UAE gets tough with firms having fake employees, issues Dhs34m fines since beginning of 2025

The Ministry of Human Resources and Emiratisation (MoHRE) has affirmed its commitment to implementing strict measures against establishments that have been flagged for not effectively engaging in their licensed activities and for having one or more registered workers without an actual employment relationship.

Since the beginning of the year, the Ministry’s monitoring system has detected around 1,300 establishments, owned by approximately 1,800 employers, that were not effectively practicing their licensed activities, despite having registered workers without a real employment relationship.

Strict measures were taken against these establishments, including suspending the issuance of new work permits, imposing more than Dhs34 million in fines on their owners, and placing them in the third category in the classification scheme for private sector establishments.

Furthermore, and as part of the MoHRE’s efforts to ensure establishment owners comply with the UAE’s human resources laws and regulations, measures were implemented against owners of these establishment to prevent them from registering any new establishments in the Ministry’s systems, in line with the provisions of Federal Decree-Law No. (33) of 2021 on Regulating Labor Relations, Cabinet Resolution No. (21) of 2020 Concerning Service Fees and Administrative Fines in the MoHRE, and Ministerial Resolution No. (318) of 2024 on the Procedure for Addressing Establishments with Registered Employees Not Conducting Their Licensed Activities.

The Ministry of Human Resources and Emiratisation called on employers whose establishments cease operations for any reason to cancel their licenses and settle the status of their workers in accordance with the legal procedures in place in the UAE, in order to avoid legal accountability.

The Ministry went on to emphasise that an inactive licensed establishment maintaining registered workers constitutes a serious violation.

The legal consequences apply to both the establishment owners and the registered workers, particularly in cases where no genuine employment relationship exists, a clear violation of the legislation.

The MoHRE highlighted the efficiency and effectiveness of its field-based and smart monitoring and inspection system in detecting and taking action against such establishments.

Leveraging comprehensive indicators on each establishment's activities, authorities can assess its operational status. This assessment is based on factors including authorised business activity, the number of sponsored workers, transaction movements with the Ministry, and other criteria verified through field inspections.

The Ministry of Human Resources and Emiratisation expressed confidence in the level of awareness among employers and the community regarding the seriousness of such violations and their negative impact on the labour market, as well as both parties in the fake employment relation in question, urging the public to report any unlawful practices through its call centre on 60059000, or its smart application and official website.