An administrative fine of 20,000 Dh will be applied for each local employee if the beneficiary has not joined the work after the issuance of a permit
The Ministry of Human Resources and Emiratization (MoHRE) and the Emirati Competitiveness Council (Nafis) have started applying fines and penalties related to false Emiratization data.
A UAE resolution provides an integrated legal framework to limit negative practices affecting the achievement of emirates goals and policies. Sanctions vary depending on the nature of the offense committed by the establishment.
According to the resolution, if an establishment carries out false Emiratization to obtain Nafis benefits, an administrative fine of between 20,000 and 100,000 Dhs is imposed on each false Emirati employee. The financial support and other benefits offered by Nafis will be suspended and the amounts disbursed recovered.
The same penalty applies to companies that submit incorrect documents or data to obtain Nafis benefits.
An administrative fine of 20,000 Dh will be applied for each Emirati employee if the beneficiary has not joined the work after the issuance of a permit and the company does not report it. The same penalty applies if the establishment fails to notify Nafis of a beneficiary’s work stoppage.
The authorities also have the right to recover the amount paid to an establishment if it does not designate the beneficiary after the end of the training period backed by Nafis.
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Nafis is a federal program aimed at increasing the competitiveness of UAE human resources and empowering them to find employment in the private sector. Launched in September 2021, it offers several benefits and incentives, including wage support, unemployment benefits, child benefits, retirement, training, and more.
Private sector companies in the UAE have less than 50 days left to achieve the last goal of emiratization before fines are imposed.
Companies with 50 or more employees are required to increase their emirate rate by 2% of all skilled jobs. As of January 1, 2023, those who not comply will have to pay 6,000 Dh per month for each Emirati who is not employed.