Abu Dhabi: Private sector firms in the United Arab Emirates (UAE) will get discounts on government fees for issuing work permits for expatriates, as part of incentives for meeting or exceeding targets such as Emiratisation and other criteria, the Emirates News Agency (WAM) reported.
This move comes as the Minister of Human Resources and Emiratisation Dr Abdul Rahman Al Awar announced a new categorisation system for private sector firms on Tuesday.
The system will come into effect on June 1 — aims to protect workers’ rights, empower business owners and promote a spirit of innovation in the private sector.
Dr. Al Awar stated that the classification of new firms “depends on the extent of their commitment to the law and wage protection system, workers’ rights protection, and their compliance with the policy of promoting cultural and demographic diversity, along with the resolutions that regulate the labour market”.
Private firms with the first rating will get huge discounts on fees, while those with the third rating will need to pay all fees in full.
Category 1
Private sector firms are required to increase their Emiratisation rates by 2 per cent annually, according to a recent UAE Cabinet decision. Firms that exceed this requirement will get a first rating which helps them get maximum discounts.
Such private firms will pay only 250 Dirham instead of an original fee of up to 3,450 Dirham.
Firms will earn this rating if they follow all the rules of the business and adhere to the wage protection system, in addition to meeting one of the other criteria, including—
- Increasing the annual Emiratisation rate by at least three times more than the set target of 2 per cent.
- Teaming up with Emirati Talent Competitiveness Programme ‘Nafis’ to hire and train at least 500 citizens every year.
- Being a venture owned by a young citizen according to approved standards.
- Being active in the targeted sectors and activities determined by the Council of Ministers based on the recommendation submitted by the MoHRE.
Category 2
Private establishments that follow all UAE labour laws and regulations, but do not fulfil the other standards will get this rating.
They will also receive discounts and pay 1,200 Dirham in fees.
Category 3
Businesses that break rules or do not adhere to the labour law will get this rating. Such companies would need to pay all fees in full.
Emiratisation targets
Emiratisation rates to 2 per cent annually. The aim is to raise this rate to 10 percent by 2026.
The step aims at creating more than 12,000 job opportunities annually for UAE citizens.
Non-compliant firms will have to pay an amount of 6,000 Dirham per month from January 2023 for every citizen who has not been employed.
