UAE: New classification system for private sector companies

A new classification system for companies in the private sector will take effect on Wednesday, announced the Ministry of Human Resources and Emiratisation (MOHRE).

The new system, which classifies companies into three categories, depends on the extent of companies’ compliance with the law and Wage Protection System, workers’ rights protection and their compliance with the policy of promoting cultural and demographic diversity.

Dr Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, told a media briefing last week that the ministry will continually support UAE’s efforts in achieving global leadership in business while supporting key national objectives, with a primary focus on promoting Emiratisation programmes and empowering UAE talents.

Companies in the first category need to meet at least one criterion in the new system. The criteria include raising the company’s Emiratisation rate at least three times above the target, cooperation with ‘Nafis’ programme (federal programme to increase the competitiveness of Emirati human resources and empower them to occupy jobs in the private sector) to train at least 500 Emiratis annually or being a venture owned by a young citizen according to approved standards in this regard. Other criteria are being one of the training and employment centres that support implementing the workforce planning policy by promoting cultural diversity in the UAE or being active in the targeted sectors and activities determined by the cabinet.

Companies that do not meet any of these criteria, while committing to the law and the policy of promoting cultural and demographic diversity in the UAE, will be automatically classified in the second category.

Companies that show a lack of commitment to protecting workers’ rights or not promoting cultural and demographic diversity in the UAE labour market will be in category three.