UAE Company Fined Dh10 Million for Fake Employment of 113 Citizens. A private company in the UAE has been fined Dh10 million for failing to comply with Emiratisation standards, according to an announcement made by authorities on Monday. The Abu Dhabi Misdemeanour Court found the company guilty of attempting to circumvent Emiratisation targets by appointing 113 citizens in fictitious roles, thus violating the country’s labour regulations.
Investigation and Legal Proceedings
The Ministry of Human Resources and Emiratisation (MoHRE) uncovered significant violations in the company’s Emiratisation procedures. The case was subsequently referred to the Abu Dhabi Public Prosecution for further investigation. It was revealed that the company had issued work permits and registered employees in non-existent roles, thereby misusing the Nafis programme, which is designed to encourage the participation of Emiratis in the private sector by offering benefits and privileges to companies.
Further investigations showed that the company falsely reported the employment of UAE nationals to meet Emiratisation targets, a clear breach of the programme’s objectives and regulations. The Abu Dhabi Public Prosecution recommended that the company be referred to the competent court. After reviewing the case, the court convicted the company of non-compliance with Emiratisation policies and engaging in deceptive employment practices.
The Nafis Programme and Emiratisation Efforts
The UAE government has been proactive in implementing Emiratisation regulations to create genuine employment opportunities for Emirati citizens in the private sector. The Nafis programme, a key initiative, aims to increase the number of Emiratis employed in private companies. Under this programme, private companies are required to increase their Emirati workforce by 2% annually, with a goal of reaching at least 10% by 2026. This target is split into two phases: 1% in the first half of the year and another 1% in the second half.
Compliance and Penalties
Starting July 1, the MoHRE began monitoring companies’ compliance with these targets. Companies failing to meet the required Emiratisation quota face a fine of Dh48,000 for every Emirati not hired within the first six months of the year, calculated at Dh8,000 per month per person. The fine increases by Dh1,000 each year for continued non-compliance. Regular inspections are conducted to ensure adherence to these regulations. Since mid-2022 until May 16, 2024, more than 1,300 companies have been caught violating Emiratisation rules.
Conclusion
The total number of Emirati employees in the private sector has seen a significant increase, growing by approximately 170% since September 2021, when the Nafis programme was launched. This growth reflects the government commitment to integrating Emiratis into the private sector workforce, enhancing their employability and ensuring compliance with national labour policies.
