UAE Cracks Down on Illegal Employment: Heavy Fines for Hiring Visit Visa Holders

In a bid to curb illegal employment practices, the United Arab Emirates (UAE) has recently amended its labor laws to impose harsher penalties on companies hiring individuals on visit visas. This move underscores the government’s commitment to upholding the country’s labor regulations and protecting workers from exploitation. The new amendments introduce significantly higher fines for employers who flout these laws, with penalties now ranging from Dh100,000 to Dh1 million.

Legal experts have welcomed these changes, noting that the increased fines reflect a serious effort by the UAE government to enforce legal employment practices. Ali Saeed Al Kaabi, director at ECH Digital, pointed out that the previous fines, which ranged from Dh50,000 to Dh200,000, were often insufficient to deter companies from hiring visit visa holders. The new, more stringent penalties are expected to have a much stronger impact, encouraging employers to comply with the law.

One of the primary concerns addressed by the amendments is the exploitation of workers on visit visas. Unscrupulous employers have been known to hire individuals on tourist visas, promising them work permits and residency once their visit visas expire. However, many of these workers are left unpaid and without legal protection. The new regulations aim to put an end to such practices by holding employers accountable and ensuring that all workers are employed legally.

The experience of South African expatriate Kieran Foury serves as a cautionary tale. Foury arrived in Dubai in December 2023 and was hired by a company that assured him his employment visa would be processed before his visit visa expired. Despite these assurances, Foury was eventually dismissed from his job and left with Dh5,500 in overstay fines. His case highlights the risks associated with working on a visit visa and the importance of securing legal employment.

The UAE government has made it clear that working under a visit or tourist visa is illegal. Employment is only permitted once an official offer letter is issued by the Ministry of Human Resources and Emiratisation (MOHRE). Legal advisors are urging employers to adhere to these regulations, warning that non-compliance could result in severe legal consequences.

According to Hadiel Hussein, a senior associate at BSA Ahmad Bin Hezeem & Associates, the recent amendments create a more regulated environment for employers. The increased fines act as a strong deterrent against hiring visit visa holders, while also providing greater protection for employees. Hussein also noted that the involvement of MOHRE in mediating disputes and issuing enforceable decisions on small claims will streamline the legal process, making it more efficient for both employees and employers.

As the UAE continues to develop its labor market, these new regulations represent a significant step forward in ensuring fair and legal employment practices. By cracking down on illegal employment, the government is not only protecting workers but also maintaining the integrity of the country’s labor market. Employers are now on notice: hiring visit visa holders is a risk that could result in hefty fines and legal repercussions.