Sponsoring unemployed foreign workers exposes companies to AED 50,000–AED 1m fines

Employers who sponsor foreign workers on residence visas but do not employ them face penalties under two separate legal frameworks. Under Article 25(2) of Federal Decree-Law No. (29) of 2021, companies that recruit a foreigner for employment but fail to employ that person or allow them to work for another party without legal procedures face a fine of AED 50,000. Article 60 of the Labour Relations Law provides for fines ranging from AED 100,000 to AED 1,000,000 for hiring a worker and leaving them unemployed. The Dubai Court of Cassation (Criminal Cassation No. 720/2024, judgment 22 January 2025) clarified the distinction: the Labour Relations Law applies when a worker initially worked for the employer and then was permitted to work elsewhere; the Entry and Residence Law applies when the employer brought the worker into the country for employment but never employed them or allowed them to work for another party before employment commenced.