Small Sector Business to Encourage Emiratisation in UAE
With a view to increase the scope of engaging local talent in mainstream economy, the ministry has initiated various remarkable schemes under NAFIS. According to one of the recent reports, starting from 2024, companies with 20 to 49 employees should hire at least one local. This measure is to step up the intake of local employees even in the small-scale businesses. By employing local workforce, employers add value to the society by making the UAE a resilient workforce country and increase its Global Labour Resilience Index (GLSI).
The above rule is being implemented in the following sectors:
- Information and Communication
- Financial & Insurance activities
- Professional, scientific and technical activities
- Administrative and support services
- Education
- Health care and social work activities
- Arts & Entertainment
- Mining & quarrying industry
- Manufacturing
- Construction
- Wholesale & Retail trade
- Transportation & Warehousing
- Real estate activities
- Hospitality services
What are the main obligations of the employer?
As an employer or his representative, who intends to employ local talent, needs to keep in mind the following:
- Obtain work permit for the Emirati from MOHRE.
- Conclude an employment contract.
- Pay salary in accordance with WPS.
- Register the Emirati in the pensions & social security system and start contributing to it within a month from the date of issuance of his / her work permit.
- Report amendments to the employment contract.
- Cancel work permit upon termination of contract.
There have been certain cases reported to the ministry about organisations that try to violate. Employers should keep in mind that violations do not give them a good business sense as it will lead to a bad reputation in the business society, which will indirectly affect the business in the long run. Apart from the above, they will be subjected to a fine starting from AED 6,000 per month per employee. They have been advised not to violate the provisions. Following are considered as violationas per MOHRE:
- Fake Emiritisation
- Emirati not joining work after work permit issued but employer continue to take support.
- Employee shows non-commitment towards work and employer fails to notify NAFIS.
- Firm not employing the Emirati after he / she completed the NAFIS training program and fails to give a valid justification.
- The firm not reporting any change in the terms of benefit without reason acceptable to NAFIS.
For further assistance to strategics, implement or to avoid penalties and reputation consequences while handling Emiratisation, we are at your reach for consultation.
– Editorial Team, Nass Talent Management and Studies LLC.
