Renewed annually according to the continued availability of conditions

One million dirhams as a bank guarantee for licensing the recruitment and outsourcing agency

Federal Decree-Law No. (33) of 2021 regulating labor relations, which officially entered into force on February 2, sets three conditions for obtaining a license to practice any of the work of recruitment and outsourcing agencies in the country. The first is that the person is not in the individual institution or Any of the partners in the legal establishment has been convicted of a crime involving breach of honor and trust, or a crime of human trafficking, or the crimes stipulated in the Decree-Law, unless he has been rehabilitated if he was sentenced to a freedom-restricting penalty.

According to a series of indicative publications in the texts of the Decree-Law, which the Ministry of Human Resources and Emiratisation broadcast on its official electronic platforms, the second condition includes that the individual institution or legal person must provide the Ministry with a bank guarantee whose value is not less than 300,000 dirhams at all times of the license validity, in the case of a license mediation agency, and not less than one million dirhams in the case of licensing a temporary employment and outsourcing agency, or in the case of combining the two activities, and this license is automatically renewed, or an insurance system is presented as an alternative to the guarantee. Due from the agency, for its failure to implement its obligations, or for non-compliance with the instructions and decisions issued pursuant thereto.

The Ministry stated that the third condition includes submitting a credit report to the applicant for the license, or the person in the individual institution and the partners in the legal person, to be issued by the competent authority, in addition to any other conditions issued by a decision of the Minister of Human Resources and Emiratisation, stressing that the license issued by the Ministry is renewed. to recruitment agencies annually, provided that it is ensured that all conditions required for licensing are still met.

According to the ministry, the activity of recruitment agencies includes “mediating”, which is to bring the views between the two parties to the work and their representatives, negotiate the terms of the contract, and use with the aim of establishing a working relationship, without the agency becoming a party to it. It also includes “temporary employment and outsourcing” through the use of worker with the intent to make it available to a third party.

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