UAE fines for visa sponsorship misuse reach AED 1 million

Employers in the UAE who sponsor a worker on a company residence visa but do not actually employ them face fines of up to AED 1,000,000, depending on the specific circumstances of the case. The applicable penalty is determined by the sequence of events. If an employer hires a worker, employs them, and then allows them to work for another party without proper procedures, a fine of AED 100,000 to AED 1,000,000 applies under the Labour Relations Law. However, if the employer brings a worker into the country for employment but never employs them or permits them to work for another party before starting, a fixed fine of AED 50,000 applies under the Entry and Residence of Foreigners Law. The Dubai Court of Cassation clarified this distinction in a January 2025 ruling, establishing which authority and legal provision govern each scenario. This guidance helps employers understand their obligations and the serious financial consequences of visa sponsorship misuse.