The Government of the United Arab Emirates (UAE) has issued a Federal Decree-Law, which amends certain legal provisions pertaining to regulation of employment relationships.
The amendment is another measure adopted by the UAE to improve its legislative and legal framework. Such revisions are aimed at making the labour market more efficient and competitive. The revision will also ensure that employment relationships are regulated, and the rights and obligations of all parties are protected by law.
As per the revisions, employers can be fined heavy, up to Dh1 million, if they violate the laws by either hiring workers without a work permit or bringing them into the country without providing a job. Employers will also be penalised if they shut down their business without settling the workers’ dues. Various labour-related frauds, such as fake Emiratisation will invite heavy fines. Employers who hire minors will also face penalty. Fictitious employment or any other act that skirts labour rules and regulations will be punished.
The fines will increase depending on the number of employees fictitiously employed.
The Ministry of Human Resources and Emiratisation has been granted the authority to settle issues if the alleged employer (s) pays 50 per cent of the minimum fine and also pays back the financial gains made via the fictitious employees to the government.
Only the Minister of Human Resources and Emiratisation or a person authorised by him/her, can initiate criminal proceedings for fraud related to employment and Emiratisation. Additionally, employer-employee conflicts will henceforth be settled by the Court of First Instance and not the Court of Appeal in situations where the decision made by the Ministry of Human Resources and Emiratisation fails to adequately resolve the conflict.
