One year ban will continue - Ministry of Labour UAE

This article from an earlier period highlights the distinction between the new rules that eased sponsorship transfer and the continuing penalty of a one-year ban for workers who committed a violation, such as breaching a contract or being absent without a valid reason.

However, the legal landscape has undergone significant changes since this report, especially with the introduction of the Federal Decree-Law No. 33 of 2021 (the UAE Labour Law).¹

Here is an analysis of the key points with the current (2025) legal context:

🚫 Worker Violations and Employment Bans: Current UAE Labour Law

1. The Employment Ban (Work Permit Restriction)

2010 Context	Current (2025) Legal Status of Employment Ban
Old Rule: A mandatory one-year ban was imposed on workers who breached a fixed-term contract or absented themselves from work without a legitimate reason (absconding).	Current Law (2021): The automatic six-month or one-year ban for employees who switch jobs is largely abolished for those on the new fixed-term contracts (max 3 years), provided the termination is lawful (i.e., serving the required notice period).
Violation Ban: However, the concept of an employment ban still exists for specific violations and is now addressed as a Work Permit Restriction (WPR).	Serious Violations: MoHRE can still impose a Work Permit Restriction (WPR)—effectively a ban—on employees found to have: * Absconded: Ceasing work without a legitimate reason and failing to return (which can result in a one-year ban and fines). * Breached Legal Obligations: Committing serious offences or violating the terms of a legal dispute resolution.

2. Termination Due to Company Closure

The woman's query highlights a situation where the company closed due to the employer's death, and the worker failed to inform the ministry.

• Current Law: In cases of company closure, bankruptcy, or death of the employer, the employee's contract is considered terminated by law.²
• Worker Obligation: While the old rule required the worker to inform the ministry within a reduced timeframe (2 months), the current focus is on ensuring the employee receives their end-of-service benefits. Employees must now approach MoHRE (Ministry of Human Resources and Emiratisation) to resolve the status of their work permit and receive their dues.

3. Fines on Companies for Delayed Labour Cards

The report mentions an easing of the rule on fines for companies that delay or fail to renew labour cards, explicitly stating that fines will be paid by the companies, not the workers.

• Current Law (Confirmation): This principle is still strictly enforced. Under the current UAE Labour Law, the employer is legally responsible for all fees, fines, and costs related to the employee's work permit, residency visa, and labour card renewal.³ The employer cannot legally pass these fines onto the employee.
• WPS Penalty: The most significant fines today are linked to the Wages Protection System (WPS) non-compliance, where fines can reach up to AED 20,000 for each violation of salary payment.

In Summary: While the ability to transfer sponsorship is far easier today, serious employment breaches like absconding can still result in a Work Permit Restriction (ban) imposed by MoHRE. The employer remains fully responsible for all work permit and visa-related fees and fines.

Would you like me to clarify the current steps an employee should take if their employer closes down or fails to pay their final dues?