Ask the law: Businessman wants to know Emiratisation rule

Question:

I want to open a company and a factory in Dubai. I want to know the law regarding the employment of citizens. Will this law be applied to me immediately once the company is opened? Please advise.

Answer:

To answer this question, I would advise the questioner that:

Yes, it will be applied directly because the law is effective from January 2023 on any company established before or will be established after the application of this law. As per the Emiratisation law, employers with more than 50 employees are mandated to annually raise their Emiratisation rate by 2% of overall skilled workers.

The 2% Emiratisation law applies to the private sector and, more specifically, to all establishments registered with the Ministry. Companies in the private sector must apply the following scheme. For:

• 50 skilled workers – the minimum target is to recruit one UAE national employee.

• 51 – 100 skilled workers – the minimum target is to recruit two UAE national employees.

• 101 – 150 skilled workers – the minimum target is to recruit three UAE national employees.

• More than 151 workers – one UAE national employee to be recruited for every 50 workers.

Companies who fail to comply with the Emiratisation targets will have to pay fines as stated below:

• A fine of Dh 6, 000 per month for each UAE national who is not employed.

• A maximum fine of Dh100,000 may be applicable, if:

1- The firm carrying out fake Emiratisation and submitting false documents or data to get benefits associated with Nafis

2- The employee not joining work after the work permit is issued and the establishment continues to get support from Nafis

3- The employee benefitting from Nafis shows non-commitment towards work and the employer fails to notify Nafis

4- The firm not employing the Emirati after he/she completed the Nafis training program and fails to give a valid justification

5- The firm not reporting any change in the terms of the benefit without reason acceptable to Nafis