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HomeFinancialUAE Strengthens Labour Law Compliance with Business Centre Suspensions

UAE Strengthens Labour Law Compliance with Business Centre Suspensions

UAE business centres will face strict penalties, including suspensions of up to two years, for violations of labour laws. The Ministry of Human Resources and Emiratisation (MoHRE) introduced this measure to enhance oversight and ensure compliance across the private sector.

Under Ministerial Resolution No. 702 of 2025, business centres assisting companies and individuals in accessing ministry services are now subject to both administrative and legal sanctions. The decision clarifies responsibilities, obligations, and the consequences of violating regulations.

According to the ministry, users’ access to MoHRE systems will be immediately suspended when violations are confirmed. Access will only be reinstated after all corrective measures are completed, ensuring strict accountability and operational integrity.

Severe violations, including human trafficking or employing foreign workers without valid permits, will trigger suspensions lasting two years. Meanwhile, lighter breaches, such as submitting false documents or engaging in fake Emiratisation practices, result in three-month suspensions. Misuse of electronic access privileges carries six-month penalties.

Furthermore, the ministry retains the authority to refer serious cases to judicial authorities, adding a legal layer to the enforcement framework. In exceptional cases, the Undersecretary for Labor Market and Emiratisation Affairs may approve early reinstatement before the suspension period ends.

Business centres affected by the decision have the right to appeal within 15 days of receiving the suspension notice. However, the ministry emphasised that its ruling on appeals is final, reinforcing the seriousness of compliance obligations.

The resolution reflects MoHRE’s broader effort to enhance transparency and regulation within business centres, which play a pivotal role in supporting the labour market and national Emiratisation initiatives. By enforcing these rules, the ministry aims to curb malpractice and promote integrity in services provided to both companies and individuals.

Experts highlight that UAE business centres serve as a critical link between businesses and government services. Therefore, strengthening compliance measures ensures fair treatment, legal accountability, and protection for both workers and employers.

Looking ahead, MoHRE plans continuous monitoring and periodic reviews to ensure all business centres comply with labour laws. The ministry also encourages centres to adopt stronger internal controls and reporting mechanisms to prevent future violations.

Overall, the new framework positions UAE business centres as accountable and regulated entities. It underscores the government’s commitment to upholding labour law compliance while maintaining efficiency in service delivery.