United Arab Emirates: Stricter Fines for Circumventing the Emiratization Requirements Introduced
October 3, 2024
Update - October 3, 2024: This amount has increased to AED 8,000 per month, and will increase annually by AED 1,000.
May 10, 2023: The UAE government has added a new item to the list of administrative fines for violations of regulations related to Emiratization programs, including the Nafis scheme. Per the new law, employers that changed the professional classification of their workers (i.e., from a skilled to an unskilled category) or purposely reduced the number of workers in their employ with the intention to circumvent the prescribed Emiratization targets, will be subject to a fine of AED 100,000 for the initial violation, or AED 300,000 for a second violation, or AED 500,000 for a third violation or beyond. Additionally, the employer will be required to meet the required nationalization targets based on the status of the company prior to the violation. The announcement comes just over a month before the June 30, 2023 deadline that private-sector companies with 50 or more employees must abide by to achieve at least 1% of their annual nationalization target. Employers that do not comply with the rule will be subject to a penalty of AED 7,000 per month for each vacancy that has not been filled with an Emirati worker.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
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