the relationship with a contract and formal registration however short the task.
- On discovering an existing violation, regularise immediately and take advantage of any announced amnesty.
Irregular employment and residence arrangements appear to be a quick solution but are the greatest threat to the stability of both resident and business. Yamnak Law Firm advises on regularising labour arrangements and employment compliance and defends employment violations while protecting the rights of exploited workers.
