MoHRE imposes Dhs100,000 fine on company proven to circumvent Emiratisation targets

The Ministry of Human Resources and Emiratisation (MoHRE) has imposed an Dhs100,000 fine on a private sector company found fraudulently evading Emiratisation targets.

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).

The company in question will be required to meet its actual Emiratisation targets by 7th July 2023 at the latest, which is the deadline for meeting the semi-annual Emiratisation targets for private sector companies with 50 employees or more and achieving a 1% Emiratisation growth in skilled jobs.

As of 8th July, companies that were found non-compliant with the Emiratisation targets will face an Dhs42,000 fine for each Emirati they have not employed.

"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 are still working at it,” it added.

The Ministry said its Violations Committee approved the violation committed by the company and issued an Dhs100,000 fine. According to the Cabinet Resolution Regarding Penalties and Violations Relating to the Initiatives and Programmes of the Emirati Talent Competitiveness Council (Nafis), there will be a fine of Dhs300,000 if a company commits a violation for the second time, and Dhs500,000 for the third violation, as well as for each time after the third time.

The ministry stressed that it would deal "firmly with any company proven to have committed fraud, taking all necessary measures against it.”

At the same time, the ministry highlighted the private sector’s efforts and cooperation to achieve Emiratisation goals, applauding "the role this vital sector plays in the UAE’s development process and in supporting Emiratisation efforts."

WAM