Dubai: Private companies with 50 or more employees not meeting Emiratisation targets will be fined starting from January 1, a UAE ministry reminded on Thursday, two days before companies could avoid getting fined.
Companies not providing at least two per cent of skilled jobs to Emiratis by the end of 2022 will incur a mandatory monthly fine of Dh6,000 from January 2023, according to a previous announcement by the Ministry of Human Resources and Emiratisation (MoHRE).
In 2023, a total of Dh72,000 annual fine will be incurred for each Emirati who has not been employed as per the requisite percentage to be achieved by the end of 2022.
“The value of the monthly penalties increases progressively at a rate of Dh1,000 annually until 2026, by which companies are required to achieve up to 10 per cent growth rate in their Emiratisation targets,” the ministry said in a statement on Thursday.
That means the monthly fine for each Emirati, who has not been employed, would become Dh7,000 and Dh8,000 in 2024 and 2025 which will see the annual fines jumping to Dh84,000 and Dh96,000 respectively.
Why Emiratisation?
The Ministry explained: “We aim to achieve an effective participation of the private sector in the development process of the UAE, as raising the participation of Emiratis in this sector will have a positive impact on the competitiveness, attractiveness, and stability of the business environment in the country.”
“We will continue to activate the partnership between the government and the private sectors on Emiratisation, based on our belief that Emiratis can make a positive impact within the vital economic sectors, as well as our aspiration to advance the growth of the private sector companies and improve their ability to keep pace with successive developments locally and globally,” it added.
The Ministry noted that the legislation governing Emiratisation will contribute to “strengthening the diversification of the labour market and will consolidate the UAE’s position as an incubator of national and international talents and an ideal destination to work, live and invest.”
Incentives for achievers
The Ministry lauded the steps taken by companies that have met the required Emiratisation targets for 2022, adding: “Now, we look forward to witnessing a greater impact in 2023, as the Emiratisation targets will increase by two per cent until 2026, resulting in a growth by 10 per cent of Emirati skilled employees.”
The Ministry offers support and incentives for the companies that achieve qualitative achievements in training and employing Emiratis in accordance with the objectives of the Nafis programme, which include joining the Emiratisation Partners’ Club that leads to be classified as a category one company in the Ministry’s establishment classification system. Such companies can obtain discounts of up to 80 per cent on the Ministry’s service fees.
