UAE amends labour law, introduces stricter fines for violations

The UAE government has issued a federal decree-law amending key provisions of the UAE Labour Law, raising penalties for employment violations, including fines ranging from Dhs100,000 to Dhs1 million, the state news agency WAM reported on Monday.

The amendments are part of the UAE’s ongoing efforts to enhance its legislative and legal framework, aiming to bolster the efficiency and competitiveness of the labour market.

The decree outlines stricter regulations on employment relationships, clearly defining the rights and obligations of all parties and ensuring their protection by law.

The amended law covers minors

Under the new decree, employers who hire workers without proper permits, fail to provide jobs after bringing workers into the country, misuse work permits, or shut down operations without settling workers’ rights will face significant fines.

The penalties also apply to the illegal employment of minors and to guardians who allow minors to work in violation of the law.

The decree further introduces criminal penalties for fictitious recruitment, including fraudulent Emiratisation practices.

Employers found guilty of bypassing regulations through fake recruitment efforts will be subject to fines, with penalties multiplied based on the number of workers involved.

In cases of labour disputes, the new amendments stipulate that disagreements with decisions from the Ministry of Human Resources and Emiratisation (MOHRE) will now be taken to the Court of First Instance rather than the Court of Appeal.

Any claims filed more than two years after the termination of an employment relationship will not be processed.

UAE grants MOHRE authority to file action for fictitious employment

The decree also grants MOHRE the authority to initiate criminal proceedings for fictitious employment, which can only be started at the request of the Minister or an authorised representative.

Employers may settle cases before a court sentence is issued by paying at least 50 per cent of the minimum specified fine and returning any financial incentives received by fictitious employees.

The new regulations mandate that Courts of Appeal must refer all ongoing employment disputes to the competent Court of First Instance, except those already adjudicated or reserved for judgment.

The UAE Government has issued a Federal Decree-Law amending specific provisions of the Federal Decree-Law on the Regulation of Employment Relationships, aimed at enhancing the efficiency and competitiveness of the labour market. pic.twitter.com/yk7hSqson1

— UAEGOV (@UAEmediaoffice) August 12, 2024