UAE warns companies of Dh1 million fines for five labour law violations

Abu Dhabi: Private companies in the UAE have been warned that five labour law violations carry fines ranging from Dh100,000 to Dh1 million, with the Ministry of Human Resources and Emiratisation (MoHRE) urging employers to comply with legal requirements before recruiting or employing workers.

The ministry stressed that compliance with legislation governing the labour market was not optional but a legal responsibility for employers, essential to protecting workers' rights and ensuring that employment relationships operate within the established legal framework.

The five violations include employing a worker without obtaining a work permit from the ministry, recruiting or employing someone without providing them with work, and using work permits for purposes other than those for which they were issued, Emarat Al Youm reported.

They also include closing or suspending business operations without settling the status of employees, and employing minors in violation of labour regulations, including cases where a parent or guardian consents to employment that breaches the law.

The ministry confirmed that those committing these violations face fines of no less than Dh100,000 and no more than Dh1 million. It urged businesses to comply with labour legislation and verify that all legal requirements had been met before employing workers to avoid penalties.

The first violation involves employing a worker without obtaining the necessary work permit from the ministry.

Businesses are required to complete all legal procedures and secure the appropriate permit before allowing an employee to begin work, ensuring that the employment relationship complies with UAE labour legislation.

Employing someone without the required permit constitutes a violation punishable by the prescribed fine, regardless of the nature of the job performed.

The second violation concerns recruiting or employing a worker and leaving them without work.

This covers situations in which a company recruits a worker or places them on its books without assigning them any duties or providing actual employment.

The ministry identified this practice as a punishable offence under labour legislation.

The requirement is intended to ensure that recruitment is linked to the genuine operational needs of businesses and to prevent companies from bringing in workers or employing them without providing work.

The third violation involves using work permits for purposes other than those for which they were issued.

Companies must comply with the specific purpose of each permit and observe the conditions governing its category and the type of work the employee is authorised to perform.

Employers are therefore required to select the appropriate permit according to the worker's circumstances and the nature of the position.

Using a permit in a way that differs from its designated purpose constitutes a breach of labour regulations.

The fourth violation concerns businesses that close or suspend operations without settling the legal status of their employees.

The ministry emphasised that an employer's legal responsibilities extend beyond the period during which a business is actively operating.

Companies that close or halt their activities must take the necessary steps to resolve the status of their employees in accordance with approved procedures.

The requirement is intended to prevent workers from being left without the necessary legal arrangements when their employer ceases operations.

The fifth violation involves employing a minor in circumstances that contravene labour legislation, including situations where a parent or legal guardian agrees to employment that violates the law.

The ministry clarified that parental or guardian consent does not make such employment lawful if it breaches the regulations governing the employment of minors.

Businesses must comply with the conditions and restrictions established for employing young people, including requirements relating to their age and the types of work they are permitted to undertake.

The ministry reiterated that employers must fulfil all legal requirements before recruiting workers and ensure that their employment practices comply with the law.

Separately, the Ministry of Human Resources and Emiratisation urged businesses registered with it to choose the work permit that best matches the nature of the job and the circumstances of the employee.

The ministry explained that the available permit categories are designed to regulate recruitment, employment and training according to the needs of businesses and the legislation governing the UAE labour market.

It identified several work permit categories covering recruitment from abroad, transfers between employers, temporary and part-time employment, training and other arrangements.

1. Work permit for recruiting workers from outside the UAE

This permit allows businesses registered with the ministry to recruit workers from outside the country for employment in the UAE.

2. Transfer work permit

The transfer work permit regulates the movement of a non-Emirati worker from one establishment registered with the ministry to another.

It provides a legal framework for employees changing employers within the regulated labour market.

3. Work permit for family-sponsored residents

This permit allows businesses to employ individuals who are residing in the UAE under the sponsorship of family members.

4. Temporary work permit

A temporary work permit allows a company to employ a worker to carry out a task or assignment that, by its nature, must be completed within a specified period.

The permit applies to employment arrangements with a defined duration at establishments registered with the ministry.

5. Mission work permit

A mission work permit is intended for businesses seeking to recruit workers from outside the UAE to complete temporary assignments or specific projects with a predetermined duration.

6. Part-time work permit

The part-time work permit allows businesses to recruit and employ workers from inside or outside the UAE under part-time employment contracts.

Under this arrangement, a worker may be employed by more than one employer, subject to approval from the ministry.

7. Juvenile work permit

This permit enables businesses to employ young people aged between 15 and 18, provided they comply with the conditions governing the employment of minors.

The ministry stressed that businesses must observe the applicable legal requirements when hiring workers in this age group.

8. Student training or employment permit

This permit allows businesses to provide training opportunities to students within the UAE or employ students who have reached the age of 15.

Such arrangements must comply with the relevant regulations and approved conditions.

9. Work permit for Emiratis and GCC nationals

This permit is issued to businesses seeking to employ UAE citizens or nationals of other Gulf Cooperation Council countries.

10. Golden Visa holder work permit

The ministry also provides work permits for businesses employing individuals who hold UAE Golden Visas and are residing in the country.

The permit is issued to the employing establishment when it recruits a Golden Visa holder already within the UAE.

11. Emirati trainee work permit

This permit is intended for businesses wishing to train UAE citizens in accordance with their recognised academic qualifications.

It allows companies to provide training opportunities suited to the educational backgrounds of Emirati trainees.

12. Private tutoring work permit

The ministry also offers a private tutoring work permit for qualified and eligible individuals who provide private lessons to individual students or groups.

The permit is issued in accordance with the regulations governing private tutoring activities.

The Ministry of Human Resources and Emiratisation emphasised that companies must select the appropriate work permit for each employee and comply with the conditions governing its use.

The ministry noted that the range of available permits allows businesses to organise recruitment, employment and training according to their operational requirements while remaining within the legal framework.

It stressed that choosing the correct permit and observing the relevant regulations were essential to ensuring lawful employment procedures, protecting the rights of both employers and workers, and strengthening compliance with legislation governing the UAE labour market.