A fine for violating the employment of non-UAE nationals in professions prohibited to them
The UAE authorities have announced a fine for violating the employment of non-nationals in the UAE in professions prohibited to them, which are known as Emiratization violations.
Read also : What legal actions can an employer take against me if I violate a non-compete clause?
The authorities in the United Arab Emirates (UAE) have declared that a fine would be imposed on anyone who violate the Emiratization laws by employing foreign nationals in the UAE in occupations that are off-limits to those individuals.
Determine the fine for violating job localization in the UAE
Companies that are proven to have circumvented the Emiratisation targets by reducing the numbers or modifying the classification of their workers, or any other form of fraud in order to avoid the Emiratisation targets, will be subject to financial fines that could amount to 500,000 dirhams, according to an announcement made by the Ministry of Human Resources and Emiratisation. This announcement was made in implementation of the decision Cabinet No. 44 of 2023 amending some provisions of Cabinet Resolution No. 95 of 202. The decision specified a fine of 100,000 dirhams against the company that is proven to have committed - for the first time - a violation of defrauding the Emiratisation targets, by reducing the numbers or modifying the classification of its workers, or any other form of fraud, while the value of the fine is when the aforementioned violation is committed for the second time. The decision also specified a fine of when the violation is committed for the third time. 300 thousand dirhams, with a possible increase to a maximum of 500 thousand dirhams if the company commits the same infringement for a third time, or if any of the following violations occur for a third time.
Localization rates of specific jobs in companies in the UAE
The decisions made by the Cabinet in regards to Emiratisation targets require achieving a growth in Emiratisation by 1% of the skilled jobs in companies that employ 50 employees or more, before the first of next July, provided that the growth rate reaches 2% before the end of 2023, and a growth rate of 10%.% by the end of 2026. Additionally, financial contributions will be collected from companies that do not meet the targets at a value of 42 thousand dirhams for each citizen who has not been employed.
A fine for violating the localization of first jobs
A corporation that has been found to have committed, for the very first time, a violation of deceiving Emiratization targets was hit with a fine of one hundred thousand dirhams by the United Arab Emirates.