The UAE Government has announced a new Federal Decree-Law amending the UAE Labour Law, also known as the 'Regulation of Employment Relationships'. This update aims to clarify employment rules, define the rights and duties of all parties, and enhance legal protections. It introduces fines of up to Dhs 1 million for violations, including illegal employment practices and misusing work permits.
The Federal Decree-Law sets fines ranging from Dhs 100,000 to Dhs 1 million for employers who hire workers without proper permits, fail to provide jobs to workers brought into the country, misuse work permits, or close a business without settling workers' rights, as outlined in the new decree and its executive regulations. These penalties also apply to the illegal employment of minors or allowing minors to work in violation of the law by their guardians.
New Decree Also Introduces Criminal Penalties
The new Federal Decree-Law also introduces criminal penalties for fictitious recruitment, including fake Emiratisation. Employers who are caught bypassing UAE Labour Laws or regulations by fabricating the recruitment of employees will face fines between Dhs 100,000 and Dhs 1 million. The fine amount increases with the number of workers involved in the fictitious employment.
Additionally, the new Federal Decree-Law specifies that criminal proceedings for fictitious employment, including fraudulent Emiratisation, can only be initiated upon the request of the Ministry of Human Resources and Emiratisation or their authorised representative.
The amendments specify that labour disputes should be taken to the Court of First Instance if there is a disagreement with a Ministry of Human Resources and Emiratisation decision, rather than the Court of Appeal. Claims filed more than two years after the end of the employment relationship will not be processed.
The Federal Decree-Law also allows the Ministry to settle disputes before a court decision if the employer pays at least 50% of the minimum fine and refunds any financial incentives received for fictitious employees.
Additionally, the new Federal Decree-Law requires that all employment-related disputes and requests currently with the Courts of Appeal be transferred to the Court of First Instance from the decree’s implementation date, except for those already judged or pending a judgment.