There may be up to 370,000 expatriates in the UAE working illegally, not including those who have absconded but continue to work, said a senior official.

Ahmad Kajour, Assistant Undersecretary for Manpower and Planning in the Ministry of Labour and Social Affairs, said more than 370,000 labour cards in the UAE have expired since 1999.

Kajour said the 370,000 would be about the maximum number of people working illegally in the country, because many holders of the expired labour cards "had probably left the country."

Other cards considered expired in Ministry of Labour and Social Affairs computers had not completed the 60-day renewal period.

"The holders may well renew them. It does skew the numbers."

However, Kajour said many companies were taking advantage of the waiting period on fines to pay up. He said companies that did not pay fines would see them increasing, and their company status downgraded.

"Before, it used to be cheaper to pay fines than obey the law. Now, it's the opposite."

Kajour said companies that did not pay fines would have all transactions halted. Companies unable to pay their fines would be forced to close.

"The same owners won't be able to open any other company before they pay off the outstanding fines."

Kajour said companies would not be able to get away with leaving workers on expired labour cards in the new system. "The fines are just too expensive."

He said it would also hurt companies that deal in work visas.

"People who used to sell work visas will now be asked to account for every worker for whom they obtained a labour card."