United Arab Emirates: Stricter Penalties Introduced for Labor Law Violations
August 15, 2024
The United Arab Emirates introduced stricter penalties for labor law violations. The following offences are each now subject to a fine of AED 100,000 to AED 1,000,000 (whereas previously such fines ranged from AED 50,000 to AED 200,000):
- employing a worker without obtaining an appropriate work authorization;
- hiring individuals without providing them with an actual job; and
- using work authorizations for purposes other than those for which they are issued.
Additionally, the offense of ‘False Emiratization’ – misleading labor practices that give a false impression of how many UAE nationals an employer has hired – is now subject to a fine of AED 100,000 to AED 1,000,000. Previously, the fines ranged between AED 20,000 to AED 100,000, depending on the number of times a breach had occurred.
As was previously the case, all of the penalties mentioned above are multiplied by the number of workers affected by a given violation and may be imposed in addition to penalties for violations of other UAE laws, including immigration regulations.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
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