New Emiratisation rules: How Nafis helps firms and supports employees

The Ministry of Human Resources and Emiratisation (MoHRE) and the Emirati Competitiveness Council (Nafis) have began implementing sanctions for enterprises that misrepresent Emiratisation data as a significant step towards curbing harmful employment practices.

A punishment of between Dh20,000 and Dh100,000 per fictitious Emirati employee could be levied on a business found guilty of faking Emiratisation in order to receive Nafis benefits, as per the rule. In addition, the financial assistance and other benefits will be halted and the monies paid will be recouped.

With less than 50 days remaining for private sector enterprises in the UAE to satisfy the newest Emiratisation targets, the following is a full explanation of Nafis and its function:

It is a federal initiative designed to boost the competitiveness of Emirati human resources and provide them with the skills necessary to obtain employment in the private sector. The plan, which will be launched in September 2021 as part of ‘Projects of the 50,’ intends to accelerate the UAE’s economic growth and development.

This supports the salaries of Emirati nationals who seek to work in the private sector and participate in training programs. Those with full-time employment are eligible for a supplement of the difference between their wage and the relevant target salary, up to a defined maximum.

It strives to promote national capabilities in the field of nursing through sponsored scholarships and the health assistant program for high school graduates, the diploma/higher diploma in emergency medicine, and the nursing bachelor’s degree program. In the next five years, it will qualify and empower 10,000 citizens in the health sector.

Up to six months of unemployment benefits are provided to people who have recently lost their jobs due to circumstances beyond their control. The recipient of unemployment benefits must actively seek employment with the assistance of the appropriate authorities. If the recipient of unemployment benefits refuses a job that is offered to them, they forfeit their eligibility for unemployment benefits.

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The Ministry of Human Resources and Emiratisation (MoHRE) and the Emirati Competitiveness Council (Nafis) have begun implementing Cabinet Resolution No. 95 of 2022 concerning violations and administrative penalties relating to the initiatives and programmes of the Ministry of Human Resources and Emiratisation (Nafis).

The resolution directs the ministry and council to implement administrative fines based on specialization.

In an effort to meet the goals and objectives of Emiratisation activities and policies, the cabinet decision creates an integrated legal framework that restricts harmful practices.

The resolution seeks to improve the Emirati human development system and prepare a productive and effective national human capital that supports the country’s economy, establishes a partnership between the public and private sectors, and enables the private sector to be a major driver in the United Arab Emirates’ development journey.

The resolution emphasizes moving forward on two tracks in accordance with the roadmap established for Emiratisation. The primary objective is to encourage and empower Emirati human resources, increase their competitiveness to enter the private sector, and assist the sector in achieving its objectives by assuring maximum benefit from Nafis’s incentives. The second step is to implement administrative sanctions and fines to curb noncompliance and undesirable practices.

The resolution stipulated administrative sanctions and fines that vary depending on the severity of the establishment’s Nafis-related offense. This involves using deception to achieve these benefits or deception to evade the requirement of accomplishing Emiratisation objectives by faking Emiratisation.

According to the decision, an administrative punishment of no less than AED20,000 and no more than AED100,000 for each Emirati employee would be imposed if an establishment engages in fraudulent Emiratisation in relation to Nafis’ projects and programs. On the other hand, support will be suspended and the amount disbursed will be recovered from the recipient.

In addition, an administrative fine of not less than AED20,000 and not more than AED100,000 will be imposed for each Emirati employee, in addition to suspension of support and recovery of disbursed amounts, if the establishment submits false documents or data to obtain Nafis benefits in an attempt to evade or circumvent the Emiratisation system.

If the establishment fails to comply with Federal Decree-Law No. 33 of 2021, an administrative fee of AED20,000 will be imposed on each Emirati employee, support will be terminated, and money paid to the institution would be recouped. This law relates to the Regulation of Labour Relations and its amendments, as well as its executive regulations and implementation resolutions, in the event that the beneficiary does not start working after the work permit has been issued and the employer obtains assistance from Nafis, or if the beneficiary demonstrates a lack of commitment to work or ceases working without the employer informing Nafis.

If the establishment fails to disclose a change in the terms of a benefit without an acceptable cause to Nafis, an administrative fee of AED20,000 is imposed, together with the suspension of support and the return of sums distributed after the change in terms of the benefit.

Nafis has the right to recoup the amount of support paid to the establishment during the term if it fails to hire the beneficiary at the conclusion of the Nafis-funded training period without a valid cause.