News Photo

Abu Dhabi fines private firm Rs 22 crore for fake employment - Karma Global

  • Blogs
  • August 25 10:57:10, 2024
Global Compliance Update

Abu Dhabi Misdemeanor Court fines private firm Dirham 10 million for fake employment of 113 citizens

Over the last few years, economic and corporate globalisation has accelerated, making some organisations truly global institutions with ever-growing geographic footprints and shifting more activities to emerging markets. Karma Global has been re-writing the rules of international business, creating opportunities for global clients to capitalise on the potential of Karma Global’s sophisticated AI products and processes to the new global reality.

Karma Global: service spectrum and international presence

Karma Global’s major services include Regulatory Audit, Management Consulting, Strategy Consulting, Financial and Tech Advisory, Risk Advisory and Legal, including Staffing and Payroll Management Processes and Compliance.

Canada

In Canada, it is known as Karma Global Tech Management Inc.

United States

In the U.S.A., it is known as Karma Global Tech Management LLC.

The compliance event in focus

Employment standards and Emiratisation integrity

The Abu Dhabi Misdemeanor Court has levied a hefty fine of Dirham 10 million (approximately twenty-two crore rupees) against a private company for failing to meet employment standards. This ruling underscores the importance of compliance with labour regulations in the UAE. Such measures aim to protect job seekers and uphold the integrity of employment practices in the region.

What the private firm was found guilty of

The private firm was found guilty of evading Emiratization targets by appointing nationals in fictitious roles. The Court found that the company tried to bypass the Emiratisation targets by appointing one hundred and thirteen citizens in fictitious roles.

Abu Dhabi court ruling

The Abu Dhabi Misdemeanor Court has imposed a fine of Dirham 10 million (equivalent to ₹22,79,85,414) on a private firm. This penalty was issued due to the company’s failure to comply with established employment standards.

Significance of the fine

Why the ruling matters

The fine highlights the seriousness of labour regulation compliance. It is positioned to protect job seekers from fraudulent practices and uphold integrity in employment reporting.

Forward-looking impact

This ruling may encourage other companies to adhere to employment standards. Companies operating in Abu Dhabi must prioritise adherence to these standards to avoid significant penalties.

Conclusion

Companies operating in Abu Dhabi should prioritise compliance with labour laws to avoid facing similar penalties. The ruling serves as a reminder of the ongoing efforts to maintain integrity in employment practices within the UAE.

Proprietary blog note
Proprietary blog of Karma Global, collated and compiled by the internal staff of Karma Global with the knowledge and expertise that they possess, besides adaptation, illustration, derivation, transformation, collection and auto generation for its monthly newsletter Issue 27 of September 2024. In case of specific or general information or compliance updates for that matter, kindly reach out to the Marketing Team.
For updates and queries
marketing@karmamgmt.com
Disclaimer: This page is an informational communication intended for awareness. For case-specific advice, please consult qualified counsel.

Share This News

Your Trusted Partner in Compliance, Audits & Human Resource Solutions