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UAE Employees Can File a Case Against Employers for Unfair Practices and Potential Fines Up to Dh200,000

UAE Employees Can File a Case Against Employers for Unfair Practices and Potential Fines Up to Dh200,000
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If you work for a mainland company in the UAE and are facing unfair practices from your employer, understanding the process of filing a labor case is crucial. Unfair practices can range from employing workers without a proper work permit to failing to pay end-of-service benefits. This guide will walk you through the steps to file a complaint with the Ministry of Human Resources and Emiratisation (MoHRE) and the potential penalties employers may face for such violations.

Question: I work for a mainland company in the UAE and I am planning to file a labor case against my employer for unfair practices. Can you walk me through the procedure and process on how it works?

Answer: In the UAE, unfair practices by employers can include various violations such as employing workers without a valid work permit from the Ministry of Human Resources and Emiratisation (MoHRE), recruiting employees and not providing them with work, misusing work permits, shutting down a business without settling employees' entitlements, failing to pay end-of-service benefits, and hiring juveniles in violation of the law. These actions are contrary to the provisions of Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations.

Under Article 60 of the UAE Employment Law, these unfair practices can result in financial penalties ranging from Dh50,000 to Dh200,000. The article states:

"Shall be sentenced to a fine of no less than Dh50,000 and no more than Dh200,000, whoever:

  1. Employs an employee who has not obtained a permit to work for him.
  2. Recruits or employs an employee, and leaves him without work.
  3. Uses work permits for purposes other than those for which they are issued.
  4. Closes, or ceases the activity, of an establishment without taking the procedures for settlement of employees' entitlements, in violation of the provision of this decree Law, its Executive Regulations and implementing resolutions.
  5. Employs a juvenile in violation of the provisions hereof.
  6. Agrees to the employment of a juvenile in violation of the provisions of this Decree-law in respect of the juvenile's parent or guardian."

Other financial penalties for unfair practices are outlined in Articles 58 to 63 of the UAE Employment Law.

A MoHRE inspector can identify and report violations during an inspection of an entity. Article 33(2) of the Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree Law No. 33 of 2021 provides the procedure for reporting violations:

a. If an inspector verifies a violation, they must draw up a report and submit it to the competent authority to take necessary actions.

b. The inspector may request assistance from administrative or security authorities if needed.

c. Violations are detected using mechanisms and forms determined by the Ministry.

d. Employers must facilitate the inspector's duties and respond to summonses.

Employees affected by unfair practices can file an employment complaint with MoHRE as per Federal Decree Law No. 20 of 2023, which amends certain provisions of Federal Decree Law No. 33 of 2021.

Additionally, employees can file a collective employment dispute with MoHRE under Article 56 of the UAE Employment Law and Article 32 of the Cabinet Resolution No. 1 of 2022.

To proceed, you may file a complaint with MoHRE if you are directly affected by your employer's unfair practices. If you are not affected, you can advise your colleagues to file a complaint. Based on the complaints, MoHRE or other competent authorities will investigate and decide on the case.

By following these steps, you can address and seek resolution for any unfair employment practices you encounter.

News Source: Khaleej Times

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Maryam Pervez

Written by Maryam Pervez

Maryam is the Managing Editor at HiDubai, bringing 8+ years of expertise in marketing, social media, and content development. She holds a Master's degree in Marketing Comms from Middlesex University.
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