UAE Labour Law Violations: 5 Offences That Can Cost Employers Up to AED 1 Million
By Thasmiya
Employers in the UAE could face fines ranging from **AED 100,000 to AED 1 million** for violating key labour regulations, according to a recent reminder from the Ministry of Human Resources and Emiratisation (MoHRE).
The ministry has highlighted five serious employment-related offences, including hiring workers without the required permits, misusing work permits and employing minors in violation of the law.
The warning, reported on October 23, 2026, reinforces the importance of complying with the country’s employment regulations before recruiting or assigning work to employees.
The penalties are provided under [Article 60 of Federal Decree-Law No. 33 of 2021, as amended by Federal Decree-Law No. 9 of 2024](https://uaelegislation.gov.ae/en/legislations/1541), which specifies fines for serious employment-related violations.
For companies operating in the UAE, understanding these **UAE labour law violations and fines** is essential to avoiding legal penalties and protecting workers’ rights.
Here’s a breakdown of the five offences, the applicable penalties and what employers should know.
## **UAE Labour Law Fines: How Much Can Employers Be Penalised?**
Under the amended UAE Labour Law, specified employment violations carry fines ranging from AED 100,000 to AED 1 million.
The penalties apply to serious breaches involving work authorisation, recruitment practices, employee rights and the unlawful employment of minors.
### **Five UAE Labour Law Violations and Their Fines**
**Violation**
**Applicable Fine Range**
Employing workers without the required work permit
AED 100,000–1 million
Recruiting workers without providing employment
AED 100,000–1 million
Using work permits for unauthorised purposes
AED 100,000–1 million
Closing a business without settling workers’ rights
AED 100,000–1 million
Employing minors in violation of labour regulations
AED 100,000–1 million
These are statutory penalty ranges, not fixed fines automatically imposed at the maximum amount for every case.
The applicable penalty depends on the circumstances and relevant legal provisions.
## **1\. Employing Workers Without a Valid Work Permit**
The first violation involves employing someone without obtaining the appropriate work permit.
Under UAE labour regulations, employers covered by MoHRE requirements must secure the necessary authorisation before allowing an employee to begin work.
Hiring someone without the required permit can result in substantial financial penalties. For details on permit categories, application procedures and costs, read our [UAE Work Permit Guide 2026](https://www.whatmatters.ae/post/uae-work-permit-guide-2026-rules-costs-types).
### **What Does This Mean for Employers?**
Companies should ensure that:
- The employee has the correct work authorisation. - The permit is valid for the intended employment. - Required recruitment procedures have been completed. - Employment records accurately reflect the worker’s status.
Employers should not assume that a person’s UAE residence visa automatically authorises them to work for any company.
For example, residents sponsored by family members may still require an appropriate work permit to work for a MoHRE-registered employer. Residents can also check our [UAE Family Visa 2026 guide](https://www.whatmatters.ae/post/uae-family-visa-2026-salary-requirements-documents-costs) for information about sponsorship requirements.
**Penalty:** AED 100,000 to AED 1 million.
## **2\. Recruiting Workers Without Providing Them With Employment**
The second violation involves recruiting or employing workers without actually providing them with work.
This includes situations where a business recruits an employee or brings someone into the UAE but fails to provide genuine employment.
The law is intended to prevent recruitment practices that leave workers without the employment they were promised.
### **Why Is This a Violation?**
Recruitment must correspond to a genuine employment arrangement.
Businesses should not recruit workers merely to hold permits or create employment records without providing actual work.
This requirement helps protect workers from misleading recruitment arrangements.
**Penalty:** AED 100,000 to AED 1 million.
## **3\. Misusing Work Permits**
The third violation concerns using work permits for purposes other than those for which they were issued.
Different work permit categories are designed for different employment arrangements.
For example, temporary work permits, part-time permits and permits for employees recruited from abroad serve different purposes.
Employers must ensure that the permit they obtain is appropriate for the worker’s circumstances and intended employment.
### **How Can Employers Avoid This Violation?**
Before applying for a permit, businesses should:
- Identify the correct employment arrangement. - Select the appropriate work permit category. - Check the conditions attached to the permit. - Ensure the employee’s actual work arrangement complies with the authorisation.
Using a permit outside its approved purpose can constitute a labour law violation.
**Penalty:** AED 100,000 to AED 1 million.
## **4\. Closing a Business Without Settling Workers’ Rights**
The fourth violation applies to businesses that close or suspend operations without following the required procedures to settle employees’ rights.
An employer’s responsibilities do not automatically end when the company stops operating.
Businesses must comply with applicable employment and administrative procedures when closing or suspending operations.
### **What Should Employers Consider Before Closing?**
Depending on the circumstances, obligations may include:
- Settling outstanding wages. - Calculating applicable end-of-service benefits. - Addressing unused leave entitlements. - Completing employment termination procedures. - Resolving work permit and employment status matters. - Meeting other legal obligations owed to employees.
The exact requirements depend on the employment arrangements and applicable regulations.
**Penalty:** AED 100,000 to AED 1 million.
## **5\. Employing Minors in Violation of UAE Labour Law**
The fifth violation involves employing minors in circumstances prohibited by UAE labour legislation.
The UAE has specific rules governing the employment of young people.
Under the general private-sector labour framework, employing children under the age of 15 is prohibited.
Employment of eligible juveniles aged 15 to under 18 is subject to additional restrictions and permit requirements.
### **Can Minors Work in the UAE?**
Certain young people may be permitted to work under regulated conditions.
However, employers must comply with the relevant requirements.
These can include:
- Obtaining the appropriate juvenile work permit. - Meeting age-related eligibility conditions. - Securing required parental or guardian consent. - Complying with restrictions on working hours. - Avoiding prohibited or hazardous work. - Meeting applicable health and safety requirements.
### **Is Parental Consent Enough?**
No.
Parental or guardian consent does not make employment lawful if the arrangement violates UAE labour regulations.
The amended law also provides penalties for a parent or guardian who agrees to unlawful employment of a juvenile.
**Penalty:** AED 100,000 to AED 1 million.
## **UAE Work Permit Types: What Employers Should Know**
Selecting the correct permit is an important part of complying with UAE labour law.
MoHRE provides different work permit categories depending on the nature of employment.
Examples include:
**Work Permit Type**
**General Purpose**
Overseas recruitment permit
Recruiting an employee from outside the UAE
Transfer work permit
Moving an employee between establishments
Family-sponsored resident permit
Employing an eligible UAE resident sponsored by family
Temporary work permit
Authorising qualifying short-term work
Mission work permit
Bringing a worker for a specific temporary assignment
Part-time work permit
Authorising eligible part-time employment
Juvenile work permit
Employing eligible young people under regulated conditions
Student training or employment permit
Supporting eligible student training or work arrangements
Golden Visa holder work permit
Employing an eligible Golden Visa holder
This is not an exhaustive list of available permit categories.
The appropriate permit depends on the employee’s status, the employer and the intended work arrangement.
Businesses should review the latest requirements before submitting an application. Residents considering independent work can also read our [UAE Freelance Visa 2026 guide](https://www.whatmatters.ae/post/uae-freelance-visa-2026-cost-requirements-apply) for information about eligibility, licensing and application requirements.
## **Can Employers Be Fined for Fake Employment Arrangements?**
Yes.
The amended UAE Labour Law also addresses fictitious employment arrangements.
These involve appointing workers in a manner intended to circumvent labour market laws or regulations.
The relevant provisions include penalties ranging from AED 100,000 to AED 1 million.
Where multiple fictitious appointments are involved, the law provides for penalties to be calculated according to the number of workers concerned.
Additional consequences may apply where the arrangement involves improperly obtained government financial incentives.
This is particularly relevant to employers responsible for complying with Emiratisation-related regulations.
## **What Should UAE Employers Do to Avoid Labour Law Fines?**
Businesses can reduce compliance risks by reviewing their recruitment and employment procedures regularly.
### **Verify Work Permits Before Employment Begins**
Ensure every employee has the required authorisation before starting work.
### **Maintain Accurate Employee Records**
Keep employment contracts, permits and relevant documents up to date.
### **Use the Correct Permit Category**
Choose permits that match the employee’s actual working arrangements.
### **Follow Proper Recruitment Procedures**
Only recruit workers for genuine employment opportunities.
### **Protect Employee Rights During Closure**
Settle employment obligations and complete the required procedures when closing or suspending operations.
### **Follow Juvenile Employment Rules**
Check age restrictions, permit requirements and other legal conditions before employing young people.
### **Stay Updated With MoHRE Regulations**
Employment rules and administrative procedures can change.
Employers should rely on official MoHRE guidance when making compliance decisions.
## **Frequently Asked Questions**
### **What are the UAE labour law violations that carry fines up to AED 1 million?**
The five highlighted violations involve employing workers without the required permits, recruiting workers without providing employment, misusing work permits, closing businesses without settling workers’ rights and employing minors unlawfully.
### **What is the fine for employing someone without a work permit in the UAE?**
Under the amended UAE Labour Law, employing a worker without the required authorisation can result in a fine ranging from AED 100,000 to AED 1 million.
### **Can a UAE company hire someone with a residence visa but no work permit?**
A residence visa does not automatically replace the work authorisation required for employment. Employers must confirm the applicable permit requirements before hiring.
### **What happens if an employer uses the wrong work permit?**
Using a work permit for a purpose other than the one for which it was issued can result in penalties under UAE labour law.
### **Is it illegal to recruit employees and leave them without work?**
Yes. Recruiting or employing workers without providing genuine employment is among the offences covered by the amended law.
### **Can a 16-year-old work in the UAE?**
Eligible juveniles aged 15 to under 18 may work under regulated conditions, subject to the required permits and restrictions.
### **Can parents allow their children to work without a permit?**
Parental consent does not override UAE labour regulations. Unlawful employment of juveniles can result in penalties, including for a parent or guardian who agrees to the prohibited arrangement.
### **What happens to employees when a company closes in the UAE?**
Employers must follow the applicable procedures for settling employees’ rights and resolving employment-related obligations.
### **What is the penalty for fake employment in the UAE?**
Fictitious employment arrangements can attract fines ranging from AED 100,000 to AED 1 million under the relevant provisions of the amended labour law. Additional rules apply where multiple workers or improperly obtained incentives are involved.
### **Where can employers check UAE work permit requirements?**
Employers can check the official Ministry of Human Resources and Emiratisation website for work permit services, eligibility requirements and labour regulations.
## **Why This Matters**
The UAE’s labour regulations are designed to protect workers and establish clear responsibilities for employers.
The latest MoHRE reminder highlights the financial consequences of serious violations, particularly those involving illegal recruitment and misuse of employment permits.
For businesses, compliance begins before an employee starts work and continues throughout the employment relationship.
For workers, understanding these rules can help them recognise the importance of proper employment authorisation and lawful recruitment procedures.
**The key takeaway:** Five major **UAE labour law violations carry fines ranging from AED 100,000 to AED 1 million**. Employers should verify work permits, provide genuine employment, protect workers’ rights and follow all applicable labour regulations.
## Related Reads - [UAE Work Permit Guide 2026: Rules, Costs, Types and Application Process](https://www.whatmatters.ae/post/uae-work-permit-guide-2026-rules-costs-types) - [UAE Freelance Visa 2026: Cost, Requirements and How to Apply](https://www.whatmatters.ae/post/uae-freelance-visa-2026-cost-requirements-apply) - [UAE Family Visa 2026: Salary Requirements, Documents, Costs and Application Steps](https://www.whatmatters.ae/post/uae-family-visa-2026-salary-requirements-documents-costs) - [UAE Visa Changes 2026: New Visit Visa Rules, Residency Updates and Fines](https://www.whatmatters.ae/post/uae-visa-changes-2026-every-major-new-rule) - [UAE Visit Visa Extension 2026: Cost, Rules and How to Apply](/post/uae-visit-visa-extension-2026-cost-rules-apply) - [More stories like this](/category/things-to-do)