New classification system kicks in for private sector companies
The classification system for private sector firms has come into effect from Wednesday.
The Ministry of Human Resources and Emiratisation (Mohre) launched the system, which classifies companies into three categories based on their compliance with Emiratisation targets, Wage Protection System and protection of workers’ rights.
Companies will accordingly pay service fees for work permits and transfer fees based on their classification.
For Tier 1 companies, fees will not exceed Dh250 for two years, while Tier 2 companies will be charged Dh1,200 for two years. Tier 3 companies will pay fees of Dh3,450 for two years for issuing or renewing work permits. Fees for UAE and GCC citizens are exempt from these categorisations.
Dr Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, had told a media briefing last week that the focus is on Emiratisation and empowering UAE talent.
He said the system meets business owners’ demands while protecting workers’ rights and encouraging innovation in the SME sector.
Companies in the first category need to meet at least one criterion in the new system. These include raising the company’s Emiratisation rate at least three times above the target, cooperation with ‘Nafis’ programme (Federal programme to increase the competitiveness of Emiratis and empower them to occupy jobs in the private sector) to train at least 500 Emiratis annually or being a venture owned by a young citizen. Other criteria include being one of the training and employment centres that support implement workforce planning policy by promoting cultural diversity in the UAE or being active in the targeted sectors and activities determined by the cabinet.
10% target
According to the ministry, the Emiratisation rate is two per cent annually in high-skilled roles at establishments that employ 50 workers or more, until they achieve the 10 per cent target by 2026.
Companies which fail to meet these targets, but which commit to promoting cultural and demographic diversity in the UAE, will be automatically classified in the second category.
Companies that show a distinct lack of commitment to protecting workers’ rights, or promoting cultural and demographic diversity will be slotted in the third category.
Saeed Al Khoury, Mojhre’s under-secretary for human resources, said that the new system will boost growth in private sector companies, protect the rights of investors and workers, and consolidate the business environment in the UAE.
Companies may also be classified in Tier 3 if they commit other violations such as human trafficking, recruit workers without obtaining work permits; provide incorrect data, documents or information to the ministry; violates obligations on workers’ wages, housing and safety standards; resorts to fake Emiratisation practices; or commits other serious violations.