This has lately featured in the news as the UAE government has recently issued a new Federal Decree-Law amending certain provisions of the Federal Decree-Law on Regulation of Employment Relationships, known as “UAE Labour Law”. 

The new decree forms part of a broader strategy by the UAE to enhance its legal and regulatory environment. It aims at improving labor market efficiency and competitiveness, regulating employment practices, clarifying rights and obligations of all parties involved, and ensuring proper legal protection.

Under this update employers who engage in fictitious recruitment, misuse work permits or employ labour without obtaining proper authorizations will be fined not less than AED100,000 or up to AED1 million respectively. 

Employers who bring workers into the country without offering them an actual job, cease operations without attending to employees’ rights or hire workers below 15 years illegally may also face fines ranging from AED100000 to AED1000000.

This amendment introduced criminal penalties for fraudulent Emiratisation practices. For instance, depending on the number of fake positions at stake in any organization an employer convicted for falsifying employment records shall be ordered to pay a fine between AED100, 000 and AED1 million.

In case there is disagreement with the decision made by Ministry of Human Resources and Emiratisation during disputes concerning labor issues then such a matter should be escalated to Courts of Appeal. 

Overall, the decree is part of the UAE's effort to modernize labor laws and create a fairer work environment.

Source :

Ministry of Human Resources and Emiratisation. "UAE Government Issues Federal Decree Law Amending Regulation of Employment Relationship Law." MOHRE, 13 Aug. 2024, www.mohre.gov.ae/en/media-centre/news/13/8/2024/uae-government-issues-federal-decree-law-amending-regulation-of-employment-relationship-law.aspx. Accessed 8 Oct. 2024.