Mainland private sector companies in the United Arab Emirates with 50 or more employees are reminded of the critical deadline to increase their Emiratization rate by an additional 1% by June 30, 2024. This follows the 2023 Ministry of Human Resources and Emiratization (MOHRE) directive.
Key Points:
– Deadline: June 30, 2024
– Requirement: All eligible companies must have an Emiratization rate of at least 5%.
– Increment: Companies already exceeding the 5% rate must still increase their Emiratization rate by 1%.
Compliance and Penalties:
– Employers failing to meet the required Emiratization targets will incur fees of AED 8,000 (approximately USD 2,178) per month for each unfilled Emirati vacancy in 2024.
– The penalty will increase by AED 1,000 per month each subsequent year.
– Non-compliance may result in additional consequences such as portal blocks, and disrupting employee recruitment processes.
This mandate builds on the 2022 MOHRE announcement, which initially required private sector employers with more than 50 employees to increase their percentage of Emirati employees. The 2023 update enforces stricter requirements.
Support and Resources:
Companies are encouraged to register with the UAE government’s “Nafis” program, which offers initiatives and support for hiring UAE nationals.
Ensure your company is compliant to avoid penalties and operational disruptions. Act now to meet the Emiratization requirements by June 30, 2024.
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