Introduction Of UAE
Making Visitors Work with the Promise of a Permanent Job Could See Companies Fined Up to Dh1 Million
Recent amendments to the UAE labour law aim to prevent employers from hiring visit visa holders, imposing hefty fines ranging from Dh100,000 to Dh1 million for non-compliance. These changes reflect the UAE government’s commitment to safeguarding workers’ rights and ensuring legal employment practices across the country.
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Strict Penalties for Illegal Employment
The amended labour law has increased penalties for employers who hire workers without the necessary permits. Legal experts note that the fine range has significantly escalated from the previous Dh50,000 to Dh200,000, now standing at Dh100,000 to Dh1 million. Ali Saeed Al Kaabi, Director at ECH Digital, emphasized that this shift highlights the seriousness of the government’s efforts to protect workers and regulate employment practices.
“Previously, fines for hiring workers without a work permit ranged from Dh50,000 to Dh200,000. The new range of Dh100,000 to Dh1 million shows the seriousness of the government in protecting workers’ rights,” said Al Kaabi.
A Cautionary Tale: Working on Visit Visas
South African expat Kieran Foury experienced firsthand the repercussions of working on a visit visa. Arriving in Dubai in December 2023, he secured a position in a marketing department but was asked to work without a proper employment visa. Despite repeated assurances from his employer that his visa would be issued soon, he was eventually asked to leave after his visit visa expired. As a result, he incurred a Dh5,500 fine for overstaying, which he had to pay out of pocket before leaving the UAE.
“I worked in the marketing department for over three months. They promised to get me an employment visa after my visit visa expired,” Foury recalled. “I kept reminding them about my illegal status and the only response I received from the HR was not to worry and that my visa would be issued soon.”
The UAE government explicitly states that working under a visit or tourist permit is illegal. Those offered employment in the UAE can only commence work after receiving an official offer letter issued by the Ministry of Human Resources and Emiratisation (MOHRE).
Ensuring Worker Protections
Legal advisors strongly caution against employing visit visa holders, stressing the severe legal consequences of such practices. Al Kaabi reiterated the high risks involved and urged employers to adhere strictly to the law.
“The federal government’s decision will significantly curb these malpractices and ensure that labour laws are followed,” he said.
Strengthening Compliance and Employee Rights
Hadiel Hussein, Senior Associate at BSA Ahmad Bin Hezeem & Associates, pointed out that the amendments to the labour law create a stricter regulatory environment for employers, demanding greater compliance and accountability.
“The substantial increase in fines, along with the possibility of criminal penalties, serves as a strong deterrent against non-compliance with the labour law,” Hussein explained. “The amendments make it clear that any violation of labour regulations will result in severe consequences, thereby increasing employer accountability.”
For employees, these changes offer enhanced protection and security. The higher penalties imposed on employers act as a deterrent against violations, making it less likely for employees to face illegal or unfair treatment. The amendments also extend the time-bar for filing employment claims and ensure continued wage payments during disputes, further strengthening employee protections.
Additionally, the introduction of amendments related to small employment claims and the involvement of MOHRE ensures a more efficient and equitable legal process. The ministry’s enhanced role in mediating disputes and its ability to issue enforceable decisions in low-value claims and disputes provide a streamlined process that benefits both employees and employers.
“The ministry’s enhanced role in mediating disputes and its ability to issue enforceable decisions in low-value claims and disputes … ensure that employment disputes can be resolved more swiftly and efficiently with less legal costs,” Hussein added.
Conclusion
The recent amendments to the UAE labour law represent a significant step towards protecting workers’ rights and ensuring fair and legal employment practices. Employers must now navigate a stricter regulatory environment, where the consequences of non-compliance are more severe than ever before. For employees, these changes promise enhanced protections and a more secure working environment. As the UAE continues to evolve its labour laws, it is clear that the protection of workers remains a top priority for the government.
