UAE Indigenization Law: Deadline, Fines, and Nafis Portal for Private Companies

2023-12-20 09:58:16

Abu Dhabi ∙ There are only 10 days left to complete this year’s repatriation in the UAE. The Ministry of Manpower Indigenization has announced that private companies that do not hire 2% of the natives before December 31 will be fined from January. Companies that have not yet done recruitment can post the vacancy on the government’s Nafis platform and hire suitable candidates. There is also a warning that legal action will be taken against companies that evade or provide wrong information.

Investigations have been intensified to find violators of the law. The ministry also stated that action has been taken against 916 companies that have violated the law since June 2022. The ministry praised the 18,000 private companies that have cooperated with the indigenization. With this, the number of natives working in the private sector has reached 88,000.

Areas of Indigenization
Education, Accommodation, Food Service, Finance, Insurance, Construction, Sewage, Waste Management, Mining, Quarrying, Agriculture, Forestry, Fisheries, Health, Social Work, Communication, Power Supply, Gas, Air Conditioning, Arts, Entertainment, Defense, Real Estate, manufacturing, wholesale and retail trade, transport, warehousing, administrative and support service activities, scientific and technological activities.

Heavy fines for violators
Companies that do not comply with the law will be fined Dhs 7,000 per person per month and Dhs 84,000 per year. 42,000 dirhams can be paid together once every 6 months.

Vacancy on Nafis Portal
It is suggested that job opportunities in companies should be recorded on the Nafis portal (www.nafis.gov.ae) to give opportunities to natives. Citizens will be made employable by providing necessary training for each job. Companies facing difficulty in recruiting can seek the help of Nafis platform.

Second phase from January
The second phase of Nafis project will start from January 2024. It is recommended that companies with more than 20 employees hire one native per year. Even in 2025, these companies have to hire one more Swadeshi. This will provide employment to 24,000 natives within 2 years. Indigenization is to be implemented in 68 professional and technical posts in 14 sectors including IT, real estate, education, construction and healthcare.

the benefit
Companies that employ more than a certain percentage of expatriates are added to the Emiratization Partners Club and given many benefits such as 80% discount on government fees and priority in government tenders.

Nafis will strengthen indigenization
The Emirati Talent Competitiveness Council Program (NAFIS) is the indigenization program of the UAE. The law requires companies with fifty or more employees to implement 2% indigenization per year. It is enough to complete 1% each in 6 months (June and December). According to the plan which started in 2022, 2% of the natives should be appointed every year. According to this, 4% indigenization should be completed by December 31. 10 lakhs by 2026.

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