UAE imposes fines of up to Dh1 million for labour law violations – Arab Times – Kuwait News

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Dubai, UAE, August 13: The UAE government has issued a federal decree amending key provisions of the UAE Labour Law, significantly increasing penalties for employment violations. Fines for employment violations will range from Dh100,000 to Dh1 million, the UAE state news agency WAM reported.

The amendments are part of a wider initiative to strengthen the UAE’s legislative and legal framework, aimed at increasing the efficiency and competitiveness of the labour market. The new decree outlines stricter regulations on employment relationships, ensuring that the rights and obligations of all parties are clearly defined and legally protected.

The main changes in the revised law include:

• Aggravated penalties: Employers who hire workers without proper permits, bring workers into the country without providing them with jobs, abuse work permits, or close factories without addressing workers’ rights face heavy fines. This also applies to the illegal employment of minors and guardians in violation of child labor laws.
• Criminal penalties for fraud: The decree provides for criminal penalties for false recruitment and fraudulent emiratisation. Employers involved in false recruitment will face fines that will be multiplied based on the number of workers affected.
• The revised labor dispute resolution method: Disputes related to decisions of the Ministry of Human Resources and Emiratisation (MOHRE) will now be decided by the courts of first instance rather than the courts of appeal. In addition, claims filed two years after the termination of employment will not be processed.
• MOHRE’s enhanced authority: Currently, MOHRE has the power to initiate criminal prosecutions for bogus employment cases, but this can only be done at the request of the Minister or an authorised representative. Employers can choose to settle cases before the court by paying at least 50% of the minimum penalty and returning any financial incentives received by the bogus employee.
• Court proceedings: The new rules require the appellate court to refer all ongoing labor disputes to the competent trial court, except for those that have been adjudicated or are pending adjudication.

The decree is an important step towards strengthening labour laws and ensuring better compliance within the UAE’s employment sector.

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