DUBAI, UAE, Aug 13: The UAE government has issued a federal decree-law that amends significant provisions of the UAE Labour Law, significantly raising penalties for employment violations. According to the state news agency WAM, fines for breaches of employment regulations will now range from AED 100,000 to AED 1 million.

The amendments are part of the UAE's broader initiative to enhance its legislative and legal framework, aiming to improve the efficiency and competitiveness of the labour market. The new decree outlines stricter regulations on employment relationships, ensuring that the rights and obligations of all parties are clearly defined and protected by law.

Key changes in the amended law include:

• Increased penalties: Employers who hire workers without proper permits, fail to provide jobs after bringing workers into the country, misuse work permits, or close operations without settling workers’ rights will face substantial fines. This also applies to the illegal employment of minors and guardians who violate child labor laws.
• Criminal penalties for fraudulent practices: The decree introduces criminal penalties for fictitious recruitment and fraudulent Emiratisation practices. Employers involved in fake recruitment efforts will face fines, which will be multiplied based on the number of affected workers.
• Revised labor dispute resolution: Disputes with decisions from the Ministry of Human Resources and Emiratisation (MOHRE) will now be adjudicated by the Court of First Instance rather than the Court of Appeal. Additionally, claims filed more than two years after the termination of employment will not be processed.
• MOHRE's enhanced authority: MOHRE is now authorized to initiate criminal proceedings for fictitious employment cases, but this can only occur at the request of the Minister or an authorized representative. Employers have the option to settle cases before a court sentence is issued by paying at least 50% of the minimum fine and returning any financial incentives received by fictitious employees.
• Court procedures: The new regulations require that Courts of Appeal refer all ongoing employment disputes to the competent Court of First Instance, except for those already adjudicated or reserved for judgment.

The decree represents a significant step in tightening labor laws and ensuring better compliance within the UAE’s employment sector.