The Ministry of Human Resources and Emiratisation signed an agreement with the International Labour Organisation to ensure workers' rights. Victor Besa / The National
The Ministry of Human Resources and Emiratisation signed an agreement with the International Labour Organisation to ensure workers' rights. Victor Besa / The National
The Ministry of Human Resources and Emiratisation signed an agreement with the International Labour Organisation to ensure workers' rights. Victor Besa / The National
The Ministry of Human Resources and Emiratisation signed an agreement with the International Labour Organisation to ensure workers' rights. Victor Besa / The National

UAE enhances workplace safety through partnership with international labour organisation


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The UAE has signed an agreement with the International Labour Organisation (ILO) to develop and improve workplace inspections, raising the standard of occupational safety.

The Ministry of Human Resources and Emiratisation signed the co-operation agreement on the sidelines of the ILO conference in Geneva, where Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, and ILO Director General Gilbert F Hounbo, were in attendance.

The agreement aims to strengthen and empower inspectors at the ministry, developing their skills and knowledge that will help them carry out their inspection tasks proactively.

The move will be in line with the best international practices and standards.

The agreement was signed by Shayma Al Awadhi, Acting Assistant Undersecretary for Communication and International Relations at the ministry and Ruba Jaradat, ILO's regional director for Arab states.

"We are committed to strengthening our partnership with the International Labour Organisation and developing new avenues for co-operation that serve our common goals to protect the rights and achievements of workers," Ms Alwadhi said.

"Signing this co-operation reflects the UAE's integrated strategy to enhance the competitiveness and attractiveness of its labour market, to bring in new talent and skilled professionals, and meet the highest international standards of excellence," she said.

Ms Alwadhi said that the agreement will also strengthen the regulation of labour relations, provide stability, increase productivity and create more job opportunities in the country.

"Occupational safety and health are top priorities for the ministry and are deeply rooted practices in the UAE labour market culture," she added.

The announcement comes a week after the UAE announced the return of its annual mandatory midday break for outdoor workers.

The initiative – led by the ministry – is to protect employees from the extremes of summer heat.

The policy prohibits people from working outdoors between 12.30pm and 3pm, and will be in effect from June 15 to September 15.

Companies caught breaking the rules will face fines of up to Dh50,000.

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

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Updated: June 19, 2023, 11:35 AM