It achieves a number of vital goals that serve the national economy

Classification of private sector establishments into 3 categories

During a media briefing organized by "Emiratization" at the Ministry's headquarters in Dubai, to provide details about the new classification system for facilities.

Photography: Ahmed Ardeti

The Cabinet’s decision regarding the classification of private sector establishments subject to the provisions of the Labor Relations Law identified three categories of establishments, considering the second category as the basic category that adheres to all procedures related to fees prescribed by Federal Law 33 of 2021, its executive regulations, and all decisions issued by the Ministry of Human Resources and Emiratisation. Regarding work permits and contracts for citizens and others, and the wage system, in addition to adhering to the policy of manpower planning, by promoting cultural and demographic diversity in the country’s labor market.

As for the first category, 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, by 100%, in addition to meeting one of several criteria, fall under it. It is first: to raise its Emiratisation rates annually in accordance with the decisions of the Council of Ministers, at a rate not less than three times the target.

Second: Cooperating with the UAE Nationals Competitiveness Council (Nafes) in hiring and training Emiratis, with a number of no less than 500 citizens each year.

Third: The facility is classified as a small and medium-sized projects for young citizens at the local or federal level or of an innovative nature.

Fourth: That the facility be within the training and employment centers that support the implementation of the manpower planning policy by promoting cultural and demographic diversity in the country’s labor market, and fifth: that the facility 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 Emiratisation, and to be within the establishments of the Higher Corporation for Specialized Economic Zones.

It comes in the third category, the private establishments, according to two criteria;

One is that the facility is not committed to the policy of manpower planning by promoting cultural and demographic diversity in the labor market in the approved country. And as issued by a decision of the Minister of Human Resources and Emiratisation.

This came during a 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 facilities, within Cabinet Resolution No. (18) of 2022, and the accompanying ministerial decisions, in which the Minister of Human Resources and Emiratisation confirmed Dr. Abdul-Rahman Al-Awar, that the general policy for developing the labor market in the country is inspired by the fifty principles that define the goal of “building the best and most active economy in the world”.

Al-Awar explained that the service fees and administrative fines in the ministry are according to two types of permits, the first of which is work permits from within the country (for those who have a valid residence in the country), where the decision was set to issue a work permit for “juveniles”, “temporary work”, and “work permits”. Part-time work”, “training”, “worker test”, and “work for residence holders”, 50 dirhams each, and 250 dirhams was set for issuing a work permit to holders of residence or self-employment, for a period of two years, and the second was work permits from outside the country (for each Work patterns), where the decision set 50 dirhams as fees for requesting a work permit for the first, second and third categories, separately. An important work permit, whether for the first, second or third category.

Al-Awar mentioned five cases, if one of them is verified in a facility, it is considered among the high-risk facilities, which are;

First: the delay in paying the wages of workers in establishments that employ 50 or more workers, according to the periods and procedures stipulated in the 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 the judicial authorities at a rate of 30%, or more, of the total number of workers registered in the facility, due to the facility’s breach of its legal or contractual obligations.

Fourth: Expired work permits of 30% of the total number of workers registered in the facility, and they were not renewed within the time frame specified by Cabinet Resolution (21 of 2020), and Fifth: The presence of reports of work interruption at a rate of more than 30% of the total workers registered in Enterprise.

He added that the high-risk character is removed from the facility in two cases;

One of them, as soon as it has settled its status, and the disappearance of what was available in it from the five cases, and the other is the absence of reports of work interruption during the last 12 months with 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 rewarding incentives for companies that adhere to laws and policies promoting cultural and demographic diversity in line with the values ​​of the UAE society based on tolerance and equal opportunities.

In this context, he stressed the integrative view of the Ministry 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 highly qualified people from around the world, protecting workers and employees, providing maximum guarantees for their rights, and empowering and strengthening companies’ capabilities. to achieve sustainable growth.

Al-Awar pointed out that the new classification of companies in the country, which will enter into force on June 1, 2022, distributes existing establishments into three categories, first, second and third, in order to respond to the requirements of customers in simplifying transactions, with a high level of accurate governance supported by smart solutions provided by the system The ministry has digital, where companies will be placed in the appropriate category through an interactive automated system that allows changing the classification of facilities in all transparency, according to the procedures carried out by each company or the transactions it is subject to.

He noted that the classification provides incentives and exemptions for companies in accordance with their consistency with the priorities of the national economy and programs for Emiratisation and the promotion of priority sectors.

The move responds to the directions of the UAE in the next fifty years, and enhances its position as a "capital of talent, companies and investments, and the next 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 roadmap for companies operating in the country in order to upgrade their classification and increase the "predictability" of investors.

And it will be keen to support companies with 50 or more workers in their transformation journey with the new resolution on cultural and demographic diversity through a transitional period, which can be used to carry out development operations.

• A road map for companies operating in the country in order to upgrade their classification and increase the "predictability" of investors.

Dr. Abdul Rahman Al Awar:

• “The general policy for developing the labor market is inspired by the fifty principles that define the goal of building the best and most active economy in the world.”

Decision Pack

The legislative system related to the labor market and Emiratisation in the UAE has witnessed the adoption of a package of decisions in the interest of business development, support for the Emiratisation of national cadres and the protection of workers and employees, through the new federal law on unemployment insurance, and the decision to raise the current Emiratisation rates by 2% annually for skilled jobs in private sector establishments with 50 or more employees, and to achieve 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 advantages, including reducing the fees of the Ministry of Human Resources and Emiratisation by up to 80% for private sector companies that achieve qualitative achievements in hiring and training citizens in partnership with the “Nafis” program. Unemployment through insurance packages, which provides a unique model provided by the UAE for umbrellas of protection through products through insurance companies, aimed at ensuring the availability of income for the worker during his downtime until alternative job opportunities are available.

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