Skip to main content
In effectCabinet Resolution

UAE Labour / Employment LawCabinet Resolution No. (25) of 2023 Approving the Mechanism for Collecting Administrative Fines Due to the Ministry of Human Resources and Emiratisation Through a Third Party

UAE Cabinet Resolution·Cabinet Resolution No. (25) of 2023

قرار مجلس الوزراء في شأن اعتماد آلية لتحصيل الغرامات الإدارية المستحقة الدفع لوزارة الموارد البشرية والتوطين بواسطة طرف ثالث

Authoritative Arabic version per the official UAE Legislation portal

Issued Date
March 27, 2023
Effective from
April 30, 2023
Articles
7
Last synced
Oct 19, 2026

Need help with this law?

Describe your situation below. Your details go to our team, and a suitable lawyer in the LEXAI directory may receive them so they can contact you about it.

Pick your situation so your enquiry can reach a suitable lawyer in the LEXAI directory who works in that area.

Your details stay private and are used only to handle your enquiry. We may offer your enquiry automatically to a suitable lawyer in the LEXAI directory. If a lawyer declines it, or does not reply, we may offer it to another suitable lawyer. Only a lawyer who accepts it receives your name, contact details and what you wrote, so they can contact you about it. You can ask LEXAI to delete your enquiry at any time. Privacy policy

This law text has not yet been reviewed by a lawyer. Check the official source before relying on it.

Plain-language summary

Establishes the mechanism for collecting administrative fines owed to the Ministry of Human Resources and Emiratisation through a third party, setting procedure…

Synced from the official UAE Legislation portal · Plain-language summary by LEXAI

Article-level text

Key Articles

7 articles

  1. 1

    Article 1

    Article (1) Definitions In application of the provisions of this Resolution, the following words and phrases shall have the meanings assigned to each of them, unless the context requires otherwise: State : United Arab Emirates. Ministry : Ministry of Human Resources and Emiratization. Minister : Minister of Human Resources and Emiratization. Third Party : Debt collection companies operating in the State.

    -- 1 of 4 --

    Cabinet Resolution of 2023 Approving the Mechanism for Collecting Administrative Fines Due to the Ministry of Human Resources and Emiratisation through a Third Party 2

  2. 2

    Article 2

    Article (2) Collection Mechanism Administrative fines due to the Ministry shall be collected according to the following: S Time Period Procedure 1 As of the date of imposing the administrative fine on the establishment and for a period of two months. Sending a notice of the due administrative fine, stating the reasons, the value and the period granted as a grace period for payment. Electronic notifications shall be sent to the establishment to ensure its commitment to paying the value of the due fine before the end of the period granted as a grace period for payment. 2 Two months after the end of the payment grace period. Stopping the service of new work permits for the establishment. Continuing to send electronic notifications to the establishment regarding its delay in paying the value of the due fine and urging settlement by payment through the Ministry's digital channels to avoid the liquidation of the bank guarantee. 3 Six (6) months after the end of the period granted as a grace period for payment. Liquidation of the bank guarantee (if any) and settlement of the value of the due fine in whole or in part. Continuing to send electronic notifications to the establishment regarding its delay in paying the due fine and urging settlement with payment through the Ministry's digital channels to avoid stopping the services of all sole proprietorships or establishments owned exclusively by the owner of the violating establishment, taking into account the unity of partners. 4 Eighteen (18) months after the end of the period granted as a Stopping the granting of new work permits to all sole proprietorships or establishments owned

    -- 2 of 4 --

    Cabinet Resolution of 2023 Approving the Mechanism for Collecting Administrative Fines Due to the Ministry of Human Resources and Emiratisation through a Third Party 3 grace period for payment. exclusively by the owners of the violating establishment, taking into account the unity of partners. Interest shall be added to the value of the fine unpaid within one year at an amount equal to the EIBOR interest rate in effect in the State. Continuing to send electronic notifications to the establishment regarding its delay in paying the value of the due fine and urging settlement by payment through the Ministry's digital channels. 5 Twenty-four (24) months after the end of the period granted as a grace period for payment. Referring the debt file related to administrative fines to the third party to collect the due fines according to the mechanism determined by a resolution issued by the Minister in coordination with the Ministry of Finance.

  3. 3

    Article 3

    Article (3) Exclusions The Minister may exclude some establishments from the procedures for collecting the due fines stated in Article (2) of this Resolution by virtue of a decision issued thereby for this purpose, specifying the conditions and controls for the exclusion and in coordination with the Minister of Finance.

  4. 4

    Article 4

    Article (4) Third Party Fees The Cabinet shall issue, based on the proposal of the Minister of Finance and after coordination with the Minister, a resolution to determine the percentages of fees for the third party from the proceeds of the due administrative fines stated in this Resolution that are collected by it.

    -- 3 of 4 --

    Cabinet Resolution of 2023 Approving the Mechanism for Collecting Administrative Fines Due to the Ministry of Human Resources and Emiratisation through a Third Party 4

  5. 5

    Article 5

    Article (5) General Provisions 1. Due administrative fines stipulated in this Resolution shall be collected through the methods established by the Ministry of Finance in this regard. 2. The amounts of the administrative fines collected by the third party shall be deposited in the unified account of the State treasury.

  6. 6

    Article 6

    Article (6) Executive Resolutions The Minister shall issue the Resolutions necessary to apply the provisions of this Resolution.

  7. 7

    Article 7

    Article (7) Publication and Entry into Force This Resolution shall be published in the Official Gazette and shall enter into force thirty (30) days after the date of its publication. Mohammed Bin Rashid Al Maktoum Prime Minister Issued by Us: On: 05 Ramadan 1444 AH Corresponding to: 27 March 2023 AD

    -- 4 of 4 --

Note: The Arabic text of this legislation is the authoritative version as per the official UAE Legislation portal.

Reading shortcut

Ask LEXAI a question about Cabinet Resolution No. (25) of 2023.

Plain-English answers, with a citation back to the exact article. Free with a LEXAI account.

LEXAI provides general legal information, not legal advice. For your specific case, speak to a licensed UAE lawyer.

Keep reading

Labour Employment

UAE Minimum Wage: Is There a Legal Minimum Salary, and Which Salary Floors Apply to You

The UAE Labour Law sets no general minimum wage, but one floor does exist: AED 6,000 a month for Emiratis in the private sector. Here is what the law guarantees instead, which salary thresholds are visa tests rather than wage rules, and what to do if you are paid less than agreed.

5 min read

Labour Employment

Golden Visa Holders and Employment Disputes: What Changes and What Does Not

A Golden Visa does not add to or take away your labour rights. Here is what stays the same in a dispute with your employer, what works differently (the work permit, the one-year ban, your residence and its renewal), and how to take a claim through MOHRE and the courts.

5 min read

Labour Employment

Wage Protection System (WPS) in the UAE: How It Works and What It Means for Your Salary

WPS is the system MOHRE uses to check that private-sector salaries arrive in full and on time. Here is what it means on your payslip, when your salary is due, what happens to employers who pay late, and what to do if your pay goes missing.

5 min read