Home
GCC
UAE

MoHRE imposes Dhs100,000 fine for fraudulently evading Emiratisation target

As of July 8, companies that were found non-compliant with the Emiratisation targets will face Dhs42,000 fine for each Emirati they have not employed

by Divsha Bhat

June 20, 2023

Image credit: WAM

A private sector company has been fined Dhs100,000 by the Ministry of Human Resources and Emiratisation (MoHRE) for fraudulently evading Emiratisation targets.

The company in question must fulfill its actual targets by July 7, 2023, which is the deadline for meeting semi-annual Emiratisation targets.

These targets apply to private sector companies with 50 or more employees and require a 1 per cent increase in Emiratisation within skilled job positions.

Starting from July 8, any companies that fail to comply with the targets will face a fine of Dhs42,000 for each Emirati employee they have not hired, reported state news agency, WAM.

“Our systems have detected the company’s attempt to evade Emiratisation targets by cancelling work permits for some of its employees and issuing new permits for them under another company belonging to the same employer in order to reduce the total number of staff to less than 50, which would make it exempt from achieving Emiratisation targets,” the ministry said in a statement on Tuesday.

The Ministry of Human Resources and Emiratisation (MoHRE) imposed a AED100,000 fine on a private sector company for evading Emiratisation targets.

The Ministry’s inspection teams confirmed that the number of employees were reduced from 68 to less than 50 by transferring them to…

— وزارة الموارد البشرية والتوطين (@MOHRE_UAE) June 20, 2023

“MoHRE’s inspection teams visited the company, and it was confirmed that the other employees were transferred to the other company and are still working at it,” it added.

The ministry said its Violations Committee approved the violation committed by the company and issued an Dhs100,000 fine.

According to the Cabinet Resolution Regarding Penalties and Violations Relating to the Initiatives and Programmes of the Emirati Talent Competitiveness Council (Nafis), there will be a fine of Dhs300,000 if a company commits a violation for the second time, and Dhs500,000 for the third violation, as well as for each time after the third time.

The ministry stressed that it would deal “firmly with any company proven to have committed fraud, taking all necessary measures against it.”

At the same time, the ministry highlighted the private sector’s efforts and cooperation to achieve Emiratisation goals, applauding “the role this vital sector plays in the UAE’s development process and in supporting Emiratisation efforts.”