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UAE Warns Private Companies of Dh1 Million Fines for Labour Violations

The UAE Ministry of Human Resources and Emiratisation has cautioned private sector establishments that committing specific labour law violations carries fines ranging from Dh100,000 to Dh1 million. The penalties apply to five key infractions, including unauthorised hiring, permit misuse, and shutting down businesses without settling employee status. The ministry reiterated that adherence to UAE labour legislation is mandatory to safeguard workers' rights and preserve lawful employment relations.

Issuing authority
Ministry of Human Resources and Emiratisation
Jurisdiction
United Arab Emirates
Publication date
October 23, 2026
Stage
Final rule
Official document
UAE Labour Law
Official source
news.google.com
Illustration: A modern corporate human resources office in Dubai with business documents, legal folders, and a laptop on an executive wooden desk agai
Illustration

Private companies operating in the UAE have been warned that committing five specific labour law violations carries financial penalties ranging from Dh100,000 to Dh1 million, according to a report by Gulf News citing the Ministry of Human Resources and Emiratisation (MoHRE).

MoHRE stated that compliance with labour market legislation is a mandatory legal responsibility for all employers. The ministry underlined that observing statutory rules is vital for protecting workers' rights and guaranteeing that employment relationships operate strictly within the legal framework.

According to the ministry, the five penalised violations are: employing a worker without obtaining an approved work permit from MoHRE; recruiting or employing someone without providing them with actual work; and using work permits for purposes other than those for which they were originally issued.

Employers also face severe fines for closing an establishment or suspending commercial activities without regularising the legal status and entitlements of their workforce, as well as employing minors in violation of UAE labour provisions, even if a parent or legal guardian has granted consent.

MoHRE confirmed that parties committing any of these infractions face statutory fines of no less than Dh100,000 and up to Dh1 million. The authority urged private establishments to complete all necessary legal requirements and secure proper permits prior to hiring staff.

Sources

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