In a significant crackdown on fraudulent employment practices, a private company in the UAE has been fined Dh10 million for non-compliance with Emiratisation regulations. The Abu Dhabi Misdemeanor Court determined that the company attempted to manipulate Emiratisation objectives by employing 113 nationals in non-existent roles.
The Ministry of Human Resources and Emiratisation (MOHRE) uncovered substantial violations in the company’s emiratisation procedures. Subsequently, these findings were handed over to the Abu Dhabi Public Prosecution for a thorough investigation. The company was found guilty of issuing work permits and registering employees for fictitious roles, violating the spirit and regulations of the Nafiz program, which aims to enhance Emirati participation in the private sector through various incentives and perks.
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Investigation and Legal Proceedings
The investigation revealed that the company falsely reported employing UAE nationals to meet Emiratisation goals. This deceptive practice directly contravened the program’s guidelines and objectives. As a result, the Abu Dhabi Public Prosecution decided to bring the company to court. Upon review, the court found the company guilty of violating Emiratisation policies and engaging in fictitious labor practices.
The Nafiz program is designed to incentivize private companies to employ Emiratis, increasing their workforce representation. However, this company’s fraudulent actions undermined the program’s integrity and objectives. The court’s decision to impose a hefty fine underscores the UAE’s commitment to ensuring the success of its Emiratisation initiatives and maintaining the integrity of its labor market.
Broader Implications for Compliance
This case highlights the importance of strict compliance with labor laws and regulations, particularly those promoting Emiratisation. The MOHRE’s proactive approach in identifying and addressing violations is a deterrent to other companies that might consider similar fraudulent activities. The ministry has reiterated its commitment to monitoring compliance and taking swift action against entities violating the rules.
The Dh10 million fine is one of the most significant penalties imposed for such violations, reflecting the severity of the offense and the government’s zero-tolerance policy towards fraud. This case is a stark reminder to all private sector companies of the consequences of circumventing Emiratisation laws.
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Ensuring Fair Employment Practices
Moving forward, the MOHRE has emphasized the need for transparency and genuine efforts to meet Emiratisation targets. Companies are encouraged to provide real employment opportunities for Emiratis, contributing to the nation’s economic development and social stability. The ministry continues to offer support and resources to companies willing to comply with the regulations and participate in the Emiratisation program in good faith.
