If you are establishing a company in the region and want to obtain your MOHRE labour card, you should be familiar with the Ministry of Human Resources and Emiratization. This ministry oversees labor laws and safeguards businesses and workers nationwide. In doing so, it achieves equilibrium and allows positive interactions among the participants, strengthening the economy and more.
In this article, we will be talking about the MOHRE and the most recent UAE labour category list. Let us observe:
1. Do you know what is MOHRE?
The MOHRE, or Ministry of Human Resources and Emiratization, is the authority that governs everything pertaining to work. Additionally, it steps in when contractors or workers do not follow the rules established in their limited or unlimited contracts. The MOL also suggests and enacts labor rules and regulations in the UAE.
In resolving disputes between employees and employers, it serves as the court of first instance in a similar manner. Through dialogue and compromise, it advances a practical resolution for the participants in this instance. One of the crucial things that all international workers who reside in the nation should be aware of is this.
2. Learn about the MOHRE labour card
The MOHRE labour card is an essential document for workers in the. The UAE labor card acts as a form of identity and has to be held at all times. It is issued by recognized institutions such the Ministry of Human Resources and Emiratization (MOHRE) or the applicable free zone.
The labour card is an essential identity document that serves as a fundamental point of reference for both the worker and their employer, ensuring the smooth operation of the labor market. There is a lot to know about it, such as:
- The worker’s name.
- Expiration date.
- Personal identification number.
- Work permit number.
- MOHRE labour card number.
The UAE officials no longer print physical labor cards, therefore be aware of this and make a duplicate of your labor card after downloading it.
No of their nationality or the nature of their employment, all employees in the United Arab Emirates must have a UAE labor card. This refers to all employees in the nation, domestic and foreign, working in both the public and private sectors.
Workers as well as employers must fulfill the requirements below in order to qualify for a UAE labor card.
- The minimum age requirement is 18 and the maximum age limit is 60.
- They must have the academic credentials necessary for the position.
- They need to pass a medical test and get a certificate from their place of origin.
- Employers must maintain accurate records and discard any outdated labor cards.
- The employee’s pay must be commensurate with their field.
- Employers are responsible for ensuring that their organizations follow the rules established by the Ministry.
3. Know the new labour card category in UAE
A new classification system for enterprises in the UAE has been revealed by the Ministry of Human Resources and Emiratization (MOHRE), which will now be divided into three levels. Since June 1, 2022, this new company category UAE classification system has been in place.
This rating is according to how much companies abide by the new UAE labor regulations, including the protection of workers’ rights, the pay protection system, and the promotion of cultural and social diversity.
In addition, the system will impose new work permit fees depending on the worker’s level of expertise, whether they are employed domestically or abroad, and the type of business. Companies must thoroughly comprehend the changes because the fees list has undergone major changes.
Here is the new system of classification:
3.1 Tier 1
Companies that fully commit to the UAE’s policy supporting diversity as well as the labor law, wage protection system, labor market regulation resolutions, and workers’ rights protection fall under this category.
To qualify for Tier 1, businesses must additionally meet at least one of these requirements:
- Increase the Emiratization rate by at least three times compared to the goal.
- Collaborate with the “Nafis” initiative to yearly train no less than 500 citizens.
- Identified as an education and job placement facility that promotes the Workforce Planning Policy’s implementation by fostering cultural diversity in the United Arab Emirates.
- Being engaged in the targeted activities and sectors that the Council of Ministers has decided based on the ministry’s choice.
- Being a young citizen-owned business that adheres to accepted standards.
2.1 Tier 2
Similar to tier 1, the level of a company’s commitment to the labor legislation, wage protection system, labor market regulations, workers’ rights protection, and UAE diversity policy determines where it falls within this category.
This tier is further split into more specific classification tiers A, B, C, or D. When awarding work permits, this will be determined based on the ratio of competent employees and the degree of that company’s commitment to intercultural diversity.
The company will be in tier 3 if it does not meet this requirement.
- Category 2A: If a company employs 40% or more skilled people overall and at least 50% of its workforce is of other nationalities (multicultural), it will fall as Category 2A.
- Set 2B: If a company employs between 10% and 40% skilled people overall and has a minimum of 50% national diversity (multicultural), it will be Category 2B.
- Category 2C: A company will be categorized as Category 2C if it employs between 5% and 10% skilled workers overall and at least 50% of its employees are of other nationalities (multicultural).
- Category 2D: A company will be categorized as Category 2D if it employs less than 5% skilled people overall or has a nationality (multicultural) ratio of less than 50%.
2.3 Tier 3
Tier 3 companies are those that:
- Are breaching the UAE Labour Law, executive orders, labor market regulations, and requirements for safeguarding labor rights.
- Have a lack of dedication to promoting demographic and cultural diversity in the UAE labor market.
- Other offenses outlined in Ministerial Resolution No. 209 of 2022, including hiring or recruiting workers without proper documentation, giving the Ministry inaccurate data, documents, or information, failing to adhere to regulations governing workers’ wages, housing, and safety, engaging in false Emiratization practices, or committing other serious offenses.
Companies in this class will probably face fines and other sanctions for their infractions. After serving the necessary time in this category, correcting the violations, and paying the relevant fines, a corporation may, nonetheless, ascend from this tier into tier 2 or tier 3.
4. See the labour card fees
According to the scheme, new MOHRE labor card payments will be depending primarily on the worker’s skill level, whether they work domestically or abroad, and the type of business. Companies must thoroughly comprehend the changes because the fees list has undergone a major changes.
The fee for granting a work permit to an outsider is Dh 200 for each of the three tiers. Also, the fee for authorizing a work permit for the first category companies is Dh 300 for two years, regardless of the worker’s skill level.
The second-tier companies must pay the following fees to MOHRE services:
- 2A category: DH 1,200 and Dh 500 respectively for semi-skilled workers.
- 2B category: For skilled workers, the rate is DH 1000, while for semi-skilled workers, it is Dh 2,200.
- 2C category: DH 1,500 and Dh 2,700, respectively, for skilled and semi-skilled labor.
- 2D category: 2000 DH for expert laborers and 3,200 DH for semi-skilled laborers.
Regardless of the worker’s skill level, a work permit costs Dh 5,000 for foreign nationals for businesses in the tier 3 company category UAE.
5. Go through administrative processes with KPMPRO Services
KPMPRO Services has a professional staff that can provide in-depth guidance and support in relation to the new classification scheme for businesses in the UAE. We can help with any adjustments that need to be made to residency visas or MOHRE labour cards for the category you are classed in, as well as make sure your company adheres to the new system.
Please get in contact with us if you require assistance adhering to the UAE’s new enterprise classification system or with any other applicable company set up, restructure, local partner, or PRO support issues. You can give us a call at +971 43 316 688. Also, you can email me at email@example.com.