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Can an Emirati shareholder be an employee of the same company?

Dear sir/madam,

Can I make an Emirati shareholder an employee of my company to comply with the Emiratisation rule?

If so, how can I do it? Do I need to make an employment contract for them?

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Khaled Ebid

Laila Hamza Al Mulla Advocates and Legal Consultants

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14 Nov 2022, 12:59

Dear questioner,

Yes, you can write an employment contract and he becomes a shareholder and an administrative manager.

14 Nov 2022, 13:22

Is a contract necessary?

The Emirati is already a shareholder and is mentioned as the managing director in MOA.

14 Nov 2022, 13:41

Yes, the Federal Labor Law allows him to work in a second job in another part-time establishment, in addition to his main job.

14 Nov 2022, 13:54

Just want to clarify; it is the same company I'm talking about. There is company X and 4 brothers are shareholders; all Emiratis.

They are already mentioned as managing directors in the MOA.

My question is:

Do I satisfy the Emiratisation rule or do I need to have a formal employment contract with MOHRE?

14 Nov 2022, 14:03

As long as he is an actual shareholder and a manager, it doesn't matter if he makes an additional employment contract.

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Rashid Saif Al Ali

Rashid Saif Advocates & Legal Consultancy

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6 Dec 2022, 05:48

Dear Questioner,

Good day!

With ref to Q#59411, please be informed that to comply with the new Emiratization Mandate, the Emirati Shareholder may be appointed as an Employee as well.

In such an event, He/she will be bound with the rights and duties as both SHAREHOLDER and EMPLOYEE.

To make such an appointment effective, an employment contract or work permit be executed and registered with the concerned authority along with the Pension Schemes (GPSSA).

To assist you in this regard, kindly contact us by phone or email.

Best regards

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