UAE Private Firm Hit with Dh10M Fine for Issuing Work Permits to 113 Fake Employees

A private company has been fined Dh10 million by an Abu Dhabi court for issuing work permits to over 100 fictitious employees in a bid to meet Emiratisation targets.

The Ministry of Human Resources and Emiratisation referred the unnamed firm to the Abu Dhabi Public Prosecution after uncovering “serious violations”.

Investigations found that the company had listed 113 individuals as employees to bypass regulatory requirements.The Abu Dhabi Misdemeanour Court has since imposed a significant financial penalty, according to authorities.

Businesses with 50 or more employees were required to have 5 per cent of skilled roles filled by Emiratis by June 30, with fines applicable from July 1 for those that failed to comply.

The employment quota is part of a broader national initiative to ensure 10 per cent of all skilled positions are occupied by Emiratis by the end of 2026. Companies that do not meet these targets could face fines of up to Dh48,000 for each Emirati they fail to hire.

In March, the ministry revealed that more than 1,200 companies had illegally hired Emiratis in an effort to circumvent the rules.The breaches involved the employment of 1,963 Emiratis, with companies found to be engaging in “fake Emiratisation”.These figures pertain to the period from mid-2022 to March 14, 2024.

The ministry has previously warned that businesses violating Emiratisation rules will no longer receive financial benefits from the Emirati Talent Competitiveness Council programme, also known as Nafis, for employing UAE citizens.

False Emiratisation includes hiring family members with no genuine role or falsifying employment records by obtaining fraudulent work permits in the names of UAE citizens. Companies may also be downgraded to the lowest categories in the private sector classification system.

This would result in higher service fees for work permits and transfer fees. Instead of paying only Dh250 for certain permits, they would face Dh3,750.

Businesses are urged to increase the number of citizens they employ by 2 per cent each year to achieve the 10 per cent target by the end of 2026.

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