The UAE Government has announced stringent new regulations under a recently issued Federal Decree-Law, imposing fines ranging from Dh100,000 to Dh1 million on employers for specific violations related to employment relationships. The new amendments aim to enhance the country’s labour market efficiency and competitiveness by clearly defining the rights and obligations of all parties involved.
Key Violations and Penalties:
Under the updated provisions, employers face significant fines for the following infractions:
- Employing workers without valid work permits or bringing workers to the country without providing them with employment.
- Closing a business without settling employee rights, leaving workers uncompensated.
- Engaging in fraudulent labour practices, including fictitious employment or fraudulent Emiratisation schemes.
- Illegally employing minors in violation of labour laws.
- Circumventing labour market regulations through deceptive practices, such as fake employment.
Enforcement and Settlements:
The Ministry of Human Resources and Emiratisation (MoHRE) is now empowered to offer settlements, provided the employer pays 50% of the minimum fine and reimburses the government for any financial incentives obtained through fraudulent activities. Criminal proceedings for fictitious employment, including fake Emiratisation, can only be initiated at the request of the Minister of Human Resources and Emiratisation or their authorised representative.
Dispute Resolution:
In a significant change, disputes between employers and employees will now be referred directly to the Court of First Instance, bypassing the Court of Appeal, except in cases that have been adjusted or reserved for judgment. The decree also mandates that any claims filed more than two years after the termination of the employment relationship will no longer be pursued.
Legislative Evolution:
This decree reflects the UAE’s ongoing commitment to refining its legislative and legal frameworks to protect the rights of workers, regulate employment relationships, and maintain a fair and competitive labour market.
Related Reading:
- UAE company fined Dh10 million for fraudulent employment practices.
- UAE firms fined for 33,000 cases of unpaid salaries in 2023.
- How employees can file cases against employers for unfair practices in the UAE.
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