UAE to impose hefty fines on firms not meeting Emiratisation target

The UAE Ministry of Human Resources and Emiratisation (MoHRE) said on 20 June that it had imposed an AED100,000 fine on a private sector company for not meeting its Emiratisation targets, while also flagging a new regime of fines for such breaches taking effect from 8 July. 

This decision comes in line with Cabinet Resolution No. (44) of 2023 amending certain provisions of Cabinet Resolution No. (95) Regarding Penalties and Violations Relating to the Initiatives and Programmes of the Emirati Talent Competitiveness Council (Nafis).

From 8 July, non-compliant private sector companies will face a AED42,000 fine for each Emirati they have not employed. For a second violation, the fine will be AED300,000, and for a third violation and subsequent violations, the fine will be AED500,000 each time.

"Our systems have detected the company's attempt to evade Emiratisation targets by cancelling work permits for some of its employees and issuing new permits for them under another company belonging to the same employer, in order to reduce the total number of staff to less than 50, which would make it exempt from achieving Emiratisation targets," the Ministry said in a statement on Tuesday.

"MoHRE's inspection teams visited the company, and it was confirmed that the other employees were transferred to the other company, and that they are still working at it," it added.

MoHRE said it had imposed a AED100,000 fine on a private sector company for evading Emiratisation targets.

"The Ministry's inspection teams confirmed that the number of employees were reduced from 68 to less than 50 by transferring them to another company that belonged to the same employer. The employer took this step to circumvent the Emiratisation targets.

"We call on companies with 50 employees or more to benefit from the grace period until 7th July to achieve their semi-annual 1% Emiratisation targets. Starting from 8th July, we will review companies' compliance with the required targets, and a fine of AED42,000 will be imposed for each Emirati not employed."