Policy update

Policy & Legal Updates

UAE Outlines Key Rules to Qualify for Involuntary Loss of Employment Compensation

Employees in the UAE who face job loss must satisfy specific statutory conditions to receive compensation under the Involuntary Loss of Employment (ILOE) scheme. Regulated by the Ministry of Human Resources and Emiratisation, the scheme requires claimants to have subscribed for at least 12 consecutive months and submit claims within 30 days of termination. Payouts provide up to 60 percent of the average basic salary for up to three months.

Policy & Legal Updates

UAE Updates E-Invoicing Penalties Under Cabinet Decision No. 173 of 2026

The UAE Ministry of Finance has issued Cabinet Decision No. 173 of 2026, repealing Cabinet Decision No. 106 of 2025 and revising the administrative penalty structure for the Electronic Invoicing System. The updated regulations cap penalties for failing to implement the system at AED 50,000 within any 12 consecutive months. Implementation deadlines remain unchanged, with larger businesses required to implement by January 1, 2027.

Policy & Legal Updates

Dubai Rental Disputes Centre Affirms Lease Annulment Before Move-In for Contract Misrepresentation

The Dubai Rental Disputes Centre (RDC) has established a judicial principle permitting landlords or tenants to annul a lease agreement before tenancy begins if deception is proven. The ruling relies on Articles 170 through 173 of the UAE Civil Transactions Law regarding truthful mutual consent. A legal expert noted that the decision restores contracting parties to their pre-signing status once deliberate misrepresentation is established.

Policy & Legal Updates

UAE Ministry of Finance Caps E-Invoicing Non-Compliance Fines at Dh50,000

The UAE Ministry of Finance has introduced updated rules capping administrative penalties for electronic invoicing violations at Dh50,000 over 12 consecutive months. The amendment also eliminates penalties previously imposed on businesses for failing to report system failures. The revised framework aims to reduce compliance burdens ahead of the mandatory nationwide rollout scheduled for October 1, 2027.