32.1 C
Dubai
Wednesday, May 22, 2024
spot_img

Law Query: Entrepreneur Seeks Emiratisation Clarity

Effective January 2023, the Emiratisation law directly applies to all companies, whether existing or newly established. For employers in the private sector with over 50 employees, they are required to increase their Emiratisation rate by 2% annually for skilled workers.

This 2% Emiratisation law specifically applies to private sector establishments registered with the Ministry. Companies must adhere to the following scheme based on their number of skilled workers:

  • For 50 skilled workers: Employ at least one UAE national employee.
  • For 51 to 100 skilled workers: Employ at least two UAE national employees.
  • For 101 to 150 skilled workers: Employ at least three UAE national employees.
  • For more than 151 workers: Employ one UAE national employee for every 50 workers.

Failure to meet the Emiratisation targets will result in fines, which are as follows:

  • A fine of Dh 6,000 per month for each unemployed UAE national.
  • A maximum fine of Dh 100,000 may apply if the company engages in fraudulent Emiratisation practices, submits false documents, or misrepresents data to gain Nafis benefits.
  • The fine may also be applicable in cases where an employee does not join work after the work permit is issued, and the establishment continues to receive Nafis support.
  • If an employee benefiting from Nafis exhibits non-commitment towards work, and the employer fails to notify Nafis, the maximum fine may be imposed.
  • The company may face fines if they do not employ an Emirati after the individual completes the Nafis training program and the company fails to provide a valid justification.
  • Fines can also be imposed if the company does not report any changes in the benefit terms without a reason acceptable.

Related Articles

Saudi Arabia Makes History with First-Ever Swimsuit Fashion Show at Red Sea Fashion Week

Saudi Arabia Makes History with First-Ever Swimsuit Fashion Show at Red Sea Fashion Week Introduction Saudi Arabia, a nation known for its conservative values, made...

Walmart Implements Layoffs, Prompts Worker Relocation, Corporate Realignment

Walmart Implements Layoffs, Prompts Worker Relocation In a strategic move aimed at optimizing operations and adapting to changing market dynamics, retail giant Walmart has announced...

Iranian President Raisi and Foreign Minister die in Helicopter Crash

Iran Mourns President Raisi and Foreign Minister After Fatal Helicopter Crash In a tragic incident that has shaken Iran, President Ebrahim Raisi and Foreign Minister...

Saudi Arabia Implements Tax Exemption for Duty-Free Stores, Following Approval

Saudi Arabia Implements Tax Exemption for Duty-Free Stores, Following Approval In a significant development, Saudi Arabia has approved a tax exemption policy for duty-free stores...

SGX FX partners with Rand Merchant Bank (RMB) as its newest liquidity provider

SGX FX partners with Rand Merchant Bank (RMB) as its newest liquidity provider 16th May 2024, SGX FX, through its eFX trading solutions platform for global...

Latest Articles