UAE Tightens Labor Law: Companies Fined Up to Dh1 Million for Hiring Visit Visa Holders

The UAE government has introduced a significant amendment to its labor law, imposing hefty fines on employers who hire workers without proper permits.

Legal experts highlight that the new penalties, ranging from Dh100,000 to Dh1 million, reflect the government's commitment to safeguarding workers' rights.

Ali Saeed Al Kaabi, director at ECH Digital, emphasized that the increased fines underscore the seriousness of the government’s stance on illegal employment practices.

"The amendments will ensure the legality of employment practices and protect workers from exploitation,"

he said.

A common malpractice involves employers promising residency and work permits to visit visa holders, only to renege on these promises once the visa expires. This leaves workers unpaid and in precarious legal situations. The new regulations aim to curb such abuses by holding employers accountable.

South African expat Kieran Foury experienced this firsthand. After being hired on a visit visa, he worked for three months without receiving the promised employment visa. When his visit visa expired, he was dismissed and had to pay Dh5,500 in fines to exit the country.

Legal experts like Hadiel Hussein, a senior associate at BSA Ahmad Bin Hezeem & Associates, believe these amendments will create a more compliant labor market. The increased penalties, alongside potential criminal consequences, act as a deterrent against labor law violations. For employees, the changes offer greater protection and security, ensuring that their rights are upheld and disputes resolved efficiently.

The UAE government has made it clear: working on a visit or tourist visa is illegal, and companies found in violation will face severe penalties.

News Source: Khaleej Times