Recruitment Agency Violations in the UAE: Legal Risks and Compliance

The recruitment sector plays a critical role in the UAE’s labour market, connecting employers with much-needed workers. But with opportunity comes responsibility. The Ministry of Human Resources and Emiratisation (MoHRE) has tightened its oversight, and violations by recruitment agencies now carry steep consequences.

Common Violations Under Scrutiny

1. Unlicensed Operations
   Illegal operators remain a persistent issue. In September 2025, MoHRE shut down 11 unlicensed domestic worker recruitment offices in Al Ain, sending a strong signal about the risks of engaging with unregistered providers.
   
   

2. Failure to Refund Recruitment Fees
   By law, agencies must refund fees if a domestic worker leaves employment within a specified period. In the first half of 2025 alone, 40 agencies were fined for 140 violations, mostly refund-related.
   
   

3. False Emiratisation Practices
   To meet Emiratisation targets, some companies have resorted to falsifying employment records. Penalties are steep—fines from AED 100,000 to AED 1 million—and reputational damage is often greater.
   
   

4. Misleading Advertising
   Recruitment scams on social media have become common. In July 2025, MoHRE shut down 77 accounts promoting illegal recruitment services.
   
   

The Cost of Non-Compliance

Violations can have far-reaching consequences:

• Financial penalties ranging up to AED 1 million
  
  

• License revocation, ending an agency’s business operations
  
  

• Criminal charges in cases of fraud or severe misconduct
  
  

Building a Compliant Recruitment Partnership

Employers share responsibility in ensuring ethical hiring practices. Best practices include:

• Engaging only MoHRE-licensed agencies
  
  

• Reviewing and confirming refund policies before signing agreements
  
  

• Reporting suspicious practices through official MoHRE channels
  
  

Conclusion

The UAE’s labour market reforms aim to create transparency, protect workers, and ensure fair recruitment practices. Employers who choose compliance not only avoid penalties but also contribute to building a fairer, more sustainable employment ecosystem.