The UAE has introduced significant amendments to its labour law, imposing tougher penalties on employers who breach employment regulations. The Federal Decree-Law, which aims to enhance the competitiveness and fairness of the labour market, was recently updated to address ongoing issues in the employment sector.
Under the new regulations, employers found guilty of violating key provisions, such as employing workers without proper permits or failing to meet their contractual obligations, face fines ranging from AED 100,000 to AED 1 million. These hefty fines are intended to deter practices like fictitious recruitment, where individuals are brought into the country without being provided with actual employment.
The law also targets the exploitation of minors, with stringent penalties for those found employing underage workers in violation of the regulations. Additionally, employers who shut down businesses or suspend operations without settling workers' rights are subject to the same level of fines.
The amendments underscore the UAE's commitment to maintaining a robust legal framework that protects the rights of all workers while promoting ethical business practices. This move is seen as a critical step towards ensuring that the country's labour market remains competitive, efficient, and in line with international standards.
These reforms are part of the UAE's broader strategy to strengthen its legal and regulatory environment, reflecting the government's determination to uphold the rights and dignity of workers across the nation.