Keeping an organization compliant with the labour law is an essential responsibility for employers and the HR department. Employees are encouraged to know their rights as workers in the country and flag any complaints of mistreatment with the government. If you’re a business owner with employees, it’s important to know the labour law violations in the UAE in 2025 that could get you in trouble with the authorities. Violations can also affect your trade license in Dubai. As workplace inspections can be random, it’s also important to know how to keep your business running smoothly to avoid any problems with the law.
The UAE’s Labour Law: An Overview
The Ministry of Human Resources and Emiratisation (MOHRE) is the regulatory body for all labour-related activities in the UAE. Federal Decree by Law No. (33) of 2021, “Regarding the Regulation of Employment Relationships,” outlines the labour law of the country, with amendments being published in the following years. Every business entity is required to adhere to the labour law. It also contains certain industry-specific stipulations. Failure to comply can threaten the offender’s business operations and/or residence in the country. These are some of the general conditions:
- Working hours must be 8 hours a day, a total of 48 hours a week.
- A minimum of one paid day of rest must be granted to an employee per week.
- Every employee must be granted 30 days of paid annual leave for every year of employment.
- After the completion of the probationary period, employees will get up to 90 days of sick leave per year, consecutive or not. It will be 15 days of full day pay, 30 days of half-day pay, and the remaining days unpaid.
- Maternity leave will be 60 days of paid leave, with 45 days of full day pay and 15 days of half-day pay. Fathers are also granted 5 days of paternity leave with full day pay.
- Female employees are entitled to the same pay as their male counterparts if they perform the same job or another job of equal value.
What are the Common Labour Violations in the UAE?
If you have a business setup in Dubai with employees, it is your responsibility to avoid violations and facilitate employee well-being. The MOHRE found over 5,400 labour law violations just in the first half of 2025. The non-compliant businesses were fined, terminated, or sent to court, depending on the severity of the violation. These are ten MOHRE audit triggers in the UAE:
1. Failure to Meet Emiratisation Quotas
- You must have hired at least one Emirati by the end of 2024 and a second national by the end of 2025. This applies to sectors like real estate, IT, hospitality, and finance.
- All your Emirati employees should be registered on the Nafis platform.
- If you submit incorrect data about the number of Emiratis in your employ, or simply hire nationals without giving them any real work, it could get you in trouble with MOHRE.
2. Delayed or Non-Payment of End-of-Service Benefits
- As an employer, you are obligated to pay gratuity within 14 days of any employee’s last working day.
- If you pay the incorrect amount or withhold the payment, the employee has the legal right to file a complaint with the MOHRE.
3. Non-Compliance with Wage Protection System
- Every employee must be registered in the Wage Protection System (WPS).
- You must pay your employees their salary within 15 days of the due date.
- Giving wrong or incomplete salary details in the WPS file can result in UAE wage protection violations.
4. Excessive Overtime
- Your employees should not work for more than 8 hours a day or 48 hours a week.
- You must pay the correct overtime rate for extra hours or public holiday work and record all overtime accurately in your attendance system.
5. Employing Illegal Workers
- You must only hire employees who have valid work permits and residence visas.
- You cannot let anyone work under another company’s sponsorship or after their visa or permit has expired or been cancelled.
- You must not sponsor a worker without providing real employment, as this is a violation under UAE law.
6. Failure to Use Fixed-Term Contracts
- As an employer, you have to make sure that every employee has a valid fixed-term contract that’s registered under MOHRE.
- You also need to renew or update each contract before it expires.
- Employing workers without a legally recognized or active contract is a labour law violation in the UAE in 2025.
7. Breaches in Occupational Health & Safety
- You must provide safe working conditions, including the right protective equipment, especially for employees in high-risk environments.
- You need to conduct regular safety training and carry out documented workplace safety checks.
- You should report and investigate any workplace injuries to follow health and safety regulations.
8. Mismanaging Annual Leaves
- You must provide annual leave to employees who have completed one year of service.
- You cannot require employees to work during their approved leave period.
- You should pay out any unused leave when an employee leaves and ensure all leave balances are calculated correctly
9. Ghost Companies
- You must only register companies with real business activity and genuine employees.
- You cannot create fake employee records or use your trade license to sponsor unrelated workers.
- You should never rent out employee quotas or sponsorship capacity to other businesses, as this is illegal.
10. Operating Outside Licensed Scope
- You must only carry out business activities that are listed on your trade license.
- You should hire employees only for roles that match your approved business activities.
- You cannot subcontract services or use your license for unrelated activities without proper authorization.
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How Can Businesses Avoid Labour Law Violations in the UAE in 2025?
While there’s nothing you can do to avoid an MOHRE inspection—the authorities have the grounds to enter your business location at any time during working hours, there are certain practices you can follow to avoid a negative inspection experience:
- Ensure that all your employees have a valid work permit.
- Convert all the old contracts to the legally mandated fixed-term contracts which are renewable.
- Register all eligible employees in the WPS (Wage Protection System) and their salaries are paid on their due dates or within 15 days of the due date.
- Do not require full-time employees to exceed the normal 8 hours per day or 48 hours per week.
- Grant the mandated annual leave after one year of service.
- Implement and enforce a zero-tolerance policy against sexual harassment, bullying, and any form of verbal, physical, or psychological violence.
Ensure all employment records, like contracts and salary transfers, comply fully with MOHRE’s digital registration requirements.
How Can Employees Report Labour Law Violations in the UAE?
Employees can file a complaint with the MOHRE if they feel like their employer has violated the labour law. This is how to report a labour law violation in the UAE for mainland companies:
- Online: You can file a complaint through the MOHRE website.
- Mobile app: You can use the MOHRE app.
- Phone: The call center number is 600590000.
- Tawseel service centres: You can visit any Tawseel center to file your complaint in-person.
If the company you want to report is set up in a free zone, you should direct your complaints to the relevant free zone authority. You can only take the issue to court after obtaining an NOC from the mediation department.
Generally, it is recommended to raise the issue with your employer before going to the Ministry. The MOHRE will first try to resolve the issue through mediation, then escalate it to the court if an agreement cannot be reached.
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