Does Emiratisation Apply to Your Workforce? Discover If Your Company Is Exempt or at Risk of Fines!

The UAE’s updated Emiratisation law has introduced new requirements for private companies to hire Emirati nationals, aiming to enhance local workforce participation in skilled roles. However, there’s an important distinction that many businesses may find reassuring: If your company primarily employs unskilled labor, you may not be subject to the new Emiratisation mandates.

Understanding the New Emiratisation Law

The latest regulations from the Ministry of Human Resources and Emiratisation (MoHRE) require:

• Companies with 20-49 Employees: To hire at least one Emirati by the end of 2024 and a second by the end of 2025.
• Companies with 50 or More Employees: To achieve a 2% annual increase in the number of Emirati employees in skilled roles, targeting a 10% Emiratisation rate by 2026.

However, these mandates specifically target skilled roles. Unskilled positions are generally excluded from Emiratisation requirements, providing clarity and relief for businesses heavily reliant on unskilled labor.

What Does This Mean for Companies with Unskilled Labor?

If your workforce primarily consists of unskilled roles—such as laborers, cleaners, or other manual positions—you are generally exempt from the Emiratisation mandates. This means:

• You are not required to hire Emiratis for unskilled roles.
• You will not face financial penalties related to Emiratisation targets for these positions.

This exemption is in line with MoHRE's focus on integrating Emiratis into meaningful, skilled employment opportunities that promote career growth and economic development.

However, There’s a Catch…

If your company also employs skilled roles—such as supervisors, managers, or specialized professionals—you will need to comply with the Emiratisation requirements for those specific positions.

This dual approach means that while unskilled roles are exempt, any skilled positions within your organization must still meet the Emiratisation targets.

How TXM Can Help You Navigate These Requirements

At TXM, we specialize in Emiratisation recruitment solutions tailored to meet your business needs. We help you:

• Identify Applicable Roles: Determine which positions within your company fall under skilled or unskilled categories.
• Meet Compliance Requirements: Ensure you meet Emiratisation targets for skilled roles, avoiding financial penalties.
• Source Qualified Emirati Talent: Leverage the Nafis platform to find the right candidates for skilled roles, ensuring strategic integration into your workforce.
• Streamline the Hiring Process: We manage the recruitment process from start to finish, saving you time and resources.

Why It’s Important to Get It Right

Misunderstanding the new Emiratisation law could lead to unnecessary expenses or compliance issues. For example:

• Hiring Emiratis for unskilled roles is not required and could increase labor costs without fulfilling regulatory obligations.
• Failing to meet targets for skilled roles can result in financial penalties starting at AED 96,000 per unfilled position.

By clearly distinguishing between skilled and unskilled roles, you can optimize your hiring strategy and maintain compliance without unnecessary expenses.

Stay Compliant and Competitive with TXM

As the UAE continues to evolve its workforce policies, understanding the nuances of Emiratisation is crucial for business success. TXM is here to guide you every step of the way, ensuring you stay compliant while building a capable and competitive workforce.

Ready to Get Started?

Contact TXM today to learn more about our Emiratisation recruitment solutions and find out how we can help your business navigate these new requirements with ease.

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