23 November 2022
The Ministry of Human Resource and
Emiratisation has issued a new resolution with the objective to increase the
participation of Emiratis in the Private Sector in UAE. This Resolution is a
part of the federal governments agenda that empower the Emiratis to work in the
private sector. The latest resolution by the MOHRE is a further effort to
improve Emiratization in the private sector in the UAE.
According to the Ministry
Companies should hire at least One Emirati National for every 50 skilled
workers in a company. The MOHRE has clarified that the mandatory target of 2%
of skilled roles to be preserved for Emiratis is to be met by the Companies by
December 31, 2022. Companies are required to subsequently increase the number
of employees by 2% with each passing year till 2026 i.e., at least 10% of the
employees have to be Emirati nationals by 2026. Any Emirati national employed
by the company should have a valid work permit and should be paid a minimum of
Dhs.4000 which is a minimum required wages to be paid to skilled workers.
If the Companies fail to comply
with this requirement, they will be fined Dhs 72,000(6,000 per month x 12) in
January 2023. The fine of 6,000 per month shall be increased by Dhs 1000 with
each passing year, so the companies that fail to comply in 2024 will be fined
Dhs 84,000, in 2025- Dhs 96,000 and in 2026 Dhs 108,000.
Only the private sector companies
that have less than 50 employees are exempted from this mandatory requirement.
If any company provides false information to MOHRE it will be fined DHs 20,000
per national for which it provides false information.
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