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MoHRE Implements Emiratisation Fines Starting July

April 26, 2023 thehrobserver-hrobserver-MoHRE

These guidelines are in line with the amendment of some of the provisions of Cabinet Resolution No. (19/5m) of 2022 regarding the mechanism of achieving yearly Emiratisation increase targets.

The UAE’s Ministry of Human Resources and Emiratisation (MoHRE) said that June 30e is the deadline for private sector companies with 50 employees or more to achieve their half-yearly Emiratisation targets, set at 1% of skilled jobs.

The ministry said that starting July 2023, fines will be applied to non-compliant companies for not achieving the required half-yearly rate and the 2022 targets.

“The success of Emiratisation efforts depends on expanding the vacancies open to Emiratis in the private sector and building a secure network that supports their career paths. The Ministry of Human Resources and Emiratisation supports exceptional companies that train and employ Emiratis in line with Nafis’ objectives,” said Aisha Belharfia, Acting Undersecretary for Emiratisation Affairs and Assistant Undersecretary for Labour Affairs.

These guidelines are in line with the amendment of some of the provisions of Cabinet Resolution No. (19/5m) of 2022 regarding the mechanism of achieving yearly Emiratisation increase targets.

Accordingly, a 1% Emiratisation increase should be completed before the end of June, with the yearly 2% increase target to be achieved before the end of the year.

The ministry has previously  announced that a  penalty of Dhs42,000 will be applied for every Emirati not hired within targeted companies, at a rate of Dhs7,000 per month for 2023. The fines will increase by AED1,000 yearly until 2026.

“We also offer them the chance to join the Tawteen Partners Club, which boosts the company’s ranking to Category 1, providing them with a discount of up to 80% on the Ministry’s fees,” said Belharfia, who added that companies to benefit from the support provided by Nafis to hire Emirati talents in skilled jobs.

Emiratis rate within the private sector is expected to increase to 10% by 2026. However, companies registered in the free zones are exempted from these hiring guidelines.

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