Today's Edition
SAMY ABDULRAOUF (DUBAI)
The Ministry of Human Resources and Emiratisation (MoHRE) is imposing fines on private companies that failed to meet the localisation targets for the year 2023.
The move comes in line with a Cabinet decision to increase Emiratisation rates by 2% annually for skilled jobs in establishments with 50 or more employees, starting from 2022. The aim is to achieve a localisation rates of up to 10% by the end of 2026.
The fines imposed on establishments amounted to Dh84,000 for each citizen not appointed, equivalent to Dh7,000 per month for the year 2023. The monthly fine increases gradually by Dh1,000 annually until 2026.
The Ministry offers support and incentives to establishments for training and employing citizens according to the Nafis programme’s objectives. This includes membership in the Emiratisation Partners Club, which elevates the establishment’s classification to the first category within the Ministry’s classification system, thus obtaining discounts of up to 80% on Ministry services.
The Ministry urged private sector establishments to adhere to the Cabinet’s decision, contributing effectively to increasing localisation rates in the sector and empowering Emirati talents to participate in this vital sector.
The Ministry acknowledged the efforts of private establishments that have met the required localisation targets in 2023.
In a related context, the MoHRE has begun implementing the Emiratisation process in private sector establishments with 20 to 49 employees in 14 key economic sectors, encompassing 71 sub-sectors. The Ministry aims to appoint at least one Emirati employee in 2024 and another in 2025 in these sectors.
Through its digital system, the MoHRE notified over 12,000 private companies to employ 20 to 49 workers, as per Cabinet Decision (33/5). This decision is expected to create around 12,000 job opportunities annually in 2024 and 2025 across various vital economic sectors.
This decision comes in line with the continued implementation of Emiratisation targets for companies with 50 or more employees to achieve an annual 2% growth in skilled posts.
The Ministry is committed to monitoring the Emiratisation process according to Cabinet decisions through an integrated system, aiming to enhance the competitiveness and participation of the Emirati workforce in the labour market.
Companies covered by the Emiratisation expansion can register on the Nafis platform to benefit from the programme’s, particularly in recruiting qualified Emirati personnel.
The Emiratisation process covers 14 economic sectors, including information and communications, finance, insurance and real estate, tech, administrative and support services, education, health, social work, arts and entertainment, mining and quarrying, manufacturing, construction, wholesale and retail trade, transportation and storage, as well as hospitality services. These sectors, involving over 12,000, were selected based on the nature of their jobs, which are in line with Emiratisation goals.
Annual fines will be imposed on non-compliant companies, amounting to Dh96,000 for each unemployed Emirati citizen, starting from January 2025 for the year 2024.
In January 2026, for the year 2025, financial contributions of Dh108,000 will be imposed, and companies are allowed to negotiate installments with the Ministry.
