Immigration
UAE labour law—Stricter penalties for violations
Summary
The UAE Government has issued a Federal Decree-Law amending the provisions of the ‘Regulation of the Employment Relationship’, commonly known as the UAE Labour Law, introducing stricter penalties for labour law violations, including increased monetary fines for companies.
The Detail
The recent Federal Decree-Law has introduced higher fines for companies that fail to adhere to the ‘UAE Labour Law’ and includes specific offences for businesses which fail to:
● Employ individuals without obtaining an appropriate work authorisation on their behalf;
● Neglect to provide their employees with legitimate job opportunities;
● Abuse the rules and regulations of work authorisations; and
● Disseminate fictitious recruitment and Emiratisation information.
Companies found to be in violation of the above will be subjected to monetary fines ranging from AED 100,000 to AED 1,000,000, a substantial increase from the previous range of AED 50,000 to AED 200,000. Additionally, any fabrication of recruitment or Emiratisation statistics will lead to the financial penalty being multiplied, by the number of employees involved in the fictitious employment. Moreover, companies found guilty of violations may also face criminal penalties in addition to monetary fines, depending on the severity and impact of the infringements.
Furthermore, the amendment also established a new process for resolving labour disputes, allowing cases to be brought before the Court of First Instance in case of disagreements with decisions made by the Ministry of Human Resources and Emiratisation.
What this means
The amendment of the Federal Decree-Law reflects the UAE’s Government commitment to enhancing the regulatory framework to ensure that both employers and employees are held accountable under the law.
The penalties under the most recent amendment to the UAE Labour Law, aims to discourage employers from employing individuals without proper work permits (e.g. those who may be in the UAE on Visit Visas) and illegal employment. The consequences are severe for companies that fail to adhere to the rules, and could impact their ability to hire expatriates in the future.
How we can help
It is crucial for businesses to stay alert and understand how these changes could impact their businesses. Our team is able to provide companies with guidance and support to ensure compliance with the rules and regulations relating to recruitment and the hiring of UAE and non-UAE nationals. We will continue to closely monitor and provide timely guidance on updates and changes announced by the UAE Government.
Contact us
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Anir Chatterji
EMEA Immigration Partner
Rekha Simpson
Director, Middle East Immigration
Umme Salma
Senior Manager, Middle East Immigration
Nasrine Abdi
Manager, Middle East Immigration
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Contact us on the following address – me-immigration@vialto.com
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