On July 29, the UAE government announced amendments to the labour law under Federal Decree-Law No. 9 of 2024, which have now come into effect as of August 31, 2024. The UAE labour law is essential in regulating the employer-employee relationship, focusing on safeguarding the rights of both sides and ensuring a safe, healthy working environment.
Under the new amendments, employers face fines ranging from AED 100,000 to AED 1 million for various violationsreplacing the previous limits of AED 50,000 and AED 200,000, respectively. These include:
- Employing a worker who is not legally authorized to work for them.
- Hiring or recruiting a worker and failing to provide them with any work.
- Misusing work permits for purposes other than those for which they were issued.
- Shutting down a business or suspending its operations without properly addressing workers’ rights, in violation of the provisions of this decree-law, its executive regulations, and the related decisions.
- Illegally employing a minor in breach of the provisions of this decree-law.
- Allowing the employment of a minor in violation of this decree-law by individuals responsible for the minor’s guardianship or custody.
The same fines will apply to those illegally employing minors, reinforcing the government’s commitment to protecting vulnerable workers.
What Are the Criminal Penalties for Fictitious Recruitment Practices
A key provision of the new law is the introduction of criminal penalties for fictitious recruitment practices, including fraudulent Emiratisation. Employers found guilty of falsifying recruitment processes will be fined between AED 100,000 and AED 1 million, with penalties increasing based on the number of fictitious employees involved.
The amended law establishes a cap on claim amounts in labour disputes. MOHRE is now empowered to issue binding decisions in cases where the claim does not exceed AED 50,000. For claims exceeding this threshold, the Ministry remains a mediator and will refer the case to the courts if no amicable settlement is achieved.
What are the Effects of Amendments on Labour Dispute Appeals and Legal Framework
In labour dispute cases, appeals against decisions made by the Ministry of Human Resources and Emiratisation (MOHRE) will now be directed to the Court of First Instance rather than the Court of Appeal. Any claims must be filed within two years from the end of the employment relationship, providing clearer timelines for seeking legal recourse.
Criminal proceedings for fictitious employment, including fraudulent Emiratisation, can only be initiated at the request of the Minister of Human Resources and Emiratisation or an authorized representative. This ensures that such cases are thoroughly evaluated by the ministry before escalating to legal action.
How Amendments Facilitate Case Settlements
The amendments also grant MOHRE the authority to settle cases before they reach a court ruling. Employers who agree to settle must pay at least 50% of the minimum fine and reimburse any financial incentives provided to the fictitious employees. This provision encourages resolution and promotes accountability while reducing the burden on the legal system.
These changes reflect the UAE’s ongoing commitment to creating a fair and competitive employment market, where the rights of workers are upheld, and employers are held accountable for their obligations.
At Charter Legal, we recognize the complexities surrounding the enforcement of labour laws and the potential for disputes to arise in the workplace. Our team combines some of the best lawyers in Dubai, experienced in navigating both civil and criminal proceedings related to employment matters. We are committed to helping you understand your rights and obligations under the new regulations, ensuring you are well-informed in your decision making.
Contact us to discuss how we can assist you in achieving a swift and favorable resolution to any employment law concerns.