Emiratisation deadline: Non-compliant private companies to incur fines starting Jan 1

Private sector companies with 50 employees or more, which have not raised Emiratisation targets by 2 per cent of their skilled workforce, will incur fines starting January 1.

This was announced by the UAE’s Ministry of Human Resources and Emiratisation (MoHRE) on Thursday, December 29.

The fines are Dhs6,000 per month, a total of Dhs72,000 annually, for each Emirati who has not been employed as per the requisite percentage to be achieved by the end of 2022.

The value of the monthly penalties will increase progressively at a rate of Dhs1,000 annually until 2026, by which companies are required to achieve up to 10 per cent growth rate in their Emiratisation targets.

In a statement, the ministry said: “We aim to achieve an effective participation of the private sector in the development process of the UAE, as raising the participation of Emiratis in this sector will have a positive impact on the competitiveness, attractiveness, and stability of the business environment in the country.”

The ministry stated that the legislation governing Emiratisation will contribute to “strengthening the diversification of the labour market and will consolidate the UAE’s position as an incubator of national and international talents and an ideal destination to work, live and invest.”

The ministry praised companies that have met the required Emiratisation targets for 2022, adding: “Now, we look forward to witnessing a greater impact in 2023, as the Emiratisation targets will increase by 2 per cent until 2026, resulting in a growth by 10 per cent of Emirati skilled employees.”

The ministry is offering support and incentives for the companies that achieve qualitative achievements in training and employing Emiratis in accordance with the objectives of the Nafis programme, which include joining the Emiratisation Partners’ Club that leads to be classified as a category one companies in the ministry’s establishment classification system, thus obtaining discounts of up to 80 per cent on the ministry’s service fees.