Up to Dh1-million fine: UAE labour law changes crack down on fake Emiratisation

A new amendment introduced to the UAE labour law specifies heftier penalties for fake Emiratisation, a legal expert has said. Announced earlier this week, the law specifies fines ranging from Dh100,000 to Dh1 million for "fraudulent labour acts".

Abdulrahman Alqassem, a legal expert at Habib Al Mulla and Partners, described the fraudulent employment practice as "falsely employing a UAE national by issuing a work permit for them and registering them with the establishment for purposes other than the intended reason for issuing such permit”. In other words, it’s when a UAE national is hired but not given any real tasks.

Private companies in the UAE are required by law to increase the number of their Emirati employees in skilled roles. Some firms, in an attempt to meet the targets, resort to bogus Emiratisation.

In a recent case, a private company was fined Dh10 million for failing to comply with the regulations. A court in Abu Dhabi found that the firm had tried to bypass the Emiratisation targets by appointing 113 citizens in fictitious roles. From the scheme's launch in mid-22 until November 2023, the Ministry of Human Resources and Emiratisation (Mohre) found that 1,267 UAE nationals were employed in fake posts.

"Participating in false Emiratisation practices will result in administrative fines ranging from Dh20,000 to Dh100,000 for each instance, depending on the number of offences," Alqassem said. "Additionally, circumventing Emiratisation targets will lead to fines ranging from Dh100,000 to Dh500,000."

Other tactics to skirt the rules are punishable by penalties starting at Dh100,000 for the first offence to Dh500,000 for the third. These evasion methods include: Reducing the number of employees and altering job categories.

Based on the new provisions, the penalties will be multiplied based on the number of people that were fictitiously employed.

Other changes

The new decree also addresses other labour law violations such as closing a business without settling the rights of workers, and employing a minor.

Bassem Ehab, another legal expert, explained the implications of these new provisions. "Any dispute arising from the employment relationship between the employee and employer must be addressed by submitting a request to Mohre," he told Khaleej Times.

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