UAE Ministry of Manpower and Indigenization – Implementing 2% Expatriate Hiring Order

2023-12-19 13:20:31
Abu Dhabi: The UAE Ministry of Manpower and Indigenization has reminded that it will take action against companies with 50 or more employees who do not implement the order to hire 2% expatriates by December 31. A resident will be fined 84,000 dirhams (Rs 19 lakh) for one year for deficiency. The warning is when the deadline is about to expire.

The ministry had earlier fixed certain steps for the implementation of indigenization. According to the 2022 law, firms with 50 or more employees must employ two percent of indigenous people in 2023. This objective was also divided into two phases. Indigenization is one percent in the first six months and one percent in the remaining six months.

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Firms that fail to meet this target will be fined from January 2024. Companies that are yet to meet their target can find and hire eligible UAE nationals through the ‘Nafis’ platform. The ministry also warns that strong action will be taken if the naturalization law is violated through illegal activities such as falsely adding employees to the payroll.

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A fine of 7,000 dirhams per month per resident is required. At the end of one year, the penalty amount will be 84,000 dirhams. The fine will increase by Dh1,000 each year. That means if there is a shortage of one resident in 2024, the penalty will be 96,000 dirhams at the rate of 8,000 dirhams per month from 2025. If there is more shortage of staff, fines will rise accordingly. The measures are part of forcing the natives to continue the institution.

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Recently, the ministry had revealed that 18,000 companies in the country have implemented indigenousisation. The law requires that two percent of the natives be employed every year till 2026. Firms with 20 employees will also have to comply with indigenization from next year. Institutions belonging to 14 categories are included in its scope. This year, the authorities had taken action against the institutions that did not meet the target of 2022.

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