The decision limits negative practices that affect the achievement of the goals of settlement policies

Entry into force of the Cabinet's decision regarding violations and penalties related to "Nafes" initiatives

• The decision specified penalties and fines according to the nature of the establishment’s violation related to the “Nafes” initiatives and programs.

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The Emirati Cadres Competitiveness Council (NAFES) began implementing Cabinet Resolution No. 95 of 2022 regarding violations and administrative penalties related to “NAFES” initiatives and programs, which entrusted the Ministry and the Council with applying administrative penalties according to jurisdiction.

The Cabinet's decision constitutes an integrated legal framework that would reduce negative practices that affect efforts to achieve the goals and objectives of Emiratisation initiatives and policies represented in upgrading the Emirati human development system and preparing productive and effective national human capital in the private sector to achieve the goals of effective economic participation of citizens in a way that supports the state's economy. Building a partnership between the government and private sectors, and empowering the private sector so that it is a major engine in the development process of the UAE.

The decision also confirms moving forward with the roadmap set for Emiratisation through two tracks, the first of which is supporting and empowering Emirati cadres and enhancing their competitiveness to join private sector jobs, and helping this vital sector achieve its goals, in a way that ensures maximum benefit from “Nafes” in light of a package of privileges.

The other path is to deal firmly with violations and negative practices through the application of administrative penalties and fines.

The decision specified a set of penalties and administrative fines that differ according to the nature of the violation committed by the establishment and related to the initiatives and programs of the Emirati Cadres Competitiveness Council (Nafis), such as circumventing to obtain these privileges or circumventing the requirement to achieve Emiratisation goals, especially through fictitious localization, or what is related to programs related to training. And development, where financial fines and administrative penalties include stopping support, recovering the amounts disbursed to the violating company, and other measures that may amount to referral to the judicial authorities in the event that fraud is clearly proven.

In the case of fictitious settlement, the decision stipulated a fine of not less than 20,000 and not more than 100,000 dirhams on the facility for each citizen employee, while the penalty applied to the beneficiary is to stop the support and recover the amounts that were spent.

And in the event that the establishment or the beneficiary submits incorrect documents or data to obtain the services or benefits of “Nafes”, or for the purposes of evading or defrauding the localization system, the decision stipulates the application of a financial fine of not less than 20 thousand and not more than 100 thousand dirhams, And stop supporting the beneficiary and recover the amounts that were disbursed to him.

According to the decision, a financial fine of 20,000 dirhams will be applied to each citizen employee, and the support will be stopped and the amounts disbursed to the facility will be refunded in the event that it fails to take the prescribed measures in accordance with Federal Decree-Law No. 33 of 2021 regarding the organization of labor relations and its amendments, its executive regulations and the implementing decisions. In cases where the beneficiary does not join the work after issuing the work permit and the establishment obtains support from “Nafes”, or the beneficiary does not regularly work for the establishment after joining, or the beneficiary ceases to work and the establishment does not inform “Nafes”.

A fine of 20,000 dirhams will be applied to the facility that does not inform “Nafes” about any change in the terms of use without a reason acceptable to the Council, for each case, stopping the support and recovering the amounts that were spent after changing the conditions of use for the beneficiary.

Nafes has the right to recover the amount of support paid to the facility during the support period in the event that it breaches its obligation to appoint the beneficiary after the end of the subsidized training period within the Nafes program initiative (financial support during the training period) without an excuse accepted by Nafes.

• 20 thousand dirhams fine for each national employee in the event that the establishment fails to take the prescribed procedures according to the law regulating labor relations.

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