Circumventing Emiratization Targets Could Lead Fines up to AED500,000

The Ministry of Human Resources and Emiratization (MoHRE) has announced that if companies are caught circumventing Emiratization rules, hefty fines up to AED500,000 will be imposed on them. Ever since Emiratization has been announced, companies have been finding ways to circumvent the rules, but the Government is very sharp and has come up with the latest resolution. A number of violations including reducing the number of employees and modifying employee classification have been detected and these will be punishable by hefty penalties. Here are the details.

AED100,000 will be imposed on companies as penalty if they are caught circumventing the Emiratization rules for the first time. If they repeat the violation, AED300,000 will be imposed while an offence for the third time and further would lead up to AED500,000 as fine. Apart from this, the company that violates the rules will be obligated to achieve the required Emiratization targets as well.

What is Emiratization and how does it work? Read here: https://alnahdacenter.com/news/emiratization

Emiratization is the Government’s move to give job prospects and better opportunities to the UAE nationals in private companies. Targeted companies are expected to reach 10% Emiratization by the end of 2026 and those who fail to reach the same will be imposed a fine of AED42,000 for each Emirati not hired according to the targets!

So, if you are a private company based out of the UAE, understand Emiratization better and comply to the rules in order to avoid hefty penalties.