The UAE government has recently made important changes to the employment law, and it’s essential to understand what these changes mean for both employers and workers. This article breaks down the new amendments in a simple way so that everyone can understand.
What Are the New Fines?
The UAE government has introduced significant fines for companies and individuals who break certain employment laws. These fines can range from AED 100,000 to AED 1,000,000. Let’s look at the situations where these fines apply:
- Hiring Without Proper Work Permits:
- If a company hires a worker without the correct paperwork, like a work permit, they can face a large fine.
- Bringing a Worker Without Providing a Job:
- Some companies might bring workers to the UAE but fail to provide them with actual jobs. This is illegal, and the company can be fined for it.
- Closing a Business Without Paying Workers:
- When a business shuts down, it must ensure that all workers are paid what they are owed. This includes salaries, end-of-service benefits, and any other financial obligations. Failing to do so will result in a hefty fine.
- Engaging in Fake Employment:
- Some companies might try to get around the law by pretending to hire people (fictitious employment) when they’re not giving them jobs. This kind of activity is also subject to fines.
- Hiring Minors Illegally:
- The law strictly prohibits hiring children below a certain age. If a company hires minors in violation of the law, it can face severe penalties.
Increased Fines for Multiple Violations
If a company is found guilty of breaking these rules with more than one worker, the fines will increase for each additional worker involved. This means the more workers a company mistreats, the higher the penalty they will face.
Dispute Resolution
If there’s a disagreement between a company and the Ministry of Human Resources and Emiratisation (MOHRE) about a decision related to labor issues, the company can take the matter to the Court of First Instance. This gives businesses a way to appeal if they believe a decision is unfair.
Why These Changes Matter
These amendments are designed to protect workers and ensure that companies follow the rules. By imposing strict fines, the government aims to prevent exploitation and ensure that every worker in the UAE is treated fairly.
Key Takeaways
- Big Fines: AED 100,000 to AED 1,000,000 for breaking employment laws.
- Important Violations: Hiring without permits, bringing workers without jobs, not paying workers when closing a business, fake employment, and illegal child labor.
- Multiple Violations: Fines increase with the number of workers involved.
- Dispute Resolution: Companies can appeal decisions in court.
This new law is a significant step toward ensuring that the labor market in the UAE remains fair and just for everyone involved. Make sure to stay informed and comply with the regulations to avoid these costly penalties.
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Frequently Asked Questions (FAQs)
- What happens if a company hires a worker without a work permit?
- The company can be fined between AED 100,000 and AED 1,000,000 for hiring a worker without the proper work permit.
- Can a company be fined for closing without paying workers?
- Yes, if a company closes down without paying workers their due wages and benefits, it can face significant fines.
- What is fictitious employment, and why is it illegal?
- Fictitious employment is when a company pretends to hire people without actually giving them jobs. This is illegal and can lead to fines.
- How can a company challenge a decision made by MOHRE?
- If a company disagrees with a decision made by the Ministry of Human Resources and Emiratisation, it can take the case to the Court of First Instance.
- Will fines increase if a company violates the law with multiple workers?
- Yes, the fines will increase based on the number of workers involved in the violation.
