The government clarified that it would be illegal to work around the Emiratisation targets, which include lowering the number of staff or changing their classification.
Companies who violate the Emiratisation targets would be subject to fines of up to AED 500,000, according to the Ministry of Human Resources and Emiratisation (MoHRE).
Following the implementation of UAE Cabinet Resolution No. 44 of 2023, which modifies provisions of Cabinet Resolution No. 95 of 2022 on violations and administrative penalties related to the initiatives and programmes of the Emirati Talent Competitiveness Council (Nafis), the announcement was made.
The government clarified that it will be illegal to avoid the Emiratisation targets, which includes lowering the number of employees or changing their classification.
Companies will be penalised AED 100,000 for first-time violations of Emiratization targets. If the infraction occurs a second time, a fine of AED 300,000 will be assessed; if it occurs a third time, a fine of AED 500,000 will be assessed. After the third offence, the same fine will be imposed for similar violations.
Companies that are found to be breaking the Emiratization targets are now obliged by the ministry to meet the benchmarks based on their actual situation prior to the circumvention.
Companies with 50 or more employees must increase the proportion of Emirati workers in skilled positions by 1% every six months in order to reach a 2% Emiratisation rate by the end of the year.
By the end of 2026, it is anticipated that the targeted companies will have a 10% Emiratisation rate. For each Emirati not hired in accordance with the semi-annual targets, non-compliant enterprises will be required to make a financial contribution of AED42,000 each.