The Ministry of Human Resources and Emiratisation starts implementing Cabinet Resolution of up to Dh120,000 fines for UAE companies violating Emiratisation rules.

Dubai: The Ministry of Human Resources and Emiratisation (MoHRE) and the Emirati Competitiveness Council (Nafis) have started implementing the Cabinet Resolution No. 95 of 2022 of up to Dh120,000 fines for UAE companies violating Emiratisation rules. The resolution mandates the Ministry and the Council to apply administrative penalties as per specialisation.

This comes after MoHRE’s recent announcement that private sector companies have only 50 more days to meet their Emiratisation goals of 2022. Fines for failure to achieve the Emiratisation target will come into force on January 1, 2023, and a Dh72,000 annual contribution will be imposed for every Emirati not appointed, MoHRE had said in a statement on Friday.

On Tuesday, the ministry said the Cabinet resolution provides an integrated legal framework that will limit negative practices on efforts to achieve the goals and objectives of the Emiratisation initiatives and policies.

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The resolution aims to enhance the Emirati human development system and prepare a productive and effective national human capital that supports the country’s economy, builds a partnership between the public and private sectors, and empowers the private sector to be a major driver in the UAE’s development journey.

The resolution emphasises moving forward with the road map set for Emiratisation through two tracks: the first track is to support and empower the Emirati human resources and enhance their competitiveness to join private sector jobs and help the sector achieve its goals by ensuring maximum benefit from Nafis through its incentives, the second track is to deal firmly with violations and limit negative practices by applying administrative penalties and fines.

Admin penalties, fines

The resolution specified a set of administrative penalties and fines that vary according to the nature of the violation committed by the establishment with regards to Nafis. This includes circumvention to obtain those benefits or circumventing the demand for achieving Emiratisation goals through fake Emiratisation.

According to the resolution, if the establishment undertakes fake Emiratisation that is related to Nafis’ initiatives and programmes, an administrative fine of no less than Dh20,000 and not more than Dh100,000 for each Emirati employee shall be imposed. On the other hand, a suspension of support and recovering the disbursed amount will be applied on the beneficiary.

In addition, an administrative fine of not less than Dh20,000 and not more than Dh100,000 shall be imposed for every Emirati employee, besides suspension of support and recovering the disbursed amounts if the establishment submits incorrect documents or data to obtain Nafis benefits for the purposes of evading or circumventing the Emiratisation system.

Fine for failure to join

An administrative fine of Dh20,000 shall be applied for each Emirati employee, and the support shall be suspended and the amounts disbursed to the establishment shall be recovered in the event that the facility fails to take the necessary measures in accordance with Federal Decree-Law No. 33 of 2021 regarding the Regulation of Labour Relations and its amendments, its executive regulations and the implementation resolutions. This is also applicable in case the beneficiary did not join the work after the work permit was issued and the establishment obtained support from Nafis, or the beneficiary showed non-commitment to work or stopped working and the establishment did not inform Nafis.

If the establishment does not report any change in the benefit terms without a reason acceptable to Nafis, an administrative fine of Dh20,000 is applied for each case, with suspension of support and the refund of the disbursed amounts after the change in benefit terms.

Nafis has the right to recover the amount of support paid to the establishment during the support period if it breaches its obligation to appoint the beneficiary after the end of the Nafis-backed training period without an excuse accepted by Nafis.