MoHRE fines 1,300 companies over Dh34 million for not practicing licensed businesses

The Ministry of Human Resources and Emiratisation (MoHRE) is taking tough action against businesses that aren’t operating as they should — especially those that keep workers on record without actually giving them real jobs.

Since the beginning of the year, the ministry has identified around 1,300 companies, owned by nearly 1,800 employers, that were not practicing their licensed business activities. These companies had workers registered under their name, even though no actual work was being done.

As a result, the ministry imposed more than Dh34 million in fines, suspended the companies’ ability to apply for new work permits, and moved them to the lowest category in the private sector classification system — a status that comes with penalties and tighter restrictions.

In a broader effort to protect the UAE labour market, MoHRE also blocked the violators from registering new businesses in its system. These actions are in line with current labour laws and recent resolutions that aim to combat fraud and ensure transparency in the private sector.

MoHRE is urging all business owners to cancel their licenses and properly update their workers’ status if their businesses stop operating. Failing to do so could lead to serious legal consequences for both the employer and the workers involved, especially when there is no genuine working relationship.

The ministry stressed that keeping workers tied to a non-operational company is a serious violation. It’s not just a technical error — it affects the fairness and balance of the entire labour market.

Thanks to smart systems and field inspections, MoHRE says it can easily track whether a company is truly active. The monitoring process looks at a range of indicators, such as the number of sponsored workers, the business's activities, and recent dealings with the ministry.

The ministry thanked the public and employers who continue to follow the rules and called on the community to help by reporting any suspicious practices through its call centre at 60059000, smart app, or official website.