UAE labor law sets penalty on employers hiring without proper work permits

The United Arab Emirates (UAE) has introduced a new labour law imposing substantial fines which range from AED 100,000 to AED 1 million on companies that employ individuals without the necessary work permits.

These fines mark a significant increase from the previous penalties, which were between AED 50,000 and AED 200,000.

The UAE Ministry of Human Resources and Emiratisation (MOHRE) issued a statement clarifying that working on a visit or tourist visa is illegal. Instead, individuals must obtain a valid employment visa issued by MOHRE.

This strict regulation aims to combat illegal employment practices, particularly targeting companies that hire workers on visit visas, thereby ensuring fair labour practices and protecting worker rights across the Emirates.

Employers are required to comply with the new regulations, which strictly prohibit hiring workers without guaranteed employment, misusing work permits, and closing businesses without settling worker entitlements.

Companies that breach the labour law face severe penalties, including:

1. Fines: These range from AED 100,000 to AED 1 million for hiring workers without proper permits, failing to provide jobs after bringing workers into the country, or closing businesses without settling worker rights.
2. Penalty multiplication: This applies to fines that have increased with the number of workers involved in such violations.
3. Dispute resolution: Any disputes arising from labour law violations should be referred to the Court of First Instance.

How to work legally in the UAE

To work legally in the UAE, individuals must obtain the appropriate work visa. The most common types of work visas include:

1. Employment visa: The most common work visa in the UAE, sponsored by a UAE-based company. It requires a valid job offer from the sponsoring company, which manages the visa application process to ensure compliance with labour laws.

2. Investor visa: Designed for individuals planning to start a business or invest in an existing UAE company.  Applicants must meet specific financial investment criteria, such as a minimum capital requirement, and demonstrate business viability to qualify.

3. Freelancer visa: Ideal for self-employed individuals or independent contractors who wish to work with multiple clients in the UAE. Applicants must provide a detailed portfolio, relevant work experience, or testimonials to prove their skills and professional capabilities.

4. Mission visa: Issued to employees of foreign missions, including embassies, consulates, or international organisations in the UAE. This visa is valid for the specific duration of their employment and requires sponsorship by the respective foreign mission or international body.

5. Domestic helper visa: This one is tailored for household workers, such as nannies, drivers, or housekeepers, typically sponsored by the employer. The regulations and requirements for domestic helper visas vary, including age restrictions, minimum salary thresholds, and specific health and background checks.