The UAE government has enacted sweeping new measures to protect workers' rights, with monetary penalties of up to Dh1 million for employers and organisations that violate UAE labour law. The crackdown is part of a broader push to ensure fair treatment for all workers across the country.
What Federal Decree-Law No. 9 of 2024 Covers
Issued on July 29, 2024 and taking effect on August 13, 2024, Federal Decree-Law No. 9 of 2024 amends provisions of the existing Regulation of the Employment Relationship Law. Under the new decree, the UAE will fine employers for offences including hiring child workers, employing people without valid work permits, and bringing workers into the country under the pretence of employment only to exploit them.
The decree also targets firms involved in employment fraud, most notably the creation of fictitious employees to game the Emiratisation system.
Fine Ranges and How Penalties Are Calculated
Fines under the updated law range from a minimum of Dh100,000 to a maximum of Dh1 million. The previous penalty ceiling was Dh200,000, making this a fivefold increase in the upper limit.
Specific violations that trigger fines include:
- Hiring workers without a valid work permit - Bringing workers into the UAE and failing to provide them with a job - Closing or suspending a business without settling outstanding employee wages and entitlements - Misusing work permits or using them for unauthorised purposes
For fictitious employment — where a company fabricates employee records to inflate Emiratisation numbers — the fine applies per phantom worker. The penalty is multiplied by the total number of workers involved, making large-scale fraud especially costly.
New MoHRE Enforcement Powers Under UAE Labour Law
Federal Decree-Law No. 9 of 2024 significantly expands the authority of the Ministry of Human Resources and Emiratisation (MoHRE). The ministry can now initiate criminal proceedings against companies on its own volition, without waiting for a worker complaint. Any company that disputes a MoHRE decision can challenge it in court.
MoHRE also has the power to compound certain offences: if an employer agrees to pay 50 percent of the minimum fine and reimburses all monetary benefits gained through fictitious employment, the ministry may settle the matter without escalating to prosecution.
Visa Amnesty Running Alongside the Crackdown
The labour law enforcement drive coincides with a nationwide visa amnesty programme launching September 1. The amnesty grants residents with expired or lapsed visas a two-month window to regularise their legal status or exit the UAE without facing penalties.
The scheme is aimed at people who lost jobs and were unable to leave legally, as well as those who were recruited under false promises and now find themselves in an irregular situation.
What Employers Need to Do Now
Companies operating in the UAE should audit their workforce records, ensure all employees hold valid work permits, and verify that Emiratisation filings reflect real hires. Any businesses considering closure should settle all wage and benefit obligations before ceasing operations to avoid fines under the new decree.
