UAE Announces Harsh Penalty For Companies That Hire Foreigners Without Work Permits
- The UAE government cited a federal decree law setting out financial penalties for companies that employ foreigners without the proper authorisation
- A specific fine of AED 50,000, equivalent to over N18 million, has been confirmed for hiring companies found in violation of the rule
- The UAE also warned expatriates who hold a work permit for one company but work for another, stating that both parties face consequences
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The UAE government has spelled out the financial consequences awaiting companies that employ foreign nationals without a valid work permit, citing Federal Decree Law No. 2 of 2007 as the legal basis for enforcement.
Under the law, any company found to have hired an expatriate who lacks an official work permit faces a fine of AED 50,000 (N18,011,980).
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UAE warns companies against hiring undocumented workers
The penalty does not stop there; repeat offenders face additional sanctions beyond the initial fine.
The government issued its official statement on the matter, which reads:
"As per Federal Decree Law No. 2 of 2007, if an expatriate is caught working for another company without an official permit, then a fine of AED 50,000 will be applied to the hiring company, in addition to other penalties in case of repeating the offence."
Expatriates with permits working elsewhere
The warning also targeted a specific group of foreign workers: those who already hold a legitimate work permit tied to one employer but have taken up work with a different company on the side.
The UAE made clear that such arrangements are equally subject to legal consequences. Should an expatriate in this situation be discovered working outside the terms of their permit, the company benefiting from that labour bears the financial and legal burden of the fine.
The directive reinforces the UAE's existing framework for regulating the country's large expatriate workforce, which forms a significant portion of the national labour market. Companies operating in the UAE are expected to ensure that every worker on their payroll holds documentation that specifically authorises employment with their organisation, and not merely a permit linked to another employer.
UAE says under-15s cannot get work permits
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Meanwhile, Legit.ng recently reported that the UAE government prohibits juveniles below the age of 15 from getting work permits.
The rule applies to both Emiratis and expatriate residents, regardless of their nationality or residency status.
Source: Legit.ng
