The UAE has announced stricter penalties for companies violating labour laws, highlighting its commitment to safeguarding workers’ rights and combating illegal employment practices.

The recent amendments to the ‘Regulation of the Employment Relationship’, commonly known as the UAE Labour Law, introduce increased monetary fines ranging from AED 100,000 to AED 1,000,000 for labour law violations, a significant increase from the previous AED 50,000 to AED 200,000 range.

Specific offences targeted by the new penalties include employing individuals without proper work permits, neglecting to provide legitimate job opportunities, abusing work authorisation rules, and disseminating false recruitment or Emiratisation data.

In cases where companies fabricate employment or Emiratisation statistics, the fines will be multiplied by the number of employees involved in the fictitious employment.

Moreover, companies found guilty of severe violations may face criminal penalties in addition to the substantial financial fines, depending on the severity and impact of the infringements.

The amendments also establish a new process allowing labour dispute cases to be brought before the Court of First Instance if dissatisfied with decisions made by the Human Resources Ministry and Emiratisation.

The UAE government’s move aims to deter employers from engaging in illegal hiring practices and ensure fair treatment of both UAE nationals and expatriate workers.

Companies found in violation risk substantial financial penalties and potential legal consequences, which could impact their ability to hire foreign talent in the future.

The amendments reinforce the UAE’s commitment to improving the regulatory framework and holding employers accountable for upholding labour rights and ethical employment practices.

Businesses operating in the UAE are advised to review their recruitment and employment processes to ensure full compliance with the updated regulations.

Professional advisory services are available to guide companies through the changes and mitigate risks associated with non-compliance.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.