Cancellation of the requirement to collect the fine in one payment

A ministerial decision to amend the mechanism for paying establishments for violations of the “nationalization ratios”

The Minister of Human Resources and Emiratisation, Dr. Abdul Rahman Abdul Manan Al-Awar, issued a new ministerial decision regarding the amendment of some provisions of Ministerial Resolution No. (279) of 2022, regarding “mechanisms for following up Emiratisation rates in the private sector, and the contributions determined for non-compliant establishments.” The Ministry collects the contributions and fines imposed on employers that include 50 or more skilled workers, who are not committed to achieving the 2% localization target, of the total skilled labor registered with it, which is estimated at 72 thousand dirhams annually for each citizen employee who was not appointed in the targeted establishments.

And Ministerial Resolution No. (662) for the year 2022, of which Emirates Today obtained a copy, replaced the text of Clause (3) of Article (3) of Ministerial Resolution No. (279) for the year 2022, whose previous version was: “That contribution is due when The beginning of the following year for the numbers required to be appointed to achieve the required Emiratisation rates, and in accordance with the criteria referred to above, provided that the total value of contributions is paid for the year for which the required Emiratisation percentage was not achieved (annually and in one payment for that year)”, with a new text that says: “It is due That contribution at the beginning of the following year for the numbers required to be assigned to achieve the required Emiratisation rates, and in accordance with the criteria referred to above, provided that the total value of the contributions is paid for the year for which the required Emiratisation percentage was not achieved (annually for that year in accordance with the mechanisms approved in the Ministry’s regulations in this regard matter).

According to this amendment, which came into effect in the middle of this month, the Ministry canceled the requirement to collect the total fines or annual contributions prescribed for companies that did not achieve the Emiratisation targets, by paying in one payment for the year in which they were not obligated to achieve the Emiratisation percentages, as it made it possible to pay “according to the approved mechanisms.” in the Ministry's systems.

The ministerial decision added a new clause (No. 5) to Article Three of Ministerial Resolution No. (279) of 2022, which stipulated: “Excluded from paying the contributions stipulated in this decision are establishments whose localization rate has reached or exceeded 70% of their total number of workers.” ”While the decision deleted the fifth paragraph from the schedule of mechanisms for dealing with establishments that violated the Emiratization targets, which stipulated: “After two months from the due date ... while continuing to stop granting and renewing the service of new work permits for the violating establishment, the granting and renewal of new work permits will be stopped. For all individual establishments or companies owned exclusively by the owner of the violating establishment, taking into account the unity of the partners,” which means that no penalties or penalties will be imposed on any other companies owned by the owner of a company that violated the goals of localization.

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