In a significant move to safeguard workers’ rights, the UAE government has introduced stringent measures to penalize employers who breach labour laws. A federal decree outlines severe punishments for companies engaging in illegal practices, including hiring minors, employing workers without valid permits, and falsifying recruitment figures.
The new legislation imposes fines ranging from Dh100,000 to Dh1 million for offences such as:
- Employing workers without valid permits or bringing them into the country without providing jobs
- Committing employment fraud, including creating fictitious workers
- Closing businesses without settling obligations to workers
The Ministry of Human Resources and Emiratisation has been empowered to settle cases, provided the employer pays half of the minimum fine value and repays government incentives obtained through fake employees. Disputes will be brought before the courts if companies contest the ministry’s decision.
This crackdown on labour law violations comes ahead of a nationwide visa amnesty, set to begin on September 1, allowing individuals with expired documentation to regularize their status or leave the country without facing fines. The government’s initiative aims to protect workers and job seekers, building on previous efforts, including the introduction of a new domestic labour law in December 2022.
