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UAE labour law changes: Hefty fines to prevent firms from hiring visit visa holders

Making visitors work with promise of a permanent job could see companies fined up to Dh1 million

Published: Mon 19 Aug 2024, 6:00 AM

Updated: Sun 25 Aug 2024, 9:20 AM

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An amendment made to the UAE labour law last week will deter employers from hiring visit visa holders, legal experts have said. Among the offences that will see fines of between Dh100,000 and Dh1 million levied are employing workers without a proper permit; and bringing them to the UAE and failing to provide them with a job.

“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 Ali Saeed Al Kaabi, director at ECH Digital, adding that the amendments will ensure the legality of employment practices.

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Some employers make visit visa holders work by promising them residency and work permits after their tourist permits expire. Many of them do not get paid for work done during this period. “Some visitors are mistreated with the guarantee of a job offer, only to be told to leave once their visit visa expires,” said Al Kaabi. “The federal government’s decision will significantly curb these malpractices and ensure that labour laws are followed.”

Working on visit visas

South African expat Kieran Foury was among those who paid the price for working on a visit visa. He landed in Dubai in December 2023, hoping to find a good job.

The company that hired him asked him to work till his visit visa expired. “I worked in the marketing department for over three months. They promised to get me an employment visa after my visit visa expired,” he said. “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.”

In March, Foury was asked to leave the company. He left the UAE on March 29 after paying Dh5,500 at the airport as penalty for overstaying. “I had nothing in my hand when I was exiting the country. I had to request my father to send the money for me to exit the country.”

The UAE government categorically states on its website that working under a visit or tourist permit/visa is illegal. If an expat is offered a job in the UAE, they can only work after an offer letter is issued by the UAE’s Ministry of Human Resources and Emiratisation (MOHRE).

Legal advisors have strongly urged employers to refrain from allowing visitors to work illegally. “If a company is found to be in breach of the law, it will entail high risks and legal consequences,” said Al Kaabi.

Protecting workers’ rights

Hadiel Hussein, senior associate at BSA Ahmad Bin Hezeem & Associates, explained that the amendments create a stricter regulatory environment for employers, demanding greater compliance with the labour law.

“The substantial increase in fines, along with the possibility of criminal penalties, serves as a strong deterrent against non-compliance to the labour law. The amendments make it clear that any violation of labour regulations will result in severe consequences, thereby increasing employer accountability,” she said.

For employees, the changes offer “enhanced” protection and security. “The higher penalties imposed on employers provide a stronger deterrent against violations of employee rights, making it less likely that employees will face illegal or unfair treatment. Additionally, provisions such as extending the time-bar for filing employment claims and ensuring continued wage payments during disputes further strengthen employee protections.”

Hussein added that the amendment concerning small employment claims and the involvement of the MoHRE ensures a “more efficient, equitable, and streamlined legal process for 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,” added Hadiel.

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