Maintaining Emiratisation target throughout 12 months to avoid fines in the UAE

Recently, the Ministry of Human Resources and Emiratisation in the UAE has announced new mandatory requirements that companies must meet. As matter of fact, the MOHRE had made clear the Emiratisation quota that firms should have met by 2022. And those firms that did not meet this quota, may face serious consequences.

For those companies that did not meet this target, the Ministry issued AED 400 million worth of fines. Besides, the Ministry also announced that UAE companies will have to meet and maintain the Emiratisation target for 12 months. And this way, they will be able to avoid fines and other penalties.

1. What is the new announcement that the MOHRE made?
2. What is the Ministry of Human Resources and Emiratisation in the UAE?

1. What is the new announcement that the MOHRE made?

Previously, the Ministry of Human Resources and Emiratisation had made an announcement addressed to companies with more than 50 employees. And it was about the new mandatory Emiratisation quota of 2 percent that companies had to meet by the end of 2022. And now, for 2023, this quota increased to 4 percent.

On the other hand, the MOHRE also made an announcement related to AED 400 million worth of fines. These fines were issued for those companies that did not meet 2022’s target Emiratisation quota. And some establishments got an AED 72,000 fine for each Emirati they did not hire. Besides, the MOHRE increased this same fine to AED 84,000 for 2023.

Those companies that failed to meet the previous quota will have to make an effort to achieve the new goal. And, as we mentioned before, the new goal in 2023 will be meeting a 4 percent Emiratisation quota.

1.1. What will be the fines for not meeting the new quota by the end of 2023?

The Ministry of Human Resources and Emiratisation also announced new fines for companies that do not achieve the new goal. By December 31st, 2023, companies must meet the new 4 percent Emiratisation quota. And failing to meet this quota will lead to fines of AED 7,000 per month for each Emirati national short of the quota starting from January 1st, 2024.

Furthermore, the authorities also mentioned that companies will be required to maintain Emiratisation for an entire year. And currently, the MOHRE is calculating the fines on a month-to-month basis and assessing companies.

For instance, let’s say that an establishment meets the quota for January, February, and March. However, in April and May, the establishment did not meet such a quota. So, in that case, the authorities will impose fines only for the months of April and May.

In addition, you should also know that private companies must find immediate Emirati replacements for UAE citizens that resign. Otherwise, companies will not be able to meet the Emiratisation target that the law stipulates. No exceptions will be made. If the required number of employed Emiratis is not maintained until the following year, the establishment shall be considered non-compliant. And in that case, the establishment will have to pay the required contribution (an annual fine).

2. What is the Ministry of Human Resources and Emiratisation in the UAE?

The Ministry of Human Resources and Emiratisation or MOHRE is a vital government entity established in 1971. And this entity consists of 4 main sectors, which are the following:

• The Labour Sector.
• The Inspection Sector.
• The Policies and Strategies Sector.
• And the Supporting Service Sector.

The MOHRE develops its services to ensure quality and increase the trust of its users. But, to enhance the UAE’s ease of doing business and to keep up with the smart government, the MOHRE began the electronic conversion of its services. Between 2007 and 2008, the Ministry developed a system known as TASHEEL to provide services electronically, which reached great success.

2.1. Goals of the Ministry of Human Resources and Emiratisation

• Establish and control the implementation of federal laws to regulate business and labour affairs.
• Propose labour policies appropriate for the UAE and manage the business market.
• Organize labour relations in order to provide stability, boost productivity, and create more job opportunities.
• Participate in the formation of the country’s economic and social policy.
• Provide high-quality services to satisfy users’ needs as per applicable rules and regulations.
• Provide job opportunities for nationals to support and encourage their work.
• Supporting labour relations at Arab and international levels.

2.2. Duties of the MOHRE

Among the most remarkable duties that the Ministry of Human Resources and Emiratisation has, you will find the following:

• Drafting the general Emiratisation policy and supervising its implementation in order to include more Emirati citizens in the job market.
• Conducting administrative and field analyses and studies on the country’s job market.
• Providing career consultancy and advice to Emirati workers.
• Supporting small investment companies/enterprises by applying self-employment projects of national manpower.
• Conducting evaluations and follow-ups of the Emiratisation process in the private sector.
• Preparing or arranging training programs for nationals who are seeking job opportunities.
• Coordinating education and training programs of educational and training facilities of the UAE.
• Supervising the assistive services laborers’ class as per the governing regulations and laws.

2.3. Other important entities in the UAE

Apart from the MOHRE, you will also find the Abu Dhabi Ministry of Labour. And the Ministry of Labour or MOL is responsible for issuing labour cards or work permits. And it can also impose bans on those individuals that are entitled to these documents.

If you desire to get this permit in this emirate, you should first get the Ministry of Labour Abu Dhabi contact. Or if you want to get it in another location, make sure to get in touch with the pertinent local authorities. But remember that the Labor Ministry in the UAE will be one of the most important authorities during this process.

On the other hand, you can also find the Dubai Government Human Resources Department. But unlike the Ministry of Labour in Abu Dhabi, this entity is responsible for other aspects that relate to HR. And its main mission is to develop and implement an integrated strategy for government Human Resources. Plus, it must also set up governance frameworks and update HR systems.