Abu Dhabi – The UAE government has introduced stringent new penalties for employers who violate labor laws, with fines of up to Dh1 million for five serious offenses. The amended Federal Decree-Law on the Regulation of Employment Relationships aims to protect worker rights and enhance the efficiency of the labor market.
Under the new regulations, employers face hefty fines for a range of violations including employing workers without valid permits, closing businesses without settling worker dues, engaging in fraudulent employment practices, employing minors, and circumventing labor market regulations. The severity of the fine will depend on the nature and extent of the violation.
As per the new provisions, the penalties will multiply based on the number of workers fictitiously employed
To expedite dispute resolution, the government has also mandated that labor disputes be initially handled by the Court of First Instance, rather than the Court of Appeal. Additionally, the timeframe for filing labor claims has been limited to two years from the termination of employment.
Ministry's role in settlements
The Ministry of Human Resources and Emiratisation has been granted the authority to negotiate settlements with employers for certain violations, provided they pay a substantial portion of the fine and reimburse any financial incentives obtained through fraudulent practices.
These measures underscore the UAE's commitment to creating a fair and competitive labor environment while safeguarding the rights of workers.