What Is Company Ban?

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what is company ban? Oct 20, 2007
hi all,

im new here in this forum...i just want to check this what i heard that aside from labor & immigration ban, there is also called a company ban?i need some clarification regarding this one.

correct me if i am wrong, they say that this company ban is a type of ban which companies pay in the labor department and whoever gets this ban will not be able to enter gcc for 1 YEAR!!!but it is only applicable to those who are a THREAT in the company, i.e. sales manager, gen.mgr.,merchandisers???

i had a situation wherein my friend who had resigned in his company gets 1 year ban...he went to his accounts department and he was informed that instead of getting some money, he still has a debt. he was deducted some aed 4000+
for the ff..visa cancellation fee (w/c i know should not be deducted from the employees), he did not get the remaining days he worked for the company, no gratuity (he has served the company for almost 1 1/2 year as per visa but im not pretty sure if he's entitled to this), AND the aed 3000+ they deducted from his salary monthly...this aed 3000+ is as the MANAGEMENT SAID "250/mo. will go to the bank guarantee and payable for 12mos., that gives us 3000 for 1 year & 50 for the savings of each employee...this 300 they deducted to him monthly since he got his visa was not given to him...after completing his first year (from visa date) his deduction was reduced to aed 50 (that is for the savings only)...no one is complaining about this situation because all employees are afraid that the management will be running after the employees and maybe just maybe, the sponsor is so powerful that he can help the management get out of this once somebody complains at the labor department

lestat007
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Oct 20, 2007
there is a 6 month labor ban for breaking the contract prematurly. this is standard. as far as i know there is no other ban that can be placed on the employee by the company (through the labour department).

it depends what type of contract your friend had (limited or unlimited).
if it was a limited contract for three years (which is the standard duration), and he broke it after 18 months, the employer is only liable to claim 1 and a half months salary from him in compensation - some companies do however try to recover portion of the processing fees from the individual.

anydeductions for your friends salary over the past few years are ILLEGAL, the employer is not entitled to deduct any money for visa costs. the "savings" was also probably the employers way of collecting the gratuity money that would be entitled to your friend if he completed the contract.

as he broke the contract early he is not entitled to any gratuity! and the employer puts the "savings" money back in the bank.

the employer is stealing money from him, the labour guarentee that the employer pays to the labour departement - they get back when the employees labour card is cancelled, the labour department only keeps this money if the employee absconds or the company is liquidated, they then use this money to pay out and send the employees home!

i would suggest that your friend goes to the labour department and lays a case, what has he got to loose? he has already resigned. he should take all of his pay slips with him as well as a copy of his contract!
dbxsoul
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Oct 20, 2007
my friend is in an unlimited contract...the problem is when i saw his payslip..this 250 was put into "LOAN" and the 50 was written only on the envelope...he told me that there was no other contract that he signed except his labor contract but definitely these deductions were not on the contract otherwise his company will be questioned,right?
he told me that all employees who has joined the company will have automatic 300/mo. deduction and once they have completed the 3000 for they say "bank guarantee", only 50/mo. will be deducted in the salary.
lestat007
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Location: dubai

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Oct 20, 2007
my friend is in an unlimited contract...the problem is when i saw his payslip..this 250 was put into "LOAN" and the 50 was written only on the envelope...he told me that there was no other contract that he signed except his labor contract but definitely these deductions were not on the contract otherwise his company will be questioned,right?
he told me that all employees who has joined the company will have automatic 300/mo. deduction and once they have completed the 3000 for they say "bank guarantee", only 50/mo. will be deducted in the salary.
lestat007
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Location: dubai

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Oct 20, 2007
okay unlimited, he only has to give 30 days notice, they have to pay him for the final 30 days or he should refuse to sign for the cancellation of his labour card.

typical = the "loan" issue. this is totally illegal. he should go to the labour court, the company will have to prove that he did in fact recieve a loan for 3000 and provide the loan document with your friends singnature on it. they may not deduct anything to do with labour recruitment or processing fees from his salary!

best he can do is go to the labour department and report it.
dbxsoul
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Posts: 1626
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