Dubai, UAE – The UAE Cabinet on Tuesday approved penalties for flouting NAFIS, a federal program to increase the competitiveness of Emirati human resources and empower them to occupy jobs in the private sector.
Launched as part of ‘Projects of the 50’, the program aims to accelerate the UAE’s development journey and boost the economy.
The Ministry of Human Resources and Emiratisation (MoHRE) and the Emirati Competitiveness Council (Nafis) have started implementing the Cabinet Resolution No. 95 of 2022 on violations and administrative penalties related to the initiatives and programmes of Nafis.
The resolution aims to enhance the Emirati human development system and prepare a productive national human capital that supports the country’s economy, builds a partnership between the public and private sectors, and empowers the private sector to be a major driver in the UAE’s development journey.
The resolution emphasises moving forward with the roadmap set for Emiratisation through two tracks. The first track is to support and empower the Emirati human resources and enhance their competitiveness to join private sector jobs and help the sector achieve its goals by ensuring maximum benefit from Nafis through its incentives. The second is to deal firmly with violations and limit negative practices by applying administrative penalties and fines.
The resolution specified administrative penalties and fines that vary according to the nature of the violation committed by the establishment with regard to Nafis. This includes circumvention to obtain those benefits or circumventing the demand for achieving Emiratisation goals through fake Emiratisation.
According to the resolution, if the establishment undertakes fake Emiratisation related to Nafis’ initiatives and programmes, an administrative fine of no less than AED20,000 and not more than AED100,000 for each Emirati employee will be imposed. On the other hand, a suspension of support and recovery of the disbursed amount will be initiated against the beneficiary.
In addition, an administrative fine of not less than AED20,000 and not more than AED100,000 will be imposed for every Emirati employee, besides suspension of support and recovery of the disbursed amounts if the establishment submits false documents or data to obtain Nafis benefits to evade or circumvent the Emiratisation system.
An administrative fine of AED20,000 will be applied to each Emirati employee, support will be suspended, and the amounts disbursed to the establishment will be recovered if the facility fails to take the necessary measures in accordance with Federal Decree-Law No. 33 of 2021. This law concerns the Regulation of Labour Relations and its amendments, its executive regulations and the implementation resolutions, in case the beneficiary does not join work after the work permit is issued, and the establishment obtains support from Nafis, or the beneficiary shows non-commitment to work or stops working, and the establishment does not inform Nafis.
If the establishment does not report any change in the benefit terms without reason acceptable to Nafis, an administrative fine of AED20,000 is applied for each case, with the suspension of support and the refund of the disbursed amounts after the change in benefit terms.
Nafis has the right to recover the amount of support paid to the establishment during the period if it breaches its obligation to appoint the beneficiary after the end of the Nafis-backed training period without an excuse accepted by Nafis.