The UAE government has made significant changes to its labor laws, imposing fines ranging from AED 100,000 to AED 1 million for violations of workers’ rights. According to the UAE’s official news agency WAM, the changes aim to enhance employment laws, improve the labor market’s competitiveness, regulate employment relationships, clarify everyone’s rights and responsibilities, and ensure legal protection for all.

Under the new laws, heavy fines will be imposed if an employer hires someone without permission, brings someone to the country under the pretense of a job and then fails to provide one, misuses work permits, or shuts down a business without fulfilling workers’ rights. These fines can range from a minimum of AED 100,000 to a maximum of AED 1 million.

It has also been clarified that employers hiring minors or guardians allowing minors to work in violation of the law will face the same fines. Penalties will also be imposed for fake recruitment, including fraudulent Emiratization, with fines ranging from AED 100,000 to AED 1 million. If more than one person is involved in the fraudulent recruitment, the fine amount will increase accordingly.

In case of labor disputes, if the Ministry of Human Resources’ decision is not agreed upon, the matter will now go directly to the court instead of the appeals court. Claims made after two years of employment termination will not be considered by the court. Action against fake employment or fake Emiratization can only be taken upon the request of the Minister of Human Resources or their representative.

The Ministry has also been given the authority to settle such matters before a court decision if the employer pays at least half of the fine. The government will also reclaim all benefits obtained from fake employees. Appeal courts will now refer all labor disputes directly to the First Instance Court, effective from the new law’s implementation date. However, cases that have already been decided or are reserved for a decision will be exempt from this.