UAE private firm fined AED 100,000 for evading Emiratisation target

A private firm in the UAE has been fined AED 100,000 for "fraudulently evading" the Emiratisation target by manipulating its employee numbers.

During inspections, teams from the Ministry of Human Resources and Emiratisation (MoHRE) found that the employer reduced the workforce of its company from 68 to below the targetted 50-employee mark so he could "circumvent the Emiratisation target".

According to the law, companies with more than 50 employees must increase their Emiratisation quota to two per cent for skilled jobs every year.

The ministry said the company reduced its manpower by cancelling work permits for some of its employees and reissuing new ones under another company, belonging to the owner.

It has instructed the firm to ensure it meets its actual Emiratisation target by July 7 to avoid any more penalities.

The Ministry of Human Resources and Emiratisation (MoHRE) imposed a AED100,000 fine on a private sector company for evading Emiratisation targets.

The Ministry's inspection teams confirmed that the number of employees were reduced from 68 to less than 50 by transferring them to…

— وزارة الموارد البشرية والتوطين (@MOHRE_UAE) June 20, 2023

Firms caught violating the Emiratisation target a second time will face a fine of AED 300,000 and AED 500,000 for the third violation, the ministry reminded.

As of July 8, companies found non-compliant with the Emiratisation target will face an AED42,000 fine for each Emirati they have not employed.

The ministry stressed it would deal "firmly with any company proven to have committed fraud, taking all necessary measures against it".