UAE slaps ₹22 lakh fine on firm for falsely evading Emiratisation target

United Arab Emirates government slapped a fine of Dh100,000 (approximately ₹22,34,946) on a private company for allegedly evading Emiratisation targets through fraudulent means, Gulf news reported. The company has been given the to meet its target by July 7, the semi-annual Emiratisation targets for private sector companies.

“Our systems have detected the company’s attempt to evade Emiratisation targets by cancelling work permits for some of its employees and issuing new permits for them under another company belonging to the same employer in order to reduce the total number of staff to less than 50, which would make it exempt from achieving Emiratisation targets,” the ministry said in a statement on Tuesday.

What is Emiratisation targets?

The move is a bid to increase the number of UAE citizens in the country's workforce, currently representing less than ten per cent of it. The UAE Ministry of Human Resources and Emiratisation (MOHRE) demands that private sector organisation with at least 50 employees are required to increase Emirati employees in skilled jobs by 1 per cent every six months. Ultimately, the companies should have 2% Emirati employees by the end of this year, which is in line with government's goal to have ‘Emiratisation’ of 10 percent by the end of 2026.

Beginning July 8, the companies violating this condition, will attract a penalty of Dh42,000 fine for each Emirati they have not employed, the government rules say. For a repeat offence, there will be a fine of Dh300,000 and a fine of Dh500,000 for the third violation.

‘Jolt to expats’

While the government's policy is meant to support locals - part of its ‘national objectives’, the move is set to hurt the jobs of the expatriates population and the companies, experts warned. The emirates are home to about 3.5 million Indians, one of the largest concentrations of expatriates in the region, and a crucial part of the UAE's workforce and economy.

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