Breaking: Heavy Fines for UAE Employers Who Violate Labor Laws

 A new federal decree-law has been issued, amending existing regulations and imposing fines of up to Dh1 million for various offenses.

Key Violations and Penalties:

• Employing workers without permits or providing jobs: Fines ranging from Dh100,000 to Dh1 million.
• Closing a business without settling worker rights: Fines ranging from Dh100,000 to Dh1 million.
• Fraudulent labor practices: Criminal penalties for actions like fictitious Emiratization.

Key Changes:

• Steeper Penalties: Employers face fines ranging from Dh100,000 to Dh1 million for offenses including:
• Employing workers without valid work permits or providing jobs
• Closing businesses without settling worker entitlements
• Engaging in fraudulent labor practices like fake Emiratization
• Employing minors illegally
• Circumventing labor market regulations
• Settlement Options: The Ministry of Human Resources and Emiratization can now negotiate settlements where employers pay half the minimum fine and reimburse government incentives obtained through fraudulent practices.
• Criminal Charges: Criminal proceedings for fake Emiratization can only be initiated by the Ministry or its authorized representative.
• Dispute Resolution: Labor disputes will primarily be handled by the Court of First Instance, streamlining the process.
• Statute of Limitations: Claims related to employment termination must be filed within two years.

Aim of the New Law

These amendments aim to enhance labor market efficiency, protect worker rights, and deter illegal practices. By clarifying regulations and imposing stricter penalties, the UAE seeks to create a fairer and more competitive employment landscape.

Would you like to know more about a specific aspect of the new law or its potential impact on businesses?