Picture for illustrative purposes only. ARCHIVE

The Ministry of Human Resources and Emiratisation has reminded private companies that the fictitious employment of Emiratis is punishable by a Dh20,000 fine for each employee. An official revealed that a fine of Dh6,000 would be imposed on private companies that fail to abide by prescribed Emiratisation rates of 2 percent annually. The ruling will go into effect in January 2023. According to Cabinet Resolution No. (5/19) of 2022, all establishments registered with the Ministry with 50 or more employees must increase their present Emiratisation rates in skilled occupations by 2% per year to achieve 10% by 2026. The penalties and contributions will be collected in January of the following year, with an annual increase of Dh1,000 for the monthly contributions if the establishment does not change its status. The Ministry also clarified that the relationship between the citizen and the company must be contractual, complying with all terms and conditions of the labor legislation. BKM/ Expat Media
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