UAE labour law updated, up to AED 1 million fine for violations

The UAE Government has amended certain provisions of the country's labour law as part of efforts to enhance the competitiveness of the employment market and clearly define the rights and obligations of all parties involved.

Under the new federal-decree law, employers face fines ranging from AED 100,000 to AED 1 million for various offences.

These include employing workers without proper permits, failing to provide jobs to workers brought into the country, misusing permits and shutting down or suspending business operations without addressing workers' rights.

The same penalties apply to the illegal employment of minors.

The decree also introduces criminal penalties for fictitious recruitment practices, including fraudulent Emiratisation. Employers caught faking employee recruitment will face fines from AED 100,000 to AED 1 million, with penalties increasing based on the number of fictitious employees involved.

In case of labour disputes, appeals against decisions made by the Ministry of Human Resources and Emiratisation will now be directed to the Court of First Instance rather than the Court of Appeal. Claims must be filed within two years of the employment relationship ending.

Additionally, criminal proceedings for fictitious employment, including fraudulent Emiratisation, can only be initiated at the request of the Minister of Human Resources and Emiratisation or their representative.

The new decree also allows the Ministry to settle cases before a court ruling, provided the employer pays at least 50 per cent of the minimum fine and reimburses any financial incentives received by the fictitious employees.

The UAE Government has issued a Federal Decree-Law amending specific provisions of the Federal Decree-Law on the Regulation of Employment Relationships, aimed at enhancing the efficiency and competitiveness of the labour market. pic.twitter.com/yk7hSqson1

— UAEGOV (@UAEmediaoffice) August 12, 2024