UAE private companies implement new classification system starting June 1

June 14, 2024

By Expat Media

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UAE implements new classification system for private companies

The Ministry of Human Resources and Emiratisation (MOHRE) announced a new classification system for private companies effective on Wednesday (June 1). The new system classifies companies into three categories from Tier 1 to Tier 3. The new system offers rewarding incentives to companies who commit to the UAE social laws and values, the Wage Protection System, workers’ rights protection, and cultural and demographic diversity policies. According to Saeed Al Khoury, MOHRE’s Undersecretary for Human Resources, the new system will enhance the growth sustainability of private sector companies, protects the rights of workers, and investors, and strengthen the business environment in the UAE. Companies under Tier 1 must first fulfill one criterion to be eligible in the new system such as tripling the company’s Emiratisation rate, cooperating with “Nafis” programme in training at least 500 Emiratis annually, and being a training or employment center that encourages cultural diversity in the UAE. Tier 2 companies are those that fail to meet the criteria but are still committed to the UAE law and social policies. Companies that lack of compliance with the said laws and have committed violations are automatically classified in the third category. For an updated list of services fees for work permits and transfer fees in between the classification of companies, read more here: New service fees for work permits in UAE announced by MoHRE KSO/Expat Media