Cabinet Resolution No. 43 of 2025 Regarding Administrative Violations and Penalties Related to the Emirati Talent Competitiveness Council's Initiatives and Programs

§Preamble

Cabinet Regulation No. (43) of 2025 Regarding Administrative Violations and Penalties Related to the Emirati

Talent Competitiveness Council’s Initiatives and Programs

The Cabinet, − Having reviewed the Constitution;

− Federal Law No. (1) of 1972 Regarding the Competences of Ministries and the Powers of Ministers, as amended;

− Federal Decree by Law No. (27) of 2021 Regarding the Establishment and Organization of the Emirati Talent Competitiveness Council;

− Cabinet Resolution No. (21) of 2020 Regarding Service Fees and Administrative Fines in the Ministry of Human Resources and Emiratization, as amended;

− Cabinet Decision No. (58) of 2022 Regarding the Establishment of the Nafis Fund; − 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; and − Upon the proposal submitted by the Chairman of the Emirati Talent Competitiveness Council and approved by the Cabinet, Hereby resolves as follows:

§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,

Cabinet Decision of 2025 Regarding Administrative Violations and Penalties Related to the Emirati Talent 1

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:

Fines to be Imposed on the Penalty No. Violation Description Establishment Applicable to

the Beneficiary 1 Engaging in sham An administrative fine of not less Suspension of Emiratization related to than AED (20,000) twenty support.

“Nafis” initiatives and thousand dirhams and not programs. exceeding AED (100,000) one

hundred thousand dirhams per worker.

2 Submitting incorrect An administrative fine of not less Suspension of documents or data to obtain than AED (20,000) twenty support.

services or benefits from thousand dirhams and not Nafis or for the purpose of exceeding AED (100,000) one evading or circumventing hundred thousand dirhams per the Emiratization System. case.

3 The required documents are An administrative fine of not less Suspension of invalid or have not been than AED (2,000) two thousand the benefits

dirhams per month, up to a during the

Cabinet Decision of 2025 Regarding Administrative Violations and Penalties Related to the Emirati Talent 2

renewed within the maximum of AED (5,000) five invalidity period prescribed Timeframe. thousand dirhams. with resumption

of disbursement upon renewal of the documents. 4 Failure of the Establishment An administrative fine of AED Suspension of to follow the prescribed (20,000) twenty thousand support.

procedures by Federal dirhams per worker.

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.

Cabinet Decision of 2025 Regarding Administrative Violations and Penalties Related to the Emirati Talent 3

5 Failure of the establishment An administrative fine of AED Suspension of to notify the Council of any (20,000) twenty thousand support.

change to the benefit dirhams per case.

conditions without a reason acceptable to the Council.

6 Failure of the Beneficiary to _____________ Suspension of comply with the training or support, study programs approved by recovery of the the Council and absence for amounts

(10) ten consecutive days or disbursed, and

(20) twenty non- denial of the consecutive days during the Beneficiary’s training period. access to the program for a

period not exceeding (1) one year.

7 The Beneficiary ceases _____________ Suspension of attending training or study support, programs for reasons not recovery of the acceptable to the Council. 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 _____________ Recovery of the to fulfill its obligation to hire support amount

Cabinet Decision of 2025 Regarding Administrative Violations and Penalties Related to the Emirati Talent 4

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

9 An Establishment − AED (100,000) one hundred __________ circumvents Emiratization thousand dirhams for targets by reducing committing the violation for workforce numbers or the first time.

altering workforce − AED (300,000) three hundred classification with the intent thousand dirhams for to evade them, or through committing the violation for any other form of the second time.

circumvention as − AED (500,000) five hundred determined by the Ministry. 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.

Cabinet Decision of 2025 Regarding Administrative Violations and Penalties Related to the Emirati Talent 5

§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.

Cabinet Decision of 2025 Regarding Administrative Violations and Penalties Related to the Emirati Talent 6

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.

Cabinet Decision of 2025 Regarding Administrative Violations and Penalties Related to the Emirati Talent 7

§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.

Mohammed Bin Rashid Al Maktoum Prime Minister

Issued by Us:

Dated: Shawwal 18, 1446 A.H.

Corresponding to: April 16, 2025 A.D.

Cabinet Decision of 2025 Regarding Administrative Violations and Penalties Related to the Emirati Talent 8