UAE Company Fined Dh10 Million for Fake Employment of 113 Citizens

Violating Emiratisation Regulations Can Lead to Severe Fines

A private company in the UAE has been fined Dh10 million for violating Emiratisation regulations by falsely employing 113 citizens. The Abu Dhabi Misdemeanour Court found the company guilty of evading Emiratisation targets by creating fictitious roles for Emirati nationals. This violation was uncovered during an investigation by the Ministry of Human Resources and Emiratisation (Mohre), which referred the case to the Abu Dhabi Public Prosecution.

Nafis Programme

The Emiratisation initiative in the UAE aims to increase the participation of Emiratis in the private sector workforce. Under the Nafis program, private companies with more than 20 Employees must hire Emirati nationals and will be incentivized through benefits and privileges. Companies must incrementally increase their Emirati workforce by 2% annually, aiming for a 10% Emiratisation rate by 2026. Non-compliance with these targets results in fines, calculated based on the shortfall in Emirati hires.

In this case, the company was found to have issued work permits and registered UAE nationals in fictitious roles, falsely reporting their employment to meet Emiratisation targets. This act directly violated the objectives of the Nafis program and was identified as a serious breach of regulations. The court’s ruling highlighted the company’s deliberate non-compliance and engagement in deceptive employment practices.

Since implementing the Emiratisation regulations, the UAE government has been vigilant in monitoring and enforcing compliance. Inspections are regularly conducted to ensure that companies adhere to the mandated targets. Since mid-2022, over 1,300 companies have violated Emiratisation rules, demonstrating the government’s commitment to the initiative.

The Nafis program has seen a significant increase in Emirati employment in the private sector, with a growth rate of approximately 170% since September 2021. This federal initiative aims to enhance the employability of Emiratis and ensure genuine employment opportunities in the private sector.

TME Legal Takeaway

The recent case underscores the UAE’s dedication to enforcing Emiratisation policies and addressing any attempts to undermine the program’s objectives. By imposing substantial fines and conducting rigorous inspections, the UAE aims to ensure that Emiratisation targets are met with integrity and genuine efforts to integrate Emiratis into the private sector workforce.

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TME Legal