This year, every company in the UAE’s private sector employing 50 or more people is mandated to have Emiratis in 2 percent of their skilled roles. To ensure strict compliance by the entities, the Ministry of Human Resources and Emiratisation (MoHRE) has prescribed a fine on companies as well.
The ministry has proposed “financial contributions” of Dh72,000 to organisations for not hiring each Emirati in 2022, it stated recently.
Also, MoHRE has issued a resolution detailing the steps to be taken take if the companies don’t pay the fine:
– On D-Day: The concerned establishment will be put under e-follow-up to ensure that it follows the rule
– The day after the deadline: MoHRE could refuse to issue and renew work permits belonging to the establishment, and the employer will be intimated about the same as well
– Two months following the deadline: The MoHRE can suspend issuing new work permits and renewing existing work permits for the establishments or companies that have failed to comply with the new provision.
– In case the establishment does not meet the stipulated Emiratisation target for two years in succession: The establishment faces the prospect of being reclassified and downgraded to Category (3) as per the relevant type of classification sanctioned by the Ministry.
(The aforementioned info has been sourced from Ministerial resolution no. 279 of 2022: Monitoring mechanisms of Emiratisation rates in the private sector and contributions imposed on non-compliant establishments)
The objective of the whole exercise is to hike the rate of Emiratisation to 10 per cent by the start of 2027. As per the resolution, the Emiratisation percentage shall be computed on the basis of overall UAE nationals employed in the establishment against the entire number of skilled workers.
Calculations Will Be On The Basis Of:
- The UAE national having a valid work permit.
- Emiratis’ salaries are paid via the Wages Protection System or any other system sanctioned by the relevant authorities.
- The employee registered with one of the accepted pension funds in the country
- The partnership involving the UAE national and the establishment will be purely contractual and in sync with the Labour Relations Regulation Law provisions