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Emiratisation in UAE: Company fined Dh100,000 for fraudulently evading target

Ministry investigation finds that the firm cancelled work permits of some staff to make it exempt from achieving the target

Published: Tue 20 Jun 2023, 10:33 AM

Updated: Tue 20 Jun 2023, 10:50 AM

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The UAE's Ministry of Human Resources and Emiratisation (MoHRE) has fined a company Dh100,000 for "fraudulently evading" Emiratisation targets.

Companies with 50 employees or more are required to add 1 per cent Emirati staff to their workforce by July 7.

“Our systems detected the company’s attempt to evade Emiratisation targets by cancelling work permits for some of its employees and issuing new ones for them under another company belonging to the same employer. This was done 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.

“The MoHRE’s inspection teams visited the company, and confirmed that the said employees were transferred to the other company, and that they are still working at it."

The company in question will be required to meet its actual Emiratisation targets by July 7, which is the deadline for meeting the semi-annual targets for private sector companies. Firms were to have 2% Emiratis on their workforce by the end of last year. They are required to add another 1% by the aforementioned deadline.

As on July 8, companies that fail to achieve the target face a Dh42,000 fine for each Emirati that has not been hired.

By the end of 2023, firms must have employed a total of 4% Emiratis.

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



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