Stricter Fines and Penalties Introduced for Labor Law Violations

The UAE Government has recently issued a Federal Decree-Law, revising certain aspects of the Federal Decree-Law on the Regulation of Employment Relationships. The updated provisions include fines from AED 100,000 to AED 1 million for employers who commit specific violations. These include employing workers without the correct work authorization, utilizing work permits for purposes other than those intended, including fictitious Emiratization, closing a business without settling workers' rights and employing minors in violation of the law. 

The penalties will increase proportionally with the number of workers falsely employed. 

Deloitte’s view

This decree is a significant step in the UAE's ongoing efforts to enhance its legislative and legal framework. It aims to regulate employment relationships and clearly outline the rights and obligations of all parties involved.  

We encourage all employers to familiarize themselves with these new provisions to ensure compliance and avoid potential penalties.

Contacts

Our immigration experts listed below would be happy to discuss the above matters in more detail, or support you through a further discussion on your immigration requirements.

Hadi Allawi
hallawi@deloitte.com

Mohammed Haque
mhaque@deloitte.com

Nutan Patel
nupatel@deloitte.com