(MENAFN- Khaleej Times)
Published: Wed 14 Aug 2024, 5:56 PM
Last updated: Wed 14 Aug 2024, 8:59 PM
A new amendment introduced to the UAE labour law specifies heftier penalties for fake Emiratisation, a legal expert has said. Announced earlier this week, the law specifies fines ranging from Dh100,000 to Dh1 million for "fraudulent labour acts".
Abdulrahman Alqassem, a legal expert at Habib Al Mulla and Partners, described the fraudulent employment practice as "falsely employing a UAE national by issuing a work permit for them and registering them with the establishment for purposes other than the intended reason for issuing such permit”. In other words, it's when a UAE national is hired but not given any real tasks.
Private companies in the UAE are required by law to increase the number of their Emirati employees in skilled roles. Some firms, in an attempt to meet the targets, resort to bogus Emiratisation.
In a recent case, a private company was fined Dh10 million for failing to comply with the regulations. A court in Abu Dhabi found that the firm had tried to bypass the Emiratisation targets by appointing 113 citizens in fictitious roles. From the scheme's launch in mid-22 until November 2023, the Ministry of Human Resources and Emiratisation (Mohre) found that 1,267 UAE nationals were employe in fake posts.
"Participating in false Emiratisation practices will result in administrative fines ranging from Dh20,000 to Dh100,000 for each instance, depending on the number of offences," Alqassem said. "Additionally, circumventing Emiratisation targets will lead to fines ranging from Dh100,000 to Dh500,000."
Abdulrahman Alqassem
Other tactics to skirt the rules are punishable by penalties starting at Dh100,000 for the first offence to Dh500,000 for the third. These evasion methods include: Reducing the number of employees and altering job categories.
Based on the new provisions, the penalties will be multiplied based on the number of people that were fictitiously employed.
Other changes
The new decree also addresses other labour law violations such as closing a business without settling the rights of workers, and employing a minor.
Bassem Ehab, another legal expert, explained the implications of these new provisions. "Any dispute arising from the employment relationship between the employee and employer must be addressed by submitting a request to Mohre," he told Khaleej Times.
Bassem Ehab
"The ministry's decision in these cases is final, but either party retains the right to challenge it before the relevant Court of Appeal within 15 days," Ehab said.
The labour law amendments are aimed at cracking down on unfair and fraudulent employment practices and ensuring full compliance with Emiratisation policies.
ALSO READ:
New UAE law amends rules on domestic worker disputes
UAE amends labour law: Up to Dh1-million fine announced for 5 violations
Up to Dh200,000 fine in UAE: How employees can file case against employer for unfair practices
UAE labour law: 6 work patterns for flexible job contracts
MENAFN14082024000049011007ID1108555991
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.