UAE labour law fines start at AED 5,000 and reach AED 1,000,000 per violation. The highest band applies to employing a worker without a valid permit. Fines can multiply by the number of workers affected, up to AED 10,000,000. Some offences also carry imprisonment.
This guide lists UAE labour law penalties by article, with the amount, the trigger, and the source.
The rules apply to private sector employers. If you hire UAE nationals, read our guide on what Emiratisation means alongside this one.
UAE Labour Law Fines at a Glance
The penalty articles of the decree sit in Articles 58 to 64 of Federal Decree-Law No. 33 of 2021. The table summarises them. All amounts are in AED.
| Article | Violation | Penalty |
| 59 | False information or documents to recruit a foreign worker | 20,000 to 100,000 |
| 59 | Obstructing or threatening a labour inspector | 20,000 to 100,000 |
| 60 | Employing a worker without a work permit | 100,000 to 1,000,000 |
| 60 | Recruiting a worker and leaving them without work | 100,000 to 1,000,000 |
| 60 | Using work permits for other purposes | 100,000 to 1,000,000 |
| 60 | Closing a business without settling worker rights | 100,000 to 1,000,000 |
| 60 | Employing a juvenile in breach of the law | 100,000 to 1,000,000 |
| 60 | Fictitious employment to avoid labour market rules | 100,000 to 1,000,000 per worker |
| 61 | Misusing electronic access to Ministry systems | At least one year in prison and/or 200,000 to 1,000,000 |
| 63 | Any other breach of the decree or its regulations | 5,000 to 1,000,000 |
Article 60 was amended by Federal Decree-Law No. 9 of 2024, which raised its band. The figures above reflect the current text.
UAE Labour Law Fines for Employers: How the System Works
UAE labour law fines for employers follow a simple structure. A named article sets a band for serious breaches. Article 63 catches everything else. Three further rules decide the final bill.
Do fines multiply by the number of workers?
Yes. Article 62 allows fines to be imposed repeatedly according to the number of workers affected. The total cannot exceed AED 10,000,000. A site with eight unpermitted workers can face eight counts, not one.
What happens on a repeat offence?
A second offence within one year of a prior judgment can double the fine. Article 64 also allows imprisonment.
Can a fictitious employment case be settled?
Yes, for fictitious employment only. Only the Minister can start criminal proceedings, and the Ministry may settle at the employer’s request. The settlement must be at least 50% of the minimum fine, which is AED 50,000. The employer must also repay any financial incentives received.
Employer Penalties UAE: The Violations That Cost the Most
Employer penalties UAE authorities enforce most heavily fall under Article 60. These breaches carry the top band of AED 100,000 to AED 1,000,000.
Employing a worker without a permit
The permit must match the employer and the purpose it was issued for. Using a permit for another purpose is a separate offence under the same article.
Fictitious employment and fake Emiratisation
Fictitious employment means appointing people on paper to avoid labour market rules. The fine is multiplied by the number of fictitious workers. Emiratisation rules have their own scale. MOHRE’s Emiratisation announcement sets fines under Cabinet Resolution No. 44 of 2023.
| Offence | Fine (AED) |
| First circumvention | 100,000 |
| Second circumvention | 300,000 |
| Third and later | 500,000 each |
The company must also still meet its original Emiratisation target. Our Emiratisation recruitment service sources UAE nationals for roles that qualify.
Closing a business without settling dues
An employer that shuts down must settle every worker right first. Skipping this step falls under Article 60.
UAE Labour Law Violations and Fines Beyond the Decree-Law
UAE labour law violations and fines are not all in the decree. Ministerial and Cabinet resolutions add penalties for specific duties. The table marks how well each figure is sourced.
| Violation | Reported Penalty | Source Status |
| Outdoor work between 12:30 pm and 3:00 pm, 15 June to 15 September | AED 5,000 per worker, up to AED 50,000 | Reported, Ministerial Resolution 44 of 2022 |
| Emiratisation shortfall, 20 to 49 employees in listed sectors | AED 108,000 for 2025 | Reported by several secondary sources |
| Late wages through the Wage Protection System | Staged measures, then administrative fines | Amounts vary by resolution |
| Charging workers recruitment or visa costs | Falls under the general Article 63 band | Reported |
Treat reported figures as a starting point. Confirm them on the MOHRE midday break page and the live Emiratisation portal before you budget.
How the midday break fine adds up
The midday break fine caps out quickly. Take a site with 12 outdoor workers on a banned afternoon. At AED 5,000 per worker, the fine would be AED 60,000. The reported cap brings it to AED 50,000.
How late wages escalate
MOHRE does not move straight to a fine. Late wages first trigger notices and permit restrictions. Repeat delays can raise the company’s risk category. The exact steps and amounts change with each resolution, so check the current schedule.
Labour Law Fines for Companies UAE: A Worked Example
Labour law fines for companies UAE regulators issue depend on the breach and the headcount. This example is an illustration, not a prediction of what a court would order.
A trading firm has 40 staff. An inspection finds three workers on permits issued for another company. The firm has also let two outdoor workers continue through a midday break.
- The three permit breaches fall under Article 60, with a band of AED 100,000 to AED 1,000,000 each.
- At the minimum fine, the permit exposure is AED 300,000.
- The midday breach adds AED 10,000 at the reported AED 5,000 per worker.
- A repeat breach within one year would double the fine.
The total exposure at the minimum is AED 310,000, before any repeat offence.
UAE Employment Law Penalties: Who Is Covered
UAE employment law penalties under this decree apply to private sector employers on the mainland. DIFC and ADGM run separate employment laws with their own enforcement. Other free zones usually follow the federal law. Confirm your licence type before you rely on any figure here.
UAE Labour Law Penalties: A Compliance Checklist
UAE labour law penalties are easiest to avoid at the hiring stage. Most Article 60 breaches begin with a permit, a contract, or a role that does not match.
Review this list each quarter.
- Every worker holds a valid permit issued to your company
- Each permit matches the actual role and category
- Contracts are signed and filed before the start date
- Workers pay no recruitment or visa costs
- Wages are paid on time through the Wage Protection System
- Midday break timetables are issued before 15 June
- Emiratisation targets are tracked each half year
- Records are ready for an unannounced inspection
Obstructing an inspector is itself an offence under Article 59. Give access to records quickly, and fix any listed breach within the stated period.
How Hiring Choices Prevent Violations
Many penalties begin with a hiring decision. An unclear visa status becomes a permit problem later.
Caliberly is a recruitment agency serving employers across industries. It does not run payroll or PRO. Its role is to reduce hiring risk before the permit stage.
Every shortlist shows nationality, visa status, salary in AED, and notice period. Recruiters speak to about forty candidates for every four they shortlist. Our eight stage process tracks visa steps through to joining. Employers pay the fee after the candidate joins, with no upfront retainer. A 90 day free replacement guarantee applies.
Short peaks create their own risk. Our temporary staffing service means the agency carries the contract and visa cost. For lasting roles, our permanent recruitment service applies. Read how a talent pipeline reduces rushed hires. The true cost of a bad hire shows what a wrong hire adds. To discuss a role, get in touch with Caliberly.
Frequently Asked Questions
Does paying a fine end the matter?
Not always. Article 58 states that these penalties do not remove any harsher penalty under another law. A court can still apply other charges to the same conduct.
Are the older AED 50,000 to AED 200,000 figures still valid?
No. That was the earlier Article 60 band. Federal Decree-Law No. 9 of 2024 raised it to AED 100,000 to AED 1,000,000. Some older blogs still show the old figures.
Who is liable when a staffing contractor supplies the worker?
Under Article 11, the contractor employer is solely responsible for the rights of workers it assigns. Parties can agree otherwise in writing. Check the service contract before the assignment starts.
Can MOHRE do more than issue a fine?
Yes. Articles 54 and 56 allow the Minister to impose administrative measures on an establishment. It can also order wages paid for up to two months during a dispute.
How much can an employer deduct from wages as a disciplinary fine?
Reported limits under Article 25 set disciplinary deductions at 5% of the wage. Total deductions cannot exceed 50% of the wage. Confirm the current limits in the decree text before you deduct.
Need compliant hiring support?
Submit your hiring requirement and our team will respond with a plan. Explore all employer services to see how Caliberly supports employers across industries.
