The UAE Government has recently announced stringent penalties aimed at regulating employment relationships, reinforcing its commitment to maintaining a fair and competitive labor market. As per the new provisions, fines can reach up to Dh1 million, depending on the nature and severity of the violation.
Key Provisions and Penalties
The Federal Decree-Law issued on Monday introduces amendments to specific provisions of the Federal Decree-Law on the Regulation of Employment Relationships. Under the new regulations, employers face fines ranging from Dh100,000 to Dh1 million for several serious violations, including:
- Employing a worker without a valid work permit or failing to provide them with a job.
- Closing a business without settling workers’ rights.
- Participating in fraudulent labor practices, such as fictitious employment or false Emiratisation claims.
- Employing minors in violation of labor laws.
- Engaging in any act that circumvents the laws governing the labor market, including fictitious employment.
The penalties will increase based on the number of workers involved in fictitious employment, emphasizing the UAE’s zero-tolerance approach to fraudulent labor practices.
Settlement and Legal Proceedings
The Ministry of Human Resources and Emiratisation (MoHRE) now has the authority to settle disputes if the employer pays 50% of the minimum value of the fine and returns any financial incentives obtained through fraudulent employment practices. This settlement option aims to expedite the resolution of labor disputes and ensure compliance with the law.
Additionally, the new decree stipulates that any criminal proceedings related to fictitious employment or fake Emiratisation can only be initiated at the request of the Minister of Human Resources and Emiratisation or an authorized representative. This measure ensures that the prosecution of such cases is handled with the utmost seriousness and oversight.
Court of First Instance
In case of disputes between employers and employees, the decree mandates that these cases be referred to the Court of First Instance rather than the Court of Appeal if there is disagreement with the Ministry’s decision. This applies to all cases except those that have been adjusted or reserved for judgement. The new provision is designed to streamline the legal process, allowing for quicker resolution of labor disputes.
Time Limits on Claims
The decree introduces a time limit on claims, stating that the court will not proceed with any claims filed more than two years after the termination of the employment relationship. This provision encourages timely resolution of disputes and ensures that all parties act promptly in addressing employment-related issues.
A Step Towards a More Competitive Labor Market
This new decree is part of the UAE’s ongoing efforts to enhance its legislative and legal framework, ensuring the efficiency and competitiveness of the labor market. By clearly defining the rights and obligations of all parties involved, the law aims to protect employees while holding employers accountable for their actions.
For more information on these new regulations, visit the UAE Ministry of Human Resources and Emiratisation’s official website.
Source: Khaleej Times
