THE SOLUTION TO YOUR EMIRATISATION HIRING

Emiratisation is an integral component of the UAE national agenda as the government is looking to establish a competitive economy in which every member of the country can reach their potential and enjoy a high quality of life.

As a public or private company in the UAE, you’re legally required to hire Emiratis,but this can be difficult as you want to make sure you’re only hiring the most qualified personnel.

The new legislation will have a significant impact on businesses’ recruitment and organizational policies, so it’s important that employers in the private sector are fully aware of the implications. Ministerial Decision No. 279 of 2022 is a key law in this area, and it marks a shift in approach that businesses will need to be prepared for.

As a public or private company in the UAE, you’re legally required to hire Emiratis,but this can be difficult as you want to make sure you’re only hiring the most qualified personnel.

The new legislation will have a significant impact on businesses’ recruitment and organizational policies, so it’s important that employers in the private sector are fully aware of the implications. Ministerial Decision No. 279 of 2022 is a key law in this area, and it marks a shift in approach that businesses will need to be prepared for.

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FAQ About Emiratisation
Legislations that have been introduced:

Ministerial Decision No. 279 of 2022 – 2% Emiratisation for the private sector
Cabinet Decision No. 18 of 2022
New rules for benefits- NAFIS

Which businesses do these new laws apply to?

The new Emiratisation laws only apply to companies that are registered with the Ministry of Human Resources and Emiratisation(MOHRE). This means that if your company is not registered with MOHRE,you will not be subject to the new laws.

Requirements for the 2% Emiratisation Law?

The Emiratisation rate is calculated according to the number of skilled workers in a company. For every 50 skilled workers, one Emirati national must be hired. The aim is to have Emiratis make up 10% of the workforce by 2026.

0-50 Employees – munimum 1 Skilled UAE National
51-100 skilled employees – munimum 2 Skilled UAE National
101-150 skilled employee – munimum 3 Skilled UAE National

How MOHRE defines Skilled workers:

Five categories of workers:
legislators,managers, and business executives;
professionals, in scientific, technical and human fields;
technicians in scientific, technical and humanitarian fields;
writing professionals; and
service and sales occupations;
have obtained a certificate higher than the secondary(high school) certificate or equivalent;
have a worker’s certificate, which must be attested by the competent authorities; or
have a worker’s monthly salary that is no less than 4,000 Emirati dirham.

The penalties for non-compliance;

As of January 2023, companies that do not comply with the law and hire at least one Emirati employee will be fined 6,000
Emirati dirhams per month. This fine will increase on an annual basis. Those who fail to pay the fine upfront will have their ability
to apply for work permits suspended. Fines will be paid in single installments of 72.000 AED upfront.

If a company fails to meet Emiratisation quotas for two years in a row, it will be demoted to the third category under the
Classification Law. This comes with additional financial implications that could potentially damage the company’s reputation,
which will likely discourage employers from being complacent when it comes to hiring UAE national employees.

The Importance of Emiratisation

The UAE government has been working for years to increase the number of Emiratis in the private sector. In the past, it has launched several laws and initiatives to support this goal. Recently,it has stepped up its efforts by introducing new laws, including a requirement to recruit Emirati employees at a rate of 2% per year. These measures are part of the UAE’s Emiratisation policy.