The UAE labour law recently underwent some significant changes, particularly in relation to fake Emiratisation practices. The new amendment introduces heftier penalties for fraudulent acts, ranging from Dh100,000 to Dh1 million. This includes falsely employing a UAE national for purposes other than their intended role, which is when a UAE national is hired but not given any real tasks. Private companies in the UAE are required to increase the number of Emirati employees in skilled roles, leading some firms to resort to fake Emiratisation to meet targets.
One recent case involved a private company that was fined Dh10 million for failing to comply with regulations, as they appointed 113 citizens in fictitious roles to bypass Emiratisation targets. From mid-22 to November 2023, the Ministry of Human Resources and Emiratisation (MoHRE) found 1,267 UAE nationals were employed in fake posts. Penalties for participating in fake Emiratisation practices range from Dh20,000 to Dh100,000 per offense, with additional fines from Dh100,000 to Dh500,000 for circumventing Emiratisation targets.
In addition to penalties for fake Emiratisation, the new decree also addresses other labour law violations such as closing a business without settling worker rights and employing minors. Any disputes between employees and employers must be addressed by submitting a request to MoHRE, with the ministry’s decision being final but open to challenge in the relevant Court of Appeal within 15 days. These amendments aim to crack down on unfair and fraudulent employment practices while ensuring compliance with Emiratisation policies.
Abdulrahman Alqassem, a legal expert at Habib Al Mulla and Partners, highlighted the serious consequences of participating in fake Emiratisation practices under the new law. Penalties for such offenses start at Dh100,000 and can go up to Dh1 million for fraudulent activities. These penalties are designed to deter companies from engaging in deceptive hiring practices and to uphold the integrity of Emiratisation policies in the UAE. By cracking down on these practices, the government aims to protect the rights of Emirati employees and ensure that companies comply with the regulations.
Bassem Ehab, another legal expert, explained the implications of the new labour law amendments in detail. The focus is on preventing businesses from engaging in unfair practices that bypass Emiratisation targets and undermine the rights of UAE nationals in the workforce. Companies found to be in violation of the law will face significant fines and penalties, as well as potential legal consequences. It is important for businesses operating in the UAE to adhere to the new regulations and ensure that their employment practices are in line with Emiratisation policies to avoid facing penalties and legal action.
