Emiratization requirement deadline extended

IMPACT — MEDIUM

The Emirati government has extended the deadline for employers with 50 or more employees to meet the semiannual Emiratization requirement.

Key Points:

• Employers with 50 or more employees now have until July 7 to meet the semiannual Emiratization requirement.
• Beginning July 8, noncompliant employers will face a 42,000 AED (about US$11,400) financial fine for each Emirati not appointed according to the semiannual Emiratization targets.
• Further violations will result in the government reducing the number of employees or modifying their classification or any other method to circumvent the Emiratization targets.

Background: Emiratization targets require employers with 50 or more employees to increase the number of Emirati employees in skilled positions by 1% every six months, ultimately achieving a 2% Emiratization by the end of each year. Employers are expected to achieve a 10% Emiratization rate by the end of 2026.

BAL Analysis: Emirati authorities delayed the deadline to meet the Emiratization requirement in consideration of the upcoming Eid Al Adha holiday. Employers should plan ahead to ensure they meet the new employment requirements to avoid applicable fines.

This alert has been provided by the BAL Global Practice Group. For additional information, please contact berryapplemanleiden@bal.com.

Copyright © 2023 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.