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Up to Dh100,000 fine: UAE starts implementing penalties against companies for fake Emiratisation
An administrative fine of Dh20,000 shall be applied for each local employee if the beneficiary did not join work after a permit was issued
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The Ministry of Human Resources and Emiratisation (MoHRE) and the Emirati Competitiveness Council (Nafis) have started implementing fines and penalties related to fake Emiratisation data.
A UAE resolution provides an integrated legal framework to limit negative practices affecting the achievements of Emiratisation goals and policies. The penalties vary according to the nature of the violation committed by the establishment.
According to the resolution, if an establishment carries out fake Emiratisation to get Nafis benefits, an administrative fine of between Dh20,000 and Dh100,000 is imposed for each bogus Emirati employee. The financial support and other benefits offered by Nafis will be suspended and the disbursed amounts recovered.
The same penalty applies to companies that submit incorrect documents or data to obtain Nafis benefits.
An administrative fine of Dh20,000 shall be applied for each Emirati employee if the beneficiary did not join work after a permit is issued and the company fails to report it. The same penalty applies if the establishment fails to report to Nafis that a beneficiary has stopped working.
Authorities also have the right to recover the amount paid to an establishment if it fails to appoint the beneficiary after the Nafis-backed training period ends.
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Nafis is a federal programme to increase the competitiveness of Emirati human resources and empower them to get employed in the private sector. Launched in September 2021, it offers several benefits and incentives, including salary support, unemployment benefits, child allowances, pension, training, etc.
Companies in the UAE's private sector have less than 50 days left to meet the latest Emiratisation target before fines are imposed.
Firms with 50 or more employees are mandated to raise their Emiratisation rate by 2 per cent of overall skilled jobs. Starting January 1, 2023, those who fail to comply will have to pay Dh6,000 per month for each Emirati who is not employed.
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