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In the United Arab Emirates, businesses are classified into three categories based on their adherence to labour market regulations. The Ministry of Human Resources and Emiratisation (MoHRE) has established a system that rewards compliant companies with reduced fees for various services. This article explores how UAE firms can climb the ranks and secure a coveted spot on MoHRE’s ‘A-list’.

Starting Point: Category 2

When a new business sets up shop in the UAE, it automatically begins in category 2. This initial placement comes with a condition: the company must comply with workforce planning policies that promote cultural and demographic diversity when obtaining work permits. From this starting point, a company’s future classification depends on its performance and adherence to relevant laws.

The Path to Category 1: Six Routes to Success

To advance to the first category, also known as the ‘A-list’, a company must meet at least one of the following six standards:

1. Exceed Emiratisation Targets: Increase the Emiratisation rate by at least three times the set target.
2. Collaborate with “Nafis”: Partner with the “Nafis” programme to train no fewer than 500 Emirati citizens annually.
3. Emirati-Owned SMEs: Qualify as a small or medium enterprise owned by young Emiratis.
4. Workforce Development: Function as a training and employment centre that supports workforce planning policies.
5. Strategic Sectors: Operate within one of the targeted economic sectors identified by the UAE government.
6. Specialised Economic Zones: Be part of the establishments under the Higher Corporation for Specialised Economic Zones.

The Risk of Downgrade

While the path to category 1 is clear, companies must remain vigilant. Failure to comply with workforce planning policies or violations of the labour relations law, its executive regulations, or ministerial decisions can result in a downgrade to category 3.

The Wage Protection System: A Key Component

The MoHRE has also highlighted the success of the Wage Protection System (WPS), implemented in collaboration with the UAE Central Bank since 2009. This system covers 99% of workers and employees in private sector establishments registered with the ministry across the UAE. The WPS aims to provide a safe, efficient, and reliable mechanism to ensure employees receive their wages on time from their employers.

Conclusion

For UAE companies, achieving ‘A-list’ status with MoHRE offers significant benefits, including reduced fees for ministry services. By focusing on Emiratisation, workforce development, and adherence to labour laws, businesses can not only improve their standing but also contribute to the UAE’s broader economic and social goals.

As the UAE continues to evolve its labour market regulations, companies that prioritise compliance and workforce development will find themselves well-positioned for success in this dynamic business environment.