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UAE Labor Law Sets Fines Up to Dh1 Million for Employer Violations

Article 62 ties employer penalties to the number of workers involved and caps them at Dh10 million.

Updated 2 min read
Construction workers arrive at a site in Dubai, United Arab Emirates, for the morning shift. (AI-generated image / EconoTimes)
Construction workers arrive at a site in Dubai, United Arab Emirates, for the morning shift. (AI-generated image / EconoTimes)

Reports published Friday, Oct. 23, said the Ministry of Human Resources and Emiratisation (MoHRE) urged UAE private-sector employers to comply with labor rules carrying fines of Dh100,000 to Dh1 million.

Article 60(1) of Federal Decree-Law No. 33 of 2021, amended by Federal Decree-Law No. 9 of 2024, sets that penalty range. Gulf News and Emirates 24|7 reported the reminder. Article 62 separately says employer penalties vary with the number of workers involved and are capped at Dh10 million.

The five groups of violations reported include employing someone not authorized to work for that employer; recruiting or employing a worker but leaving them without work; using a work permit for a purpose other than the one approved; and closing or suspending an establishment without taking required steps to settle workers’ rights. The fifth group combines unlawful juvenile employment with a guardian’s or custodian’s agreement to it.

Article 60 lists the juvenile offense and the guardian or custodian provision in separate clauses, making six lettered provisions in all. Article 5 prohibits employment of anyone younger than 15 and conditions juvenile work on safeguards that include a guardian’s written approval and a medical fitness certificate.

The amendment increased Article 60’s original Dh50,000–Dh200,000 range to Dh100,000–Dh1 million. The UAE Government said the changes were intended to regulate employment relationships, clarify the rights and obligations of both parties, and protect them under the law. Workers are the stated beneficiaries of those protections, while employers face the risk of fines.

Article 60(2) also applies the Dh100,000-to-Dh1 million range to fictitious hiring arrangements used to circumvent labor-market requirements.

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