Abu Dhabi: Companies that do not complete localization in the UAE have been warned that heavy fines will be imposed from the end of this year. UAE The Ministry of Labor has issued a warning in this regard. Firms with more than 50 employees must implement two percent indigenization this year in the skilled labor sector. Recommendation of the Ministry of Human Resources and Indigenization. Firms that do not meet this target by the end of this year will have to pay penalties from January 2023.
A hefty fine of 72,000 dirhams will be levied from the institutions every month for a native who does not get a job. The ministry has also announced benefits for the institutions that meet the target, not only the penalty will be waived. Organizations that are included in the Tawteen Partner Club and achieve the target will be given a 80 percent discount on the ministry’s service fees.
The ministry aims to increase the rate of indigenization in the UAE to 10 percent by 2026. UAE’s decision to strengthen indigenization in the private sector. Two percent indigenization will be implemented in a year. Campaigns for indigenization are in progress under the leadership of Nafis Council. Nafis Council is a federal body created to nurture the skills of citizens. Skilled native workers earn 40 percent more than foreigners working in the same position.
Efforts are being made to hire natives in 13,193 institutions in the private sector this year. 110 crore has been earmarked for the employment and wages of natives in the private sector.
Next year, 182 crore dirhams will be spent on the appointment of Swadeshi. At present, 97 percent of the employed natives are in the list of skilled workers. Skilled training is provided through Nafis to employed natives.
The UAE has promised to provide financial assistance to the private sector that cooperates with the implementation of indigenization. Vice President, Prime Minister and Ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, had earlier informed through Twitter.
Apart from the UAE, it has been decided to strengthen indigenization in countries including Oman, Kuwait and Saudi. It is estimated that this will significantly affect the expatriate community including Indians working in these countries. As the indigenization becomes stronger, a good percentage of the natives will get employment. UAE is a big step forward. By targeting New insurance scheme to protect unemployed in UAE Recently announced. This scheme aims to provide a fixed amount for a fixed period of time in case of sudden job loss.