The deadline for private sector businesses to convert employees’ unlimited-term employment contracts to fixed-term contracts has been extended, according to the UAE Ministry of Human Resources & Emiratisation (MoHRE).
Instead of being February 2, 2023, the revised deadline is December 31, 2023.
“The decision stems from our belief in enhancing flexibility, competitiveness and ease of business for private sector companies and safeguarding all parties’ rights,” the Ministry said.
The Ministry of Human Resources and Emiratisation stated that private sector businesses must enroll their Emirati employees in the pension system within a month of the issuing of their work licences.
“This is a legal requirement that companies must apply,” the ministry explained.
The UAE government declared that private sector businesses had received financial contributions as a result of their failure to meet the 2022 Emiratisation targets.
This is in accordance with the UAE Cabinet’s decision to enhance the Emiratisation levels of skilled occupations in private sector organizations with 50 employees by 2% yearly beginning in 2022.
By the end of 2026, the resolution wants to raise the Emiratisation rate to 10%.
For each Emirati who was not appointed in 2022, establishments were required to pay AED 72,000 in financial contributions. For every citizen of the UAE, this is calculated at a rate of AED 6,000 each month.
Saif Al Suwaidi, Undersecretary for Emiratisation Affairs at MoHRE, has urged the private sector organizations to uphold the Cabinet’s decision and successfully increase the rate of Emiratisation in the private sector so that Emiratis can engage in this crucial industry.
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