UAE Warns Private Companies of Dh1 Million Fines for Labour Violations

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.