: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.