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Thursday, May 7, 2026

UAE introduces hefty penalties for employment law breaches - Gulf News

Abu Dhabi: The UAE Government has issued a Federal Decree-Law amending specific provisions of the Federal Decree-Law Regarding the Regulation of the Employment Relationship, known as the “UAE Labour Law”.

This decree is part of the UAE’s ongoing efforts to, further, develop its legislative and legal framework. It aims to ensure the efficiency and competitiveness of the labour market, regulate employment relationships, and clearly define the rights and obligations of all parties involved, and ensure their protection by law.

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The decree imposes fines of no less than Dh100,000 and no more than Dh1 million on any employer who employs workers without a proper permit, hires workers or brings them to the country and fails to provide them with a job, misuses work permits, or shut down a business or suspends its activities without settling workers’ rights, in violation of the new decree and its Executive Regulations. The same penalties apply to the illegal employment of minors or allowing minors to work in violation of the law by their guardians.

Additionally, the new decree introduces criminal penalties for fictitious recruitment, including fictitious Emiratisation. Therefore, employers found guilty of bypassing the provisions of the laws or executive regulations or decisions regulating the labour market, by faking their recruitment of one or more employees, will face fines ranging from Dh100,000 to Dh1 million. The penalty is...



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