UAE to impose fines of up to Dh1 million for companies abusing workers' rights

The UAE is to impose fines of up to Dh1 million on employers who breach labour laws when hiring staff under a major drive to bolster workers' rights.

The government has issued a federal decree setting out a host of tough punishments for companies, including hiring minors, employing workers without valid permits and bringing people into the country but failing to provide them with jobs.

The directives will also introduce criminal penalties for companies which fake recruitment figures, including employing fictitious staff to meet Emiratisation goals.

Criminal proceedings can be initiated only at the request of the Ministry of Human Resources and Emiratisation.

Authorities said the strict measures were part of efforts to tighten employment regulations and ensure workers are protected by law.

The new legislation includes:

• Fines from Dh100,000 to Dh1 million for employing workers without valid work permits, bringing workers to the country without providing jobs, or closing businesses without settling obligations to workers.

• Fines from Dh100,000 to Dh1 million for committing employment fraud, including creating fictitious workers. Penalties and fines may be multiplied by the number of workers who are fictitiously employed.

• The Ministry of Human Resources and Emiratisation has been granted powers to settle cases, provided the employer pays half of the minimum value of the fine and pays back to the government the financial incentives obtained by the fake employees.

• Disputes will be brought before the courts in instances where companies seek to contest the ministry's decision.

Holding employers to account

The amended labour regulations come just weeks before the UAE embarks on a nationwide visa amnesty, to allow people with expired documentation to secure their status or leave the country without being fined.

The government initiative will provide a two-month grace period for those with lapsed residency visas from September 1.

The initiative will offer a reprieve to residents left without valid documentation after losing employment or being duped by unscrupulous recruiters offering false hope of employment.

A community leader in the UAE welcomed the amnesty and set out some of the reasons why foreign citizens may end up staying without a residency visa.

“It is a big relief for so many. There are people who came here searching for jobs and they overstayed,” said Ishtiyak Raziq, former president of Sahana, a Sri Lankan welfare association.

“There are also people duped by agents who promised higher paying jobs and they end up with nothing and they overstay.

Supporting workers

The updated rules mark the latest step by the government to protect the country's workforce as well as job seekers.

In December 2022, a new domestic labour law came into effect. The directives expanded the number of offences, which are punishable by fines and imprisonment, for breaches of working conditions and rules from four to eight.

They included fines of between Dh20,000 and Dh100,000 and up to six months in prison for those who provide false information or fake documents to employ domestic helpers.

Penalties ranging from Dh50,000 to Dh200,000 can be levied for hiring unlicensed workers, recruiting staff but not providing a job or using permits for domestic workers for purposes other than those for which they were issued.

On Tuesday, the government issued a further federal decree amending some provisions of the domestic worker law.

The update gives the Ministry of Human Resources and Emiratisation the authority to settle disputes between employers, recruitment agencies and workers when they cannot be resolved amicably.

The ministry is able to adjudicate in such matters when the value of the claim does not exceed Dh50,000 or if the dispute is caused by one of the parties failing to adhere to a previous ruling.