The UAE government issued a Federal Decree-Law amending certain provisions of the Federal Decree-Law regarding the regulation of labor relations.
A fine ranging between AED 100,000 and AED 1 million has been imposed on anyone who employs a worker without a valid work permit, brings in a worker but does not employ them, or closes an establishment without settling the rights of the workers.
The decree introduced a penalty for fake employment, including fake Emiratization, with a fine ranging from AED 100,000 to AED 1 million for any employer who circumvents the law or regulations governing the labor market and competitiveness of the workforce by falsely employing one or more workers. The penalty increases with the number of workers falsely employed.
The amendments in the new decree-law also include a financial penalty ranging from AED 100,000 to AED 1 million for anyone employing a minor in violation of the law, as well as for anyone who approves such employment, including those with legal guardianship or custodianship over the minor.
Labor disputes will now be referred to the primary court instead of the appellate court in cases where the Ministry of Human Resources and Emiratization's decision on the dispute is not accepted. Claims regarding rights under the decree-law will not be heard after two years from the termination of the labor relationship.
Under the new decree-law, the appellate courts will transfer all pending requests, disputes, and grievances related to labor relations to the competent primary court as they stand from the date of enforcement of this decree-law, except for disputes already judged or reserved for judgment.
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