Dubai: The UAE’s Ministry of Human Resources and Emiratisation (MOHRE) has announced that fines of up to Dh500,000 will be imposed on companies that circumvent the Emiratisation targets.
What are the Emiratisation targets?
Private sector companies with 50 employees or more are required to increase the number of their Emirati employees in skilled jobs by 1 per cent every six months and ultimately achieve a two per cent Emiratisation rate by the end of 2023. This is part of the of the initiatives and programmes of the Emirati Talent Competitiveness Council (Nafis).
Targeted companies are expected to achieve a 10 per cent Emiratisation rate by the end of 2026.
What is considered a circumvention of the targets?
The Ministry explained that circumvention of Emiratisation targets, which includes reducing the number of employees or modifying their classification, will be considered a violation.
What are the penalties?
In the latest announcement, MOHRE said that the updated fines are in line with UAE Cabinet Resolution No. 44 of 2023, which amends provisions of Cabinet Resolution No. 95 of 2022 on violations and administrative penalties related to Nafis initiatives and programmes.
This is the breakdown of the fines announced:
Dh100,000 for first-time violations
Dh300,000 for second-time violations
Dh500,000 for third-time and continuous violations
The violations include reducing the number of employees or modifying their classification or any other method to circumvent the Emiratisation targets, the Ministry said.
Apart from the penalties listed above, companies that fail to comply with the targets will face a financial contribution of Dh42,000 for each Emirati not appointed according to the semi-annual targets.
Earlier this year, MOHRE reminded employers that June 30 is the deadline for private sector companies with 50 employees or more to achieve their half-yearly Emiratisation targets, set at one per cent of skilled jobs.