Companies violating Emiratisation targets will face AED500,000 fines

Companies violating Emiratisation targets will face AED500,000 fines

DUBAI, 4th May, 2023 (WAM) – The Ministry of Human Resources and Emiratisation (MoHRE) has announced that companies that violate Emiratisation targets will face fines of up to AED500,000.

The announcement follows the implementation of UAE Cabinet Resolution No. 44 of 2023, which amends provisions of 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 ministry explained that circumvention of Emiratisation targets, which includes reducing the number of employees or modifying their classification, will be considered a violation.

Companies that violate Emiratisation targets for the first time will be fined AED100,000. If the violation is repeated for the second time, a fine of AED300,000 will be imposed, while the third time violation will lead to a fine of AED500,000. The same fine will be imposed for similar violations after the third time.

The ministry has made it mandatory for companies found violating the Emiratisation targets to achieve the required targets based on their actual status before the circumvention.

Companies with 50 employees or more are required to increase the number of their Emirati employees in skilled jobs by 1 percent every six months and ultimately achieve a 2 percent Emiratisation rate by the end of the year.

Targeted companies are expected to achieve a 10 percent Emiratisation rate by the end of 2026. Non-compliant companies will face a financial contribution of AED42,000 for each Emirati not appointed according to the semi-annual targets.