Companies penalized over Dh34 million by MoHRE for operating unlicensed businesses
The United Arab Emirates (UAE) Ministry of Human Resources and Emiratisation (MoHRE) has taken tough action against businesses that keep workers on record without real jobs or fail to practice their licensed business activities.
Since the start of 2025, around 1,300 companies owned by approximately 1,800 employers have been fined for such violations. The total fines imposed exceed AED 34 million (about $9.25 million).
These companies have been moved to the lowest category in the private sector classification system, which carries penalties and tighter restrictions. Their ability to apply for new work permits has been suspended, and they have been barred from registering any new companies within the MoHRE system.
The actions are based on Federal Decree-Law No. 33 of 2021 on Regulating Labour Relations, Cabinet Resolution No. 21 of 2020, and Ministerial Resolution No. 318 of 2024. Employers must cancel licenses and settle workers’ status if business operations have ceased, or face legal consequences applicable to both employers and workers.
MoHRE uses an integrated monitoring system combining digital tools with field inspections to verify business activity and employment legitimacy. The monitoring process considers factors such as the number of sponsored workers, the business's activities, and recent dealings with the ministry.
The ministry has also suspended the companies' ability to apply for new work permits. The identified companies have been moved to the lowest category in the private sector classification system.
The UAE Ministry of Human Resources and Emiratisation (MoHRE) thanks those who follow the rules. MoHRE has a smart app and official website for reporting suspicious practices. Employers are urged to cancel their licenses and properly update their workers' status if their businesses stop operating.
This violation affects the fairness and balance of the entire labour market, as stated by the Ministry of Human Resources and Emiratisation (MoHRE). The ministry continues its efforts to combat fraud and ensure transparency in the private sector.
For those who wish to report suspicious practices, the contact number for MoHRE's call centre is 60059000.
- Amidst the ongoing crackdown, numerous businesses facing news of fines for violating labour laws, as they've maintained records of workers without genuine employment or failed to adhere to their licensed business activities.
- The situation further escalated when these delinquent businesses, subjected to penalties and stricter regulations, were barred from registering new companies within the UAE Ministry of Human Resources and Emiratisation (MoHRE) system, placing restrictions on their ability to apply for work permits.
