UAE Government Issues Federal Decree-Law on Regulation of Employment Relationship

Good News for UAE Expats and Job Seekers, The UAE Government has issued a Federal Decree-Law amending specific provisions of the Federal Decree-Law on the Regulation of Employment Relationships, aimed at enhancing the efficiency and competitiveness of the labour market.

Now companies (employers) hiring workers must provide them with a job including employment visa or else they will be fined up to 1 million dirhams.

Companies are also warned of hiring workers without proper work permits. Hefty fines announced for such firms.

It is also stated in the new Federal Decree-Law that if company owner (employer) closing his/her business in the UAE, they first need to clear or settle the rights of workers including any pending salaries, annual leave and gratuity payments. 

Before closing the company, the owners must clear employees from MOHRE and GDRFAD or ICP UAE including Cancellation of their employment visas so they can look for jobs in other hiring companies. 

Comapny must provide the worker with original passport (if detained), cancellation paper with any pending settlements before closing the companies.

Also Read: Amnesty UAE 2024 

Below is the official newly issued Federal Decree Law on Regulation of Employment Relationship: 

1: A fine ranging from AED 100,000 to AED 1,000,000 will be imposed on anyone who:

·       Employs a worker without a proper work permit or brings worker without providing them with a job.

·       Closes a business without settling the rights of the workers.

·       Engages in any act of circumvention of the laws or regulations governing the labour market, including fictitious employment.

·       Employs a minor violation of the law.

 

2: The Penalty mention will multiply based on the number of workers fictitiously employed.

3: Disputes should be referred to the Court of First Instance if there is disagreement with the decision of the Ministry of Human Resources and Emiratisation in resolving the dispute.

Source: UAE Government Media Office

Final Words:

The new Federal Decree-Law imposes fines of no less than AED 100,000 up to AED 1 million on any employer (company) who employs workers without a proper permit or hire workers or brings them to the UAE and fails to provide them with a job, misuses work permits, or shuts down a business or suspends its activities without settling workers' rights, including salaries etc in violation of the new decree and its Executive Regulations.