Emiratisation is an initiative by the UAE government to create more job opportunities for UAE nationals and thereby promote local talent. The scheme provides employment targets for corporations, setting out the minimum employment rate for UAE Nationals.
The UAE Cabinet recently approved a decision to raise Emiratisation rates to 2 per cent annually for skilled jobs in private sector establishments with 50 or more employees and to achieve an overall rate of increase of 10 per cent by 2026. This is accompanied by granting incentives to institutions that perform qualitatively in the training and employment of citizens.
Recent Amendment
Private sector companies with a workforce of 20 to 49 workers are now required to hire at least one UAE citizen, and starting in 2025, they will be required to hire at least two Emirati citizens. This requirement is applicable to companies operating in the following sectors:
Information and communications; finance and insurance; real estate; professional and technical activities; administrative and support services; education; healthcare and social work; arts and entertainment; mining and quarrying; transformative industries; construction; wholesale and retail; transportation and warehousing, and accommodation and hospitality.
Companies with 20 to 49 workers that fail to employ at least one Emirati in 2024 will have to pay a financial contribution of AED 96,000 to the government. This contribution will increase to AED 108,000 for companies that have not employed two Emiratis by 2025.
The employer must ensure that the national employee is provided with the workplace and tools necessary for the performance of employment duties.
Sameer A. Khan
Founder & Managing Partner SK Legal
NAFIS Scheme
NAFIS is a comprehensive federal scheme aimed at increasing Emiratisation in the private sector. The scheme includes reforms and financial incentives to drive work opportunities for both young and experienced Emiratis.
NAFIS offers a wide range of tailored initiatives and opportunities, such as recruitment portals, salary support schemes, unemployment benefits (i.e., financial support for up to six months to look for a job in case of an involuntary job loss in the private sector), and a child allowance scheme that aims to support Emirati employees by providing them with a child allowance for up to four children.
Compliance with Emiratisation
The Ministerial Resolution No. (663) Of 2022 lays out specific rules for compliance with the Emiratisation scheme as listed below:
(i) In advertising jobs for Emiratisation, certain practices are prohibited (regardless of the medium, including the NAFIS platform), such as posting unskilled jobs or misleading vacancies that do not represent a genuine employment opportunity, referring to the Emiratization policies and related benefits without prior approval from MoHRE, providing information on government incentives and support programs offered to nationals in the private sector.
(ii) The employer must ensure that the national employee is provided with the workplace and tools necessary for the performance of employment duties. Furthermore, a minimum level of training, qualifications, and empowerment must be provided to the national employee.
(iii) Having national employees receive less pay than their colleagues performing similar jobs or workers in similar professions will be considered a violation of the Emiratisation process.
(iv) Employers are required to comply with certain requirements when hiring UAE nationals, such as obtaining a work permit from MoHRE for the national employee, signing an employment contract in accordance with MoHRE regulations, paying the agreed wage in accordance with the wage protection system approved by MoHRE, registering the national employee in the pension and social security system upon receipt of his work permit, reporting any amendments to the employment contract that may affect the eligibility requirements for the NAFIS program.
Maximise Your Business Potential with SK Legal: Expert Emiratisation Compliance Support
SK Legal supports companies in meeting Emiratisation requirements and fostering local talent. Our expert legal team guides your company through the intricate compliance process, ensuring you meet the latest government mandates and avoid costly penalties.
We offer the following services:
Comprehensive Compliance Support: We manage all aspects of Emiratisation compliance, ensuring your business adheres to the latest regulations and avoids penalties.
Expert Guidance on the NAFIS Scheme: Our team provides detailed assistance in navigating the NAFIS scheme, securing work permits, and implementing fair employment practices.
Training and Empowerment Solutions: We help employers provide necessary training and support to Emirati employees, promoting a productive and compliant workplace.
For personalised assistance and advice, contact us at info@sklegalfirm.com. Let SK Legal help you achieve Emiratisation compliance with confidence and expertise.
FAQs on Emiratisation Compliance in the UAE
Emiratisation is a UAE government initiative to increase employment opportunities for UAE nationals in the private sector, promoting local talent.
In 2024, private sector companies with 20-49 employees must hire at least one UAE national, with higher targets for larger companies.
The fine for fake Emiratisation practices ranges from AED 20,000 to AED 100,000, according to MOHRE.
The minimum salary for Emiratis varies by sector and job role, with no fixed national minimum wage. However, salaries must cover the basic needs of employees.
Emiratisation is calculated by the percentage of UAE nationals among skilled workers. Companies must hire at least one Emirati for every 50 skilled workers annually.
Disclaimer
This publication does not provide any legal advice and it is for information purposes only. You should not rely upon the material or information in this publication as a basis for making any business, legal or other decisions. Therefore, any reliance on such material is strictly at your own risk.
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