The UAE government has introduced a federal decree-law revising the UAE Labour Law, increasing penalties for employment violations. Fines will now range from Dhs100,000 to Dhs1 million, according to state news agency WAM.
These amendments aim to strengthen the UAE’s legislative and legal framework to boost labour market efficiency and competitiveness.
The decree enforces stricter regulations on employment relationships, clearly defining the rights and obligations of all parties and ensuring their legal protection.
The revised law includes new provisions for minors. Employers hiring workers without proper permits, failing to provide jobs after bringing workers into the country, misusing permits, or closing operations without settling workers’ rights will face significant fines. Penalties also apply to illegal employment of minors and to guardians who permit such employment.
Criminal penalties are introduced for fictitious recruitment, including fraudulent Emiratisation practices. Employers engaging in fake recruitment will face fines, with amounts increasing based on the number of workers involved.
The decree empowers MOHRE to initiate criminal proceedings for fictitious employment, upon request by the Minister or an authorized representative. Employers can settle cases before court rulings by paying at least 50% of the minimum fine and returning any financial incentives received by fictitious employees. Courts of Appeal must refer ongoing employment disputes to the Court of First Instance, excluding those already adjudicated.
