COMPANIES THAT HIRE MORE EMIRATI STAFF WILL EARN WORK PERMIT FEE DISCOUNT

▶ Incentive initiative means businesses that exceed recruitment quotas will pay Dh250 for some permits that often cost more than Dh3,700

The UAE is to cut some worker permit fees for private sector companies that voluntarily exceed Emiratisation targets.

This means that companies that go above and beyond what is legally required will pay only Dh250 ($68) for certain permits rather than Dh3,750.

The move comes as part of a classification system for private sector companies that is being introduced by the Ministry of Human Resources and Emiratisation.

Coming into effect on June 1, the system aims to protect workers’ rights, empower business owners and promote a spirit of innovation in the private sector.

Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, announced the programme yesterday.

He said it would assess the extent to which companies followed UAE laws on enacting labour and wage payment rules, protecting workers’ rights and promoting diversity.

Companies that fulfil all criteria will fall into a second category while those that fail to comply with UAE law will fall into a third.

Those that exceed the targets will be placed into the first category and will receive a significant discount on the fees for selected permits.

Some companies can progress to the first tier if they meet one of the following voluntary requirements: raise their Emiratisation rate three times above the 2 per cent target; comply with the federal Nafis project to train 500 Emiratis annually; be a venture owned by a young Emirati; or promote workplace diversity.

“Private companies [above 50 employees] hiring a maximum of 20 per cent employees from a specific nationality will meet the standard of cultural diversity,” Mr Al Awar said.

“This will not only help companies get discounts on ministry service fees but provides them with more flexibility to attract talent.”

The discounts apply to several services, including two-year work permits, one-mission work permits and renewals of work permits and contracts.

Each of these can cost up to Dh3,750, but under the new system, businesses that fulfil any or all of the requirements will pay only Dh250.

Companies in the second category will pay Dh1,200 for each permit. Those in the third group will pay Dh3,450.

The ministry said it would work with companies on the new system and provide a road map for those wishing to upgrade their classification.

“This is part of a comprehensive system that aims to boost the labour market, strengthen the partnership with the private sector while also helping the country’s economy become one of the best in the world,” Mr Al Awar said. “It will empower workers, protect their rights and provide them with guarantees, and assist companies to achieve a sustainable development.”

Measures were introduced this month with the aim of encouraging private sector employers to hire more Emiratis.

The Cabinet has decreed that by next year, in companies with 50 employees or more, at least 2 per cent of the workforce should be Emiratis. This target rises to up to 10 per cent by 2026.

Any company that fails to reach the target must pay Dh6,000 a month for each Emirati it has not hired.

“The government wants to make it clear they are serious about Emiratisation,” said Raka Roy of Galadari Advocates and Legal Consultants.

Ghannam Al Mazrouei, secretary general of the Emirati Talent Competitiveness Council, said hiring Emiratis should not encumber a business.

“The government has also subsidised a training programme for one year, so the private sector will not be burdened with these costs,” he told Dubai Eye radio.

This will not only help companies get discounts on ministry service fees but provides them with more flexibility ABDULRAHMAN AL AWAR

UAE minister