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In effectCabinet Resolution

UAE Labour / Employment LawCabinet Resolution No. (18) of 2022 Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations

UAE Cabinet Resolution·Cabinet Resolution No. (18) of 2022

قرار مجلس الوزراء بشأن تصنيف منشآت القطاع الخاص الخاضعة لأحكام قانون تنظيم علاقات العمل

Authoritative Arabic version per the official UAE Legislation portal

Issued Date
March 14, 2022
Effective from
June 1, 2022
Articles
11
Last synced
Oct 19, 2026

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Plain-language summary

Establishes classification criteria for private sector establishments under UAE labour relations law, defining which entities fall within regulatory scope and l…

Synced from the official UAE Legislation portal · Plain-language summary by LEXAI

Article-level text

Key Articles

11 articles

  1. 1

    Article 1

    Article (1) Classification Categories of Establishments The establishments subject to the provisions of Federal Decree-Law No. (33) of 2021, referred to, shall be classified into three categories: 1. First category. 2. Second category. 3. Third category.

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    Cabinet Resolution of 2022 Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations 2

  2. 2

    Article 2

    Article (2) First Category Establishments shall be classified within the first category, provided that they comply with all procedures related to the aforementioned Federal Decree-Law No. (33) of 2021, executive regulations thereof and all resolutions issued by the Ministry of Human Resources and Emiratisation regarding Work permits and contracts for citizens and the wage protection system, at a rate of 100%, in addition to meeting one of the following criteria: 1. Raise its Emiratisation rates annually in accordance with the resolutions of the Council of Ministers at a rate not less than 3 times the target. 2. Cooperating with the Emirati Talent Competitiveness Council (Nafis) in terms of hiring and training Emirati citizens, with a number of no less than 500 citizens per year. 3. To categorize the projects of young citizens, small and medium, at the local or federal level, or of an innovative nature. 4. To be among the training and employment centres that support the implementation of the workforce planning policy by promoting cultural and demographic diversity in the labour market in the country. 5. To be within the targeted economic sectors and activities as determined by the Council of Ministers based on the proposal of the Minister of Human Resources and Emiratisation. 6. To be among the establishments affiliated with the Higher Corp for Specialized Economic Zones (Zone Corp).

  3. 3

    Article 3

    Article (3) Second Category Establishments shall be classified in the second category, provided that they comply with all procedures related to the aforementioned Federal Decree-Law No. (33) of 2021, executive regulations thereof, and all resolutions issued by the Ministry of Human Resources and Emiratisation regarding work permits and contracts for citizens and non-citizens and the wage protection system, in addition to the commitment to the workforce planning policy by promoting cultural and demographic diversity in the labour market in the approved country.

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    Cabinet Resolution of 2022 Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations 3

  4. 4

    Article 4

    Article (4) Third category Establishments shall be classified within the third category, according to the following criteria: 1. All establishments that are not committed to the policy of manpower planning by promoting cultural and demographic diversity in the labour market in the approved country. 2. Establishments that the Ministry has proven to have violated the provisions contained in the aforementioned Federal Decree-Law No. (33) of 2021 or executive regulations thereof or ministerial resolutions issued in implementation of them and in the manner issued by a resolution of the Minister of Human Resources and Emiratisation.

  5. 5

    Article 5

    Article (5) Transitional Period As an exception to the provisions of Article (3) regarding commitment to the policy of manpower planning by promoting cultural and demographic diversity in the labour market in the approved country, establishments that have 50 or more workers shall be classified in the transitional period, and the Ministry, in coordination with the Ministry of Finance, determines the time frame for the end of the period transitional.

  6. 6

    Article 6

    Article (6) Transferring Facilities from One Category to Another The Ministry of Human Resources and Emiratisation may transfer the facility from one category to another based on its fulfilment of the criteria and controls of the category to which it will be transferred and stipulated in this resolution.

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    Cabinet Resolution of 2022 Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations 4

  7. 7

    Article 7

    Article (7) Classification of New Establishments New establishments, regardless of the size of the establishment, shall be classified within the second category provided that they adhere to the policy of manpower planning by promoting cultural and demographic diversity in the labour market in the approved country when issuing work permits. The third category shall be classified if any of the criteria set out in Article (4) of this Resolution are met.

  8. 8

    Article 8

    Article (8) Protection of Labour Rights 1. The establishments subject to Federal Decree-Law No. (33) of 2021, referred to, shall be obligated to pay a bank guarantee of (3000) Dirhams for each worker or insurance for each worker, in accordance with the mechanisms approved by the Ministry of Human Resources and Emiratisation. 2. As an exception to Clause (1) of this Article, establishments that are classified by the Ministry of Human Resources and Emiratisation as high-risk shall be obligated to ensure each worker in accordance with the mechanisms approved by the Ministry.

  9. 9

    Article 9

    Article (9) Executive Resolutions The Minister of Human Resources and Emiratisation shall issue the necessary resolutions to implement this Resolution.

  10. 10

    Article 10

    Article (10) Repeals Cabinet Resolution No. (26) of 2010 Concerning the Classification System for Establishments Subject to the Law on Regulating Labour Relations and Bank Guarantees Established thereon, and amendments thereof, shall be repealed, and any provision that contradicts or contravenes with the provisions of this resolution shall also be repealed.

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    Cabinet Resolution of 2022 Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations 5

  11. 11

    Article 11

    Article (11) Publication and Enforcement This Resolution shall be published in the Official Gazette and shall come into force as of June 01, 2022. Mohammed bin Rashid Al Maktoum Prime Minister Issued by Us: On: 11 Shaban 1443 A.H. Corresponding to: 14 March 2022 AD

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Note: The Arabic text of this legislation is the authoritative version as per the official UAE Legislation portal.

Articles in this law(11)
  1. 1Article (1) Classification Categories of Establishments The establishments subje
  2. 2Article (2) First Category Establishments shall be classified within the first c
  3. 3Article (3) Second Category Establishments shall be classified in the second cat
  4. 4Article (4) Third category Establishments shall be classified within the third c
  5. 5Article (5) Transitional Period As an exception to the provisions of Article (3)
  6. 6Article (6) Transferring Facilities from One Category to Another The Ministry of
  7. 7Article (7) Classification of New Establishments New establishments, regardless
  8. 8Article (8) Protection of Labour Rights 1. The establishments subject to Federal
  9. 9Article (9) Executive Resolutions The Minister of Human Resources and Emiratisat
  10. 10Article (10) Repeals Cabinet Resolution No. (26) of 2010 Concerning the Classifi
  11. 11Article (11) Publication and Enforcement This Resolution shall be published in t
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