The UAE has recently updated its labor laws to enhance protections for both employers and employees.^[?] These changes aim to create a fair and competitive labor market, providing clear guidelines on the rights and responsibilities of all parties involved.

Among the key updates, the new laws include stricter regulations on the employment of minors, fake Emiratisation, and improper recruitment practices. Employers who violate these rules could face substantial fines, ranging from AED 100,000 to AED 1 million ($27,200 to $272,000). This applies to those who hire workers without proper permits, bring them to the UAE without providing them with jobs, or misuse work permits. Additionally, shutting down a business without settling workers’ rights also carries significant penalties. The same fines apply to guardians who illegally allow minors to work.

The decree introduces criminal penalties for fictitious recruitment practices, including fake Emiratisation. Employers found guilty of falsely claiming to have hired Emiratis or other workers will face fines that increase based on the number of workers involved.

In the event of a labor dispute, if an employer or employee disagrees with a decision from the Ministry of Human Resources and Emiratisation (MoHRE), the case will now be taken directly to the Court of First Instance, bypassing the Court of Appeal. Claims must be filed within two years of the termination of the employment relationship; otherwise, they will not be considered by the court.

For cases involving fraudulent employment or fake Emiratisation, criminal proceedings can only be initiated at the request of the Minister of Human Resources and Emiratisation or an authorized representative. Employers may settle these cases before a court ruling by paying at least 50% of the minimum fine and returning any financial incentives received by their fictitious employees.

The new decree also requires the Courts of Appeal to transfer any ongoing disputes related to employment to the competent Court of First Instance. This transfer applies to all cases except those that have already been decided or are awaiting judgment.