Company Classification System Changes, Service Fees and Bank Guarantee Payment Changes Announced
August 30, 2017
Country / Territory
Related offices
The Ministry of Human Resources and Emiratisation (MOHRE) has announced changes to the company classification system, service fees and bank guarantee payments for companies in the mainland. The following are the most notable amendments that are expected to go into effect on November 30, 2017:
Company Classification System
The MOHRE classification system imposes groups for the purpose of evaluating a company’s compliance with specific UAE standards and regulations, including adhering to cultural diversity, contributing to Emiratisation initiatives and payment of wages. Companies in the mainland are currently grouped into three categories, 1, 2 and 3, with the second group being divided into sub-categories A, B and C.
The new system will introduce another sub-category, D, however it is not yet clear if, and under what conditions existing companies will be reclassified to this level.
Service Fees
MOHRE will offer lower government fees for skilled workers’ applications and higher fees for employees with limited skills. For most services, the MOHRE will apply fees according to the company category (the higher the category, the lower the fee).
Bank Guarantee
The new law will waive bank guarantees for employers recruiting skilled workers in the second and third categories. Employers recruiting candidates with limited skills will still be subject to a bank guarantee of AED 3,000, unless their company category is 1. Currently, the guarantee is only waived for companies in category 1.
What This Means for Employers and Foreign Nationals
As a result of the changes, employers will see lower government fees and a bank guarantee exemption for skilled workers.
Employers should contact their immigration professional for more information about the new company subcategory, when it becomes available.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
Country / Territory
Related offices
Explore more at Fragomen
Article
Knowledge Management Director Ana Sofia Walsh and Senior Client Engagement Manager Soraya Driessen examine the European Commission’s EU Inc. proposal and its potential to reshape corporate structures across the EU, highlighting the resulting complexities and unresolved questions for immigration, work authorization and cross-border workforce mobility.
Media mentions
Partner Ali Haider discussed how flexible residency pathways, strong infrastructure and access to healthcare are continuing to drive interest among retirees looking to relocate to the UAE.
Fragomen on immigration
Partner K. Edward Raleigh analyzes how post‑midterm US business immigration will shift toward heightened enforcement, worker‑protection scrutiny and cross‑agency oversight, urging employers to align hiring practices, sponsorship decisions and documentation with consistent, defensible workforce strategies.
Media mentions
Awards
Fragomen is named “Law Firm of the Year” for Immigration Law by Best Law Firms™ - Australia and receives National and Regional Tier 1 rankings in Immigration Law.
Media mentions
Partner Parisa Karaahmet discusses the broad application of a USCIS memo to adjustment of status applicants and notes that H- and L-visa holders may have a somewhat easier burden in demonstrating factors that support favorable discretion.
Article
Senior Manager Alice Spaull and Associate Stephanie Fitton examine the evolving UK immigration and Electronic Travel Authorisation (ETA) requirements for athletes, their support teams and associated guests attending the Commonwealth Games 2026, highlighting key compliance risks and the importance of early travel planning.
Media mentions
Media mentions
Partner K. Edward Raleigh discusses a recent USCIS memo that appears to signal greater caution in how adjudicators assess adjustment of status cases rather than establishing a new legal standard.
Fragomen news
Video
Senior Manager Sumejja Handzo outlines Germany’s health insurance requirements for visas and residence permits, including coverage options, documentation considerations and key compliance requirements for foreign nationals relocating to Germany.
Media mentions
Partner Daniel Schwarz highlights how US visa appointment backlogs and limited availability for B visas are shaping international travel planning for the upcoming World Cup.
Article
Knowledge Management Director Ana Sofia Walsh and Senior Client Engagement Manager Soraya Driessen examine the European Commission’s EU Inc. proposal and its potential to reshape corporate structures across the EU, highlighting the resulting complexities and unresolved questions for immigration, work authorization and cross-border workforce mobility.
Media mentions
Partner Ali Haider discussed how flexible residency pathways, strong infrastructure and access to healthcare are continuing to drive interest among retirees looking to relocate to the UAE.
Fragomen on immigration
Partner K. Edward Raleigh analyzes how post‑midterm US business immigration will shift toward heightened enforcement, worker‑protection scrutiny and cross‑agency oversight, urging employers to align hiring practices, sponsorship decisions and documentation with consistent, defensible workforce strategies.
Media mentions
Awards
Fragomen is named “Law Firm of the Year” for Immigration Law by Best Law Firms™ - Australia and receives National and Regional Tier 1 rankings in Immigration Law.
Media mentions
Partner Parisa Karaahmet discusses the broad application of a USCIS memo to adjustment of status applicants and notes that H- and L-visa holders may have a somewhat easier burden in demonstrating factors that support favorable discretion.
Article
Senior Manager Alice Spaull and Associate Stephanie Fitton examine the evolving UK immigration and Electronic Travel Authorisation (ETA) requirements for athletes, their support teams and associated guests attending the Commonwealth Games 2026, highlighting key compliance risks and the importance of early travel planning.
Media mentions
Media mentions
Partner K. Edward Raleigh discusses a recent USCIS memo that appears to signal greater caution in how adjudicators assess adjustment of status cases rather than establishing a new legal standard.
Fragomen news
Video
Senior Manager Sumejja Handzo outlines Germany’s health insurance requirements for visas and residence permits, including coverage options, documentation considerations and key compliance requirements for foreign nationals relocating to Germany.
Media mentions
Partner Daniel Schwarz highlights how US visa appointment backlogs and limited availability for B visas are shaping international travel planning for the upcoming World Cup.
