Last Updated on August 19, 2024 by Vadim
Recent amendments to the UAE labor law have introduced stringent measures to deter companies from hiring individuals on visit visas. These changes aim to protect workers’ rights and enforce legal employment practices across the Emirates.
Key Changes in UAE Labor Law
The new amendments have significantly increased the penalties for labor law violations:
- Fines now range from AED 100,000 to AED 1 million for specific offenses
- Hiring workers without proper permits can result in hefty fines
- Bringing workers to the UAE and failing to provide jobs is now a punishable offense
Ali Saeed Al Kaabi, director at ECH Digital, emphasizes the gravity of these changes: “Previously, fines for hiring workers without a work permit ranged from AED 50,000 to AED 200,000. The new range of AED 100,000 to AED 1 million shows the seriousness of the government in protecting workers’ rights.”
Impact on Employers and Employees
For Employers
The amendments create a stricter regulatory environment, demanding greater compliance with labor laws. Hadiel Hussein, senior associate at BSA Ahmad Bin Hezeem & Associates, explains:
“The substantial increase in fines, along with the possibility of criminal penalties, serves as a strong deterrent against non-compliance to the labor law. The amendments make it clear that any violation of labor regulations will result in severe consequences, thereby increasing employer accountability.”
For Employees
These changes offer enhanced protection and security for workers:
- Higher penalties imposed on employers provide a stronger deterrent against violations of employee rights
- Extended time-bar for filing employment claims
- Continued wage payments during disputes
The Problem of Visit Visa Employment
Some employers in the UAE have been known to make visit visa holders work by promising them residency and work permits after their tourist permits expire. This practice often leads to exploitation, with many workers not getting paid for their work during this period.
South African expat Kieran Foury shared his experience of working on a visit visa:
“I worked in the marketing department for over three months. They promised to get me an employment visa after my visit visa expired. I kept reminding them about my illegal status, and the only response I received from HR was not to worry and that my visa would be issued soon.”
Foury’s story highlights the risks associated with working on a visit visa, including potential fines and forced exit from the country.
Legal Stance on Visit Visa Employment
The UAE government explicitly states that working under a visit or tourist permit/visa is illegal. Expats offered a job in the UAE can only legally work after an offer letter is issued by the UAE’s Ministry of Human Resources and Emiratisation (MOHRE).
Streamlining Employment Disputes
The amendments also introduce measures to streamline the resolution of employment disputes:
- The Ministry of Human Resources and Emiratisation (MOHRE) will play an enhanced role in mediating disputes
- MOHRE can now issue enforceable decisions in low-value claims and disputes
- This change ensures swifter and more efficient resolution of employment issues with reduced legal costs
Conclusion
These significant changes to the UAE labor law underscore the government’s commitment to protecting workers’ rights and ensuring fair employment practices. Employers must now be more vigilant in their hiring processes, while employees can expect greater protection under the law. As the UAE continues to evolve its labor regulations, both employers and employees must stay informed to navigate the changing landscape of employment in the Emirates.
Vadim Kouznetsov is a distinguished entrepreneur and the visionary founder and CEO of JobXDubai.com, the UAE’s rapidly expanding job board. Renowned for his expertise in bridging the gap between job seekers and employment opportunities, Vadim has become a leading authority in the recruitment and job market of Dubai.
His innovative approach to matching candidates with their ideal roles has propelled JobXDubai.com to the forefront of the industry, making a significant impact on the region’s employment landscape.
Through his work, Vadim Kouznetsov has demonstrated a profound commitment to enhancing the job search experience, solidifying his status as a pivotal figure in the field of recruitment.