UAE: Private companies that violate Emiratisation rules may face a fine of up to Dh500,000

Ministry specifies a number of violations where hefty penalties will apply.

Fines of up to Dh500,000 will be imposed on companies that will be caught circumventing Emiratisation rules, the Ministry of Human Resources and Emiratisation (MoHRE) has announced.

The violations include reducing the number of employees or modifying their classification or any other method to circumvent Emiratisation targets, the ministry said.

According to the resolution, a fine of Dh100,000 will be imposed on companies that have been proven to circumvent Emiratisation targets for the first time; if the violation is repeated for the second time, the fine imposed is Dh300,000, while the third time violation will lead to a Dh500,000 fine. Similar violations after the third time will result in a Dh500,000 fine.

Any company found committing the violation will be obligated to achieve the required Emiratisation targets based on its actual status before the circumvention.

This comes in line with the implementation of UAE Cabinet Resolution No. 44 of 2023 regarding the amendment of provisions of the Cabinet Resolution No. 95 of 2022 on violations and administrative penalties related to the initiatives and programmes of the Emirati Talent Competitiveness Council (Nafis).

The Cabinet resolutions regarding Emiratisation targets require companies with 50 employees or more to increase the number of its Emirati employees at skilled jobs by 1 percent every six months, ultimately achieving a 2 per cent Emiratisation by the end of the year. Targeted companies are expected to achieve a 10% Emiratisation rate by the end of 2026.

Non-compliant companies will face a Dh42,000 financial contribution for each Emirati not appointed according to the semi-annual targets.

News Source: Khaleej Times