UAE

UAE Announces Mass Emiratisation Crackdown, Fines on 441 Private Sector Companies

The UAE Ministry of Human Resources and Emiratisation (MoHRE) has fined 441 private sector companies for violating their Emiratisation targets from the second of 2022 until the present date.

The ministry’s rigorous crackdown resulted in 436 establishments being penalised for falsely claiming Emiratisation compliance, while 5 other establishments were caught evading Emiratisation targets altogether.

MoHRE imposes strict penalties and administrative procedures on the offending firms. In addition, the Ministry took a further step to tackle the issue of falsely appointed UAE nationals. The financial benefits provided by the Nafis programme were halted for individuals involved in such deceptive practices.

“The Ministry of Human Resources and Emiratisation (MoHRE) has taken action against 441 private establishments that violated Emiratisation decisions from the second half of 2022 to date. 436 establishments were fined for false Emiratisation, while 5 establishments were found to have circumvented Emiratisation targets. Penalties and administrative procedures were imposed on the violating establishments, and the financial benefits provided by the Nafis programme were ceased for falsely appointed UAE nationals. We urge UAE citizens and all community members to report any violations related to Emiratisation policies through our channels, such as the call centre at 600590000 or the Ministry’s smart app,” MoHRE said via Twitter.

In June, the MoHRE announced an AED100,000 fine on a private sector company “for evading Emiratisation targets.” The UAE MoHRE introduced more stringent penalties for private sector companies that evade Emiratisation targets.

In alignment with UAE Cabinet Resolution No. 44 of 2023, which amends provisions of Cabinet Resolution No. 95 of 2022, the MoHRE announced that businesses found in violation could now face fines of up to AED500,000.

The resolution, aimed at enhancing Emirati talent competitiveness, was made public through an official statement. The identified violations encompass actions such as reducing the number of employees or altering their job classifications to circumvent Emiratisation targets.

As per the newly established penalties, a first-time offence will incur a fine of AED100,000 for offending companies. If the violation is repeated for a second time, the fine increases to AED300,000. For any subsequent violations after that, the company will be slapped with a hefty AED500,000 fine.

The MoHRE stressed that any company found guilty of such violations will be obligated to achieve the required Emiratisation targets based on its true status before attempting to evade compliance.

According to the Cabinet resolution governing Emiratisation targets, private sector companies with a workforce of 50 employees or more are required to increase the number of Emirati employees in skilled positions by 1 per cent every six months, with the aim of achieving a 2 per cent Emiratisation rate by the year’s end.

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Arabian Business

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