New Emiratisation rule kicks in: UAE firms with 20-49 staff must hire at least one Emirati in 2024

New Emiratisation rule kicks in: UAE firms with 20-49 staff must hire at least one Emirati in 2024

More than 20,000 companies across 14 economic sectors will have to comply with directive.

Dubai: The Ministry of Human Resources and Emiratisation (MoHRE) has started implementing the Cabinet decision to expand the scope of companies subject to Emiratisation targets, where more than 12,000 companies with 20-49 employees, operating across 14 specific economic sectors, are now required to hire at least one UAE citizen in 2024 and another one in 2025.

The ministry recently digitally notified more than 12,000 companies to comply with the decision, providing them sufficient time to meet their required targets.

The targeted companies operate across 14 specific key economic sectors, including information and communications; finance and insurance; real estate; professional and technical activities; administrative and support services; education; healthcare and social work; arts and entertainment; mining and quarrying; transformative industries; construction; wholesale and retail; transportation and warehousing; and accommodation and hospitality – all of which are are currently undergoing rapid growth and have the capacity to provide jobs and a suitable working environment for Emiratis.

MoHRE issued a statement calling on companies subject to the decision to “quickly meet their Emiratisation targets and avoid delaying it until the end of the year”.

The ministry said, “It is crucial that targeted companies register to the Nafis platform in order to benefit from the support the programme provides in terms of supplying the private sector with qualified Emirati professionals capable of efficiently working in various targeted economic sectors, along with other advantages they can benefit from.”

MoHRE added that it will continue to hold training workshops to educate companies subject to the decision about the procedures to follow to meet their required targets, in addition to instructing them on how to benefit from the support provided by the Nafis platform.

Consequences of failure to comply
The decision includes imposing annual financial contributions on companies that do not meet their required targets, amounting to Dh96,000 for each UAE citizen not appointed in 2024, which will be collected starting January 2025. Meanwhile, financial contributions of Dh108,000 will be imposed for failure to meet 2025 targets, to be collected in January 2026. Companies will be allowed to pay their contributions in instalment plans, in agreement with MoHRE.

The Emiratisation decision for companies with 20-49 employees is applied in conjunction with the ongoing implementation of Emiratisation targets for companies with 50 or more employees, which are required to achieve a two per cent annual growth in Emiratisation of their skilled jobs.

Summary of Article by: Gulf News

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