The UAE government has introduced amendments to the labour laws aimed at enhancing the competitiveness of the employment market and providing greater clarity around the rights and obligations of employers and employees.
Stricter Penalties for Labour Law Violations
Under the new amendments, employers face fines ranging from AED 100,000 to AED 1 million for various violations. These include:
– Employing workers without valid permits.
– Failing to provide jobs to workers brought into the UAE.
– Misusing employment permits.
– Closing or suspending business operations without properly addressing the rights of employees.
The same fines will apply to those illegally employing minors, reinforcing the government’s commitment to protecting vulnerable workers.
Criminal Penalties for Fictitious Recruitment
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.
Labour Dispute Appeals and New Legal Procedures
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.
Ministerial Oversight of Criminal Proceedings
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.
Opportunity for 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.