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Labour Disputes, Inspections and Penalties in UAE Labour Law: Articles 54 to 64 Explained

What UAE labour law says about labour disputes, MOHRE decisions up to AED 50,000, court fee exemption, collective disputes, inspections, fines and appeals against MOHRE, article by article.

Mir Ali
Mir Ali Founder, MIRDXB PRO
Updated 2 Oct 2026 13 min read
Labour Disputes and Fines - MIRDXB PRO
Reviewed by Mir Ali, founder of MIRDXB PRO. Checked against official sources and the real cases we have handled over the past three years. How we write and check our guides

Key takeaways

  • Every labour dispute starts at MOHRE, which first tries to settle it amicably (Decree-Law Art. 54).
  • MOHRE itself decides claims up to AED 50,000, and any case where a party ignored an earlier MOHRE settlement, whatever the amount. Its decision is enforceable, and either side can take it to court within 15 working days (Art. 54(2)–(3), as amended in 2024).
  • Bigger claims go to court if MOHRE cannot settle them, with a memo summarising the case.
  • Claims must be brought within 2 years of the job ending, or they cannot be heard (Art. 54(9)).
  • Labour cases by workers or their heirs up to AED 100,000 are exempt from court fees at every stage (Art. 55).
  • Fines are heavy and multiply per worker: AED 100,000 to 1,000,000 for employing without a permit or fake Emiratisation, up to AED 10 million in total (Arts. 60 and 62).
  • You can appeal a MOHRE decision to its Grievances Committee within 30 days (Art. 69; Regulation Art. 35).

This chapter covers what happens when things go wrong: how disputes are resolved, who inspects workplaces, the fines and penalties, and how to challenge a MOHRE decision. We go through each article in order: a short quote from the official text, then what it means in simple words.

Laws explainedDecree-Law 33/2021 and Resolution 1/2022
Articles coveredDecree-Law 54 to 64, 69 · Regulation 31 to 35
Checked against official text1 October 2026
Looking for the practical guide?

This page explains what the law says. To file a claim step by step, see: How to file a MOHRE complaint · Labour dispute service · Emiratisation rules for employers.

Individual disputes

Article 54

How MOHRE and the courts handle a labour dispute

Federal Decree-Law 33/2021 (as amended in 2024)

“The Ministry shall resolve the dispute by a resolution whenever the value of the claim subject to the dispute does not exceed the amount of (50,000) fifty thousand AED”Federal Decree-Law No. 33 of 2021, Article 54(2)

In plain English

  1. Apply to MOHRE first. Employer, worker or anyone entitled through them applies to MOHRE, which tries to settle the dispute amicably.
  2. Claims up to AED 50,000, or disputes about not following an earlier MOHRE settlement (any amount): MOHRE decides by resolution.
  3. MOHRE’s decision is an enforceable instrument. Either side can file a case at the Court of First Instance within 15 working days of being notified. The court sets a hearing within 3 working days and rules within 30 working days, and its judgment is final. Filing the case suspends MOHRE’s decision.
  4. Larger claims that cannot be settled within the period in the Regulation are referred to court by MOHRE, with a memo summarising the dispute, both sides’ arguments and MOHRE’s recommendation.
  5. During a dispute where the worker’s salary has stopped, MOHRE can order the employer to keep paying wages for up to 2 months.
  6. The Minister can impose measures on a company to stop an individual dispute becoming a collective one.
  7. The court sets a hearing within 3 working days of receiving a case.
  8. A court case is not accepted unless these MOHRE procedures and deadlines were followed.
  9. No claim can be heard more than 2 years after the employment ended.

Example

Ayesha claims AED 18,000 in unpaid salary and leave. MOHRE cannot settle it, so it decides the claim itself. Her employer has 15 working days to take it to court; if it doesn’t, the decision can be enforced.

What it means for you

Smaller claims are now decided by MOHRE quickly, without a full court case. Do not wait: after two years from leaving, you lose the right to claim. Our MOHRE complaint guide shows how to file.

Article 31

The Regulation’s dispute procedure, and what changed in 2024

Cabinet Resolution 1/2022

“The worker shall be entitled to claim the wage of two months in the event he resumed his work while the labour dispute – referred to the court – is still valid”Cabinet Resolution No. 1 of 2022, Article 31(4)

In plain English

  • A dispute is filed with MOHRE, which tries to settle it amicably.
  • The Regulation (from 2022) says MOHRE refers an unsettled dispute to court within 14 days of the application.
  • A worker whose claim goes to court should register the case and sort out their residency status quickly.
  • A worker who keeps working while the court case runs can claim 2 months’ wage, and MOHRE can order the employer to pay it.

Important: the Decree-Law was amended in 2024 so that MOHRE now decides claims up to AED 50,000 itself instead of referring them. Where the 2022 Regulation and the amended law differ, the amended law applies.

Example

A worker with a AED 120,000 claim cannot reach a settlement at MOHRE. Because it is above AED 50,000, MOHRE refers it to the labour court.

What it means for you

Read older articles about UAE labour disputes carefully: many describe the pre-2024 “referral to court” route for every unsettled claim.

Article 55

No court fees for workers’ claims up to AED 100,000

Federal Decree-Law 33/2021

“Labour lawsuits shall be exempted from judicial fees at all stages of litigation and execution, as well as the requests submitted by Workers or their heirs of which value does not exceed one hundred thousand (100,000) AED.”Federal Decree-Law No. 33 of 2021, Article 55(1)

In plain English

Workers and their heirs do not pay court fees, at any stage including enforcement, for labour claims up to AED 100,000. The Cabinet can change this amount.

Example

A worker suing for AED 60,000 in gratuity and notice pay pays no court fees from filing to enforcement.

What it means for you

Cost should not stop a worker with a genuine claim. The English translation of this article reads slightly awkwardly; the Arabic text is the official version if the exact scope matters.

Collective disputes and inspections

Article 56

Disputes involving a group of workers

Federal Decree-Law 33/2021

“the Employer or Workers must submit a complaint to the Ministry”Federal Decree-Law No. 33 of 2021, Article 56(1)

In plain English

If all or a group of workers have a dispute with their employer that cannot be settled amicably, it goes to MOHRE. The Minister can impose measures on the company to protect the public interest, and the Cabinet can set up Collective Labour Dispute Committees for disputes MOHRE cannot settle.

Example

All 40 workers at a site have not been paid for two months. They file one collective complaint with MOHRE instead of 40 separate ones.

What it means for you

If a whole team is affected, a collective complaint can bring faster, stronger measures, including MOHRE using the company’s bank guarantee (Regulation Article 32).

Article 32

The collective dispute procedure

Cabinet Resolution 1/2022

“The claim must be submitted within two weeks from when the dispute started.”Cabinet Resolution No. 1 of 2022, Article 32(1)(c)

In plain English

  • File through MOHRE’s channels, stating the type and value of the claims, within two weeks of the dispute starting.
  • MOHRE can ask the authorities to put a precautionary freeze on the company to secure workers’ rights.
  • MOHRE can cash the company’s bank guarantee or insurance without the employer’s approval if the workers’ claim is proven.
  • If there is no settlement, MOHRE refers the dispute to the Collective Labour Disputes Committee, whose decisions are final and enforced through the court.

Example

A contracting company stops paying 60 workers. MOHRE confirms the claims, freezes the company’s assets and uses its bank guarantee to pay part of the wages owed.

What it means for you

Move quickly: the Regulation asks for a collective claim within two weeks of the dispute starting.

Article 57

Labour inspectors

Federal Decree-Law 33/2021

“They shall have the right to enter the relevant establishments, detect violations, and issue the necessary reports.”Federal Decree-Law No. 33 of 2021, Article 57(1)

In plain English

Authorised MOHRE inspectors have judicial enforcement powers. They can enter workplaces, find violations and write official reports.

Example

An inspector visits a warehouse, checks working hours and safety equipment, and records a violation for missing fire extinguishers.

What it means for you

Employers must cooperate with inspectors. Obstructing one carries a fine of AED 20,000 to 100,000 (Article 59).

Article 33

What inspectors do

Cabinet Resolution 1/2022

“Employers and their representatives must provide the inspectors … with the facilitations and data necessary to perform their duty”Cabinet Resolution No. 1 of 2022, Article 33(2)(c)

In plain English

Inspectors check that the law is followed, especially on working conditions, wages and safety, and they also advise employers and workers. When they find a violation, they write a report for action and can call on the police or other authorities for help. Employers must give inspectors access and information, and attend or send a representative when asked.

Example

An inspector asks a company for its WPS records and staff files. The company must provide them.

What it means for you

Keep your records (contracts, WPS payments, leave, safety training) ready. An inspection is much easier when they are.

Penalties

Articles 58 to 64

The fines and prison terms

Federal Decree-Law 33/2021 (as amended in 2024)

“The fine … shall be repeatedly imposed on Employers according to the number of Workers against whom the violation is committed, not exceeding ten million (10,000,000) AED.”Federal Decree-Law No. 33 of 2021, Article 62

In plain English

OffencePenaltyArticle
False information to recruit a foreigner; obstructing an inspector; an official leaking work secretsAED 20,000 to 100,00059
Employing a worker without a permit; recruiting a worker then leaving them without work; misusing work permits; closing a company without settling workers’ rights; employing a juvenile illegally (or a guardian agreeing to it)AED 100,000 to 1,000,00060(1)
Fake (fictitious) employment to get around labour-market rules, such as EmiratisationAED 100,000 to 1,000,000 per worker, plus repaying any government incentives60(2)
Misusing electronic access to MOHRE systemsAt least 1 year in prison and/or AED 200,000 to 1,000,00061
Any other violation of the law or its regulationsAED 5,000 to 1,000,00063
Repeat offence within 1 year of a previous judgmentPrison and/or double the fine64
  • Fines are multiplied by the number of workers affected, up to AED 10 million (Article 62).
  • For fake employment, prosecution needs the Minister’s request. MOHRE can settle before judgment if the employer pays at least 50% of the minimum fine and repays all incentives.
  • These penalties do not stop a heavier penalty under another law applying (Article 58).

Note: the official English translation of Article 60 says “two million” in words but “1,000,000” in figures; clause 2 of the same article sets AED 100,000 to 1,000,000 in both words and figures, and the Arabic text is the official version.

Example

A company is found employing five workers without permits. The fine of AED 100,000 to 1,000,000 applies for each of the five workers, so up to AED 5 million.

What it means for you

Employers: every worker must have a valid MOHRE permit, and Emiratisation hires must be real jobs. Our guide to Emiratisation rules covers compliance.

Article 34

MOHRE’s administrative penalties

Cabinet Resolution 1/2022

“the Ministry shall be granted the capacity of imposing administrative penalties”Cabinet Resolution No. 1 of 2022, Article 34

In plain English

Alongside the court fines above, MOHRE itself can impose administrative penalties for breaches of the labour law and the Regulation, under the federal law on administrative violations and sanctions (Federal Law No. 14 of 2016).

Example

A company that misses WPS payments can face MOHRE administrative penalties, such as restrictions on new permits, without a court case.

What it means for you

MOHRE penalties can block a company’s transactions. Clearing them quickly keeps visas and permits moving.

Challenging a MOHRE decision

Article 69 and Regulation Article 35

Grievances against MOHRE decisions: 30 days

Federal Decree-Law 33/2021 · Cabinet Resolution 1/2022

“The application must be submitted through the channels determined by the Ministry to the Grievances Committee within (30) thirty days from the date of knowing of the resolution.”Cabinet Resolution No. 1 of 2022, Article 35(1)

In plain English

Either side can challenge a MOHRE decision. The grievance goes to MOHRE’s Grievances Committee, through MOHRE’s channels, within 30 days of learning of the decision, with all supporting data and documents.

Example

MOHRE refuses to lift a company’s permit restriction. The company files a grievance with full documents 20 days after being notified, within the 30-day limit.

What it means for you

This is separate from the 15-working-day court route for MOHRE’s AED 50,000 dispute decisions in Article 54. Check which deadline applies to the decision you received.

Labour claim route and deadline finder

The 2024 amendment changed who decides a claim, and different decisions have different deadlines. Enter your figures to see the route and the dates.

Which route, which deadline?

Example: a AED 30,000 claim by a worker, before you enter the dates. Change any answer.

Adjust details Claimant: worker or heirs · Change
Who is claiming?

Your resultExample

MOHRE decides claims up to AED 50,000; a court challenge is due within 15 working days of its decision, a grievance within 30 days, and any claim within 2 years of the last day.

MOHREdecides if MOHRE cannot settle the claim

Assumes the worker or heirs are claiming. Working days skip Saturdays and Sundays but not public holidays.

Who decides if MOHRE cannot settle
MOHRE decides by resolution
Court challenge to a MOHRE dispute decision by
Enter the decision date
Last day to bring any claim
2 years after the last day
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Law text checked 1 Oct 2026 (uaelegislation.gov.ae). Estimate, not legal advice; the authority's payment screen and decision are final.

Full breakdown
Who decides if MOHRE cannot settleMOHRE decides by resolution
Court feesNone for the worker (Art. 55)
Court challenge to a MOHRE dispute decision byEnter the decision date
Grievance to MOHRE's committee byEnter the decision date
Last day to bring any claim2 years after the last day

Sources

Save or share

Based on Decree-Law Article 54 as amended in 2024 (MOHRE decides claims up to AED 50,000; 15 working days to go to court; 2-year limit), Article 55 (no court fees for workers’ claims up to AED 100,000) and Regulation Article 35 (30-day grievance). Working days here skip Saturdays and Sundays but not public holidays, so count again around a holiday. An estimate, not legal advice.

From complaint to payment: the steps

  1. Within 2 years of leavingFile with MOHREEvery individual dispute starts at MOHRE, which tries to settle it amicably (Art. 54(1)).
  2. If salary has stoppedAsk about interim wagesDuring the dispute MOHRE can order the employer to keep paying wages for up to 2 months (Art. 54).
  3. Up to AED 50,000MOHRE decidesIts decision is enforceable. Either side has 15 working days from notification to take it to the Court of First Instance; filing suspends the decision.
  4. Above AED 50,000Referral to courtMOHRE sends the case with a memo summarising both sides and its recommendation. Workers pay no court fees up to AED 100,000 (Art. 55).
  5. In courtHearing within 3 working daysFor a challenge to a MOHRE decision, the court rules within 30 working days and its judgment is final (Art. 54(3)).

Fines per worker: how fast they add up

Labour law fine estimator

Example: an Article 60 offence affecting 3 workers. Change any answer.

Offence

Your resultExample

Employing without a permit, fake Emiratisation and other Art. 60 offences: AED 300,000 to AED 3,000,000 for 3 workers.

AED 3,000,000maximum total fine

A repeat offence within a year can double it (Art. 64). Courts set the actual fine.

Minimum total fine
AED 300,000
Maximum total fine
AED 3,000,000
AED 10,000,000 cap
Not reached (from 10 workers)
Get help with this on WhatsApp

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Law text checked 1 Oct 2026 (uaelegislation.gov.ae). Estimate, not legal advice; the authority's payment screen and decision are final.

Full breakdown
Minimum total fineAED 300,000
Maximum total fineAED 3,000,000
AED 10,000,000 capNot reached (from 10 workers)

Not included in this figure

  • Fake employment also requires repaying any government incentives.

Sources

Save or share

Based on Decree-Law Articles 59, 60, 62 and 63: the fine is multiplied by the number of workers, up to AED 10 million in total. A repeat offence within a year can double it (Art. 64). Fake employment also requires repaying any government incentives. Courts set the actual fine.

MirDxbPRO analysis: three points most summaries miss

  1. Four deadlines, four different clocks. 15 working days to take a MOHRE dispute decision to court (Art. 54); 30 days for a grievance against other MOHRE decisions (Regulation Art. 35); 2 weeks to file a collective claim (Regulation Art. 32); 2 years for any claim (Art. 54(9)). Missing the right one can end the case.
  2. Claims between AED 50,001 and AED 100,000 sit in a middle band. They go to court rather than a MOHRE decision, but a worker still pays no court fees (Art. 55).
  3. At 10 workers the maximum fine for an Article 60 offence already reaches the cap. AED 1,000,000 × 10 = AED 10,000,000, the most Article 62 allows. For employers, permit compliance is not a per-person risk but a company-level one.

Quick reference: the deadlines and amounts in this chapter

RuleFigureWhere
MOHRE decides claims itselfUp to AED 50,000Decree-Law Art. 54(2)
Challenge a MOHRE dispute decision in courtWithin 15 working daysDecree-Law Art. 54(3)
Court hearing / ruling on that challengeWithin 3 / 30 working daysDecree-Law Art. 54(3)
Wages MOHRE can order during a disputeUp to 2 monthsDecree-Law Art. 54(5)
Time limit for any claim2 years from the end of employmentDecree-Law Art. 54(9)
No court fees for workers’ claimsUp to AED 100,000Decree-Law Art. 55
Collective claimWithin 2 weeks of the dispute startingRegulation Art. 32
Grievance against a MOHRE decisionWithin 30 daysRegulation Art. 35
Maximum total fineAED 10,000,000Decree-Law Art. 62
Need to file a labour claim, respond to one, or challenge a MOHRE decision before the deadline? Send us the details on WhatsApp and we will tell you the route and the time limit that applies.

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Disputes, inspections and penalties: frequently asked questions

Can MOHRE decide a labour claim without going to court?

Yes. Since the 2024 amendment, Article 54(2) lets MOHRE decide claims up to AED 50,000, and disputes about not following an earlier MOHRE settlement, by its own resolution. Either side can take it to court within 15 working days.

How long do I have to file a labour claim in the UAE?

Two years from the end of the employment relationship. After that, Article 54(9) says the claim cannot be heard.

Do I pay court fees for a labour case in the UAE?

No, for claims by workers or their heirs up to AED 100,000, at all stages including enforcement (Article 55). The Cabinet can change this amount.

What is the fine for employing someone without a work permit in the UAE?

AED 100,000 to 1,000,000 under Article 60, multiplied by the number of workers involved, up to AED 10 million in total (Article 62).

What is the penalty for fake Emiratisation in the UAE?

AED 100,000 to 1,000,000 per worker employed fictitiously, plus repaying any government incentives received (Article 60(2)). MOHRE can settle before judgment for at least 50% of the minimum fine plus the incentives.

How do I appeal a MOHRE decision?

File a grievance with MOHRE’s Grievances Committee through MOHRE’s channels within 30 days of learning of the decision, with all supporting documents (Regulation Article 35).

How many days do I have to challenge a MOHRE decision on my labour claim?

15 working days from being notified, by filing a case at the Court of First Instance (Article 54 as amended in 2024). A grievance against other MOHRE decisions goes to its Grievances Committee within 30 days (Regulation Article 35).

What is the maximum labour law fine for a company in the UAE?

Fines are multiplied by the number of workers affected, up to AED 10 million in total (Article 62). For an Article 60 offence such as employing without a permit, that cap is reached at 10 workers.

Please note. Quotes are from the official English translation on the UAE Legislation portal, checked on 1 October 2026; the Arabic text in the Official Gazette prevails. Examples use invented names and are illustrative. This page is general information, not legal advice; MOHRE’s or a court’s decision on your own case is final.

Mir Ali

Written by

Mir Ali

Mir Ali founded MIRDXB PRO, a PRO and visa services firm in Al Barsha, Dubai. Over the past three years he has personally handled more than 100 visa, Emirates ID, labour and company files across MOHRE, GDRFA, ICP and DET, and he reviews every guide on this site against those real cases.

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