The UAE Government has recently implemented a Federal Decree-Law designed to regulate employment relationships more stringently, with fines ranging from AED 100,000 to AED 1 million for those found in violation. This new legislation emphasizes the importance of compliance within the labour market and imposes significant penalties on those who breach its regulations.
Violations under this law include:
- Employing workers without the necessary work permits or bringing workers into the country without providing them with legitimate employment.
- Closing down a business without properly settling the rights and entitlements of its employees, leaving workers without the compensation they are owed.
- Engaging in activities that circumvent the labour market regulations, including fictitious employment or any form of manipulation designed to exploit the system.
- Employing minors in contravention of legal requirements, putting them to work in violation of the established laws.
This comprehensive legal framework reflects the UAE’s dedication to maintaining a transparent, fair, and well-regulated labour market, ensuring that all workers’ rights are protected and that businesses operate within the boundaries of the law. The severity of the penalties underscores the UAE’s commitment to upholding these standards and deterring any unlawful practices within the employment sector.
Source: Lovin Dubai
