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New classification of companies in UAE

MEDIA / Articles / New classification of companies in UAE
UAE Ministry of Human Resources and Emiratisation (MOHRE) announced a new classification for private companies starting 1st June 2022. This classification has been introduced and issued by the Cabinet Decision No.18/2022 with an aim to respond to the business owners’ demands, protect employee rights, encourage innovation, and promote the SME sector.

Under this new classification, companies shall be split into three categories to ensure that the companies adhere to the protection of workers’ rights, business owners are empowered and diversity is promoted. Companies shall be required to pay the relevant service fee corresponding to the category they shall be classified under.

Categorization of companies shall be made by an interactive automated system which shall change a company’s classification in a transparent manner. So from June 1st onwards, employer will be able to use their profiles under the MOHRE portal and determine their new category level or they can seek options on how to obtain their choice of category.

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