By The UAE’s Ministry of Human Resources and Emiratisation (MOHRE) has issued a formal warning to employers outlining five labour law violations that can trigger fines of up to Dh1 million. The warning was published on Friday, October 23, 2026, according to Emirates 24/7, which reported the ministry’s notice to businesses across the country.
The five violations identified by MOHRE are: employing workers without permits, leaving workers idle, using permits incorrectly, closing an establishment without settling staff status, and employing minors unlawfully. The ministry stated that violations are punishable by a fine of no less than Dh100,000 and no more than Dh1 million for anyone who employs a worker without complying with the provisions of the Labour Law.
What the December 2024 amendments changed
The current penalty framework sits within a broader set of amendments to the UAE Labour Law that took effect on August 31, 2024. According to hlootahlaw.com, these amendments extended the statute of limitation for filing labour disputes, made MOHRE decisions legally enforceable without requiring extensive judicial proceedings, and introduced criminal penalties for severe violations including falsified Emiratisation records and illegal recruitment.
The amendments also require employers to pay workers’ wages during the course of disputes unless a court determines otherwise. This means an employer facing a claim cannot simply stop paying an employee while the matter is pending. For HR and payroll teams, this creates an immediate cash flow obligation that runs alongside any potential fine.
The old Article 60 of the previous UAE Labour Law listed employer violations that map closely to the five MOHRE has now highlighted. The continuity matters because it signals that MOHRE is not introducing new categories of wrongdoing but rather enforcing existing obligations with significantly higher financial consequences.
How the fines work in practice
The Dh100,000 to Dh1 million range is stated as applying to anyone who employs a worker without complying with the provisions of the Labour Law. The sources do not clarify whether the Dh1 million maximum applies per worker or per violation, and employers should confirm this point directly with MOHRE or a UAE labour lawyer before assuming the exposure is capped.
The distinction between administrative fines and criminal penalties is also not fully spelled out in the available reporting. The December 2024 amendments introduced criminal penalties for severe violations such as falsified Emiratisation or illegal recruitment, while the Dh1 million figure appears to sit within the administrative fine structure. Both could potentially apply to the same conduct, which would materially increase the total exposure.
Free zone employers should verify whether these fines apply to their jurisdiction. The available research does not address whether mainland and free zone companies face the same enforcement regime, and this remains a practical question for many UAE businesses.
What HR and payroll teams should do now
The immediate step is a compliance audit focused on the five named violations. For work permits, verify that every employee has a valid permit tied to the correct employer and role. For idle workers, confirm that every sponsored employee is actively working and that any gaps are documented. For permit misuse, check that no employee is working in a role or location different from the one stated on their permit.
For closures, ensure that any entity winding down has settled all staff entitlements before the licence is cancelled. For minors, confirm that no employee is under the legal working age and that any juvenile employment meets the specific conditions set by UAE law.
Payroll teams should also review wage payment records. The requirement to pay wages during disputes means that any interruption to salary payments, even during a contested termination, creates a separate compliance risk.
Reporting and appeals
Employees who suspect an employer has committed one of these violations can report the matter to MOHRE through its official channels. The ministry operates a hotline and digital reporting options, though the specific WhatsApp number was not included in the available research and should be confirmed on the MOHRE website.
Employers facing a fine should understand that MOHRE decisions are now legally enforceable without extensive judicial proceedings. This reduces the time between a violation being identified and a penalty being enforced. An appeal would need to be lodged through the proper legal channels, and employers should seek advice from a UAE labour lawyer on the correct procedure and deadlines.
The retroactivity question remains open. The amendments took effect on August 31, 2024, but the available sources do not state whether violations committed before that date are assessed under the old or new penalty framework. Employers with historical compliance issues should clarify this point before assuming the higher fines do not apply.
Sources: Emirates 24/7
Photo: Cheap labour working of new subway line in Dubai, UAE (9426902759) by Jeroen Komen from Utrecht, Netherlands, CC BY-SA 2.0
