UAE: Company fined Dh10 million for fake employment of 113 citizens

The private firm was found guilty of evading Emiratisation targets by appointing nationals in fictitious roles

Published: Mon 29 Jul 2024, 12:17 PM

Updated: Mon 29 Jul 2024, 10:00 PM

By
Web Desk

A private company was fined Dh10 million for failing to comply with the standards and controls regulating Emiratisation in the private sector, authorities announced on Monday. The Abu Dhabi Misdemeanour Court found that the company tried to bypass the Emiratisation targets by appointing 113 citizens in fictitious roles.

The Ministry of Human Resources and Emiratisation (Mohre) found serious violations in the company’s Emiratisation procedures and the case was referred to the Abu Dhabi Public Prosecution for investigation.

It was uncovered that the company issued work permits and registered employees in fictitious roles without actual employment. The firm misused the Nafis programme, which offers companies benefits and privileges to enhance Emiratis' participation in private-sector jobs.

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The investigation revealed that the company had falsely reported the employment of UAE nationals to meet Emiratisation targets, a direct violation of the programme's objectives and regulations.

The Abu Dhabi Public Prosecution ordered the company to be referred to the competent court. After reviewing the case, the court issued a ruling convicting the company of non-compliance with Emiratisation policies and engaging in fictitious employment practices.

Nafis programme

The UAE is committed to enforcing Emiratisation regulations and ensuring genuine employment opportunities for Emirati citizens in the private sector. Since the launch of the Nafis programme has been encouraging Emiratis to take up jobs in the private companies.

Private companies in the country are required to increase the percentage of their Emirati workforce by two per cent every year to reach at least 10 per cent by 2026. This target is divided into two: 1 per cent in the first half and another 1 per cent in the second.

Starting July 1, the ministry has be checking companies' compliance. Those who fail to meet the target will have to pay a fine of Dh48,000 for every Emirati not hired in the first six months of the year. Calculated at Dh8,000 per month per person, penalties pile up for every month a company is unable to fill up the required slots for UAE nationals. The monthly fine increases by Dh1,000 every year.

Inspections are regularly carried out to ensure compliance. Since mid-2022 until May 16 this year, more than 1,300 were caught violating Emiratisation rules.

The total number of Emirati employees in the private sector has grown at a rate of approximately 170 per cent since September 2021, when the government launched the federal initiative aimed at increasing the employability of Emiratis in the country's private sector.

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