The Cabinet decision regarding the classification of private sector establishments subject to the provisions of the Labor Relations Law specified three categories of establishments, considering the second category to be the basic category that adheres to all procedures related to fees established by Federal Law 33 of 2021, its executive regulations, and all decisions issued by the Ministry of Human Resources and Emiratisation. Concerning work permits and contracts for citizens and others, and the wage system, in addition to commitment to the workforce planning policy, by enhancing cultural and demographic diversity in the country’s labor market.
As for the first category, it includes establishments that adhere to all procedures related to the same law (33 of 2021) and its executive regulations, and all decisions issued by the Ministry regarding work permits and contracts for citizens and others, and the wage system, at a rate of 100%, in addition to meeting one of several criteria, Firstly: raising its Emiratisation rates annually in accordance with the decisions of the Council of Ministers at a rate of no less than three times the target. Secondly: Cooperation with the Emirates Competitiveness Council (NAFES) in recruiting and training their citizens in a number of no less than 500 citizens every year.
Third: The facility is classified as a small and medium-sized youth citizen project at the local or federal level or of an innovative nature. Fourth: The facility must be among the training and employment centers that support the implementation of the workforce planning policy by enhancing cultural and demographic diversity in the country’s labor market. Fifth: The facility must be within the targeted economic sectors and activities as determined by the Council of Ministers, based on the proposal of the Minister of Human Resources. And nationalization, and to be within the establishments affiliated with the Supreme Corporation for Specialized Economic Zones.
They come in the third category, private establishments, according to two criteria: One of them is that the establishment is not committed to the workforce planning policy by promoting cultural and demographic diversity in the labor market in the approved country, and the second is that it is proven to the Ministry that the establishment has violated the Ministry’s provisions in Law (33 of 2021) or its executive regulations, or the ministerial decisions issued in implementation of them. And as issued by a decision of the Minister of Human Resources and Emiratisation.
This came during the media briefing organized by the Ministry of Human Resources and Emiratisation, yesterday, at the Ministry’s headquarters in Dubai, to provide details about the new classification system for establishments, within Cabinet Resolution No. (18) of 2022, and the ministerial decisions accompanying it, in which the Minister of Human Resources and Emiratisation confirmed Dr. Abdul Rahman Al-Awar said that the general policy for developing the labor market in the country is inspired by the 50 principles that define the goal of “building the best and most active economy in the world.”
Al-Awar explained that the ministry’s service fees and administrative fines are based on two types of permits, the first of which is work permits from within the country (for those who have a valid residency in the country), where the decision specified the issuance of a work permit for each of the “juveniles,” “temporary work,” and “ Partial work,” “training,” “worker test,” and “work for residency holders,” 50 dirhams for each, and 250 dirhams are specified for issuing a work permit for residency holders or self-employment, for a period Two years, and the second is work permits from outside the country (for all types of work), as the decision specified 50 dirhams as a fee for requesting a work permit for the first, second, and third categories, separately. As for the fees for issuing a two-year work permit, they are 250 dirhams for the first category, and 1,200 dirhams for the second category. And 3,450 dirhams, while the decision specified 250 dirhams for issuing an important work permit, whether for the first, second, or third category.
Al-Awar mentioned five cases, if one of them occurs in an establishment, it is considered a high-risk establishment, namely: First: Delay in paying workers’ wages in establishments that employ 50 or more workers, in accordance with the terms and procedures contained in Ministerial Resolution (43 of 2022), and Second: The occurrence of more than one case of labor stoppage or collective dispute during the last 12 months, due to the facility’s breach of its obligations. Legal or contractual, and third: the presence of labor complaints referred by the Ministry to judicial authorities at a rate of 30% or more of the total number of workers registered in the establishment, due to The facility’s breach of its legal or contractual obligations.
Fourth: The presence of expired work permits for 30% of the total number of workers registered in the facility, and they were not renewed within the time frame specified by Cabinet Resolution (No. Facility.
He added that the high-risk status is removed from the facility in two cases: One of them was immediately after her situation was settled, and the five cases in her case disappeared, and the other was that there were no reports of work interruption during the last 12 months at the facility.
Al Awar stressed that the new classification of establishments and the decisions that followed it respond to the requirements of business owners, protect workers’ rights, encourage innovation and small and medium-sized companies, and provide lucrative incentives to companies that adhere to the laws and policies of promoting cultural and demographic diversity that are consistent with the values of the UAE society, which is based on tolerance and equal opportunities.
In this context, he stressed the Ministry’s integrated view towards the business sector in the country, which is based on four pillars: supporting and empowering national cadres and competencies, maintaining the attractiveness of the labor market for talents and qualified people from around the world, protecting workers and employees, providing the maximum guarantees for their rights, and empowering and strengthening the capabilities of companies. To achieve sustainable growth.
Al Awar pointed out that the new classification of companies in the country, which will come into effect on June 1, 2022, distributes existing establishments into three categories, first, second and third, in a way that responds to customers’ requirements for simplifying transactions, with a high level of precise governance supported by smart solutions provided by the system. The Ministry’s digital system will place companies in the appropriate category through an interactive automated system that allows the classification of establishments to be changed transparently, according to the procedures undertaken by each company or the transactions to which it is subject.
He noted that the classification provides incentives and exemptions to companies according to their consistency with the priorities of the national economy and programs for nationalization and strengthening priority sectors.
The step responds to the UAE’s trends in the next fifty years, strengthens its position as “a capital for talents, companies and investments, and an upcoming capital for the future,” and supports the consolidation of the knowledge economy.
Through the decision, the Ministry of Human Resources and Emiratisation seeks to enhance integration with all government agencies, local and federal, to support policies to enhance the efficiency and stability of the labor market.
The Ministry will provide a clear road map for companies operating in the country in order to raise their classification and increase “predictability” for investors.
It will be keen to support companies with 50 or more workers in their transformation journey with the new decision on cultural and demographic diversity through a transitional period, which can be used to carry out development processes.
• A road map for companies operating in the country in order to raise their rankings and increase “predictability” for investors.
Dr. Abdul Rahman Al Awar:
• “The general policy for developing the labor market is inspired by the 50 principles that define the goal of building the best and most active economy in the world.”
Decision package
The legislative system for the labor market and Emiratisation in the UAE has witnessed the approval of a package of decisions that are in the interest of business development, support the Emiratisation of national cadres, and protect workers and employees, through the new federal law on unemployment insurance, and the decision to raise the current Emiratisation rates at a rate of 2% annually. For skilled jobs in private sector establishments with 50 or more employees, achieving an overall increase rate of 10% in 2026.
The decision to raise the percentage of Emiratisation annually in private sector companies is accompanied by unprecedented benefits, including reducing the Ministry of Human Resources and Emiratisation’s fees by up to 80% for private sector companies that achieve qualitative achievements in employing and training citizens in partnership with the “Nafis” programme. As for the insurance system against… Unemployment through insurance packages, which provides a unique model offered by the UAE for protection umbrellas through products through insurance companies, aims to ensure the availability of income for the worker during his unemployment times until alternative job opportunities become available.
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