In a major effort to safeguard the Emiratisation initiative, the UAE’s Ministry of Human Resources and Emiratisation (MoHRE) has slapped over AED 34 million in fines on more than 1,300 companies involved in manipulating the labor market. These firms, tied to approximately 1,800 employers, were caught between January and June for creating fraudulent employment records.
What MoHRE Discovered
The core violation involved companies fabricating employment records and maintaining no genuine work relationship with their listed employees. Two main types of infractions were uncovered:
- Ghost Firms: Companies that were licensed but not actually operational, yet illegally maintained employee permits.
- The Nafis Scam (Fake Emiratisation): A more serious violation where companies hired UAE nationals purely on paper to meet government quotas and illegally claim financial benefits under the Nafis program.
In short, these were fraudulent schemes designed to deceive the system and misuse public funds.
UAE Penalties and Fines
MoHRE has taken strict action with immediate and severe penalties for the guilty companies:
- Fines: Over AED 34 million in administrative fines have been imposed. Companies caught engaging in Fake Emiratisation face fines ranging from AED 20,000 to AED 100,000 per Emirati involved in the scam.
- Criminal Charges: MoHRE confirmed that these violations are classified as criminal fraud and are being referred to the Public Prosecution.
- Business Ban: Owners of the offending companies are now banned from registering new businesses within the UAE labor system.
- Permit Suspension: All work permits for the violating companies have been immediately frozen, halting their operations.
Funds Recovered So Far
Thanks to the crackdown, MoHRE has successfully recovered over AED 2.3 million in improperly claimed Nafis benefits that had been wrongly paid to 107 UAE nationals involved in the fake schemes.
MoHRE has reiterated its zero-tolerance policy for fraud, relying on an advanced smart monitoring system and regular field inspections to detect such activities. The Ministry also urges the public to stay vigilant and report any suspicious behavior to protect the integrity of the national employment drive.
What Companies and Workers Should Do
Companies are advised to audit their payrolls, work permits, and license statuses immediately. Where roles are no longer valid, permits should be canceled, and licenses should be updated or closed. Non-operational firms risk downgrades, blocked registrations, and hefty fines.
Workers who suspect they are listed on inactive payrolls or have unclear employment records should contact MoHRE through its official channels (call center or smart app) to verify their visa and contract status and file complaints if necessary.
