a fine of 500,000 dirhams against companies defrauding Emiratisation targets in the UAE
The Ministry of Human Resources and Emiratisation has announced the application of financial fines against companies that are proven to have circumvented the Emiratisation targets by reducing the numbers, modifying their employment classification, or any other form of fraud to avoid the Emiratisation targets, as per Cabinet Decision No. 44 of 2023 amending some provisions of Cabinet Decision No. 95 of 2022 r.
A fine of 100 thousand dirhams against the violating company
The decision, in particular, imposes a fine of 100,000 dirhams on the company that is proven to have violated the Emiratization targets by reducing the number or modifying the classification of its workers, or by engaging in any other form of fraud, and a fine of 300,000 dirhams on the company that is proven to have violated the Emiratization targets for the second time. If the company commits the same or any of the above offences a third time, it may face a punishment of up to 500,000 Dhs.
In the event of the aforementioned fraudulent violation, the offending corporation will be held to the pre-fraud localization targets.
According to Cabinet decisions, companies with 50 or more workers must increase the percentage of skilled Emiratis in their workforce by 1% by the beginning of next July, increase that number to 2% by the end of 2023, and increase it to 10% by the end of 2026, or face financial contributions of 42 thousand dirhams per clerical position that is not filled.