The Ministry of Human Resources and Emiratization (MOHRE) has emphasized the importance of Emiratization in the private sector for UAE citizens, as this participation in all fields is of great importance to support the labor market and the UAE economy.
The Ministerial Resolution No. (6639) of 2022 regarding compliance with Emiratization regulations in the private sector and Ministerial Resolution No. (279) of 2022 is to follow-up mechanisms and Emiratization rates in the private sector and the assessed contributions of non-compliant establishments.
These decisions targeted private sector companies that employ 50 or more employees, and the percentage of Emiratization is 2% annually in skilled jobs and increases annually until it reaches 10% in the year 2026, while the new decision targets individual companies that employ 20 to 49 employees. An employee, as the decision requires it to appoint at least one citizen in 2024, and a second citizen in 2025, in specific economic activities.
In the event that companies do not comply with the aforementioned decisions issued by the Council of Ministers, measures will be taken and financial penalties will be imposed as follows:
1- A fine of AED 100,000 against the company that is proven to have committed for the first time a violation of circumventing the Emiratization targets by reducing the number or modifying the classification of its employment or any other form of fraud.
2- AED 300,000 in case of committing the violation for the second time
3- A fine of 500,000 dirhams when violating the same for the third time or any time.
ILS CONSULTANCY team of specialized consultants provides all companies with constructive advice and clear legal advice on how to take appropriate procedures in the event of committing such violations and provides all the necessary services for the conduct of companies to the fullest throughout the United Arab Emirates.
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