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The Ministry of Human Resources and Emiratisation imposed a fine of 100,000 dirhams on a company in the private sector that was proven to evade achieving Emiratization targets, based on Cabinet Resolution No. 44 of 2023 regarding amending some provisions of Cabinet Resolution No. 95 of 2022 regarding violations and related administrative penalties. The initiatives and programs of the UAE National Competitiveness Council (NAFES).
It is decided that the defrauding company will be obligated to achieve the required localization targets according to its real situation before the deception.
The ministry stated, in a press statement, that its systems were able to monitor the company’s attempt to circumvent the Emiratization targets, after it canceled the work permits of its workers, and issued new work permits for them from another company belonging to the same employer, in order to reduce the number of its employees from 68 workers to less. From 50 workers, so that they are not included in the decisions of Emiratisation targets.
The Ministry stated that its inspection teams visited the fraudulent company, as it was proven that the workers who were transferred to the other company affiliated with the employer are still working in it, which confirms the attempt to circumvent the settlement targets.
The Ministry confirmed that its Violations Committee approved the fraud violation committed by the company and fined it an amount of 100,000 dirhams, in implementation of the Cabinet’s decision issued regarding violations and administrative penalties related to the initiatives and programs of the UAE National Competitiveness Council (NAFES).
The decision also specified a fine of 300 thousand dirhams in the event that the company commits for the second time a violation of the Emiratization targets by reducing the numbers or modifying the classification of its workers or any other form of fraud, and the fine reaches 500 thousand dirhams when the company commits the same violation for a third time or at any of the following times for the third time.
The Ministry stressed that it will deal firmly with any company proven to be defrauded, and the necessary measures will be taken against it. At the same time, it praised the cooperation of the private sector to achieve Emiratisation goals, praising the role of this vital sector in the development process of the UAE and in strengthening the Emiratisation file.
Next July 7 is considered the deadline for achieving the semi-annual targets for private sector companies that employ 50 employees or more, which stipulate achieving a growth rate of 1% of skilled jobs, while starting from next July 8, the extent of companies’ commitment to achieving what is required of them will be monitored, provided that the Imposing a fine of 42,000 dirhams for every citizen who is not appointed.
