Labor law violations in the UAE decreased by 15%, but illegal hiring and unpaid wages remain the main offenses
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Khaleej Times
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Labor law violations in the UAE decreased by 15%, but illegal hiring and unpaid wages remain the main offenses

In the first half of 2026, the number of labor law violations in the private sector of the United Arab Emirates (UAE) decreased by fifteen percent. Nevertheless, among the most frequently detected violations during inspections remain hiring employees without the necessary permits, non-payment of wages through the Wage Protection System (WPS), and the provision of incorrect data or documents.

The Ministry of Human Resources and Emiratisation (MoHRE) emphasized that private sector enterprises are obliged to obtain all required permits and approvals before hiring or employing staff, as well as to guarantee wage payments through WPS within the established deadlines.

Hiring an employee without proper authorization can result in fines ranging from 100,000 to 1 million dirhams according to UAE Labor Law. A similar range of fines applies to employers who bring workers into the country but do not provide them with work or abuse work visas.

Labor payment rules were also updated and came into effect on June 1st of this year. According to the updated WPS, wages for the previous month must be paid on the first day of each Gregorian month. Companies failing to make payments receive notifications starting on the second day after the deadline, and the issuance of new work visas is suspended from the fifth day if the salary remains unpaid.

Providing incorrect documentation can also negatively affect a company's ability to obtain work visas. Official UAE government guidelines state that MoHRE may refuse to issue or renew, or cancel, work visas if an enterprise provides false documents. Similar measures can be applied to companies that do not comply with WPS or other labor market regulatory systems.

This warning came against the backdrop of MoHRE reporting a 15% decrease in the number of private sector enterprises caught violating labor market legislation in the first half of 2026 compared to the same period last year. The number of cases referred to the Public Prosecution also sharply decreased—falling by 49% to 490 cases from 962 in 2025. The Ministry noted that this indicates a reduction in serious violations requiring referral to judicial bodies.

MoHRE reported that its inspection teams conducted approximately 212,000 visits in the first six months of the year under the 'intelligent monitoring system.' This system uses artificial intelligence, data analysis, and risk indicators to assist inspectors in identifying priority enterprises and cases, according to the ministry's statement.

MoHRE stated its intention to continue strengthening its control and compliance systems, as well as working with employers to promote preventive adherence to labor legislation and support a safe, stable, and competitive working environment.

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