UAE Warns Companies: 5 Labor Violations with Fines Up to AED 1 Million

The Ministry of Human Resources and Emiratisation in the UAE has warned private companies that five violations of the Labor Law carry fines ranging between AED 100,000 and AED 1 million, calling on employers to complete legal requirements before hiring any worker.

The Ministry explained that the first violation involves employing a worker without obtaining the necessary work permit from the Ministry; the second involves recruiting or employing a worker without providing actual work for them; and the third involves using a work permit for purposes other than those for which it was issued.

It added that the fourth and fifth violations include closing or suspending business activities without settling the status of workers, and employing minors in violation of labor regulations, including cases where a parent or guardian agrees to employment that violates the law.

The Ministry emphasized that compliance with labor market legislation is not optional but a legal responsibility for employers, urging them to verify that all conditions are met before initiating an employment relationship to avoid fines.

What Do These Terms Mean?

Work Permit: A document issued by the competent authority that allows an employer to employ a foreign worker in a specific occupation, specifying the type and conditions of the work.

Fine: A monetary penalty imposed by the regulatory authority on a violator, with minimum and maximum limits set by law according to the type of violation.

Status Settlement: A legal procedure that corrects the status of a worker or establishment in compliance with applicable rules, such as transferring sponsorship, amending a permit, or formally terminating the relationship.