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UAE Outlines Penalties for Sponsoring Foreign Workers Without Active Employment

UAE legal experts outlined statutory fines facing employers who sponsor foreign workers on residence visas without actively employing them. Violators risk fines of AED 50,000 under residency laws, alongside labor fines reaching up to AED 1,000,000. Judicial precedent distinguishes cases based on whether employees were deployed upon arrival.

Published Source: Gulf News
Issuing authority
Federal Decree-Law No. (29) of 2021 / UAE Labour Relations Law
Jurisdiction
United Arab Emirates
Stage
Final rule
Official document
Federal Decree-Law No. (29) of 2021 on the Entry and Residence of Foreigners, UAE Labour Relations Law Article 60
Official source
gulfnews.com

Legal guidance published by UAE legal experts has detailed the liabilities employers face when sponsoring foreign workers on residence visas without providing them with active employment.

Under Article 25(2) of Federal Decree-Law No. (29) of 2021 on the Entry and Residence of Foreigners, recruiting a foreign national and failing to provide employment, or permitting them to work elsewhere without proper authorization, carries a fine of AED 50,000.

In addition, Article 60 of the UAE Labour Relations Law sets fines ranging from AED 100,000 up to AED 1,000,000 for establishments that recruit workers and leave them unemployed.

Judicial precedent from the Dubai Court of Cassation has established jurisdictional criteria distinguishing whether a sponsored worker actively started work or was never deployed upon arrival. Authorities noted that these enforcement measures aim to eliminate illegal residency trading and protect the stability of the UAE employment sector.

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