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UAE Government Introduces Hefty Fines Up to Dh 1 Million for Labor Law Violations

Protecting Workers´ Rights In The UAE and Maintaining The Integrity of The Labor Market

The UAE government has announced new penalties for employers who violate labor laws, with fines ranging from Dh100,000 to Dh1 million. The new provisions aim to enhance the regulation of employment relationships, protect workers‘ rights, and strengthen the labor market’s efficiency and competitiveness.


What You Need to Know as an Employer

The UAE government recently issued a Federal Decree Law amending specific provisions of the existing laws on employment relationships. These changes introduce significant penalties for employers who violate labor regulations, such as employing workers without proper permits, closing businesses without settling employee rights, engaging in fraudulent employment practices, and illegally employing minors. The penalties for fictitious employment, including fraudulent Emiratisation, will increase based on the number of workers involved in the scheme. Additionally, the Ministry of Human Resources and Emiratisation (MoHRE) has been granted the authority to settle disputes, provided that the employer pays at least 50 percent of the minimum fine and returns any financial incentives obtained through fraudulent means. The decree also outlines a new procedure for handling disputes between employers and employees, streamlining the process and imposing a time limit on claims.


The TME Takeaway

The UAE’s new labor law provisions introduce substantial penalties for violations, signaling a solid commitment to protecting workers‘ rights and maintaining the integrity of the labor market. Employers must ensure compliance with these regulations to avoid severe fines and legal consequences. This decree reinforces the country’s dedication to creating a fair and competitive labor environment.

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