The Ministry of Human Resources and Emiratisation has announced the implementation of strict measures against establishments registered with workers but failing to engage in their licensed activities. These actions address the alarming issue of businesses that, despite having employees on their books, do not maintain genuine employment relationships, which poses significant risks to the labor market and the economy.
According to the ministry, approximately 1,300 establishments have been identified since the beginning of the year as not actively engaging in their licensed activities. These businesses are owned by roughly 1,800 employers who have registered workers without a valid employment relationship. In response, the ministry has imposed necessary measures, including the suspension of new work permit issuance and financial penalties totaling over 34 million dirhams. Furthermore, these businesses have been categorized into the third tier of the private sector classification system.
As part of its ongoing efforts to ensure compliance with human resources laws and regulations, the ministry has restricted the registration of new establishments by these owners. This action is in accordance with the provisions of the Labor Relations Regulation Law and Cabinet Decision No. (21) of 2020, along with Ministerial Resolution No. (318) of 2024. Such measures underline the importance of adhering to legal standards governing employment practices.
The ministry has urged employers whose businesses have become inactive for any reason to cancel their licenses and rectify the status of their employees in line with the established legal frameworks. This approach is essential to avoid potential legal liabilities that may arise from neglecting formal obligations.
Failure to engage in legitimate business activities while having registered workers constitutes a serious violation of labor laws, for which both the business owners and the registered employees bear the consequences. The presence of workers on the registry without a genuine employment relationship represents a clear breach of the established regulations.
The ministry has reaffirmed the effectiveness of its regulatory and inspection system in identifying non-compliant establishments. This is particularly significant in light of the comprehensive indicators available for evaluating each business’s operations, including the nature of the licensed activity, the number of employees registered, and the establishment’s transaction history with the ministry. These metrics are verified through inspections and field monitoring.
Moreover, the ministry expresses confidence in the awareness of employers and the general public regarding the dangers of such violations and their adverse effects on the labor market and the parties involved in fictitious employment relationships. It encourages community members to report any negative practices through its call center at 60059000, or via the ministry’s smart application and website.