UAE warns companies of Dh1m fines for 5 labour law violations

By the Editorial Team · Monday, October 26, 2026

The UAE Ministry of Human Resources and Emiratisation has warned private employers about five labor law violations that carry fines between 100,000 and 1 million dirhams, emphasizing the need for proper work permits and compliance with hiring regulations. This enforcement aims to protect workers’ rights by ensuring legal hiring practices, proper use of work permits, and responsibilities towards employees even if a business suspends or closes operations.

The United Arab Emirates Ministry of Human Resources and Emiratisation (MoHRE) has issued a warning to private sector employers regarding five specific labour law violations, each carrying significant fines ranging from 100,000 to 1 million dirhams. The ministry urged companies to ensure full compliance with legal requirements before hiring or employing workers.

Among the violations highlighted by MoHRE are the employment of individuals without valid work permits, recruitment without actual placement of the worker, and misuse of work permits for purposes other than those authorized. Additional infractions include closing or suspending business activities without properly resolving the employment status of workers and employing minors in violation of labour regulations.

Employing workers without securing the necessary work permit is strictly prohibited. Businesses must complete all mandatory legal procedures and obtain the appropriate approvals before allowing any employee to commence work. This rule applies regardless of the job type or sector, and violations will attract the prescribed penalties.

The use of work permits must align with their designated purposes. Employers are obligated to select the correct type of permit based on the employee’s role and conditions stipulated within the labour law framework. Any deviation from the authorized scope of the permit is considered a breach of regulations.

The ministry also underscored that employer responsibilities continue even if a company ceases operations. Organizations that close or suspend activities are required to take necessary measures to address the legal status of their employees to prevent workers from being left without proper documentation or protections.

Regarding the employment of minors, MoHRE clarified that parental or guardian consent does not legitimize hiring if it contravenes established labour rules. Companies must adhere strictly to legal provisions concerning minimum age limits and the nature of work minors are allowed to perform, ensuring these conditions are respected in recruitment and employment processes.

This latest directive from MoHRE aims to reinforce adherence to UAE labour laws and protect workers’ rights by holding employers accountable for legal compliance throughout all employment stages.

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