Emiratisation in UAE: Firms to be penalised for not meeting targets before end of the year

Dh72,000 for each Emirati not employed will be collected starting January 2023 from non-compliant companies



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By Web Desk

Published: Thu 20 Oct 2022, 5:49 PM

Last updated: Thu 20 Oct 2022, 8:30 PM

The UAE’s Ministry of Human Resources and Emiratisation (MoHRE) on Thursday called on private sector companies with more than 50 employees to expedite achieving an Emiratisation rate of two per cent for skilled jobs to avoid penalties.

The UAE Cabinet Resolution earlier this year passed a resolution whereby private firms were given targets to meet Emiratisation goals by the end of this year. A minimum Emiratisation percentage of two per cent annually from highly skilled in establishments with more than 50 employees was announced in May 2022 for firms operating in the private sector.

This year’s two per cent Emiratisation rate is calculated as for every 50 non-Emiratis working in skilled jobs, one UAE national shall be hired. This decision aims to achieve an increase of 10 per cent in the Emiratisation rate by 2026.

“We are keen to support and empower private sector companies to achieve the Emiratisation targets before the end of this year, we cooperate closely with the private sector, stemming from our belief in its role as a key partner in developing and shaping the future,” said Saif Al Suwaidi, undersecretary for Emiratisation at MoHRE.

“Compliance with the laws regulating the job market is in the interest of private sector companies and their employees. We aim to develop the capabilities of the private sector and enable it to keep pace with changes in global business models and attract UAE national talents to work in skilled jobs, through the Nafis programme, which is a cornerstone of these efforts,” he added.

Incentives and penalties

On Thursday, MoHRE reiterated that non-compliant companies will face financial penalties, which will be collected starting from January 2023. In a Tweet the authority said Dh72,000 will be collected for each Emirati not employed starting January 2023 from non-compliant companies.

The ministry said private sector companies that reach the Emiratisation target will be included in the first category classification and membership of the Tawteen Partners Club whereby they receive discounts of up to 80 per cent on the ministry's service fees.

However, a monthly financial penalty of Dh6,000 will be imposed on establishments that do not meet the required Emiratisation rate. The penalty will be imposed for every UAE national that has not been appointed, starting from January 2023.

-waheedabbas@khaleejtimes.com

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