Abu Dhabi: Companies in the UAE are classified into three categories based on their compliance with the country’s labour market regulations.
According to the Ministry of Human Resources and Emiratisation (MoHRE), establishments that adhere to these standards benefit from reduced fees for various ministry services.
Any new business setting up in the UAE will automatically be placed in category 2, provided it complies with workforce planning policies that promote cultural and demographic diversity when obtaining a work permit. Its subsequent classification will depend on its performance and adherence to relevant laws.
To advance to the first category, a company must meet one of following six specific standards.
*Increase the Emiratisation rate by at least three times the target
*Collaborate with the “Nafis” programme to train no fewer than 500 citizens annually
*A small or medium enterprise owned by young Emiratis
*Function as a training and employment centre that supports workforce planning policies
*Operate within one of the targeted economic sectors, or being part of the establishments under the Higher Corporation for Specialised Economic Zones.
However, a company will be downgraded to the third category if it fails to comply with workforce planning policies or is found in violation of the labour relations law, its executive regulations, or ministerial decisions.
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Wage Protection System
The MoHRE also announced that 99 per cent of workers and employees in private sector establishments registered with the ministry across the UAE are covered by the Wage Protection System (WPS).
The ministry has been implementing the WPS in collaboration with the UAE Central Bank since 2009. The system aims to provide a safe, efficient, and reliable mechanism to ensure that employees receive their wages on time from their employers.
