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Home Economy AED96,000 fine if companies fail to meet Emiratization targets, says MoHRE

AED96,000 fine if companies fail to meet Emiratization targets, says MoHRE

Establishments with 50 or more workers must ensure a 2 percent increase in the number of Emirati employees in skilled positions
AED96,000 fine if companies fail to meet Emiratization targets, says MoHRE
Compliant companies stand to benefit from various incentives provided by the Emiratization Partners Club, which offers companies discounts of up to 80 percent on ministry fees (Image: WAM)

The Ministry of Human Resources and Emiratization (MoHRE) has renewed its call for private sector companies that are subject to Emiratization policies to meet their 2024 targets by the end of December, noting that compliant establishments stand to benefit from a set of privileges. Meanwhile, non-compliant establishments will be required to pay financial contributions starting from January 1, 2025.

AED96,000 fine for each non-hired Emirati

Emiratization policies apply to establishments with 50 or more workers. These companies must ensure a 2 percent increase in the number of Emirati employees in skilled positions by the end of the year. Non-compliant establishments of this size will face financial contributions of AED96,000 for each Emirati who has not been hired.

A select group of establishments employing 20 to 49 workers across 14 specific economic activities must also meet Emiratization targets, requiring them to employ at least one Emirati and retain any Emiratis employed prior to January 1, 2024. Establishments in this category will also face a AED96,000 contribution for each Emirati that they have not hired.

Incentives for compliant companies

Compliant companies stand to benefit from various incentives provided by the Emiratization Partners Club, which offers companies discounts of up to 80 percent on ministry fees, as well as priority in government procurement, which enhances their growth opportunities.

The ministry asserted its plans to monitor compliance with Emiratization requirements among companies, in line with its commitment to implement Cabinet policies and decisions on Emiratization. The ministry also seeks to maintain the remarkable success the UAE has achieved in the employment of UAE nationals the private sector, where more than 117,000 Emiratis are now working across 22,000 private-sector companies.

Ministry to offer companies support

The ministry also stressed its commitment to providing all requirements to support companies in meeting their Emiratization targets, further enhancing the private sector’s role as a partner in government efforts to advance Emiratization plans, increase the number of Emirati professionals in the labor market and enhance their contribution to the UAE’s sustainable development.

This, in turn, serves to accomplish the country’s strategic economic goals, accelerate its transition to a knowledge-based, innovation-driven economy, and position the UAE among the world’s highest growing economies, driven by top-quality specialized jobs for UAE nationals.

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MoHRE encourages use of Nafis platform

In addition, MoHRE encouraged establishments to make use of the Nafis platform to connect with Emirati job-seekers across various fields of specialization, which will support these companies in meeting their required targets. The ministry also urged establishments to register their Emirati employees in pension, retirement, and social security systems. Moreover, it urged them to process their monthly salaries through the Wage Protection System (WPS).

The ministry reaffirmed its confidence in private-sector companies’ awareness about the need to comply with Emiratization policies and refrain from negative practices, such as fake Emiratization schemes or any other attempts to manipulate Emiratization targets. Moreover, it highlighted the effectiveness of its oversight system in detecting any objectionable practices and taking legal action against non-compliant establishments.

The ministry also urged Emirati job-seekers to verify the authenticity of job offers to avoid being part of fake Emiratization schemes and ensure that they benefit from the Nafis program. It also noted that Emiratization plans are in place to support Emirati professionals and enhance their contribution to the UAE’s economic development.

Finally, MoHRE encouraged UAE citizens to report practices contrary to Emiratization policies to the ministry’s call centre at 600590000, or through its smart application, or website.

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