Manager convicted over case involving 12 workers secures significant relief after filing a successful defence appeal.
A Dubai court has reduced a Dh1.2 million labour penalty to Dh60,000 after partially accepting an appeal filed by a company manager convicted of shutting down a business without resolving the status of 12 sponsored workers.
In a ruling issued on May 12, 2026, the Dubai Court of Appeal upheld the conviction of a 60-year-old Bangladeshi manager and partner of a Dubai-based technical services company, but exercised leniency by reducing the fine from Dh100,000 per worker to Dh5,000 per worker, bringing the total penalty down to Dh60,000.
The case arose from allegations that the company ceased operations without completing the legally required procedures to regularise the status and rights of employees sponsored under the firm.
Prosecutors charged the manager under Federal Decree-Law No. 33 of 2021 after labour inspectors concluded during a March 7, 2025 inspection that the establishment appeared to be non-operational.
A misdemeanour court initially imposed the maximum penalty allowed under the law, fining the manager Dh100,000 for each of the 12 workers involved in the case. Prosecutors argued that the company had effectively ceased operations and failed to meet its legal obligations toward its employees.
However, the appeal focused on the defence presented by lawyer Mohammed Al Awami Al Mansoori, who represented the manager and challenged both the prosecution’s evidence and its interpretation of the company’s operational status.
Before the appellate court, Mohammed Al Awami Al Mansoori argued that prosecutors had failed to establish the essential elements of the offence, maintaining that the company had not permanently shut down and that labour inspectors relied on assumptions rather than conclusive evidence. He said the findings were based largely on indicators such as a locked office, unanswered phones, and the absence of signage, without deeper verification of business activity.
He further explained that the firm operated in the technical services sector, where employees are typically deployed at external project sites rather than based at office premises. According to the defence, all 12 workers were assigned to an active project in Abu Dhabi during the inspection, which explained the empty office.
To support the appeal, he submitted documents showing the company’s trade licence remained valid until November 2025 and that its office lease had been renewed until October 2026. The defence also presented Wage Protection System records for February 2025 confirming that salaries were paid to all workers after the inspection period.
Al Mansoori argued that a company that had truly abandoned operations would not continue meeting payroll obligations or maintaining formal labour responsibilities.
In another key argument, the lawyer said there was no evidence of criminal intent or any plan by the manager to abandon workers or evade legal obligations. He also noted that none of the employees had filed complaints with the Ministry of Human Resources and Emiratisation regarding unpaid wages, labour violations, or residency issues.
Mohammed Al Awami Al Mansoori further challenged the investigation process, asking the court to summon labour inspectors and other witnesses—including building staff and a security guard—for cross-examination. The defence said a building receptionist had informed inspectors that maintenance work was ongoing and that the office had not been abandoned.
He argued that the original ruling was based on “probabilities and assumptions” rather than firm evidence, and that investigators failed to produce closure documents, licence cancellation records, or proof of permanent shutdown.
Although the Dubai Court of Appeal rejected requests to call additional witnesses, it ruled that the technical reports and existing evidence were sufficient, while still acknowledging mitigating factors presented in the appeal.
Invoking Articles 100/1 and 101 of the UAE Crimes and Penalties Law, the court exercised judicial discretion to significantly reduce the penalty from Dh1.2 million to Dh60,000, while still upholding the manager’s conviction for failing to regularise the legal status of the workers.
