- 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.
Sources
- Gulf News · 2026-10-04



