The UAE government announced the start of imposing fines on companies violating the recent Emiratization rules approved by the government during the UAE Cabinet meeting.
Imposing fines for companies violating localization rules
For its part, the Ministry of Human Resources and Emiratisation has stated that fines will be imposed and 1,300 private companies in the Emirates will be punished for violating Emiratisation rules during the period from 2022 to May 16, 2024.
Private companies violating the Emiratisation rules in the UAE will be fined amounts ranging from one thousand to 100 thousand dirhams for each case.
1,379 companies violating Emiratisation decisions in the UAE
The Ministry of Human Resources in the UAE said that the number of violating companies reached 1,379 companies, and these companies illegally employed about 2,170 Emirati citizens.
It is worth noting that the Ministry of Human Resources requires private companies to increase the percentage of the Emirati workforce every year by 2%, so that it reaches about 10% by the year 2026.
97,000 Emiratis currently work in companies
The Ministry of Human Resources confirmed that there are currently more than 97,000 Emiratis working in about 20,000 private companies in the country, according to data collected by the Ministry during the period from mid-2022 to May 2024.
The Ministry is keen every now and then to carry out inspections on private companies in the UAE, to ensure their compliance with the decisions of the UAE Council of Ministers, and since the beginning of these rules, it has arrested hundreds of companies that circumvented the objectives through illegal recruitment.
Fictitious resettlement in the UAE
It is worth noting that the Ministry of Human Resources had announced earlier that Emiratisation is considered fictitious when it is confirmed that a citizen is working in a symbolic job without real tasks, and the Ministry explained that this is in order to achieve the objectives of Emiratisation in the facility. Some may also “rehire” an Emirati to handle the data.
The Ministry imposes heavy fines on violators that may reach 100,000 dirhams. Violators have been referred to the Public Prosecution.
Downgrading some companies
The Ministry of Human Resources in the UAE said that the classification of some companies was downgraded to the lowest classification within the “MORE” system, while others were asked to pay financial contributions to Emiratization, and the Ministry is dealing with harmful practices that aim to undermine Emiratization obligations firmly and in accordance with the law.”