Dubai Courts: Fake Emiratisation Jobs Are Fraud, Not Administrative Offences

Dubai Courts has ruled that “sham employment” -- the practice of hiring Emiratis on paper only to meet Emiratisation quotas -- constitutes fraud and embezzlement rather than a mere administrative infraction, classifying it as a crime against public funds.

The judiciary emphasised that such cases will be treated as criminal offences, with prosecutions aimed at safeguarding the integrity of the UAE’s labour market and protecting the Nafis programme, which incentivises companies to employ Emiratis.

This strict position is codified in Federal Decree-Law No. 9 of 2024 on labour relations and Cabinet Resolution No. 43 of 2025, which list grave violations, including sham hiring, non-compliance with quotas, falsification of documents, and withholding wages or benefits from Emiratis.

Penalties for violators include suspension of government support, repayment of illicitly obtained funds, heavy fines, and, in repeat cases, suspension or cancellation of business licences. If fraud or forgery is proven, companies may be referred to the Public Prosecution, exposing business owners and managers to criminal liability, including possible imprisonment.