United Arab Emirates: Stricter Penalties Introduced for Labor Law Violations

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.