The recent rules issued by the UAE Government in relation to the Emiratization in the private sector, known as the “2% Emiratisation Law”, went into effect on 1 January 2023.
These rules are addressed in (i) the Ministerial Resolution No. (279) of 2022, related to the Emiratisation in the private sector (2% Emiratisation Law); (ii) the Cabinet Decision No. (18) of 2022 (Classification Law); and (iii) a set of new rules beneficial under the NAFIS program (the “Resolutions”).
The resolutions which apply to the private sector companies and businesses require from the related entities to take the necessary measures to increase the Emiratization of skilled jobs by a minimum annual quota of 2%, with the aim of reaching 10% increase in UAE skilled workforce by 2026 and creating a minimum of around 12,000 jobs on an annual basis for UAE skilled workers.
As per the Resolutions, companies must hire one UAE national for every 50 skilled employees, 2 UAE nationals for every 51-100 skilled employees, 3 UAE nationals for every 101-150 skilled employees, and for entities with over 150 skilled employees, one UAE national for every 50 skilled employees. Entities with up to 49 skilled employees will not be impacted by the Resolutions.
Lately, the Resolutions were amended by the Cabinet, which divided the annual target in two, where 1% of the annual increase must be reached in the first six months of the year (i.e., by June 30) and the other 1% during the second half of the year (i.e., by December 31). This amendment is applicable immediately for the year 2023 and puts additional pressure on employers to meet the targets set by the Resolutions.
For more details, please feel free to contact our UAE partner Zainab Aziz email@example.com.
This article, together with any commentary, does not constitute legal advice. It is provided solely for information purposes on a complimentary basis, without consideration of any specific objectives, circumstances, or facts. It reflects then current views of the writer which may modify in time and based on differing objectives, circumstances, or facts. Access to this article does not form any attorney- client relationship.
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