UAE Expat Workers Got New Power. Company Problem Can Lead to Dh1 million Fine.

The UAE Government has rolled out stringent measures to ensure compliance with employment regulations, with fines now ranging from Dh100,000 to Dh1 million for employers who violate the law. These new penalties are part of a broader effort to enhance the legal framework governing the labour market, ensuring fairness and protecting workers' rights.

Major Violations That Could Cost Employers Big 💼

Under the new amendments, employers can be fined for a range of serious violations, including:

Hiring Workers Without a Permit: Bringing in workers without the necessary work permits can result in hefty fines.

Failing to Settle Workers' Rights When Closing a Business: Employers who close their businesses without properly compensating their employees will face severe penalties.

Engaging in Fraudulent Labour Practices: This includes fictitious Emiratisation—where companies falsely claim to employ Emirati nationals to meet government quotas—and other forms of employment fraud.

Employing Minors Illegally: Any employer found employing minors in violation of the law will be subject to these new fines.

Circumventing Labour Laws: Any acts designed to bypass the legal requirements of the labour market, including fake employment, will attract significant penalties.

Penalties Increase with Multiple Offenses 🚨

The fines aren’t capped at just one violation. If an employer is found to have multiple fictitious employees, the penalties will increase accordingly. This is aimed at deterring widespread non-compliance and ensuring that all labour practices meet the legal standards.

Option for Settlement with the Government 💰

The Ministry of Human Resources and Emiratisation (MOHRE) is now authorized to offer settlements to employers. If an employer agrees to pay 50% of the minimum fine and return any financial incentives gained through fraudulent practices, the case may be settled without further legal action.

Legal Proceedings and Court Referrals ⚖️

All disputes related to employment must now be referred to the Court of First Instance instead of the Court of Appeal if there is disagreement with MOHRE's decision. This includes cases involving fictitious employment or other violations of the labour laws.

Additionally, any claims filed more than two years after the termination of employment will not be entertained by the court, making it crucial for disputes to be addressed promptly.