- The UAE Government has enacted a Federal Decree-Law that modifies certain aspects of the UAE Labour Law (Federal Decree-Law No. 33 of 2021). The changes are part of the UAE's continuous efforts to refine its legal framework.?
- The decree stipulates that if a dispute arises between the employer and the worker and cannot be resolved amicably, the issue must be referred to the Ministry of Human Resources and Emiratisation.
- The Ministry is entitled to resolve disputes if the claim's total amount does not exceed AED50,000 or if the dispute involves one of the parties' non-compliance with a prior amicable settlement decision issued by the Ministry, regardless of the claim's amount. The Ministry's decision in such cases shall have the effect of an executive instrument and be treated as an enforcement order according to standard procedures.
- Fines for violation of employment laws have been increased. Employers who hire workers without a valid permit, fail to provide jobs for brought-in workers, misuse work permits, or close businesses without settling employee rights will now face fines ranging from AED 100,000 to AED 1 million. The same penalties apply to the unlawful employment of minors or allowing minors to work against legal stipulations by their guardians.
- The decree introduces criminal penalties for fraudulent recruitment practices, including deceptive Emiratisation. Employers found guilty of circumventing labour laws by falsely claiming to recruit employees will incur fines between AED 100,000 and AED 1 million, with penalties increasing based on the number of workers involved in such fictitious employment.
