Dubai: The new UAE Labour Law – Federal Decree-Law No. 33 of 2021 Regulating Labour Relations – will be coming into effect from February 2, 2022 and a sub-section in the new law titled ‘Penalties’ deals with the fines and likely jail terms that can result from violating the provisions of the law.
The sub-section, which covers Articles 58 to 64 of the new law, deals with a range of violations that may be committed by an employer. For example, the fine for providing false information or documents to try to bring a foreigner to the UAE for employment can lead to a fine of up to Dh100,000. However, if an employer is found employing a worker without the necessary work permit, the fine can go up to Dh200,000, as per Article 60 of the new law. The same penalty would also apply for the following offences:
• Recruiting or employing a worker, and leaving him or her without work.
• Using work permits for purposes other than those for which they are issued.
• Closing down an establishment, or ceasing work activity, without taking the procedures for settlement of workers' entitlements.
The complete list of the violations can be found below, under Article 60.
Stricter fines, jail term
Articles 61, 62, 63 and 64 highlight more severe penalties for certain violations, with Article 61 stating that anyone abusing or misusing or otherwise permitting a third party to abuse or misuse the online credentials allocated to them to login to the Ministry’s systems - which results in disruption of labour relations or procedures – can be fined up to Dh1 million, along with a jail term of not less than a year.
Fines can go up to a maximum of Dh10 million, as per Article 62 of the law, which looks at how fines may be multiplied depending on the number of workers whose rights have been violated. The article states: “The fine imposed hereunder shall be multiplied for employers by the number of workers in respect of whom the violation has occurred, subject to a maximum of Dh10 million.”
Here is a detailed look at all the penalties listed out in the new labour law.
Penalties
ARTICLE (58)
Application of penalties provided for herein shall not prejudice any severer penalty provided for in another law.
ARTICLE (59)
Shall be sentenced to a fine of no less than Dh20,000 and no more than Dh100,000, whoever:
1. Provides false information or document with the intent to bring a foreigner to the UAE for employment.
2. Obstructs or prevents any employee entrusted with the implementation of the provisions of this Decree-Law and its Executive Regulations and implementing resolutions, or attempts or tries to prevent him from the discharge of his functions whether by force, violence or threat.
3. Divulges any business secret acquired by him or her in the course of his or her work as public official entrusted with the implementation of the provisions of this Decree-Law and its Executive Regulations and implementing resolutions, even if he or she leaves the work.
ARTICLE (60)
Shall be sentenced to a fine of no less than Dh50,000 and no more than Dh200,000, whoever:
1. Employs a worker who has not obtained a permit to work for him.
2. Recruits or employs a worker, and left him without a work.
3. Uses work permits for purposes other than those for which they are issued.
4. Closes, or ceases the activity, of an establishment without taking the procedures for settlement of workers' entitlements, in violation of the provisions of this Decree Law, its Executive Regulations and implementing resolutions.
5. Employs a juvenile in violation of the provisions hereof.
6. Agrees to the employment of a juvenile in violation of the provisions of this Decree-Law in respect of the juvenile's parent or guardian.
ARTICLE (61)
Shall be sentenced to detention for a term of not less than one year and/or a fine of no less than Dh200,000 and no more than Dh1 million, whoever abuses or misuses, or otherwise permits a third party to abuse or misuse, the online credentials allocated to him to login to the Ministry's systems, which results in disruption of labour relations or procedures.
ARTICLE (62)
The fine imposed hereunder shall be multiplied for employers by the number of workers in respect of whom the violation has occurred, subject to a maximum of Dh10 million.
ARTICLE (63)
Shall be sentenced to a fine of no less than Dh5,000 and no more than Dh1 million, whoever violates any of the provisions of this Decree-Law and its Executive Regulations and implementing resolutions.
Article (64)
In case of repetition of any of the violations referred to in this Decree-Law and its Executive Regulations and implementing resolutions, before the lapse of one year from being convicted for a similar violation, the offender shall be sentenced to detention and/or a fine equal to double the amount of the fine prescribed herein.
