:Description
Early in June 2022, the Ministry of Human
Resources and Emiratisation started implementing Cabinet Resolution No. 18 of
2022 regarding private sector's establishment classification in the country
into 3 categories First, second, and third. Classification occur according to
the establishment compliance to legislation
and decisions regulating the market,
its protection of jobs, commitment to wage protection system and its keenness
to cultural and demographic diversity policy in the country. Facilities that
commit to these standards will benefit from fees reduction in a
group of ministry's services.
An establishment will be classified in
first category as long as it complies with all terms of Federal Decree Law No.
33 of 2021 regarding the organization of labor relations and its executive
regulations, all decisions issued by MOHRE regarding work permits and contracts
for nationals and expatriates, and wag
protection system at a rate of 100%.
Plus, achieving one of the following six criteria
These
six criteria are increasing the annual Emiratisation rate in the establishment.
Or cooperating with the Emirati Talent Competitiveness program (Nafis) in
hiring and training Emiratis of at least 500 citizens each year. Or an
establishment that is classified under Small and medium-sized enterprise (SME)
at the local or federal level or projects of an innovative nature, training and
employment centres. Or an establishment that is one of the targeted economic
activities and sectors determined by the Council of Ministers based on the
proposal of the MOHRE. Or an establishment that is one of ZONE CORP
establishments.
An establishment will be classified in second
category as long as it complies with all terms of Federal Decree Law No. 33 of
2021 regarding the organization of labor relations and its executive
regulations, all decisions issued by the Ministry of Human Resources and
Emiratisation regarding work permits and contracts for nationals and
expatriates and wage protection system. In addition to compliance to the policy
of work force planning by promoting cultural and demographic diversity in the market.
All new establishments, regardless of their size, shall be classified under
category (2) as long as it complies to the policy of work force planning by
promoting cultural and demographic diversity in the market
As for the third category, according to
the classification issued by the Council of Ministers it is represented in all
establishments that are not committed to the policy of manpower planning by
promoting 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 the establishments that the Ministry has proven to
be in violation of the provisions set forth In Federal Law No. 33 of 2021 and
its executive regulations, or if it committed other breaches of what is stipulated
in Ministerial Resolution No. 209 of 2022.
This classification aims to enhance
sustainable growth of private sector companies, protect the rights of investors
and their employees and consolidate the leadership of the business environment
in the country. Especially that the new system for classifying establishments
and companies develops the principles of entrepreneurship, attracts investment,
establishes transparency, and supports the competitiveness and attractiveness
of the labor market for global competencies and talents.
:Goal
This Consultation aims to monitor the opinions and observations of
customers about the updated establishment classification system in the United
Arab Emirates
:Expected Decisions of implementation
Developing the updated establishments classification system in the
United Arab Emirates and enhancing its implementation according to the opinions
of dealers in the labor market and raising awareness of standards and
requirements in order to commit to implementing them and benefiting from the
advantages of classification and raising the competitiveness of the labor
market
:Make Decisions
A plan to improve and develop the updated classification of
establishments in the labor market and support establishments to benefit from
the benefits and enhance compliance with the labor law.