Labor Supply in the United Arab Emirates


Labor Supply in the UAE

 
The United Arab Emirates is an attractive Business Hub in the gulf region, thanks to its solid infrastructure and sophisticated future plan that has been in place to guarantee stable business environment and bright future.

One of the most important Business Activities that I would like to talk about today is the “Manpower Supply”. This Business Activity serves lots of companies around the Seven Emirates helping them to cut unnecessary cost that eventually help to reduce the operational overhead cost.

 

For example, if you are a construction company and you are engaged in a huge project that requires lots of Construction Professionals and Labor, you will always have a fast option to obtain them through Manpower Supply Companies without paying attention to the other formalities that may delay your engagement in the specific project if you hire Labor yourself.

 

Same scenario applies with any other Business Sector, since all companies always have the chance of
obtaining “Ready Professionals” to join a wide range of positions through Manpower Supply
Organizations out here in the United Arab Emirates.

 

Labor Supply in UAE

 

1)  LABOR BROKERAGE OFFICE SERVICES
Activity Code: 749101
Activity Group: Labor Supply & employment agency
License Type: Professional
Activity Description: Includes recruitment offices specialized in bringing in manpower for companies, establishments and individuals and assuming necessary procedures for having their visas issued.

 

MINISTRY OF LABOR SERVICE FEES:

  • Application for issuing a brokerage agency license AED 50,000 – Bank guarantee AED 300,000.

 

TERMS AND CONDITIONS BY MINISTRY OF LABOR

 

  • In case of natural person, the applicant must be 21 and above with full capacity and be a UAE national. All company or companies’ partners who are applying for this license must be UAE national.
  •  The natural person or any partners in corporate bodies shall not be convicted of a crime of dishonesty, breach of trust, a crime of human trafficking or any of those crimes stipulated in the law regulating labor relations or its implementing decrees. Unless he/she is rehabilitated after the issuance of a judgment restricting his/her freedom or after the lapse of one year from the date of issuing a judgment imposing a fine on him/her.
  •  Throughout the license’s validity period, the applicant shall submit to the Ministry a bank guarantee which value shall not be less than three hundred thousand dirhams in case of the brokerage activities, and one million dirhams in case of temporary recruitment activities. The bank guarantee must be renewed automatically. The Ministry may allocate all or some of this guarantee, as prescribed in this article, to pay any amounts that the agency shall pay due to its failure to perform the obligations under the provisions of this law and to comply with instructions and decrees issued thereunder.
  • The applicant shall have a head office with a clear address, at which the agency will carry on its activities. Such head office shall be licensed for that purpose and shall satisfy those standards specified by the executive instructions and procedures issued under this decree. The agency may not practice its activity except through such head office.
  • The applicant shall submit a written undertaking that no change, by either addition or withdrawal, will be made to partners, except after obtaining a written consent from the Ministry.
  • The agency shall hire an adequate number of administrative employees and supervisors who have suitable experience in their field of work.
  • An agency manager must be assigned who is a UAE national and with a high school degree at least. Natural persons who apply for license are an exception, as he/she can be the agency manager, as long as there is a high school degree and registered as a manager in the Ministry of Labour and the General Pensions Authority or Abu Dhabi Pensions Fund.
  • The agency authorized signatory must fulfill the same conditions of the agency manager.
  • The applicant shall pay the legally prescribed fees once the license to practice the requested activity is initially approved.
  • The applicant shall not own or have a share in an establishment which frequently failed to pay the workers’ wages in accordance with the terms and conditions set by the Ministry, have fictitious establishments or materially breach the prescribed conditions of labor housing.

 

2)  ON DEMAND LABORS SUPPLY (TEMPORARY EMPLOYMENT)

 

Activity Code: 749103
Activity Group: Labour Supply & employment agency
License Type: Professional
Activity Description: Includes specialized firms engaged in supplying others with different professionals or domestic workers on temporary basis.

 

MINISTRY OF LABOR SERVICE FEES:

 

  • Application for issuing a brokerage agency license AED 300,000 – Bank guarantee AED 1000,000.

 

TERMS AND CONDITIONS BY MINISTRY OF LABOR

 

  • In case of natural person, the applicant must be 21 and above with full capacity and be a UAE national. All company or companies’ partners who are applying for this license must be UAE national.
  • The natural person or any partners in corporate bodies shall not be convicted of a crime of dishonesty, breach of trust, a crime of human trafficking or any of those crimes stipulated in the law regulating labor relations or its implementing decrees. Unless he/she is rehabilitated after the issuance of a judgment restricting his/her freedom or after the lapse of one year from the date of issuing a judgment imposing a fine on him/her.
  •  Throughout the license’s validity period, the applicant shall submit to the Ministry a bank guarantee which value shall not be less than three hundred thousand dirhams in case of the brokerage activities, and one million dirhams in case of temporary recruitment activities. The bank guarantee must be renewed automatically. The Ministry may allocate all or some of this guarantee, as prescribed in this article, to pay any amounts that the agency shall pay due to its failure to perform the obligations under the provisions of this law and to comply with instructions and decrees issued there under.
  •  The applicant shall have a head office with a clear address, at which the agency will carry on its activities. Such head office shall be licensed for that purpose and shall satisfy those standards specified by the executive instructions and procedures issued under this decree. The agency may not practice its activity except through such head office.
  • The applicant shall submit a written undertaking that no change, by either addition or withdrawal, will be made to partners, except after obtaining a written consent from the Ministry.
  • The agency shall hire an adequate number of administrative employees and supervisors who have suitable experience in their field of work.
  • An agency manager must be assigned who is a UAE national and with a high school degree at least. Natural persons who apply for license are an exception, as he/she can be the agency manager, as long as there is a high school degree and registered as a manager in the Ministry of Labour and the General Pensions Authority or Abu Dhabi Pensions Fund.
  • The agency authorized signatory must fulfill the same conditions of the agency manager.
  • The applicant shall pay the legally prescribed fees once the license to practice the requested activity is initially approved.
  • The applicant shall not own or have a share in an establishment which frequently failed to pay the workers’ wages in accordance with the terms and conditions set by the Ministry, have fictitious establishments or materially breach the prescribed conditions of labour housing.

 

I hope that the above gives a clear idea of this particular business, with detailed information about the required process, terms and conditions. For more information or to ask questions fillup our free consultation form now.

 

Ahmed Saeed
Managing Director

Author

Ahmed Saeed;  Managing Director

Has breadth of knowledge within the Business Structuring, Investment and Wealth Management Industries. He has been working in these sectors for over a decade.

Ahmed prides himself on his extremely high level of client service together with his reliable, informative advice and guidance to ensure his clients achieve their Business Goals.