UAE: Over 900 firms violate Emiratisation regulations and face consequences

Businesses in the private sector with fifty or more workers are being urged by the Ministry of Human Resources and Emiratization (MoHRE) to complete their Emiratization projects before the impending deadline of December 31st.

Violations and Hiring Statistics:

Since mid-2022, approximately 916 companies have been identified for violating Emiratization rules. These violations range from attempts to circumvent targets to the creation of fictitious positions, resulting in the employment of 1,411 UAE nationals across these companies.

Fines commencing in January 2024:

Beginning in January 2024, fines will be imposed on enterprises failing to meet their annual Emiratization targets. The current goal for 2023 is to increase the employment of Emiratis in specialised occupations by 2%. This is part of a broader initiative that requires companies to incrementally hire 2% more Emiratis each year until 2026, with a target of 4% in 2023.

Increasing Penalties:

Fines for non-compliance with Emiratization targets escalate annually. In 2023, companies falling short of these targets will face a penalty of Dh7,000 per month per Emirati not hired, amounting to an annual fine of Dh84,000 per unemployed citizen.

Utilising the Nafis Platform:

To aid companies in meeting their Emiratization commitments, the MoHRE encourages the use of the Nafis platform. This platform provides access to a substantial pool of qualified UAE citizens with expertise in various sectors to fill vacant positions.

Positive Impact of Emiratization:

The ministry highlighted the positive impact of Emiratization efforts, citing over 18,000 companies that have contributed to an unprecedented increase in the number of UAE citizens joining the private sector. Currently, over 88,000 Emiratis are employed in various roles across the country.

Benefits of Joining the Emiratization Partners Club:

The MoHRE emphasised the benefits and privileges extended to companies that join the Emiratization Partners Club. These include significant reductions of up to 80% in MoHRE's service fees, priority status in the government procurement system, and access to benefits from the Nafis programme for both companies and individuals.

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