The UAE’s Ministry of Human Resources and Emiratisation (MoHRE) has taken decisive action against companies violating labour and licensing laws. In a recent announcement, the Ministry revealed that it had fined over 1,300 companies more than AED 34 million for maintaining employee work permits despite being inactive or non-operational.

This bold enforcement step is part of a wider effort to preserve the integrity of the UAE’s labour market and protect the rights of workers.

What Exactly Happened?

According to MoHRE, 1,843 employers were caught keeping employees under their sponsorship without actual employment or legitimate business operations. This includes:

• Companies that have ceased operations but failed to cancel their trade license or employee permits
• Businesses that keep workers under their name but do not assign any real work
• Fake hiring practices, where entities are used to sponsor workers to help them reside in the UAE without valid job roles

Total Fines Imposed: AED 34+ Million

The Ministry confirmed that AED 34.5 million in fines were issued between January and June 2025. These penalties apply to both:

• Mainland companies
• Free zone establishments

Fines were imposed per violation, and businesses also face blacklisting and permit bans.

How to Stay Compliant as a Business Owner

Here are quick steps you should take if your business is no longer operational:

1. Cancel your trade license via your free zone or DED portal
2. Revoke unused work permits on the MoHRE system
3. Update visa sponsorship status of your employees
4. Avoid outsourcing your license to others for income or residency facilitation
5. Seek help from compliance experts to avoid accidental violations

Need Help?

At Spectrum Auditing, we help businesses navigate MoHRE regulations, handle employee visa transitions, and ensure labour compliance to avoid fines or legal action.

Contact us for a quick compliance check or labour file review.

Conclusion

The MoHRE’s crackdown is a wake-up call for UAE businesses: staying inactive on paper but active on the visa registry is a costly mistake. To maintain a strong and fair business environment, both employers and employees must understand their responsibilities and act within the law.

Compliance is no longer optional. It’s a business survival necessity.