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United Arab Emirates – The Ministry of Human Resources and Emiratisation (MoHRE) has announced that it will impose fines of up to AED500,000 on companies found to be circumventing Emiratisation rules.
The ministry said the violations included reducing the number of employees or modifying their classification or any other method to circumvent the goal of emiratization.
According to the resolution, a company that is proven to be circumventing the goal of emiratization for the first time will be fined Dh100,000; for the second violation, it will be fined Dh300,000, and for the third violation, it will be fined Dh500,000 fine. Similar violations after the third time will result in a fine of Dh500,000.
Any company that finds a breach will be obliged to achieve the desired emiratization goals based on its actual status prior to circumvention.
This is in line with the implementation of UAE Cabinet Resolution No. 44 of 2023 on amending the provisions of Cabinet Resolution No. 95 of 2022 on non-compliance and administrative penalties related to the initiatives and programs of the UAE Council for Talent Competitiveness (Nafis).
The Cabinet resolution on the Emiratisation target requires companies with 50 or more employees to increase the number of their UAE employees in skilled jobs by 1% every six months, eventually achieving 2% Emiratisation by the end of the year. The target company expects to achieve a 10% emiratization rate by the end of 2026.
Non-compliant companies will face a financial contribution of Dh42,000 for each Emiratis not appointed against the semi-annual target.
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