The UAE Issued A New Labour Law With Fines Reaching AED1 Million

Farah Makhlouf

The UAE Government issued a Federal Decree-Law on the Regulation of Employment Relationships with fines ranging from AED100,000 to AED1,000,000

Fines will be imposed on violators who:

1. Employs a worker without a proper work permit or brings workers without providing them a job.

2. Closes a business without settling the rights of workers.

3. Engages in any act of circumvention of the law regulations governing the labour market, including fictitious employment.

4. Employs a minor in violation of the law

The penalty will multiply based on the number of workers fictitiously employed. This relates to systems like fake Emiratisation.

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