New recruitment company licence rule

Ministry of Labour has refused the applications of two recruitment companies because the Emirati owners of these companies didn’t attend to present the applications.

The papers were submitted were submited by the representatives of the two companies.

Humaid bin Dimas, Assistant Undersecretary for Labor Affairs, attributed the rejection of the requests as per ministerial decree 1283 on the licensing and regulation of private employment agencies, which are to be run and owned by citizens only.

“This condition is designed to adjust the work of such agencies as the main netry gate for the workers into the labour market, and to make sure there is no kind of manipulation of their rights," he said.

The resolution obliges recruitment agencies to do all the legal obligations for the employer such as housing, salaries and health insurance, in addition to payment of Dh2,000 deposit for each worker to be brought to UAE.

The resolution obliges the Emirati owners of these agencies to provide Dh300,000 bank guarantee if the company acts as a brokerage and not less than Dh1 million in the case of full recruitment activity.

The ministry gives the owners of the agencies six months grace period to rectify their status in accordance with the new requirements that were started from the beginning of March.

The Ministry of Labour in cooperation with the Ministry of Finance organised on Thursday a meeting to discuss the draft of the zero-based budget of 2011-2013, in the presence of all concerned federal ministries and local bodies.

The meeting was organised at the premises of the ministry in Dubai.

Dr Aisha Butti Bin Bishr, Assistant Undersecretary for institutional services and support, confirmed that the meeting will contribute to strengthening the strategic partnerships that will strengthen and enhanced ties in line with the objectives of the Strategic Plan of the Ministry.

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