United Arab Emirates: Updated Classification System for Private Companies

Effective June 1, 2022, the Ministry of Human Resources and Emiratization (MOHRE) will start classifying private companies into three groups in order to ensure that companies protect workers’ rights, promote diversity and empower business owners in the private sector. Among other criteria, companies that meet and exceed the government-mandated Emiratization rates, that comply with the Wage Protection System and promote diversity will benefit from incentives such as discounted MOHRE service fees. The first category will also include an expanded list of qualifying categories than under the current system. Starting June 1, 2022, employers will be able to use their MOHRE profile on the MOHRE portal or website to determine their new category level or seek options on how to reach their desired category.