New UAE Law Fines Up to Dh1M for Employment Violations

UAE Announces Strict Penalties for Employment Law Violations

Publish date: Tuesday، 13 August 2024

New UAE Law Fines Up to Dh1M for Employment Violations

The UAE government has introduced severe penalties under a newly issued Federal Decree-Law, with fines up to Dh1 million for employers violating employment regulations.

Strict Fines for Violations

Effective immediately, employers will face fines ranging from Dh100,000 to Dh1 million for:

- Hiring workers without proper work permits or offering employment without actual jobs.

- Shutting down businesses without settling employee rights.

- Involvement in fraudulent employment practices or fictitious Emiratisation.

- Employing minors against the law.

- Engaging in any form of labor law circumvention, including fake employment scenarios.

Ministry’s Authority and Settlement Options

The Ministry of Human Resources and Emiratisation now holds the authority to settle such cases. Employers can resolve violations by paying 50% of the minimum fine and returning any government financial incentives received through fraudulent means.

Legal Proceedings for Employment Disputes

Criminal proceedings for fictitious employment or fake Emiratisation require the initiation by the Minister of Human Resources and Emiratisation or an authorised representative. Disputes between employers and employees will be handled by the Court of First Instance, as opposed to the Court of Appeal, in the event of disagreement with the Ministry's decisions. This change applies to all cases except those already adjusted or awaiting judgement.

Timeframe for Legal Claims

According to the new decree, any claims filed after two years from the end of an employment relationship will be dismissed by the court. This amendment aims to streamline legal proceedings and ensure timely resolution of employment-related disputes.

New UAE Law Fines Up to Dh1M for Employment Violations

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