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Companies violating UAE’s indigenization scheme to face hefty fines: Ministry of Manpower and Indigenization

ABU DHABI: The Ministry of Manpower and Indigenization has said that companies that violate the Emirati Talent Competitive Council (Nafis) law, the UAE’s indigenization scheme, will be fined up to Dh5 lakh (Rs 1.11 crore).

It was also reminded that trying to escape from the limit of indigenization by reducing or modifying the number of employees will be considered a violation of the law.

The penalty is as follows

First-time violators will be fined Dh1 lakh (Rs 22.2 lakh). If the offense is repeated, the fine will increase to Dh3 lakh (Rs 66.7 lakh). If you violate the law for the third time, you will have to pay a fine of Dhs 5 lakh.

Law of Nafis

The law requires companies with 50 employees or more to repatriate once every 6 months, 1 percent and 2 percent annually. In the project started in 2022, 10% indigenization should be completed by the end of 2026. Companies that do not implement 1% repatriation every 6 months will be fined at the rate of AED 7,000 per month per expatriate and AED 42,000 for 6 months.

Violation can be reported

Violators can be reported on 600 590000 or on the Ministry of Manpower Indigenization’s app or social media page.

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2023-05-07 06:15:37

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