“UAE Indigenization Law: Everything You Need to Know to Avoid Fines”

2023-04-26 17:55:11

The UAE has said that if the specified percentage of repatriation is not completed, fines will be imposed from July. The one percent indigenization to be implemented this year must be completed by June 30. Companies with more than 50 employees should hire natives.

The Ministry of Human Resources and Emiratization had warned that the proposal to hire two percent Emiratis in 2022 had already been implemented. Apart from this, time has been allotted till June to appoint one percent more natives.

A fine of 42,000 dirhams will have to be paid for each emirati who was not appointed. This is the amount calculated at 7000 dirhams each month from July till the end of the year. Later, till 2026, the fine will be increased by 1000 dirhams each year. The federal law aims to implement 10 percent indigenization in private institutions by 2026.

The project was started last year and will be implemented in two per cent phases every year. Each year’s target will be divided into one per cent for six months. By June 30 this year, companies must employ three percent of the total workforce from indigenous people. The appointment should be in the posts that require professional skills. Indigenization should reach four percent by December 2023.

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