𝗨𝗔𝗘 𝗚𝗼𝘃𝗲𝗿𝗻𝗺𝗲𝗻𝘁 𝗔𝗺𝗲𝗻𝗱𝘀 𝗟𝗮𝗯𝗼𝗿 𝗟𝗮𝘄: 𝗦𝗶𝗴𝗻𝗶𝗳𝗶𝗰𝗮𝗻𝘁 𝗣𝗲𝗻𝗮𝗹𝘁𝗶𝗲𝘀 𝗳𝗼𝗿 𝗩𝗶𝗼𝗹𝗮𝘁𝗶𝗼𝗻𝘀

The UAE continues to strengthen its regulatory framework for labor relations, ensuring fair treatment and protecting workers' rights. A recent Federal Decree has introduced stringent penalties aimed at preventing labor violations and upholding the integrity of the labor market.

𝗞𝗲𝘆 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀 𝗼𝗳 𝘁𝗵𝗲 𝗔𝗺𝗲𝗻𝗱𝗺𝗲𝗻𝘁:

𝗦𝗲𝘃𝗲𝗿𝗲 𝗣𝗲𝗻𝗮𝗹𝘁𝗶𝗲𝘀 𝗳𝗼𝗿 𝗡𝗼𝗻-𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲
A fine ranging from AED 100,000 to AED 1,000,000 will be imposed on businesses and individuals who breach the law.

The following actions are specifically targeted:
• Hiring a worker without the necessary work permit or recruiting workers and leaving them without actual work will lead to significant fines.
• Employers who close their businesses without properly settling all due payments and rights to their workers will face hefty penalties.
• Any person found manipulating the labor market regulations, such as engaging in false employment practices, will be penalized.
• Employs a minor in violation of the law.

These fines will increase based on the number of workers involved in the violation, emphasizing the government's commitment to curbing illegal labor practices.

𝗟𝗲𝗴𝗮𝗹 𝗥𝗲𝗰𝗼𝘂𝗿𝘀𝗲
In cases where the Ministry of Human Resources and Emiratization does not approve a decision to resolve a labor dispute, the matter will be referred to the Primary Court. This ensures that disputes are handled fairly and within the bounds of the law.

𝗪𝗵𝗮𝘁 𝗧𝗵𝗶𝘀 𝗠𝗲𝗮𝗻𝘀 𝗳𝗼𝗿 𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗿𝘀
This amendment sends a clear message: compliance with labor laws is not optional. Businesses must ensure that they are fully aware of their obligations under the law and take proactive steps to meet them. The risks of non-compliance are now higher than ever, and the penalties can be financially devastating.

𝗖𝗼𝗻𝗰𝗹𝘂𝘀𝗶𝗼𝗻
The UAE government’s commitment to protecting workers' rights and maintaining a fair labor market is evident in this latest amendment. Employers must prioritize compliance to avoid severe penalties and contribute to a fair and just working environment.

If you wish to understand more about UAE employment laws and how these changes may affect your business, feel free to get in touch.