Can employer cancel visa during labour dispute UAE

Under the UAE Federal Decree-Law No. 33 of 2021 on Regulation of Labour Relations, an employer may not unilaterally cancel an employee's residence visa while a labour dispute is pending; cancellation requires prior approval from the Ministry of Human Resources and Emiratisation (MOHRE) or a court order, and this rule applies to all mainland UAE employers and employees.

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WHAT STEPS MUST AN EMPLOYER TAKE TO LEGALLY CANCEL AN EMPLOYEE'S VISA DURING A LABOUR DISPUTE?

An employer must first refer the labour dispute to MOHRE for conciliation; if conciliation fails, the case may be forwarded to the Labour Court. Only after MOHRE issues a no-objection certificate or the court orders visa cancellation may the employer proceed with the cancellation through the General Directorate of Residency and Foreigners Affairs (GDRFA). The employer must submit the employee's passport, Emirates ID, labour contract, and the MOHRE or court authority letter, and pay the applicable visa cancellation fee (currently AED 100, subject to change). The entire process typically takes between five and ten working days once all documents are submitted, provided no further objections are raised.

CAN AN EMPLOYEE CHALLENGE A VISA CANCELLATION THAT OCCURS DURING A LABOUR DISPUTE?

Yes, an employee whose visa is cancelled without the required MOHRE approval or court order can file a complaint with MOHRE within ten working days of becoming aware of the cancellation. The employee must provide a copy of the cancellation notice, passport, Emirates ID, and any relevant correspondence. MOHRE will investigate and, if the cancellation is found unlawful, may order the employer to reinstate the visa and pay compensation equivalent to up to three months' salary. If MOHRE does not resolve the matter, the employee may escalate the claim to the Labour Court, where the burden of proof rests on the employer to show compliance with the legal procedure.

WHAT ROLE DOES THE MINISTRY OF HUMAN RESOURCES AND EMIRATISATION PLAY IN VISA CANCELLATION AMID LABOUR DISPUTES?

MOHRE acts as the gatekeeper for any visa cancellation linked to an ongoing labour dispute. Under Article 12 of Federal Decree-Law No. 33 of 2021, MOHRE must assess whether the dispute has been resolved through conciliation; if not, it may refuse to issue a cancellation no-objection certificate. Employers must submit a formal request to MOHRE accompanied by the dispute case number, proof of attempted settlement, and the employee's consent where applicable. MOHRE's decision is communicated in writing within five working days, and its approval is a prerequisite for GHRFA to process the visa cancellation. Failure to obtain MOHRE's consent renders the cancellation void and exposes the employer to penalties.

ARE THERE ANY EXCEPTIONS THAT ALLOW AN EMPLOYER TO CANCEL A VISA WITHOUT MOHRE APPROVAL DURING A DISPUTE?

The law provides limited exceptions, such as when the employee has been convicted of a criminal offence that warrants immediate deportation, or when the employee's residency visa has expired and the employer is merely processing a routine renewal cancellation. In these cases, the employer must still notify MOHRE and provide supporting documentation, such as a court judgement or expiry notice, but may proceed with GDRFA cancellation without awaiting a MOHRE no-objection certificate. However, these exceptions do not apply to ordinary labour disputes over wages, working conditions, or contract termination, where MOHRE's involvement remains mandatory.

HOW DOES THE DIFC OR ADGM JURISDICTION AFFECT VISA CANCELLATION RULES FOR EMPLOYEES WORKING THERE?

Employees employed within the Dubai International Financial Centre (DIFC) or Abu Dhabi Global Market (ADGM) are governed by the respective employment regulations of those free zones, not by UAE federal labour law. The DIFC Employment Law No. 2 of 2019 and the ADGM Employment Regulations 2015 stipulate that visa cancellation procedures follow the instructions of the relevant free zone authority, which coordinates with the federal GDRFA but does not require MOHRE approval. Consequently, an employer in DIFC or ADGM must obtain a clearance certificate from the DIFC Registrar of Companies or the ADGM Registration Authority before requesting visa cancellation, and the process timeline aligns with the free zone's internal protocols, typically ranging from three to seven working days.

WHAT ARE THE POTENTIAL PENALTIES FOR AN EMPLOYER WHO UNLAWFULLY CANCELS AN EMPLOYEE'S VISA DURING A LABOUR DISPUTE?

An employer who cancels a visa without the required MOHRE approval or court order may face administrative fines ranging from AED 5,000 to AED 50,000 per violation, depending on the severity and recurrence of the offence, as outlined in Ministerial Decision No. 765 of 2022 concerning labour violations. Additionally, the employer may be liable to pay compensation to the employee, which can amount to up to three months' salary plus any proven damages. Repeated violations can lead to the suspension of the employer's establishment licence by MOHRE, and in extreme cases, the matter may be referred to the Public Prosecution for consideration of criminal penalties under the UAE Penal Code.

FREQUENTLY ASKED QUESTIONS

What documents are required for an employer to request visa cancellation through MOHRE during a labour dispute?
The employer must submit a completed visa cancellation request form, a copy of the employee's passport and Emirates ID, the latest labour contract, the MOHRE labour dispute case number, proof of conciliation attempts, and, if applicable, a court order authorising cancellation. These documents enable MOHRE to verify that the dispute is being handled according to Federal Decree-Law No. 33 of 2021 before issuing a no-objection certificate.

How long does an employee have to file a complaint after an unlawful visa cancellation?
An employee must lodge a complaint with MOHRE within ten working days of becoming aware of the cancellation, as stipulated in Article 17 of Federal Decree-Law No. 33 of 2021. The complaint should include the cancellation notice, personal identification, and any relevant correspondence. Failure to act within this window may weaken the employee's position, although residual rights may still be pursued through the Labour Court.

Can an employer cancel a visa if the employee resigns during a labour dispute?
Resignation does not automatically permit visa cancellation; the employer must still obtain MOHRE's no-objection certificate or a court order if the resignation is linked to an ongoing labour dispute. The resignation letter, along with proof that the dispute has been settled or withdrawn, must accompany the cancellation request to MOHRE.

What is the typical cost for an employer to cancel an employee's visa through GDRFA?
The standard fee for visa cancellation at the General Directorate of Residency and Foreigners Affairs is approximately AED 100 per visa, though additional service charges may apply if the request is submitted through an authorised typing centre. Employers should verify the current fee schedule on the GDRFA portal before proceeding, as fees are subject to periodic adjustment.

Does the employee's nationality affect the visa cancellation process during a labour dispute?
The procedural requirements for visa cancellation are uniform for all nationalities under UAE federal law; however, certain nationalities may be subject to additional security clearances or embassy notifications, which can extend the processing time. Employers should consult the relevant consulate or embassy if the employee's home country imposes exit-clearance requirements.

Is mediation mandatory before an employer can seek visa cancellation in a labour dispute?
Yes, mediation through MOHRE's conciliation unit is a mandatory first step for most labour disputes, as required by Article 6 of Federal Decree-Law No. 33 of 2021. Only after conciliation fails or is deemed unnecessary by MOHRE may the employer proceed to request visa cancellation, either via MOHRE approval or a Labour Court order.

If your matter involves can employer cancel visa during labour dispute in the United Arab Emirates, you are welcome to request a consultation with Nour Attorneys. Our team can assess your position under the law currently in force and outline the options available to you. Request a consultation

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