Authorities Fine 1300 Firms for License Violations, Collecting AED 34 Million

In a bid to uphold labor laws, the Ministry of Human Resources has implemented stringent measures against establishments licensed to operate, yet found not to be actively engaging in their registered activities. The ministry's crackdown since the beginning of the year uncovered approximately 1,300 establishments, owned by around 1,800 employers, failing to conduct their licensed operations properly despite registering employees without genuine employment relationships. As a result, these establishments have faced suspended work permit issuance privileges and incurred over AED 34 million in fines, now classified in the third category of private sector ranking.

Enforcement Actions

To ensure compliance with national human resources and labor regulations, the ministry has prohibited these employers from registering any new establishments in its systems. This action complies with the Labor Relations Organization Law and Cabinet Decision No. 21 of 2020, alongside Ministerial Resolution No. 318 of 2024. Employers whose establishments cease operations are urged to cancel licenses and settle employee statuses according to state-approved legal channels, to avoid legal accountability.

Legal Implications

The ministry views the failure to conduct licensed activities and the registration of non-existent employee relationships as serious offences, exposing owners and registered individuals of these establishments to legal consequences. Such violations are a clear breach of regulations, and the ministry's vigilant site inspections and advanced monitoring systems effectively identify these fake operations through comprehensive business activity indicators.

Employer Awareness

The ministry expresses confidence in employers and public awareness regarding the negative impact of such violations on the labor market and artificial employment relationships. The public is encouraged to report any unethical practices via the ministry’s hotline at 60059000 or through its smart application and official website.