Employers in the UAE May Face Up to Dh200,000 Penalty for Unfair Workplace Practices

Employers in the UAE may incur substantial fines for engaging in unfair practices. According to Article 60 of Federal Decree-Law No. 33 of 2021 under UAE Employment Law, those found guilty of such practices can be fined between Dh50,000 and Dh200,000.

These unfair practices include:

* Employing Workers Without a Work Permit: Hiring employees without the necessary work permit from the Ministry of Human Resources and Emiratisation (MoHRE).

* Recruiting Without Providing Work: Hiring employees and then not assigning them any work.

* Misuse of Work Permits: Using work permits for purposes other than those for which they were issued.

* Improper Closure of Businesses: Closing or ceasing operations of an establishment without settling employees' entitlements, thereby violating the relevant Decree-Law.

* Employing Juveniles Illegally: Hiring juveniles in contravention of the law’s provisions.

* Employment Agreements Violating Juvenile Regulations: Agreeing to employment terms for juveniles that do not comply with the legal requirements concerning their guardians.

In addition, Articles 58 through 63 of the UAE Employment Law outline penalties for other types of unfair practices by employers.

During inspections, MoHRE officials may identify and report violations. According to Article 33(2) of Cabinet Resolution No. 1 of 2022, inspectors will document any violations and report them to the relevant authorities.

Employers are required to cooperate with these inspectors by providing necessary information and access.

Employees impacted by unfair practices can file complaints with MoHRE under Federal Decree-Law No. 20 of 2023, which amends certain provisions of Federal Decree-Law No. 33 of 2021.

Additionally, if multiple employees are affected, they can file a collective dispute with MoHRE as per Article 56 of the UAE Employment Law and Article 32 of Cabinet Resolution No. 1 of 2022.

Employees facing unfair treatment should consider filing a complaint with MoHRE. If an individual employee is not directly affected but knows others who are, they can advise their colleagues to file complaints.

MoHRE will review and take action based on these complaints, ensuring that unfair practices are addressed and rectified.