UAE Amends Labour Law; Up To AED 1 Million Fine For 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, known as the “UAE Labour Law." UAE's move is part of measures to ensure the efficiency and competitiveness of the labour market in the country, regulate employment relationships, clearly define the rights and obligations of all parties involved, and ensure their protection by law.

Under the new federal decree law, fines of no less than AED100,000 and no more than AED1 million will be imposed on any employer who employs workers without a proper permit. The fine is also applicable for employees who hire workers, bring them to the country and fail to provide them with a job, shut down a business, or suspend its activities without settling workers' rights. Notably, the same penalties will also be imposed for illegal employment of minors or allowing minors to work in violation of the law by their guardians.

Moreover, the new decree introduces criminal penalties for fictitious recruitment, including fictitious Emiratisation. Employers found guilty of faking recruitment of one or more employees will face fines ranging from AED100,000 to AED1 million, and the penalty is multiplied by the number of workers involved in the fictitious employment. The amendments state that in the case of labour disputes, the case shall then be brought before the Court of First Instance rather than the Court of Appeal.