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Cabinet Regulation Regarding Administrative Violations and Penalties Related to the Emirati Talent Competitiveness Council’s Initiatives and Programs

The last update on this law was listed on 16 Apr 2025

Related legislations

Issued Date

16 Apr 2025

Effective Date

30 Apr 2025

Official Gazette Date

29 Apr 2025

Official Gazette No

798

Legislation State

Active

Disclaimer: Every effort has been made to produce an accurate and complete English version of this website/ legislation. However, for the purpose of their interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text will prevail

Article (1) Definitions

Wherever used in this Resolution, the following words and expressions shall bear the meanings assigned thereto respectively as follows, unless the context indicates otherwise:

State: The United Arab Emirates.

Council: The Emirati Talent Competitiveness Council.

Chairman: Chairman of the Board of Directors of the Council.

Ministry: The Ministry of Human Resources and Emiratization.

Establishment: Any economic, technical, industrial, commercial or other unit falling within the approved categories in the State, employing workers, aiming to produce or market goods or to provide services, licensed by the Competent Authorities, and subject to the provisions of Federal Decree by Law No. (33) of 2021 Regarding the Regulation of the Labor Relations, as amended.

Beneficiary: The Emirati citizen beneficiary of support provided by the Council.

Article (2) Administrative Violations and Penalties

Without prejudice to any procedures provided for in the relevant legislation, the Ministry may impose the administrative fines set out in the table below on the Establishment. Likewise, the Ministry may, in coordination with the Council, impose administrative penalties on the Beneficiary for any violations set out in the table below, as follows:

 

No.

 

Violation Description

Fines to be Imposed on the Establishment

Penalty Applicable to the Beneficiary

1

Engaging in sham Emiratization related to “Nafis” initiatives and programs.

An administrative fine of not less than AED (20,000) twenty thousand dirhams and not exceeding AED (100,000) one hundred thousand dirhams per worker.

Suspension of support.

2

Submitting incorrect documents or data to obtain services or benefits from Nafis or for the purpose of evading or circumventing the Emiratization System.

An administrative fine of not less than AED (20,000) twenty thousand dirhams and not exceeding AED (100,000) one hundred thousand dirhams per case.

Suspension of support.

3

The required documents are invalid or have not been renewed within the prescribed Timeframe.

An administrative fine of not less than AED (2,000) two thousand dirhams per month, up to a maximum of AED (5,000) five thousand dirhams.

Suspension of the benefits during the invalidity period with resumption of disbursement upon renewal of the documents.

4

Failure of the Establishment to follow the prescribed procedures by Federal Decree by Law No. (33) of 2021 Regarding the Regulation of the Labor Relations, as amended, and its Executive Regulation and Executive Resolutions, in the following cases:

  • Failure of the beneficiary to join the work after the issuance of the work permit and the establishment’s receipt of support from the Council;
  • Failure of the beneficiary to regularly report to work at the Establishment after joining, or
  • The Beneficiary ceases work and the Establishment fails to notify the Council.

An administrative fine of AED (20,000) twenty thousand dirhams per worker.

Suspension of support.

5

Failure of the establishment to notify the Council of any change to the benefit conditions without a reason acceptable to the Council.

An administrative fine of AED (20,000) twenty thousand dirhams per case.

Suspension of support.

6

Failure of the Beneficiary to comply with the training or study programs approved by the Council and absence for (10) ten consecutive days or (20) twenty non-consecutive days during the training period.

_____________

Suspension of support, recovery of the amounts disbursed, and denial of the Beneficiary’s access to the program for a period not exceeding (1) one year.

7

The Beneficiary ceases attending training or study programs for reasons not acceptable to the Council.

_____________

Suspension of support, recovery of the amounts disbursed, and denial of the Beneficiary’s access to the program for a period not exceeding (1) one year.

8

Failure of the Establishment to fulfill its obligation to hire the Beneficiary upon completion of the training period supported by the Nafis Program Initiative (financial support during the training period) without a justification acceptable to the Council.

_____________

Recovery of the support amount paid to the Establishment during the support period.

9

An Establishment circumvents Emiratization targets by reducing workforce numbers or altering workforce classification with the intent to evade them, or through any other form of circumvention as determined by the Ministry.

  • AED (100,000) one hundred thousand dirhams for committing the violation for the first time.
  • AED (300,000) three hundred thousand dirhams for committing the violation for the second time.
  • AED (500,000) five hundred thousand dirhams for committing the violation for the third time.

__________

Article (3) Recovery of Benefit Amounts and Suspension of Benefit Disbursements

1. The owner of an Establishment employing a Beneficiary of the Council’s initiatives and programs shall refund all benefit amounts received by the Beneficiary if the violations (1, 2, 4, 5, and 8) mentioned above are established against the Beneficiary, in accordance with applicable State legislation.

2. If the Beneficiary of the Nafis initiatives and programs re-commits the violation of sham Emiratization, the disbursement of benefits shall be suspended, and the Beneficiary shall no longer be entitled to any of the prescribed benefits.

Article (4) Grievance

1. Any interested party may file a written grievance with the Ministry against any of the administrative penalty imposed pursuant to this Decision, within (10) ten days from the date of being notified of the decision subject to the grievance. The grievance shall be reasoned and accompanied by all supporting documents in accordance with the procedures determined by the Ministry.

2. The grievance shall be decided upon within (20) twenty days of its filing, and in accordance with the applicable procedures of the Ministry.

Article (5) Exemption from Administrative Penalties and Payment in Installments

The Chairman or their delegate may either grant exemption from the administrative penalties imposed under this Decision or allow payment of those penalties in installments. The cases eligible for exemption and the installment payment mechanism, including the conditions, controls, and procedures, shall be determined by a decision of the Chairman based on the Council’s recommendation in coordination with the Ministry.

Article (6) General Provisions

1. For the purposes of collecting the administrative penalties specified in this Decision, part of a day shall be deemed a full day, and part of a month shall be deemed a full month.

2. More than one penalty may be imposed where more than one violation is committed.

3. The Council may suspend dealings with any establishment proven to have committed any of the violations referred to in Article (2) of this Decision.

4. The Council may deny any applicant support in the event of repeated violations.

5. The fines set forth herein shall be collected by the Ministry by the means determined by the Ministry of Finance, and shall be credited to the Single Treasury Account of the Federal Government.

6. The refunded benefit amounts set forth herein shall be collected by the Ministry by the means determined by the Council, and shall be credited to the Nafis Fund Account at the Council.

7. The imposition of the fines and penalties set forth herein shall not prevent the referral of the Establishment or Beneficiary to the Public Prosecution to take legal action against either or both of them.

8. An Establishment proven to have committed the violation described in Clause (9) referred to in Article (2) of this Decision shall fulfill the required annual Emiratization target based on the Establishment’s actual status prior to the circumvention.

9. The Chairman shall issue the necessary decisions to implement the provisions of this Decision, and shall determine the mechanisms and procedures for implementing the administrative penalties imposed on the Beneficiary referred to herein, including the periods and conditions for suspension and deprivation of benefit, after coordination with the Ministry.

Article (7) Repeals

Cabinet Resolution No. (95) of 2022 Regarding the Administrative Violations and Penalties Related to the Emirati Talent Competitiveness Council’s Initiatives and Programs, as amended, shall be repealed. Every provision that contradicts or conflicts with the provisions of this Decision shall also be repealed.

Article (8) Publication and Entry into Force

This Resolution shall be published in the Official Gazette, and shall enter into force from the day following the date of its publication.

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