The UAE Government has announced new fines, reaching up to Dh1 million, following a Federal Decree-Law that amends certain provisions of the Federal Decree-Law on the Regulation of Employment Relationships. This move is part of the country’s efforts to enhance its legislative framework and ensure a competitive and efficient labour market.
Under the updated provisions, employers in the UAE could face fines ranging from Dh100,000 to Dh1 million for the following violations:
- Employing workers without proper work permits or bringing them into the country without providing a job.
- Closing a business without settling workers’ rights.
- Engaging in fraudulent labour practices, including fictitious employment or fake Emiratisation.
- Illegally employing minors.
- Circumventing laws or regulations governing the labour market, including fictitious employment.
Penalties will multiply based on the number of workers involved in these fictitious employments.
The Ministry of Human Resources and Emiratisation (MoHRE) is now empowered to settle these issues, provided the employer pays 50% of the minimum fine and reimburses the government for any financial incentives given to fake employees.
The decree specifies that any criminal proceedings for fictitious employment, including fake Emiratisation, can only be initiated at the request of the Minister of Human Resources and Emiratisation or an authorised representative.
For disputes between employers and employees, the new law mandates that these should be referred to the Court of First Instance if there is a disagreement with MoHRE’s resolution. This applies to all cases except those that have been settled or are reserved for judgement issuance. From the implementation date, the Court of Appeal must refer all employment-related disputes to the Court of First Instance.
Additionally, the court shall dismiss any claims filed more than two years after the termination of the employment relationship.
This decree reflects the UAE’s commitment to refining its legal and legislative framework to regulate employment relationships more effectively. It aims to clearly define the rights and obligations of all parties involved, ensuring their protection under the law.
Youth Are the UAE’s Most Valuable Asset, Says Sheikh Mohammed
