AED500,000 in fines for companies that violate Emiratisation targets

DUBAI, May 4, 2023 (WAM). The Ministry of Human Resources and Emiratisation has announced that any company that does not meet the Emiratisation target will be fined up to AED500,000.

This announcement is in response to the Cabinet Resolution No. The announcement follows the implementation of UAE Cabinet Resolution No. 44 of 2023 which amends provisions in Cabinet Resolution No. 95 of 2022 on violations and administrative penalties related to the initiatives and programmes of Emirati Talent Competitiveness Council (Nafis). 95 of 2022, which deals with violations and administrative sanctions related to the initiatives of the Emirati Talent Competitiveness Council.

The ministry clarified that any attempt to circumvent Emiratisation targets will be a violation. This includes reducing employee numbers or changing their classification.

AED 100,000 will be levied on companies that fail to meet their Emiratisation targets. AED300,000. If it is repeated a second time, AED500,000 will be fined. After the third violation, the same fine will apply.

The Ministry has mandated that companies who violate the Emiratisation target must achieve the required goals based on the actual status of the company before the violation.

The number of Emiratis employed in skilled positions must increase by 1 percent each six months for companies with more than 50 employees.

By the end of 2026, targeted companies should have achieved a 10% Emiratisation. Non-compliant firms will be required to pay AED42,000 per Emirati that is not hired according to semi-annual targets.

Muhammad Aamir / Hazem Hussein

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