The Ministry of Human Resources and Emiratisation (MoHRE) has imposed a fine of AED100,000 on a private sector company that was found to have fraudulently evaded Emiratisation targets. This action aligns with Cabinet Resolution No. (44) of 2023, which amends certain provisions of Cabinet Resolution No. (95) regarding penalties and violations related to the initiatives and programs of the Emirati Talent Competitiveness Council (Nafis).
The company in question has been given until July 7, 2023, to meet its actual Emiratisation targets. This deadline applies to private sector companies with 50 employees or more and requires achieving a 1% growth in Emiratisation for skilled jobs.
After July 8, any companies found to be non-compliant with Emiratisation targets will face a fine of AED42,000 for each unfulfilled Emirati employment position.
The ministry stated on Tuesday that their systems detected the company’s attempt to evade Emiratisation targets by canceling work permits for some employees and issuing new permits for them under another company owned by the same employer. This tactic was employed to reduce the total staff count to below 50, thereby exempting the company from meeting Emiratisation targets. During inspections conducted by MoHRE’s teams, it was confirmed that the transferred employees were still working for the other company.
The Violations Committee of the Ministry approved the violation committed by the company and issued a fine of AED100,000. According to the Cabinet Resolution regarding penalties and violations related to the initiatives and programs of Nafis, subsequent violations will result in fines of AED300,000 for the second offense and AED500,000 for the third offense and subsequent offenses.
The ministry emphasized that it would take firm action against any company proven to have committed fraud and would implement all necessary measures. Simultaneously, the ministry recognized the efforts and cooperation of the private sector in achieving Emiratisation goals, appreciating its vital role in the UAE’s development process and support of Emiratisation initiatives.
