Starting June 1, the UAE’s Ministry of Human Resources and Emiratisation (MoHRE) will implement a new classification system for private sector companies on the basis of their compliance with directives.
What does this mean for Private Sector Companies and how does it effect you?
The first category classification for companies offers various incentives and exemptions on the ministry's services fees related to work permits and transfer charges. Learn about the criteria and how you can upgrade your establishment to this category#UAE #MOHRE pic.twitter.com/oBEmWHsiHa
— MOHRE_UAE وزارة الموارد البشرية والتوطين (@MOHRE_UAE) June 10, 2022
Your company automatically classifies within the second category for complying with the laws and policy of promoting cultural & demographic diversity. This classification offers discounts on services fees & a step to upgrade your company's classification to first category. #MOHRE pic.twitter.com/tDcU1H5Zxr
— MOHRE_UAE وزارة الموارد البشرية والتوطين (@MOHRE_UAE) June 10, 2022
The third category in the classification for companies system includes establishments which are not compliant with the laws and policy to promote cultural and demographic diversity in the UAE. What does it mean to have your company within this classification? #UAE #MOHRE pic.twitter.com/G6IlqHbQzN
— MOHRE_UAE وزارة الموارد البشرية والتوطين (@MOHRE_UAE) June 10, 2022
From May, Emiratisation rate increases to 2% annually for high-skilled jobs in establishments that employ 50 workers or more. The step aims at creating more than 12,000 job opportunities annually for UAE citizens. Non-compliant companies will have to pay Dhs6,000 monthly, starting from January 2023, for every citizen who has not been employed.
A private company that abides by the UAE Labor Law and its resolutions, aside from fulfilling ONE of the following criteria.
Cooperating with the ‘Nafis’ program, to train at least 500 citizens annually.
Being a venture owned by a young citizen according to approved standards.
Being one of the training and employment centers that promote cultural diversity in the UAE.
Being active in the targeted sectors and activities determined by the Council of Ministers based on the ministry’s decision.
A private company that abides by the UAE Labor Law and its resolutions, aside from fulfilling ONE of the following criteria.
Policies related to UAE’s labor law and its executive regulations.
Decisions issued by MOHRE regarding work permits, employment contracts and their compliance with wage protection system.
The company’s commitment to implementing the Workforce Planning Policy for promoting cultural diversity in the UAE.
A private companies found violating the Labor Law and executive regulations, and the standards for protecting labor rights. Some of these violations include:
Human trafficking.
Using or recruiting workers without obtaining work permits.
Providing incorrect data, documents, or information to the Ministry.
Violating obligations on workers’ wages, housing, and safety standards.
Resorting to fake Emiratisation practices.
