The Ministry of Human Resources and Emiratisation stated that new establishments are included in the second category, and their classification is transferred from one category to another according to the establishment classification system approved by the Ministry, which consists of 3 categories, based on their achievement of the standards and controls of the category to which they will be transferred automatically.
The ministry stated that the facility’s classification will be raised to the first category if it adheres to the laws and decisions regulating the labor market in the UAE, in addition to achieving one of the six criteria: raising the Emiratisation rate by no less than three times the target, cooperating with the “Nafis” program to train no less than 500 citizens annually, the facility being one of the small and medium-sized projects of young citizens, the facility being among the training and employment centers that support the implementation of the workforce planning policy by enhancing cultural diversity in the country, the facility being among the targeted economic sectors and activities, and the facility being among the facilities affiliated with the Higher Corporation for Specialized Economic Zones.
She pointed out that with regard to the classification of the second category, new establishments are classified in it provided that they adhere to the procedures of the Decree-Law and its executive regulations, decisions on work permits and contracts, and the wage protection system, in addition to adhering to the workforce planning policy by enhancing cultural and demographic diversity in the country’s labor market.
As for the third category classification, the Ministry explained that the establishment is classified as such when it does not adhere to the workforce planning policy or is proven to have violated the provisions of the Labor Relations Regulation Law, its executive regulations, and the Ministry’s implementing decisions.
The Ministry of Human Resources and Emiratisation began implementing Cabinet Resolution No. 18 of 2022 in early June 2022 regarding the classification of private sector establishments in the country into three categories: first, second, and third, according to their compliance with the legislation and decisions regulating the work environment, their protection of workers’ rights, and their commitment to the wage protection system, while ensuring the policy of enhancing cultural and demographic diversity in the country. This is accompanied by the application of a reduction in fees for a group of the Ministry’s services, in the event that establishments adhere to these standards.
The establishment is classified in the first category if it adheres to all procedures related to Law No. 33 of 2021, regarding the regulation of labor relations and its executive regulations, and all decisions issued by the Ministry of Human Resources and Emiratisation regarding work permits and contracts for citizens and non-citizens and the wage protection system, at a rate of 100%, and according to its commitment to one of the six aforementioned criteria.
The facility is classified in the second category after its commitment to all procedures related to Federal Law No. 33 of 2021 and its executive regulations and all decisions issued by the Ministry of Human Resources and Emiratisation regarding work permits and contracts for citizens and non-citizens and the wage protection system, in addition to commitment to the workforce planning policy by enhancing cultural and demographic diversity in the labor market in the approved country.
All new establishments, regardless of their size, will be classified in the second category, provided that they adhere to the workforce planning policy by promoting cultural and demographic diversity in the labor market in the accredited country when issuing the work permit.
As for the third category, according to the classification issued by the Cabinet, it is represented by all establishments that do not adhere to the workforce planning policy by enhancing the cultural and demographic diversity of the nationalities working for them or the decisions regulating the labor market, or their violation of labor rights standards, as well as establishments that the Ministry has proven to have violated the provisions contained in Federal Law No. 33 of 2021 and its executive regulations, or committed other violations stipulated in Ministerial Resolution No. 209 of 2022.
This classification aims to enhance the sustainability of growth for private sector companies, protect the rights of investors and workers, and consolidate the leadership of the business environment in the country.
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