Other BriefingsUAE ‘Emiratisation’ HR Deadline Compliance Moved To July 7 – Three Weeks From Now
Foreign investors must comply or face penalties of Dh42,000 per missing local employee
The UAE Ministry of Human Resources and Emiratisation (MOHRE) has announced a small extension to the deadline for achieving semi-annual Emiratisation targets. These are applicable to the UAE private business sector and includes foreign investors.
Originally set for June 30, the new deadline is now July 7 – just three weeks from now. The extension takes into account the holiday period of Arafat Day and Eid Al Adha, ensuring companies have ample time to meet their objectives.
The MOHRE also stated that financial penalties will be imposed on companies that fail to comply with the Emiratisation targets beginning July 8. The ministry emphasized the importance of commitment to these national objectives and encouraged companies to take this additional time to evaluate and adjust their recruitment strategies accordingly.
A penalty of Dh42,000 (about US$11,500) will be applicable for every Emirati not hired within targeted companies, plus an ongoing monthly penalty of Dh7,000 (about US$1,900) per month during 2023, in line with the Cabinet Decision. The fines will increase by Dh1,000 a month for each year until 2026.
What Are The Emiratisation HR Targets?
Private sector companies with 50 employees or more are required to increase the number of their Emirati employees in skilled jobs by 1% every six months and ultimately achieve a 2% ‘Emiratisation’ rate by the end of 2023.
This is part of the of the initiatives and programmes of the Emirati Talent Competitiveness Council (Nafis). Targeted companies are expected to achieve a 10% Emiratisation rate by the end of 2026.
For assistance with urgent HR needs, please contact Maria Kotova at Dezan Shira & Associates Dubai office at dubai@dezshira.com. As the UAE has also introduced strict bookkeeping and accounting procedures in line with its tax reforms from June 1st this year, we recommend hiring local bookkeeping and accounting staff is a necessity in any event. We are able to provide HR and vetting services to assist.
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