The United Arab Emirates issues a decision to fine 100 thousand dirhams due to resettlement
The UAE's Ministry of Human Resources and Emiratisation (MoHRE) is taking a tough stance on companies flouting Emiratisation rules. In a crackdown spanning mid-2022 to May 16, 2024, MoHRE identified and penalized over 1,300 private companies for violating these regulations.
Stiff Penalties for Non-Compliance
These companies face hefty fines ranging from Dh20,000 to Dh100,000 (US$5,445 to US$27,225) for each instance of non-compliance. The total amount in fines could reach into the millions.
Fake Hiring Exposed
MoHRE investigations revealed that these 1,379 firms had engaged in illegal practices to meet Emiratisation targets. This included hiring 2,170 UAE nationals for nominal positions without any actual work responsibilities. Some companies even resorted to "re-hiring" the same Emirati individuals to manipulate data.
Fines Just the Beginning
Beyond the financial penalties, MoHRE is taking a multi-pronged approach to address this issue. Violators also face potential referral to the Public Prosecution, potentially leading to further legal consequences. Additionally, some companies have been downgraded within the MoHRE rating system, impacting their overall business standing.
Financial Disincentives: In some cases, companies may be required to pay Emiratisation financial contributions, further adding to the cost of non-compliance.
MoHRE: Zero Tolerance for Rule Breakers
The Ministry has issued a clear message: "Harmful practices that aim to undermine Emiratisation commitments will be dealt with firmly and according to the law."
Importance of Emiratisation
The UAE government views Emiratisation as a crucial initiative to increase the participation of Emirati nationals in the private sector workforce. The goal is to achieve a minimum of 10% Emirati representation by 2026, with private companies required to gradually increase their Emirati employee numbers by 2% annually.
Reporting Violations Made Easy
MoHRE is urging residents to report any suspected violations of labor rules. Multiple channels are available for reporting, including a dedicated hotline (600590000), the MoHRE app, and the MoHRE website.
This crackdown by MoHRE sends a strong signal to businesses operating in the UAE. Compliance with Emiratisation rules is no longer optional, and companies that engage in illegal practices can expect significant consequences.