UAE labor law transformations crack down on fake Emiratization with up to Dh1-million fine

 

The new amendment in the UAE labour law has also defined new penalties for the fake Emiratisation, a labour expert has stated. Earlier this week, the law laid down fines between Dh100,000 and Dh1m for what it called ‘fraudulent labour acts’.

On the aspect of false employment, the legal expert at Habib Al Mulla and Partners, Abdulrahman Alqassem said it meant falsely employing a UAE national by issuing a work permit for him or her and registering him or her with the establishment for the purpose other than the intended reason for issuing such a permit.

In other words or in simpler terms, it refers to a situation whereby a UAE national without being assigned any genuine duties to perform, he or she is employed.

Private companies across the UAE are legally obliged to enhance the number of their Emirati personnel within the category of knowledge-based occupations. Some firms, out of desperation to make the necessary progress, are found to engage in what may be referred to as fake Emiratisation.

In one recent case, a private company has been penalised Dh10 million for not implementing the regulations. An Emirati court ruled that the ‘firm’ had attempted to circumvent the Emiratisation norms by hiring 113 citizens in phantom positions. Out of a total of 1,267 fake employees detected by the Ministry of Human Resources and Emiratisation (Mohre) between the start of the scheme in mid-22 and November this year, more than half were UAE nationals.

Alqassem said that participation in false Emiratisation practices will come at a cost of an administrative fine ranging from Dh20000-Dh100000 for each incidence of the offences.

‘Further, failure to meet Emiratisation targets will attract penalties of between Dh100,000 and Dh500,000.’

Other ways of avoiding the laid down measures are subject to fines ranging from Dh100, 000 on the first offense, to Dh500,000 on the third offence. These evasion methods include: Lay off some employees and changing the positions of others.

According to new provisions, these penalties will be applied under multiplication in proportion with the number of fictitiously employed people.

Other modifications

The new statute also focuses on other labor law violations such as closing a business without settling the rights of workers and employing a minor.

Bassem Ehab, another legal expert, explained the consequences of these new provisions.

“The ministry’s decision in these cases is final, but neither party preserves the right to dispute it before the relevant Court of Appeal within 15 days,” Ehab said.

The labor law amendments are directed at cracking down on biased and illegal employment practices and guaranteeing full compliance with Emiratization policies.