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14 April 2024

10 days to start applying fines to non-compliant companies

An electronic system for calculating Emiratisation percentages in the private sector

By Albayan

The Ministry of Human Resources and Emiratisation has established a monitoring mechanism to ensure the extent to which private sector establishments and institutions comply with the Emiratisation rates approved by the Council of Ministers for establishments in which the number of workers exceeds 50 workers, amounting to 13 thousand establishments, through a special electronic system that shows the numbers of citizens and targets for each establishment. Applying the control mechanisms adopted by the Ministry in the inspection sector.

Fines will be imposed on non-compliant establishments automatically, provided that the value of the monthly contributions increases progressively at a rate of 1,000 dirhams each year. Penalties and fines will also be imposed on establishments in which fictitious localization is proven in accordance with the applicable laws, and establishments in which intentional and fraud is proven will be referred to the Public Prosecution. General to take action in accordance with the legislation approved in the country.

  • Procedures

The Ministry launched a "countdown" index to alert owners of establishments and private sector companies registered with it, which employ 50 employees or more, of the need to accelerate work to achieve the Emiratisation targets of 2% in skilled jobs, before the end of this year, in implementation of the Cabinet's decision issued in this regard. To avoid penal, administrative and financial procedures resulting from non-compliance.

The Ministry of Human Resources and Emiratisation will begin after 10 days, specifically in early January, to follow up on the commitment of Emiratisation rates in the establishments to which the Emiratisation decision applies, and to collect the monthly contribution approved by the Council of Ministers, amounting to 6,000 dirhams for each citizen who was not employed according to the target.

The Ministry warned private sector institutions and establishments against the use of "fictitious localization", which means registering a citizen in the company's register with a formal job for fictitious representation, including employment without real work, just to achieve the formally required goals, or to re-employ citizens on the job in the same facility with the aim of Manipulating data and obtaining associated benefits.

  • Flexibility

The Emiratisation decision gave private sector establishments a great opportunity to benefit from the incentives and privileges provided by the “Nafes” program to reach the Emiratisation goals, which are the localization of 2% of the skilled jobs out of the total number of employees in each establishment that has at least 50 employees during the year 2022. The Ministry also granted the sector’s establishments The private sector has some flexibility to adjust its conditions for a period of two months in some cases, including in the event of the sudden resignation of a citizen employee and a decrease in the percentage of citizens from the specified percentage, or if the facility terminates the service of a citizen for reasonable reasons such as absences and violations, or if the facility appoints a citizen at the beginning of the year and he did not complete it, then Establishments are given a two-month deadline when applying the contribution to appoint a replacement citizen in order to meet the prescribed percentage, and the contribution is calculated in case of delay.

  • Mechanism

Emiratisation percentages will be calculated based on the work permits of citizens registered in the Ministry’s approved systems, provided that the citizen has a valid work permit, and that his wages are paid through the Wage Protection System or any other system approved by a competent authority in the country to ensure the governance of commitment to payment of wages, and that he be The citizen is registered with one of the approved pension funds in the state, and the relationship between the citizen and the establishment is a contractual relationship that fulfills all terms and conditions in accordance with the Law Regulating Labor Relations, its executive regulations and the applicable decisions implementing them.

  • Fines

The Ministry of Human Resources and Emiratisation announced that if any manipulation is proven on the part of the establishment, such as reducing the number of its employees to be less than 50 workers before the beginning of next year (so that it does not fall within the framework of the decision), the fines mentioned in Cabinet Resolution No. 21 of 2020 will be applied to it. and subject them to legal accountability.