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Private Sector Companies In The UAE Can Be Fined AED42,000 For Not Meeting Emiratisation Targets
If you don’t know what the Emiratisation initiative is, it’s basically a federal law designed to raise the employment of Emiratis by 2% annually. This applies to private sector companies that have 50 employees or more. The ultimate goal is to reach a 10% Emiratisation rate by the end of 2026. To achieve this, the annual target has been divided into two parts, with 1% required in the first 6 months of the year and the other 1% in the second half.
The companies have been given a deadline of June 30, 2023, to meet their semi-annual Emiratisation targets, according to the Ministry of Human Resources and Emiratisation (MoHRE).
The ministry has set a goal of 1% Emiratisation of skilled jobs for companies with 50 employees or more
This requirement is an increase from the previous target of 2% Emiratis in skilled roles by the end of 2022.
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Non-compliant companies will face fines of AED42,000 for each Emirati employee they fail to hire
The fines are calculated at AED7,000 per month for 2023, with an increase of AED1,000 annually until 2026. The aim is to encourage companies to take immediate action and increase the employment of Emiratis in skilled positions.
Companies that have not yet met their targets are encouraged to register on the Nafis platform, which provides access to a database of Emirati job-seekers.
MoHRE has been actively enforcing compliance with Emiratisation targets. In January of this year, fines amounting to AED400 million were issued against private companies that failed to meet the Emiratisation targets for 2022. Each company was fined AED72,000 for each Emirati employee they did not hire.
As the deadline draws near, private sector companies in the UAE must prioritize their efforts to meet the Emiratisation targets set by the MoHRE.
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