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UAE: Firm hires 43 family members to inflate Emiratisation; ministry takes action

Administrative penalties and fines against companies that attempt to exploit the Nafis scheme reach to up to Dh100,000 for every Emirati

The UAE Ministry of Human Resources and Emiratisation (MoHRE) has initiated “administrative action” against an Emirati employer, who appointed 43 family members to inflate Emiratisation rates and benefit from the Nafis programme.

The administrative penalties and fines against companies that try to exploit the Nafis scheme reach up to Dh100,000 for every Emirati, if fake Emiratisation is proven.

In a statement issued on Monday, the ministry said there is no clause which prevents relatives or family members from being hired. However, the Emiratisation would be categorised fake if done with an intent to exploit the benefits of the Nafis programme.

‘Fake Emiratisation’ is when an Emirati is enrolled in a company’s records without any real work, or if an Emirati is rehired in the same company with an objective to misguide the authorities. In such cases, the ministry imposes administrative penalties against violating companies and refers them to the Public Prosecution for legal action.

The ministry reiterated the responsibilities of Emiratis as part of the Nafis programme. It pointed out that the support and benefits are aimed at achieving real Emiratisation rates. “Therefore, they should not accept any fake jobs that make them partners in the violation of the relevant legislation and laws, therefore, depriving them from the privileges of the Nafis programme. Violations will lead to penalties, including suspension of support and refund of disbursed support as part of the initiative.”

The ministry has intensified inspections to monitor fake Emiratisation across the country.

Earlier this month, the MoHRE started implementing fines and penalties related to fake Emiratisation data. If an establishment carries out fake Emiratisation to get Nafis benefits, an administrative fine of between Dh20,000 and Dh100,000 is imposed for each bogus Emirati employee. The financial support and other benefits offered by Nafis will be suspended and the disbursed amounts recovered. The same penalty applies to companies that submit incorrect documents or data to obtain Nafis benefits.

An administrative fine of Dh20,000 shall be applied for each Emirati employee if the beneficiary did not join work after a permit is issued and the company fails to report it. The same penalty applies if the establishment fails to report to Nafis that a beneficiary has stopped working.

Nafis is a federal programme to increase the competitiveness of Emirati human resources and empower them to get employed in the private sector. Launched in September 2021, it offers several benefits and incentives, including salary support, unemployment benefits, child allowances, pension, training, etc.

Companies in the UAE with 50 or more employees are mandated to annually raise their Emiratisation rate by 2 per cent of overall skilled jobs. By the end of this year, 2 per cent of a company’s skilled staff must be Emiratis. From January 2023, a monthly fine of Dh6,000 will be levied for every Emirati who has not been hired. This works out to Dh72,000 annually.

The ministry provides various channels that allow employees, employers, and community members to report violations to ensure enforcement of the law. Violations can be reported through the call centre on 600590000, or through the ministry’s app or social media pages.

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