The UAE government has issued a federal decree-law amending specific provisions regarding the regulation of employment relationships in the ‘UAE Labour Law’.

The decree is part of the UAE’s ongoing efforts to further develop its legislative and legal framework. It aims to ensure the efficiency and competitiveness of the labor market, regulate employment relationships, clearly define the rights and obligations of all parties involved, and ensure their protection by law.

The decree imposes fines of no less than AED100,000 and no more than AED1 million on any employer who employs workers without a proper permit, hires workers or brings them to the country and fails to provide them with a job, misuses work permits, or shuts down a business or suspends its activities without settling workers’ rights. The same penalties apply to the illegal employment of minors or allowing minors to work in violation of the law by their guardians.

Additionally, the new decree introduces criminal penalties for fictitious recruitment, including fictitious Emiratization. Therefore, employers found guilty of bypassing the provisions of the laws or executive regulations or decisions regulating the labor market, by faking their recruitment of one or more employees, will face fines ranging from AED100,000 to AED1 million. The penalty is multiplied by the number of workers involved in the fictitious employment.

The amendments state that in the case of labor disputes, and if there is a disagreement with a decision the Ministry of Human Resources and Emiratisation issued to solve the dispute, the case shall then be brought before the Court of First Instance rather than the Court of Appeal.

Source: Economy Middle East