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UAE: New system to classify private sector companies by commitment to labour rules

Three categories have been announced and will go into effect from June

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UAE's Ministry of Human Resources and Emiratisation has launched a new classification system for establishments in the private sector.

Dr Abdul Rahman Al Awar, Minister of Human Resources and Emiratisation, said that the new system classifies establishments into three categories, and work to implement it will begin in early June.

He added, "The classification of new companies is based on their commitment to the wage protection system, cultural diversity, and commitment to the decisions regulating the labour market.”

He explained that the category includes companies that do not adhere to the standards of cultural diversity or wage protection system or are proven to have committed a violation.

Dr Abdul Rahman Al Awar indicated that the fees for obtaining a work permit would be Dh250 for the two years in the first category, Dh1,200 for companies classified in the second category, and Dh3,450, which are classified in the third.

He confirmed that the ministry would provide a working map for companies and establishments wishing to upgrade their classification.

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He explained that starting from next month, the facilities will find the classification they were placed in when performing any transaction.

He added that the classification of the facilities would be updated directly on the website. Companies must adhere to certain standards to raise or lower the classification of facilities, including the percentages of Emiratisations, training citizens, and supporting their projects.

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