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UAE introduces Dh42,000 fine for companies not meeting Emiratisation target

Emiratisation Fines

The Ministry of Human Resources and Emiratisation (MoHRE) has declared that private sector enterprises with at least 50 employees are required to fulfill their half-yearly Emiratisation targets by June 30. This entails having 1% of skilled positions filled by Emiratis, in addition to the mandatory 2% Emiratisation that must have already been attained by the end of 2022. The deadline is rapidly approaching for these companies to comply.

Starting from July 2023, companies failing to meet the half-yearly Emiratisation targets for both 2022 and the current year will be subject to fines. Each Emirati position that remains unfilled will result in a penalty of Dh42,000. This amount equates to Dh7,000 per month for the year 2023. Moreover, the fines will gradually increase by Dh1,000 every year until the year 2026.

The UAE has introduced a federal law with the goal of progressively increasing Emiratisation rates by 2% per annum, culminating in a total of 10% by the conclusion of 2026. To facilitate the achievement of these targets, the mechanism has been revised. Now, the annual target will be divided into two halves of 1% each, with the first half of the target expected to be reached in the initial six months, while the second half will be attained in the latter half of the year.

Aisha Belharfia, who serves as the acting undersecretary for Emiratisation Affairs and assistant undersecretary for Labour Affairs, has emphasized the significance of companies fulfilling their half-yearly Emiratisation targets to evade fines. In her statement, she urged private sector companies to take advantage of the support extended by Nafis in hiring skilled Emirati talent.

“The private sector plays a crucial role in improving the job market’s allure and competitiveness, aligning with the vision to establish the UAE as a vibrant economic center that ranks among the world’s most sustainable and rapidly expanding,” she stated.

She added, “The triumph of Emiratisation initiatives hinges on widening the range of opportunities available to Emiratis in the private sector and creating a stable infrastructure that fosters their career development. The Ministry of Human Resources and Emiratisation backs companies that demonstrate exceptionalism in training and hiring Emiratis, in accordance with the objectives of Nafis.”

Companies that surpass the Emiratisation targets are eligible to join the Tawteen Partners Club. This membership enables the company to move up to Category 1 and obtain discounts of up to 80% on ministerial fees.

Belharfia further stated, “We are eager to witness the outcome of the new mechanism for achieving Emiratisation targets, which ensures consistent year-round employment opportunities for Emiratis and promotes their retention in the private sector. The mechanism also helps sustain the job listings and vacancies available on Nafis’ platform all year round, aligning with the pace of jobseekers’ registrations.”

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Written by Saleh wasim

Blogger who writes topics such as Employment, News, travel, sports, events and life in Gulf.

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