The UAE has recently implemented a major change to its labour law to combat fraudulent Emiratisation. Whereas, fraudulent Emiratisation refers to falsely employing a UAE national by issuing a work permit and registering the person with the establishment for other purposes than for which such a permit was issued.
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These amendments highlight the government’s concern of ensuring the effectiveness of Emiratisation.
Requirement of Private Sector Companies to Ensure Emiratisation
The UAE government requires companies within the private sector to progressively enhance the volume of Emirati staff in qualified positions as a section of the Emiratisation technique.
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Penalty of Up to Dh10 Million: A Recent Case That Illustrates the Matter
In a recent case, a private company was imposed with a penalty of Dh10 million for fraudulently hiring 113 UAE nationals in fake positions to meet Emiratisation figures whilst not formally incorporating these employees into the job roles. Between mid-2022, when this scheme was launched, and November of 2024, the Ministry of Human Resources and Emiratisation (Mohre) detected 1,267 UAE nationals who were serving false roles at different firms.
Organizations involved in false Emiratisation shall face administrative penalties in the form of fines, ranging from Dh20 000 to Dh100 000 or more if the offenses are many. Subsequently, organizations that evade Emiratisation targets shall face stiffer penalties in the form of fines of Dh100,000 and Dh500,000.
Additional Penalties and Enforcement
New regulations also specify the sanctions for such other fraudulent activities that defer Emiratisation provisions. Some of these are;
- Downsizing employee populations to ensure quotas are met,
- Changing job roles to ensure that compliance numbers are achieved.
The penalties for such acts range from Dh100,000 for first-time offenders and go up to Dh500,000 in a case of repeated offense. The law states that such penalties are to be enhanced where such activities affect the nationals of the United Arab Emirates, thus businesses are advised to fully comply and avoid incurring hefty fines.
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Other Areas of Legal Reforms & Workers’ Rights
Furthermore, the new labour law has other key provisions regarding fake Emiratisation crackdowns and the protection of workers’ rights. For example, it has begun to incorporate the shutdown of companies about employees’ wages and the use of young people below the working age as workers, which attract very severe penalties.
As per UAE legal experts, any conflict emanating from an employment relationship between the employee and the employer must be resolved by filing a complaint to Mohre. This decision empowers the parties involved the right to appeal the decision before the First Instance Court within 15 days.”
This will ensure that both employers and employees have legal means of solving any dispute which may occur in the employment process.
New Labour Law Changes: Commitment to Compliance
The changes that have occurred in the UAE labour law are progressive, and safeguard the essence of the Emiratisation program and the rights of the workers, at the same time. Thus, business entities in the UAE are required to adhere to the Emiratization requirements.
Following, companies are recommended to audit their employment policies and check whether they are diligently promoting Emiratisation and offer job vacancies that are substantive for UAE nationals.
Conclusively, businesses are advised to seek the expert services of top employment lawyers in UAE to effectively ensure compliance with Emiratization laws and requirements and avert hefty fines.
Thus, contact us today and we shall be glad to assist you.
