UAE: Up to Dh500,000 fine announced for private companies violating Emiratisation rules

Fines of up to Dh500,000 will be imposed on companies that will be caught circumventing Emiratisation rules, the Ministry of Human Resources and Emiratisation (MoHRE) has announced.

In its latest advisory, Mohre specified a number of violations that would be punishable by hefty penalties. These include reducing the number of employees or modifying their classification, or any other scheme or tactic to circumvent the law.

Private firms with 50 employees or more are required to increase the number of Emiratis in their skilled workforce by 1 per cent every six months, according to resolutions issued by the UAE Cabinet. Every year, they should have achieved a 2 per cent Emiratisation rate.

According to the resolution, a fine of Dh100,000 will be imposed on companies that have been proven to circumvent the Emiratisation rules for the first time. If the violation is repeated, a Dh300,000 penalty will be given, while the third offence will lead to a Dh500,000 fine. Similar violations after the third time will result in a Dh500,000 fine.

"Any company found committing the violation will be obligated to achieve the required Emiratisation targets based on its actual status," Mohre said.

The move comes in line with the implementation of UAE Cabinet Resolution No. 44 of 2023 — regarding the amendment of provisions of the Cabinet Resolution No. 95 of 2022 on violations and administrative penalties related to the initiatives and programmes of the Emirati Talent Competitiveness Council (Nafis).

Overall, targeted companies are expected to reach a 10 per cent Emiratisation rate by the end of 2026. Those who fail to comply will face a Dh42,000 fine for each Emirati not hired according to the semi-annual targets.