Emiratisation: Non-compliant firms to be penalised

Companies are encouraged to benefit from the incentives provided for recruiting UAE nationals through the NAFIS platform….reports Asian Lite News

The Ministry of Human Resources and Emiratisation (MoHRE) has called on companies with more than 50 employees to expedite achieving Emiratisation rate of two percent for skilled jobs, in line with the concerned UAE Cabinet Resolution, before the end of 2022.

Non-compliant companies will face financial penalities, which will be collected starting from January 2023.

MoHRE encouraged companies to benefit from the incentives provided for recruiting UAE nationals through the NAFIS platform, saying it will boost their efforts in reaching the required rate before the deadline.

Saif Al Suwaidi, Under-Secretary for Emiratisation at MoHRE, said, “We are keen to support and empower private sector companies to achieve the Emiratisation targets before the end of this year, we’re cooperating closely with the private sector, stemming from our belief in its role as a key partner in developing and shaping the future.”

“Given the private sector’s role in the UAE’s job market, achieving the goals and directions of the UAE require unified efforts of government entities and the private sector to improve the business environment and create an investment climate that encourages companies, investors, entrepreneurs, and talents from all over the world to work in the UAE, especially in the strategic priority sectors,” he added.

“Compliance with the laws regulating the job market is in the interest of private sector companies and their employees. We aim to develop the capabilities of the private sector and enable it to keep pace with changes in global business models and attract UAE national talents to work in skilled jobs, through the Nafis programme, which is a cornerstone of these efforts,” he further said.

MoHRE offers private sector companies that reach the Emiratisation target a package of incentives, including the first category classification and membership of the Tawteen Partners Club within the establishments’ classification system where members receive discounts of up to 80 percent on the ministry’s service fees.

However, financial penalties will be imposed on establishments that do not meet the required Emiratisation rate – a monthly penalty of AED6,000 for every UAE national that has not been appointment, starting from January 2023.

This year’s two percent Emiratisation rate is calculated as for every 50 non-Emiratis working in skilled jobs, one UAE national shall be hired.

This decision aims to achieve an increase by 10 percent in the Emiratisation rate by 2026.

NAFIS signs deal with du

Last week, Emirati Talent Competitiveness Council (NAFIS) has signed an MoU with Emirates Integrated Telecommunications Company (du) to hire 500 Emiratis in the private sector.

NAFIS programme is a federal initiative that aims to increase the contributions of Emirati citizens within the private sector and raise their efficiency and qualifications.

Fahad Al Hassawi, Chief Executive Officer at du, stated: “As part of this partnership, du will place a strong emphasis on the retention of UAE national talent by hiring 500 Emirati employees in five years and focusing on their growth and development within the business and the wider retail sector.”

He added, “We have developed a comprehensive strategy to attract, develop and retain UAE nationals to occupy positions that meet and exceed our business requirements and offer training programmes designed to upgrade their capabilities and improve their skills. We are also establishing partnerships further contribute to a knowledge-based economy and prepare a new generation of Emirati leaders across multiple business sectors and fields.”

Unemployment Insurance Scheme

Two weeks ago, an “Unemployment Insurance Scheme” for employees of the federal government and the private sector came into force.

The Decree-Law on Unemployment Insurance Scheme stipulates that the insured will be compensated with a cash amount for a specific period of time if they lost their job until they find another employment opportunity, subject to terms and conditions.

The new system provides a “social security scheme that ensures the sustainability of a decent life for Emiratis and resident employees during their unemployment period, while reducing business risks,” the ministry said. “It also aims to enhance the competitiveness of the UAE nationals, boost the attractiveness of the UAE’s job market for the best international and national talents and contribute to building a competitive knowledge-based economy that is among the best globally.”

The compensation will be paid monthly, calculated at 60 percent of the employee’s subscription salary and subject to a maximum of AED20,000 per month, for no more than three months from the date of their unemployment.

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