In a massive crackdown aimed at protecting the national Emiratisation drive, the UAE’s Ministry of Human Resources and Emiratisation (MoHRE) has imposed administrative and financial sanctions exceeding AED 34 million against over 1,300 companies. These firms, linked to roughly 1,800 employers, were caught between January and June for manipulating the labour market.
What MoHRE discovered?
The core offense centered on companies creating bogus employment records and having no genuine work relationship with their registered employees. This included two main types of violations:
- Ghost Firms: Companies that were officially licensed but not operational in reality, yet maintained employee permits illegally.
- The
Nafis Scam: The more serious violation, known as “Fake Emiratisation,” where firms hired UAE citizens just on paper to meet government quotas and illegally claim financial benefits from the Nafis program.
Simply put: These were fake jobs designed to cheat the system and public funds.
UAE penalties and fines
The penalties meted out by MoHRE are designed to be immediate and crippling for the violators.
- The total administrative fines issued surpassed AED 34 million. Companies proven guilty of Fake Emiratisation face huge fines ranging from AED 20,000 to AED 100,000 for every Emirati involved in the scheme.
- Criminal Charge: MoHRE confirmed that these cases are treated as criminal offenses of fraud and are being referred to the Public Prosecution.
- Full Ban: Owners of the offending companies are now prohibited from registering any new businesses within the UAE’s labour system.
- Permit Freeze: All work permits for the violating establishments were immediately suspended, effectively stopping their operations.
Funds recovered so far
The crackdown was so efficient that MoHRE also managed to recover over AED 2.3 million in Nafis benefits that had been improperly paid out to 107 citizens who participated in the fake schemes.MoHRE has stated clearly that it maintains zero tolerance for such fraud. They rely on an advanced smart monitoring system and field inspections to find cheats. The Ministry urges the public to be vigilant and report any suspicious activities to help protect the integrity of the national employment drive.Companies should immediately audit their payrolls, work permits and licence statuses. Where roles no longer exist, permits should be cancelled and licences closed or updated to reflect reality; firms found to be non-operational risk downgrades, blocked registrations and heavy fines. Workers who suspect they are listed on inactive payrolls or who have unclear employment records should contact MoHRE through its official channels (call centre and smart app) to check their visa and contract status and to file complaints if necessary.
