What other changes have been introduced in UAE's labour law?
The United Arab Emirates is introducing criminal penalties of up to AED1 million for fictitious recruitment, including fictitious Emiratisation, as part of new amendments to its labour law.
The Ministry of Human Resources and Emiratisation (MOHRE) said employers found guilty of fictitious recruitment, including fictitious Emiratisation, will be fined between AED100,000 and AED1 million.
The UAE government has been beefing up its implementation of its Emiratisation targets in a bid to ramp up the employment of UAE citizens.
MOHRE previously noted that the recruitment of UAE citizens in the private sector has "added significant value to the business sector and contributed to the growth of operations in the companies that hire them."
The new criminal penalty on fictitious recruitment is part of the government's latest Federal Decree-Law that amends specific provisions of the UAE Labour Law.
Under the new amendments, a fine ranging from AED100,000 to AED1 million is also introduced for the following violations:
"The penalty is multiplied by the number of workers involved in the fictitious employment," MOHRE said in a media release.
Meanwhile, the new decree also states that only the Minister of Human Resources and Emiratisation, or their authorised representative, can initiate criminal proceedings for fictitious employment.
It also allows MOHRE to settle such cases before a court sentence if the employer pays at least 50% of the minimum fine and returns to the government all financial incentives received by the fictitious employees.
The decree also introduces changes to the legal process for resolving labour disputes, according to MOHRE.
In cases where there is a disagreement with a decision issued by MOHRE to solve a labour dispute, the case will now be brought before the Court of First Instance instead of the Court of Appeal
"The court shall revoke proceeding with any claims filed after two years from the termination of the employment relationship, by the provisions of the present law," MOHRE added.
The Courts of Appeal shall also refer all requests, disputes, and grievances regarding the regulation of employment relations, in their current state, to the Court of First Instance starting from the implementation of the provisions.
According to MOHRE, the amendments to the labour law aims to "ensure the efficiency and competitiveness of the labour market." It also seeks to regulate employment relationships and clearly define the rights and obligations of all parties involved.
