UAE: Dh42,000 fine announced for companies not meeting half-yearly Emiratisation target

Penalties will be applied to non-compliant firms in July for not achieving the required hiring rate for this year as well as the 2022 targets

by

Sahim Salim

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Image used for illustrative purpose
Image used for illustrative purpose

Published: Wed 26 Apr 2023, 12:08 PM

Last updated: Wed 26 Apr 2023, 10:26 PM

The deadline for private sector companies to meet their half-yearly Emiratisation targets is fast approaching. On Wednesday, the Ministry of Human Resources and Emiratisation (MoHRE) announced that by June 30, companies with 50 employees or more must have 1 per cent of Emiratis in skilled jobs. This is in addition to the 2 per cent Emiratisation that companies must have had achieved by the end of 2022.

In July 2023, fines will be applied on non-compliant companies for not achieving the required half-yearly rate for this year as well as the 2022 targets. A penalty of Dh42,000 will be applied for every Emirati not hired. The calculation is Dh7,000 per month for 2023. The fines will increase by Dh1,000 annually until 2026.

A federal law aims to raise Emiratisation rates by 2 per cent annually to reach 10 per cent by the end of 2026. The UAE had amended the mechanism for achieving the targets. The annual target is divided by 1 per cent in the first six months and the other 1 per cent in the second half of the year.

By June 30, companies have to have 3 per cent Emiratis in skilled roles, and 4 per cent by the end of 2023.

Aisha Belharfia, acting undersecretary for Emiratisation Affairs and assistant undersecretary for Labour Affairs, highlighted the importance of companies achieving half-yearly Emiratisation target increase to avoid fines. She called on the private sector companies to benefit from the support provided by Nafis to hire Emirati talents in skilled jobs.

“The private sector is an active partner in enhancing the attractiveness and competitiveness of the job market, in line with the vision to make the UAE a dynamic economic hub that is among the most sustainable and fastest growing in the world,” she said.

“The success of Emiratisation efforts depends on the expansion of the vacancies open to Emiratis in the private sector, and building a secure network that supports their career paths. The Ministry of Human Resources and Emiratisation supports exceptional companies that train and employ Emiratis in line with Nafis’ objectives.”

Those exceeding the targets get the chance to join the Tawteen Partners Club, which boosts the ranking of the company to Category 1, providing them with discounts of up to 80 per cent on ministerial fees.

Belharfia added: "We look forward to the results of the new mechanism of achieving Emiratisation targets, which guarantees continuous employment of Emiratis year-round and maintains their retention in the private sector. It also sustains job offerings and vacancies on Nafis’ platform throughout the year, which aligns with the pace of jobseekers’ registrations."

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