Legislation Details
- Full Title: Cabinet Resolution Concerning the Mechanisms for Collecting Contributions Due to the NAFIS Fund
- Law Type: Cabinet Resolution
- Law Number: 85 of 2024
- Issued Date: 15 Jul 2024
- Effective Date: 01 Aug 2024
- Official Gazette: No. 780
- Sector: Finance and Banking
- Status: Active
- Number of Articles: 10
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution establishes the mechanisms for collecting contributions due to the NAFIS Fund, which was created by Cabinet Resolution No. (58) of 2022 to support the Emiratization initiatives of the UAE government. The resolution empowers the Ministry of Human Resources and Emiratization to contract with third-party debt collection companies to recover unpaid contributions from establishments that do not meet the targeted Emiratization rates. It also outlines the procedures for depositing the collected funds into the NAFIS Fund account. (Cabinet Resolution Concerning the Mechanisms for Collecting Contributions Due to the NAFIS Fund, 2024, Art. 1-5)
What is the scope and purpose of this law?
The scope of this Cabinet Resolution is to regulate the mechanisms for collecting contributions due to the NAFIS Fund, which was established to support the Emiratization initiatives of the UAE government. The purpose is to empower the Ministry of Human Resources and Emiratization to recover unpaid contributions from establishments that do not meet the targeted Emiratization rates, and to ensure that these funds are properly deposited into the NAFIS Fund account. (Cabinet Resolution Concerning the Mechanisms for Collecting Contributions Due to the NAFIS Fund, 2024, Art. 1-3)
What are the key definitions under this law?
The key definitions provided in this Cabinet Resolution are:
- Council: Emirati Talent Competitiveness Council
- Board of Directors: Emirati Talent Competitiveness Council Board of Directors
- Chairman: Chairman of the Board of Directors
- Fund: Nafis Fund
- Ministry: Ministry of Human Resources and Emiratization
- Secretary General: Emirati Talent Competitiveness Council Secretary General
- Contributions: Amounts imposed on establishments that do not comply with the targeted Emiratisation rates
- Third Party: Debt collection companies operating in the State
- Establishments: Establishments covered by the scope of "NAFIS" initiatives and programmes
(Cabinet Resolution Concerning the Mechanisms for Collecting Contributions Due to the NAFIS Fund, 2024, Art. 1)
What are the main obligations and requirements?
The main obligations and requirements under this Cabinet Resolution are: 1. The Ministry, upon coordination with the Emirati Talent Competitiveness Council, may contract with a Third Party to recover contributions if such contributions have not been collected by the Ministry within twelve (12) months from the due date. (Cabinet Resolution Concerning the Mechanisms for Collecting Contributions Due to the NAFIS Fund, 2024, Art. 2(1)) 2. The Emirati Talent Competitiveness Council, in coordination with the Ministry, shall establish the mechanisms and requirements for contracting with the Third Party, including the determination of the consideration or percentage to be allocated to the Third Party from the amounts successfully collected. (Cabinet Resolution Concerning the Mechanisms for Collecting Contributions Due to the NAFIS Fund, 2024, Art. 2(2)) 3. Contributions collected by the Third Party shall be deposited into the Fund account through the Ministry in accordance with the mechanisms approved by the Ministry and the Emirati Talent Competitiveness Council. (Cabinet Resolution Concerning the Mechanisms for Collecting Contributions Due to the NAFIS Fund, 2024, Art. 2(3))
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible for the enforcement of this Cabinet Resolution are: 1. The Ministry of Human Resources and Emiratization, which is responsible for contracting with third-party debt collection companies and overseeing the deposit of collected contributions into the NAFIS Fund account. 2. The Emirati Talent Competitiveness Council, which is responsible for coordinating with the Ministry on the mechanisms and requirements for contracting with third-party debt collection companies. 3. The Secretary General of the Emirati Talent Competitiveness Council, who is responsible for issuing the necessary resolutions for the implementation of this Cabinet Resolution in coordination with the Ministry. (Cabinet Resolution Concerning the Mechanisms for Collecting Contributions Due to the NAFIS Fund, 2024, Art. 2-4)
What are the key deadlines and time limits?
The key deadlines and time limits specified in this Cabinet Resolution are: 1. The Ministry may contract with a Third Party to recover contributions if such contributions have not been collected by the Ministry within twelve (12) months from the due date. (Cabinet Resolution Concerning the Mechanisms for Collecting Contributions Due to the NAFIS Fund, 2024, Art. 2(1)) 2. The Third Party shall be allotted a collection period, as stipulated by the Ministry in coordination with the Emirati Talent Competitiveness Council. If the Third Party fails to collect contributions within the designated period, it shall compile a list of establishments from which contributions have not been collected and submit it to the Ministry for further action. (Cabinet Resolution Concerning the Mechanisms for Collecting Contributions Due to the NAFIS Fund, 2024, Art. 3)
How does this law interact with other UAE legislation?
This Cabinet Resolution is related to the following UAE legislation: 1. Federal Law No. (1) of 1972, Concerning the Competences of Ministries and the Capacities of Ministers, as amended. 2. Federal Decree-Law No. (15) of 2018, Concerning the Collection of Public Revenues and Funds, as amended. 3. Federal Decree-Law No. (27) of 2021, Establishing and Organizing of the Emirati Talent Competitiveness Council. 4. Cabinet Resolution No. (58) of 2022, Establishing NAFIS Fund. (Cabinet Resolution Concerning the Mechanisms for Collecting Contributions Due to the NAFIS Fund, 2024, Preamble)
When did this law come into effect?
This Cabinet Resolution was issued on 15 July 2024 and came into effect on 1 August 2024, the day following its publication in the Official Gazette No. 780. (Cabinet Resolution Concerning the Mechanisms for Collecting Contributions Due to the NAFIS Fund, 2024, Art. 5)
Source Documents
This article analyses Cabinet Resolution Concerning the Mechanisms for Collecting Contributions Due to the NAFIS Fund for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.