Labor law amendments subject employers to up to AED 1 mn fines for Emiratization fraud, other violations

Employers violating employment regulations will now be subject to fines ranging from AED 100k to AED 1 mn, after the government amended provisions of the UAE Labor Law earlier this week, Wam reports. The fines will affect employers who employ workers without a permit, misuse work permits, shut down a business without settling employees’ rights, hire minors, or fake the employment of Emiratis to comply with Emiratization quotas, with the penalty multiplied according to the number of workers involved.

Employers making false Emiratization claims can also be subject to criminal proceedings authorized by Human Resources and Emiratisation Minister Saqr Ghobash.

Labour disputes will be handled by the Court of First Instance, with claims invalid after two years from employment termination. The decree allows the Ministry to resolve cases at the employer’s request before a court ruling, if the employer pays at least 50% of the minimum fine and reimburses the government for all financial incentives given to fictitious employees.