This article, written and produced by Auxilium, one of the GCC’s leading Employer of Record and outsource staffing solutions providers, looks more closely at what this means for companies.
The Emirati Talent Competitiveness Council Program (Nafis) was launched in 2021 and was aimed at supporting Emirati nationals who want to pursue professional careers in the private sector. Alongside Nafis, the UAE government also introduced measures to increase the Emiratization rate for private sector employers by 2% annually, with the aim to meet an overall target of a 10% increase by 2026.
Under the mandate, private companies in the UAE with 50 or more skilled employees, now need to confirm by January 1st 2023 that they have raised their Emiratization rate in line with this target, or face potential fines.
In a recent advisory statement, the Ministry of Human Resources and Emiratization (MOHRE) reiterated that companies who fail to comply will have to pay a fine of Dh72,000 for each Emirati that they are short of their quota.
The statement stressed that the ministry is ready to help companies to achieve the target, saying: “We reaffirm our belief in developing the UAE labor market in partnership with the private sector to help achieve an improved business environment and investment climate that encourages companies, investors, entrepreneurs, and talented people from all over the world to work in the UAE, especially in strategic sectors.”
The statement added that: “Adhering to the legislation regulating the labor market is ultimately in the interest of private sector companies and their employees.”
Understanding the new regulations and how they apply to your company can be complex. At Auxilium, we can explain how the Emiratization program works and which types of organizations are exempt.
We can show you how using our EOR services can take away the headache of dealing with regulatory and compliance issues, and allow you the freedom to build a successful business in the UAE.
We help organizations to expand and recruit staff in the UAE, Qatar, Bahrain, Saudi Arabia, Kuwait and Oman. For more information on employer of record and outsource staffing services, please contact the Auxilium Team.
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Private sector companies in the UAE have been reminded that they only have until January 1st 2023 to ensure their workforces meets the latest requirements of the Emiratization regulations.