UAE Government Amends Labour Law with Stricter Penalties for Employment Violations

The UAE Government has issued a Federal Decree-Law amending specific provisions of the Federal Decree-Law Regarding the Regulation of the Employment Relationship, commonly known as the UAE Labour Law.

This amendment is part of the country’s ongoing efforts to enhance its legislative framework, ensuring the efficiency and competitiveness of the labour market while clearly defining the rights and obligations of all parties involved.

The new decree introduces significant penalties for employers violating the law. Employers who hire workers without proper permits, fail to provide jobs to workers brought into the country, misuse work permits, or shut down businesses without settling workers' rights face fines ranging from AED 100,000 to AED 1 million. Similar penalties apply to those involved in the illegal employment of minors or allowing minors to work unlawfully.

Additionally, the decree introduces criminal penalties for fictitious recruitment practices, including fraudulent Emiratisation. Employers found guilty of faking the recruitment of employees will face fines between AED 100,000 and AED 1 million, with penalties multiplied based on the number of workers involved.

In cases of labour disputes, the decree mandates that disputes unresolved by the Ministry of Human Resources and Emiratisation will now be brought before the Court of First Instance, instead of the Court of Appeal. The decree also stipulates that legal claims related to employment must be filed within two years of the termination of the employment relationship.

The decree gives the Ministry the authority to settle fictitious employment cases before a court sentence is issued, provided the employer pays at least 50% of the minimum fine and returns any financial incentives received by fictitious employees.

This amendment aims to regulate the employment relationship further, ensure the protection of all parties involved, and strengthen the UAE's labour market.

News Source: Emirates News Agency