A poster on the Emiratisation drive at Dubai's World Trade Centre. Chris Whiteoak / The National
A poster on the Emiratisation drive at Dubai's World Trade Centre. Chris Whiteoak / The National
A poster on the Emiratisation drive at Dubai's World Trade Centre. Chris Whiteoak / The National
A poster on the Emiratisation drive at Dubai's World Trade Centre. Chris Whiteoak / The National

Emiratisation deadline: authorities warn against false job adverts and illegal salary cuts


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UAE authorities have warned private companies against posting misleading job adverts, offering unskilled positions and offering reduced salaries to citizens under the country's Emiratisation drive.

Inspections by officials will increase to ensure rules to bolster the local workforce in the private sector are being adhered to.

By January 1, private companies with more than 50 employees must ensure 2 per cent of their staff is Emirati or face penalties under a government drive to boost the numbers of UAE citizens to 10 per cent of the workforce in four years.

The Ministry of Human Resources and Emiratisation on Sunday issued an official resolution that covered compliance by the private sector in advertising, compensation and training.

When advertising jobs for UAE citizens, companies must not refer to the government’s Emiratisation policies, support and benefits unless they have secured approval from the Ministry, according to a statement on Wam, the official news agency.

Ministry sets out responsibilities of employers

Misleading adverts that do not reflect real job opportunities, announcements of unskilled jobs, mention of government subsidies and incentives have been prohibited under ministerial resolution number 663 of 2022.

“Expanding Emiratisation in the country requires regulating all aspects,” the ministry statement said.

“We are keen to specify the duties and obligations of all parties, set laws to regulate recently observed violations through intensifying inspection visits, define necessary measures and ensure that all parties follow them.”

Authorities have banned companies from making unauthorised deductions in salaries of Emirati employees and misusing the government’s support and incentive packages.

  • Rashed Abdulla Al Sumaity, an associate at Galadari Advocates & Legal Consultants in Dubai. The legal and banking professions have the highest Emiratisation in the private sector. All photos by Victor Besa / The National
    Rashed Abdulla Al Sumaity, an associate at Galadari Advocates & Legal Consultants in Dubai. The legal and banking professions have the highest Emiratisation in the private sector. All photos by Victor Besa / The National
  • Official announcements show the UAE government’s resolve to encourage citizens to take on private sector jobs and persuade companies to take Emiratis on board.
    Official announcements show the UAE government’s resolve to encourage citizens to take on private sector jobs and persuade companies to take Emiratis on board.
  • Raka Roy (R), partner at Galadari Advocates & Legal Consultants and Eslam Oraif, legal counsel, break down the government announcements that offer extra salary and benefits to UAE citizens taking jobs in the private sector.
    Raka Roy (R), partner at Galadari Advocates & Legal Consultants and Eslam Oraif, legal counsel, break down the government announcements that offer extra salary and benefits to UAE citizens taking jobs in the private sector.
  • Rashed Abdulla Al Sumaity (R) with Eslam Oraif of Galadari Advocates & Legal Consultants. The UAE government's Nafis scheme has set a target of 75,000 Emiratis in private sector jobs by 2026.
    Rashed Abdulla Al Sumaity (R) with Eslam Oraif of Galadari Advocates & Legal Consultants. The UAE government's Nafis scheme has set a target of 75,000 Emiratis in private sector jobs by 2026.
  • The UAE Cabinet approved that private companies with more than 50 employees should have at least a 2 per cent Emirati workforce by 2021.
    The UAE Cabinet approved that private companies with more than 50 employees should have at least a 2 per cent Emirati workforce by 2021.
  • UAE government support programmes will empower and protect Emirati employees in the private sector.
    UAE government support programmes will empower and protect Emirati employees in the private sector.
  • Salary incentives are being offered to Emirati university graduates and UAE citizens in training for skilled jobs.
    Salary incentives are being offered to Emirati university graduates and UAE citizens in training for skilled jobs.

The new order also urges private businesses to offer job training and skills upgrades to foster growth of Emiratis in the work place.

Paying lower wages to Emirati employees in comparison to their colleagues was also against the Emiratisation legislation, the resolution said.

When hiring a UAE citizen, a company must secure a work permit from the ministry, sign a contract, pay salaries as per regulation, register UAE nationals, and pay monthly pensions and social security contributions within a month from the issuing of employment papers.

If an Emirati employee quits, the employer must cancel the work permit and report the changes to authorities.

The resolution specifies the obligation of Emiratis to adhere to the laws, abide by the conditions in the Nafis programme and report violations to the ministry.

Authorities have warned against forging employment records by obtaining false work permits in the name of UAE nationals to gain from the social support incentives offered by the government.

A fast food company that recently advertised sandwich maker positions for UAE citizens is under investigation by prosecutors after social media users complained that unskilled jobs were being offered to Emiratis.

Employers that fail to reach the 2 per cent target by the end of the year will have to pay a Dh72,000 fine ($19,602) in January for each Emirati worker they fail to hire, the equivalent to Dh6,000 for each month of this year.

The government has taken action against companies that inflate employment numbers to meet targets.

With less than two weeks to go before penalties begin, recruiters have reported a rising interest in hiring UAE nationals in front-facing customer service, retail, hospitality and health sectors.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Updated: December 18, 2022, 12:39 PM