1,300 firms flagged for fake employment practices in UAE

The Ministry of Human Resources and Emiratisation (MOHRE) has announced the implementation of strict measures against establishments that are officially licensed and registered with one or more employees but have been found not to be practising their licensed activity and to have no genuine employment relationship between the two parties.

Through its official social media accounts, the Ministry confirmed that seven administrative measures are taken against establishments proven to be non-operational despite having one or more registered employees, and where no real employment relationship exists between the establishment and the registered workforce.

The Ministry clarified that the following administrative measures are applied to such establishments and their owners until all restrictions are settled and the status of the violating workers is regularised. These measures include:

The Ministry urged employers whose establishments have ceased operating for any reason to cancel their licences and regularise the status of their workers in accordance with the legally approved mechanisms in the state, in order to avoid legal accountability.

The Ministry stated that failure to practise the licensed activity while having registered workers constitutes a serious violation, the legal consequences of which are borne equally by both establishment owners and their registered workers—particularly due to the absence of a genuine employment relationship, which represents a clear breach of labour legislation.

In June, the Ministry announced that its regulatory system detected around 1,300 establishments that were not actually practising their licensed activities from the beginning of the year until the end of June. These establishments are owned by approximately 1,800 employers, despite having registered workers without any real employment relationship.

Necessary action was taken against these establishments, including the suspension of their ability to issue new work permits, the imposition of financial fines exceeding Dh34 million, and their classification under the third category within the private sector establishment rating system.

As part of its efforts to ensure compliance with UAE labour laws and regulations, measures were also taken against establishment owners by preventing them from registering any new establishments in the Ministry’s systems, in implementation of the provisions of the Labour Relations Regulation Law, Cabinet Resolution No. (21) of 2020, and Ministerial Resolution No. (318) of 2024.

The Ministry reaffirmed the efficiency and effectiveness of its field and smart monitoring and inspection system in detecting and controlling such establishments, particularly in light of the availability of comprehensive indicators on the operational status of each establishment. These indicators include the type of licensed activity, the number of employees under residency sponsorship, and the establishment’s transaction activity with the Ministry, among other criteria—all of which are verified through monitoring and on-site inspections.

The Ministry also expressed its confidence in the awareness of employers and society at large regarding the serious risks of such violations and their negative impact on the labour market and on both parties involved in fake employment relationships. It called on community members to report any negative practices through the call centre at 600590000, or via the Ministry’s smart application and official website.