Fines for Emiratization requirement introduced

IMPACT — MEDIUM

The Emirati government has announced that it will fine employers up to 500,000 AED (about US$136,000) for not meeting Emiratization requirements.

Key Points:

• Employers who do not meet their Emiratization requirement will be fined:
  • 100,000 AED for the first violation.
  • 300,000 AED for the second violation.
  • 500,000 AED for the third violation.
• Noncompliant employers must make an additional 42,000 AED financial contribution for each Emirati not appointed according to the semiannual Emiratization targets.
• The violations include reducing the number of employees, modifying their classification or any other method to circumvent the Emiratization targets.

Background: Emiratization targets require employers with 50 employees or more to increase the number of its 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: 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.

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