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IELTS Preparation in Dubai

New Emiratization Law

Course Details

When

Start: 5 Jan 2023
End: 5 Jan 2023

Where

Dubai
United Arab Emirates

New Emiratization Law

Recently, following the introduction of the new UAE Federal Labour Law on 2 February 2022, the Ministry of Human Resources and Emiratization (MHRE) issued a new Ministerial Decision in relation to Emiratization in the UAE. In this article, we take a closer look at the new Emiratization requirements which go hand in hand with the UAE’s ambitious target of creating 75,000 new jobs in the private sector by 2025.

Course Objective:

By the end of the session, participants will be able to:

  •  Understand The Emiratization quotas are heavily enforced for the banking and insurance sectors
  •  The new rules of the ministry of human resources and Emiratisation (MOHRE) issued
  •  The new Emiratization requirements
  •  The aim of the Emiratization
  •  MOHRE categories Targets
  •  The new Emiratization & NAFIS programme
  •  The NAFIS schemes
  •  The new Emiratization requirements timeline
  •  The new Emiratization fines
  •  Which businesses do these new laws apply to
  •  Classification Law relevant to Emiratization

Course Outline

Emiratisation efforts in the UAE
The UAE has boosted Emiratisation drastically in the past decade. Whereas Emiratisation quotas have always been a requirement in the banking and insurance sector (year on year 4% for banks and 5% in the insurance sector), January 2017 saw the introduction of a greater enforcement mechanism for employers with the introduction of a form of labour market testing for employers with headcounts of 50 plus. Initiatives such as “Tawteen” and the Nafis Scheme were launched with the aim of increasing Emiratisation and requiring employers to meet a benchmark of employing 2% Emirati nationals upon achieving a workforce of 50 employees or more, which in practice meant a headcount of 1 Emirati national for every 50 employees. The Nafis Scheme went further and reinforced the UAE’s aim to reach an Emiratisation quota of 10% by 2025 as part of the UAE’s “Projects of the 50”.
 
New Emiratisation requirements
The new Emiratisation requirements apply to all employers who fall under the jurisdiction of the Ministry of Human Resources and Emiratisation (i.e., outside of the free zones).
Private sector companies with 50 or more employees are required to increase their Emirati workforce in excess of their current quota through a 2% year-on-year increase until they reach 10% in 2026. The actual number of Emiratis required will be calculated according to the overall number of skilled workers in the company.
 
factor to consider is that within the five skillset categories (5 being the lowest) skill set category 4 is now a level which requires certification; an example of a role which falls within category 4 is security guard.

 

In order for Emirati nationals to be counted against the quota, employers need to ensure that they comply with all labour regulations and that they have furnished each UAE national with a work permit and employment contract, registered them with the applicable pension authority, and paid them through the Wages Protection System. Companies should bear in mind that existing Emirati employees pre-January 2023 will be disregarded when calculating the quota (although this may be subject to the employer’s existing number of Emirati employees and the composition of their workforce).

 

Attracting (and retaining) Emirati talent
The new Emiratisation decree that mandates companies with 50 or more employees to increase their Emiratisation quota by 2% annually will challenge many employers. Not only because it currently appears that any existing Emirati employee population (dependent on employee headcount) will not be taken into account when determining the quota, but also because it remains a challenge in the UAE labour market to attract and retain Emirati talent. Companies may wish to consider introducing a variety of measures to tackle the achievement of these targets, such as short-term and long-term incentive programs, training schemes, and international secondment initiatives, in an effort to attract and retain talent.

 

The characteristics of companies that fall within each category?

Companies in the first category should demonstrate full compliance

Decree-Law No. 33 of 2021 (UAE Labour Law) and its executive implementing regulations

labor-related resolutions and decisions

on the wage protection system

 

Training Method

The training will be conducted in a friendly, inclusive and professional atmosphere, which is conducive for different learning styles, but respects each attendee as an individual and ensures each one is challenged and achieve maximum benefit from the course. Our goal is that attendees will be highly engaged and encouraged to be participative.

Book your place

New Emiratization Law

5 Jan 2023
Location: Dubai
AED 2100