The deadline for Emiratisation is Less than 2 months, The U.A.E ministry reminds fines

 As the UAE Emiratisation deadline approaches, it is crucial for businesses to take proactive measures to ensure compliance and avoid potential fines. Here's a comprehensive guide to help you navigate the Emiratisation process and avoid penalties:

Here are the key deadlines to keep in mind:

December 31, 2023: Private sector companies with 50 or more employees must have 4% Emirati nationals in their skilled workforce by this date. Achieve a 4% Emiratisation rate for skilled jobs by December 31, 2023. Incrementally increase the Emiratisation rate by 2% annually until 2026.

January 1, 2024: Private companies with 20 to 49 employees must have one Emirati national in a skilled position by this date.

January 1, 2025: Private companies with 20 to 49 employees must have two Emirati nationals in skilled positions by this date.

Steps to Avoid Emiratisation Fines: 

Regularly monitor Emiratisation progress: Track your company's Emiratisation rate using the MoHRE's Emiratisation Monitoring System (EMS). 

Identify suitable Emirati candidates: Utilize MoHRE's recruitment platforms, such as Tamkeen and Nascrat, to connect with qualified Emirati professionals. 

Provide training and development opportunities: Invest in training and upskilling Emirati employees to enhance their skills and career progression. 

Create a supportive work environment: Foster a workplace culture that values diversity and inclusion, ensuring Emirati employees feel valued and supported. 

Consult with Emiratisation experts: Seek guidance from Emiratisation consultants to gain insights into best practices and compliance strategies. 

Stay updated on Emiratisation regulations: Keep abreast of any changes or updates to Emiratisation requirements and deadlines. 

Proactively address Emiratisation gaps: If you are falling behind on your Emiratisation targets, take immediate action to recruit and retain Emirati talent. 

Comply with Emiratisation penalties: If you fail to meet Emiratisation targets, you will face fines as per the MoHRE's guidelines. 

What is Emiratisation?

Emiratisation, also known as Emiratization, is an initiative by the government of the United Arab Emirates (UAE) to increase the participation of Emirati citizens in the country's workforce, particularly in the private sector. The goal of Emiratisation is to reduce reliance on expatriate labor and to create more opportunities for Emiratis to contribute to the UAE's economy and society. 

The UAE's economy has historically relied heavily on expatriate workers, who make up approximately 85% of the total workforce. This is due in part to the country's rapid economic growth and development, which has created a demand for skilled labor that outpaces the supply of Emirati workers. However, the government has become increasingly concerned about the social and economic implications of this high level of reliance on expatriates. 

Emiratisation is one of the key strategies that the UAE government is using to address this issue. The government has implemented a number of policies and initiatives to encourage Emirati citizens to participate in the workforce, including: 

• Providing financial incentives to employers who hire Emiratis
• Offering training and development programs to Emiratis
• Reserving certain jobs for Emiratis
• Imposing quotas on the number of expatriate workers that companies can employ

Emiratisation has made some progress in recent years. The number of Emiratis employed in the private sector has increased from 3% in 2006 to 7% in 2022. However, there is still a long way to go to achieve the government's goal of increasing Emirati participation in the private sector to 20% by 2026.

Financial incentives to employers who hire Emiratis

The UAE government has implemented a number of financial incentives to encourage employers to hire Emiratis. These incentives include:

• Salary support scheme: The government provides a monthly salary subsidy to employers who hire Emiratis in certain sectors. The subsidy is based on the employee's salary and experience, and can be up to AED 8,000 per month.
• Training and development grants: The government provides grants to employers who train and develop Emirati employees. The grants can cover the cost of training courses, internships, and other forms of professional development.
• Pension contributions: The government pays the full cost of pension contributions for Emirati employees for the first five years of employment.
• Reduced fees: Employers who hire Emiratis are eligible for reduced fees for certain government services, such as visa processing and labor market testing.

In addition to these financial incentives, the government also offers a number of non-financial incentives to employers who hire Emiratis, such as:

•  Priority access to government contracts and projects
• Recognition and awards for companies that excel in Emiratisation
• Support from government agencies in finding and hiring qualified Emiratis

 These incentives have been effective in encouraging some employers to hire Emiratis. However, more needs to be done to ensure that Emiratis have equal opportunities for employment in the private sector. The government is committed to continuing to implement policies and initiatives to support Emiratisation, and to working with the private sector to create a more inclusive and equitable workforce. 

By following these steps, you can effectively manage your Emiratisation obligations, enhance your workforce diversity, and contribute to the UAE's national development goals.