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Up to Dh200,000 fine in UAE: How employees can file case against employer for unfair practices

Unfair practices may include employing a worker without obtaining a work permit from the Ministry of Human Resources and Emiratisation (MoHRE)

Question: I work for a mainland company in the UAE and I am planning to file a labour case against my employer for unfair practices. Can you walk me through the procedure and process on how it works?

Answer: Generally, unfair practices by employers in the UAE may include, but are not limited to, employing an employee without obtaining a work permit from the Ministry of Human Resources and Emiratisation (MoHRE), recruiting an employee and not providing work, illegal use of work permits, winding up an entity without following relevant procedures, failing to pay employees their end-of-service benefits, and recruiting juveniles, all of which are not in accordance to the provisions of Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations.

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The mentioned unfair practices may result in financial penalties for an employer ranging from Dh50,000 to Dh200,000 as stated in Article 60 of the UAE Employment Law, which states, “Shall be sentenced to a fine of no less than Dh50,000 and no more than Dh200,000, whoever:

1. Employs an employee who has not obtained a permit to work for him.

2. Recruits or employs an employee, and left him without work.

3. Uses work permits for purposes other than those for which they are issued.

4. Closes, or ceases the activity, of an establishment without taking the procedures for settlement of employees' entitlements, in violation of the provision of this decree Law, its Executive Regulations and implementing resolutions.

5. Employs a juvenile in violation of the provisions hereof.

6. Agrees to the employment of a juvenile in violation of the provisions of this Decree-law in respect of the juvenile's parent or guardian."

Furthermore, financial penalties for other unfair practices by an employer are mentioned in Article 58 to Article 63 of the UAE Employment Law.

A MoHRE inspector, during the inspection of an entity in the UAE, may identify the violations of an entity and may report the same to MoHRE and/or any other competent authority in the UAE. This is in accordance with Article 33(2) of the Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree Law No. 33 of 2021 Regarding the Regulation of Employment Relations, which states, “Subject to the provisions of Article 57 of the Decree-Law:

Incidents committed in violation of the provisions of the Decree-Law, this Resolution and the Legal Regulations shall be reported pursuant to the following procedures:

a. If during an inspection the inspector verifies the existence of a violation of the Decree-Law or the regulations or resolutions issued in implementation thereof, he shall draw up a report to establish the violation and shall submit the report to the competent authority to take the necessary actions against the violator.

b. The employment inspector may, when needed, request competent administrative or security authorities to provide necessary assistance.

c. Violations shall be detected and established by the inspectors using the mechanisms, systems, channels and forms determined by the Ministry.

d. Employers and their representatives shall provide the employment inspectors with the necessary facilities and data to perform their duty, and shall respond to their summonses or send a representative if requested to do so.”

Moreover, an employee whose employment is affected by unfair practices of his or her employer may file an employment complaint in accordance with the provisions of Federal Decree Law No. 20 of 2023 Amending Certain Provisions of Federal Decree Law No. 33 of 2021 Regarding the Regulation of Employment Relationships.

Furthermore, if an employer is indulged in unfair employment practices to his employees, then employees of such employer may file a collective employment dispute with the MoHRE in accordance with Article 56 of the UAE Employment Law read with Article 32 of the Cabinet Resolution No. 1 of 2022.

Based on the aforementioned provisions of law, you may consider filing a complaint against your employer with MoHRE if unfair practices of employment are affecting you. However, if you are not affected by the unfair practices of your employer, you may suggest your colleagues to file a complaint against your employer with the MoHRE. Based on the complaint filed by you or your colleagues, the MoHRE and/or any other competent authority in the UAE may look into and decide on the unfair practices indulged by your employer.

Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.

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