UAE fines employers over $9.25m for fake jobs and inactive businesses

Since the start of the year, around 1,300 establishments owned by approximately 1,800 employers have been flagged by MoHRE for violating employment and licensing regulations.

These businesses were found to have ceased or failed to properly engage in their licensed activities while continuing to sponsor workers who had no actual working relationship with the employer.

UAE business fines

In response, MoHRE enforced a series of strict penalties:

• AED34m ($9.25m) in fines were issued
• Offending establishments were downgraded to the third category in the ministry’s classification system
• Work permit issuance was suspended
• Employers were barred from registering any new companies within MoHRE systems

The ministry’s actions fall under the scope of Federal Decree-Law No. 33 of 2021 on Regulating Labour Relations, as well as Cabinet Resolution No. 21 of 2020 and Ministerial Resolution No. 318 of 2024.

MoHRE has urged all employers to cancel their licences and settle their workers’ status if business operations have ceased, warning that inactive licensed establishments with registered employees are in clear violation of UAE labour laws.

Legal consequences apply to both the employer and the workers involved.

The ministry praised the efficiency of its integrated monitoring system, which combines digital tools with field inspections. These mechanisms assess establishment activity based on authorised business operations, workforce size, ministry transaction records, and other verified indicators.