Up to AED 500,000 fine for firms violating Emiratisation targets

Fines of up to AED 500,000 will be imposed on private companies that try to evade Emiratisation targets.

The Ministry of Human Resources and Emiratisation (MoHRE) said that firms will be penalised if they try to reduce the number of employees, modify their classification or use any other tactic to flout the rules.

A fine of AED 100,000 will be imposed for a first offence, and the amount will go up to AED 300,000 if the offence is repeated, while a third violation will lead to a AED 500,000 fine.

Any further violations will also result in a AED 500,000 fine.

The Emiratisation targets require companies with 50 employees or more to increase the number of its Emirati employees at skilled jobs by 1 per cent every six months, ultimately achieving a 2 per cent Emiratisation by the end of the year.

Overall, targeted firms are expected to reach a 10 per cent Emiratisation rate by the end of 2026.

Those who fail to comply will face a AED 42,000 fine for each Emirati not hired as per the semi-annual targets.