MoHRE fines 1,300 firms AED34mn for not practicing licensed activity

June 30, 2025 / 5:08 PM

Sharjah 24 – WAM: The Ministry of Human Resources and Emiratisation (MoHRE) has affirmed its commitment to implementing strict measures against establishments that have been flagged for not effectively engaging in their licensed activities and for having one or more registered workers without an actual employment relationship.

1,300 establishments

Since the beginning of the year, the Ministry’s monitoring system has detected around 1,300 establishments, owned by approximately 1,800 employers, that were not effectively practising their licensed activities, despite having registered workers without a real employment relationship.

AED34 million

Strict measures were taken against these establishments, including suspending the issuance of new work permits, imposing more than AED34 million in fines on their owners, and placing them in the third category in the classification scheme for private sector establishments.

As part of the MoHRE’s efforts to ensure establishment owners comply with the UAE’s human resources laws and regulations, measures were implemented against owners of these establishment to prevent them from registering any new establishments in the Ministry’s systems.

These measures align with the provisions of Federal Decree-Law No.33 of 2021 on Regulating Labour Relations, Cabinet Resolution No. 21 of 2020 Concerning Service Fees and Administrative Fines in the MoHRE, and Ministerial Resolution No.318 of 2024 on the Procedure for Addressing Establishments with Registered Employees Not Conducting Their Licensed Activities.

Called on employers whose establishments cease operations for any reason to cancel their licences

The Ministry of Human Resources and Emiratisation called on employers whose establishments cease operations for any reason to cancel their licences and settle the status of their workers in accordance with the legal procedures in place in the UAE, in order to avoid legal accountability.

The Ministry went on to emphasise that an inactive licensed establishment maintaining registered workers constitutes a serious violation. The legal consequences apply to both the establishment owners and the registered workers, particularly in cases where no genuine employment relationship exists, a clear violation of the legislation.

The MoHRE highlighted the efficiency and effectiveness of its field-based and smart monitoring and inspection system in detecting and taking action against such establishments. Leveraging comprehensive indicators on each establishment's activities, authorities can assess its operational status. This assessment is based on factors including authorised business activity, the number of sponsored workers, transaction movements with the Ministry, and other criteria verified through field inspections.