Khaleej Times, Wednesday, Nov 16, 2022 | Rabi Al Thani 21, 1444
Emiratisation in UAE: Fines issued against companies showing fake employment data
Emirates:
The Ministry of Human Resources and Emiratisation (MoHRE) and the Emirati
Competitiveness Council (Nafis) have started implementing fines and penalties
related to fake Emiratisation data.
A UAE resolution provides an integrated legal framework to limit negative
practices affecting the achievements of Emiratisation goals and policies. The
penalties vary according to the nature of the violation committed by the
establishment.
According to the resolution, if an establishment carries out fake Emiratisation
to get Nafis benefits, an administrative fine of between Dh20,000 and Dh100,000
is imposed for each bogus Emirati employee. The financial support and other
benefits offered by Nafis will be suspended and the disbursed amounts recovered.
The same penalty applies to companies that submit incorrect documents or data to
obtain Nafis benefits.
An administrative fine of Dh20,000 shall be applied for each Emirati employee if
the beneficiary did not join work after a permit is issued and the company fails
to report it. The same penalty applies if the establishment fails to report to
Nafis that a beneficiary has stopped working.
Authorities also have the right to recover the amount paid to an establishment
if it fails to appoint the beneficiary after the Nafis-backed training period
ends.
Nafis is a federal programme to increase the competitiveness of Emirati human
resources and empower them to get employed in the private sector. Launched in
September 2021, it offers several benefits and incentives, including salary
support, unemployment benefits, child allowances, pension, training, etc.
Companies in the UAE's private sector have less than 50 days left to meet the
latest Emiratisation target before fines are imposed.
Firms with 50 or more employees are mandated to raise their Emiratisation rate
by 2 per cent of overall skilled jobs. Starting January 1, 2023, those who fail
to comply will have to pay Dh6,000 per month for each Emirati who is not
employed.