UAE Sets Fines Up to $272K for Labor Law Violations

The UAE will impose fines ranging from AED 100,000 ($27,229) to AED 1 million ($272,259) on employers who breach labor laws as part of efforts to strengthen workers' rights. A new federal decree outlines penalties for companies that hire minors, employ workers without valid permits, or bring people into the country without providing them with jobs.

The decree also includes penalties for companies that falsify recruitment figures, such as creating fictitious workers to meet Emiratization goals. Criminal proceedings can only be initiated at the request of the Ministry of Human Resources and Emiratization (MoHRE).

The MoHRE can settle cases if the employer pays half of the minimum fine and returns any government incentives received through fake employees. Disputes can be taken to court if companies contest the ministry's decisions.

These regulations coincide with the UAE's upcoming visa amnesty, starting on September 1st. The amnesty will provide a two-month grace period for individuals with expired residency visas to regularize their status or leave the country without penalties, assisting those who lost documentation due to job loss or misleading recruiters.

The new measures build on a domestic labor law introduced in December 2022, which increased penalties for breaches of working conditions.

Recently, UAE authorities asked private sector companies to ensure they have met their Emiratization targets for the first half (H1) of 2024 starting July 1st. Companies with 50 or more employees that have not increased their Emirati workforce by 1% over the past six months will face fines

The Ministry of Human Resources and Emiratization (MoHRE) confirmed June 30th as the deadline for meeting these targets. The fines for non-compliance are set at AED 8,000 ($2,178) per month for each Emirati not hired, increasing annually by AED 1,000 ($272.26) until 2026.