Employers who hire workers without a valid UAE work permit can face fines ranging from AED 100,000 to AED 1,000,000 per offense. If the number of affected workers increases, the penalties can reach a maximum of AED 10 million.
In addition, depending on the violation, employers may also face imprisonment, labor file suspension, criminal prosecution, and other administrative sanctions.
These penalties are primarily governed by Federal Decree-Law No. 33 of 2021. Federal Decree-Law No. 9 of 2022 governs domestic workers, while Cabinet Decision No. 43 of 2025 covers Emiratization-related violations. Let’s learn more about the penalties for employing illegal workers in the UAE in today’s guide.
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Employers who hire workers without a valid UAE work permit can face fines ranging from AED 100,000 to AED 1,000,000 per offense. If the number of affected workers increases, the penalties can reach a maximum of AED 10 million.
In addition, depending on the violation, employers may also face imprisonment, labor file suspension, criminal prosecution, and other administrative sanctions.
These penalties are primarily governed by Federal Decree-Law No. 33 of 2021. Federal Decree-Law No. 9 of 2022 governs domestic workers, while Cabinet Decision No. 43 of 2025 covers Emiratization-related violations. Let’s learn more about the penalties for employing illegal workers in the UAE in today’s guide.
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Co-author
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Leah Maglalang
Business Coordinator UAE
Employers may face one or more of the following penalties if they hire workers illegally:
Several UAE laws and government decisions regulate illegal employment. They also prescribe penalties when employers hire workers without valid work permits or legal immigration status.
The primary law governing private-sector employment in the UAE is Federal Decree-Law No. 33 of 2021. It establishes employers’ obligations regarding legal hiring and sets penalties for violations.
Article 60 contains the main financial penalties for serious labor violations. It authorizes fines ranging from AED 100,000 to AED 1,000,000 per offense. These fines can reach a maximum of AED 10 million.
“A penalty of imprisonment for a period not less than one year and/or a fine not less than two hundred thousand (200,000) AED and not exceeding one million (1,000,000) AED shall be imposed on any person who exploits or misuses the electronic powers granted thereto to access the Ministry’s systems, or enables others to do so, resulting in a disruption in the labor procedures or relations.”
Federal Decree-Law No. 9 of 2022 provides stricter penalties. Employing a domestic worker without a valid work permit carries a fine of AED 50,000 to AED 200,000, while operating an unlicensed domestic worker recruitment or mediation agency, or misusing MOHRE’s electronic systems, carries a fine of AED 200,000 to AED 1,000,000 and up to one year in prison.
The Ministry of Human Resources and Emiratization (MOHRE) enforces these laws through inspections, administrative sanctions, labor file suspensions, and referrals to the Public Prosecution.
“Work may not be practiced in the State, and the Employer may not recruit or employ any Worker, except after obtaining a work permit from the Ministry in accordance with the provisions of this Decree by law and its Executive Regulation.”
Article 6 of Federal Decree-Law No. 33 of 2021 has always prohibited work without a permit, but MOHRE has intensified enforcement by explicitly clarifying that trial shifts, assessment days, and unpaid training count as illegal employment if performed before a work permit is issued.
The table below summarizes the updated financial penalties for serious labor market violations under UAE labor law.
Violation | Financial Penalty |
Employing a worker without a valid work permit | AED 100,000–1,000,000 per offense (multiplied by the number of workers) |
Recruiting a worker and leaving them unemployed | AED 100,000–1,000,000 |
Using a work permit for a purpose other than it was issued | AED 100,000–1,000,000 |
Closing a business without settling workers’ entitlements | AED 100,000–1,000,000 |
Employing a juvenile in violation of the law | AED 100,000–1,000,000 |
Fictitious (fake) recruitment | AED 100,000–1,000,000 per fictitious worker |
Fake Emiratization | AED 20,000–100,000 per fictitious Emirati position, plus repayment of benefits obtained |
Misusing MOHRE electronic systems causing labor disruption | AED 200,000–1,000,000 and/or imprisonment of at least one year |
Yes. In addition to financial penalties, UAE law provides for imprisonment. Employers can go to jail if they repeatedly violate labor and immigration laws. Repeat violations committed within one year of a previous judgment may result in imprisonment and/or doubled fines, depending on the circumstances.
Financial penalties are only one consequence of labor law violations. Employers can also face administrative sanctions that can disrupt business operations and impose restrictions.
Administrative Action | Effect on the Employer |
Labor file suspension | Blocks the issuance of new work permits and other labor services. |
Refusal to issue domestic worker permits | Prevents the employer from obtaining new work permits for domestic workers. |
Company compliance downgrade | Downgrades the employer’s compliance classification (historically to Category C), restricting sponsorship transfers and visa processing. |
Blacklisting | Limits or blocks access to MOHRE services for repeat offenders. |
Referral to the Public Prosecution | Serious violations may result in criminal investigation and prosecution. |
Yes. According to MOHRE’s 2026 enforcement guidance, employers can’t allow an individual to start work before a valid work permit is issued. This means authorities may still treat the following situations as illegal employment:
Domestic workers are household employees hired by individuals or families, such as housemaids, nannies, drivers, cooks, gardeners, and caregivers.
Employers who hire a domestic worker without a valid work permit face a fine of AED 50,000 to AED 200,000. Unlicensed domestic-worker recruitment agencies, or anyone misusing MOHRE’s online systems, face a steeper penalty of up to one year in prison and/or a fine of AED 200,000 to AED 1,000,000.
Use the following compliance checklist to reduce the risk of fines and other legal consequences:
☐ Verify every employee’s work permit before they start work.
☐ Never allow employees to join before their work permit and visa are issued.
☐ Register all new hires with MOHRE on time.
☐ Conduct regular internal compliance audits.
☐ Track work permit and visa expiration dates.
☐ Cancel visas correctly after employment ends.
☐ Settle end-of-service entitlements within the required timeframe.
☐ Maintain accurate employment and immigration records.
☐ Use work permits only for their approved purpose.
☐ Review hiring practices regularly to ensure ongoing compliance.
Because UAE labor laws impose substantial financial and administrative penalties, many international companies choose to outsource employment compliance through an Employer of Record (EOR). FMC Group’s Employer of Record (EOR) service helps businesses hire legally without establishing a local entity. We handle compliance with UAE labor and immigration regulations. With our EOR services, you can:
Hiring employees without needing a local entity in the UAE is just one benefit of using an EOR. Other benefits include, but are not limited to, handling payroll, social security contributions, and administrative tasks. Contact our experts to learn how our UAE Employer of Record services can support your expansion.
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