UAE sets fines up to Dh1 million for five labour law breaches
Penalties for labour law breaches
The Ministry of Human Resources and Emiratisation (MoHRE) has cautioned private sector companies in the UAE that penalties for five distinct labour infractions can reach as high as Dh1 million, with a minimum fine of Dh100,000. The ministry stressed that adherence to labour market legislation is not optional but a legal obligation for employers, essential for safeguarding workers’ rights and ensuring employment relationships function within the established legal framework, as reported by Emarat Al Youm.
The five violations explained
The first violation involves employing a worker without first obtaining a work permit from the ministry. Businesses are required to complete all legal procedures and secure the appropriate permit before an employee begins work, ensuring the employment relationship complies with UAE labour legislation. Employing someone without the required permit is punishable by the prescribed fine, regardless of the job’s nature.
The second violation concerns recruiting or employing a worker and leaving them without any work. This covers situations where a company hires a worker or places them on its payroll without assigning duties or providing actual employment. The ministry identified this practice as a punishable offence, intended to ensure recruitment is linked to genuine operational needs and to prevent companies from bringing in workers without providing employment.
The third violation involves using work permits for purposes other than those for which they were issued. Companies must comply with each permit’s specific purpose and observe the conditions governing its category and the type of work the employee is authorised to perform. Employers must select the appropriate permit according to the worker’s circumstances and the position’s nature; using a permit in a way that differs from its designated purpose breaches labour regulations.
The fourth violation pertains to businesses that close or suspend operations without settling the legal status of their employees. The ministry emphasised that an employer’s legal responsibilities extend beyond the period of active business operations. Companies that close or halt activities must take necessary steps to resolve their employees’ status in accordance with approved procedures, to prevent workers from being left without legal arrangements when their employer ceases operations.
The fifth violation involves employing a minor in circumstances that contravene labour legislation, including situations where a parent or legal guardian consents to employment that violates the law. The ministry clarified that parental or guardian consent does not make such employment lawful if it breaches regulations governing the employment of minors. Businesses must comply with conditions and restrictions for employing young people, including requirements related to age and permitted work types.
Work permit categories
Separately, MoHRE urged businesses registered with it to choose the work permit that best matches the nature of the job and the employee’s circumstances. The ministry explained that available permit categories are designed to regulate recruitment, employment and training according to business needs and UAE labour market legislation. Twelve permit categories cover recruitment from abroad, transfers between employers, temporary and part-time employment, training and other arrangements.
The work permit for recruiting workers from outside the UAE allows registered businesses to hire foreign workers for employment in the country. The transfer work permit regulates movement of a non-Emirati worker from one registered establishment to another, providing a legal framework for employees changing employers within the regulated market. The work permit for family-sponsored residents allows businesses to employ individuals residing in the UAE under family sponsorship.
The temporary work permit enables a company to employ a worker for a task or assignment that must be completed within a specified period, applying to arrangements with defined duration at registered establishments. The mission work permit is for businesses recruiting workers from outside the UAE to complete temporary assignments or specific projects with predetermined duration. The part-time work permit allows businesses to recruit and employ workers from inside or outside the UAE under part-time contracts, where a worker may be employed by more than one employer subject to ministry approval.
The juvenile work permit enables businesses to employ young people aged 15 to 18, provided they comply with conditions governing minor employment. The student training or employment permit allows businesses to provide training opportunities to students within the UAE or employ students who have reached age 15, subject to relevant regulations. The work permit for Emiratis and GCC nationals is issued to businesses employing UAE citizens or nationals of other Gulf Cooperation Council countries.
The Golden Visa holder work permit is provided for businesses employing individuals who hold UAE Golden Visas and are residing in the country, issued to the employing establishment when recruiting a Golden Visa holder already within the UAE. The Emirati trainee work permit is for businesses wishing to train UAE citizens according to their recognised academic qualifications. The private tutoring work permit is offered for qualified and eligible individuals who provide private lessons to individual students or groups, issued in accordance with regulations governing private tutoring activities.
The ministry emphasised that companies must select the appropriate work permit for each employee and comply with conditions governing its use. The range of available permits allows businesses to organise recruitment, employment and training according to operational requirements while remaining within the legal framework. Choosing the correct permit and observing relevant regulations are essential to ensuring lawful employment procedures, protecting the rights of both employers and workers, and strengthening compliance with UAE labour market legislation.
