Legislation Details
- Full Title: Cabinet Resolution Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations
- Law Type: Cabinet Resolution
- Law Number: 18 of 2022
- Issued Date: 14 Mar 2022
- Effective Date: 01 Jun 2022
- Official Gazette: No. 724
- Sector: Labour, Residency and Professions
- Status: Active
- Number of Articles: 24
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution establishes a classification system for private sector establishments in the UAE that are subject to the provisions of Federal Decree-Law No. (33) of 2021 Regulating Labour Relations. The resolution divides establishments into three categories based on their compliance with labour laws and policies, particularly related to Emiratisation and workforce planning. The classification system aims to incentivize and reward establishments that meet certain criteria, while also penalizing those that violate labour regulations. (Cabinet Resolution Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations, 2022, Art. 1-11) The practical impact of this resolution is that it will affect the obligations, rights, and penalties applicable to private sector companies in the UAE based on their classification. Establishments in the first category will receive certain benefits and privileges, while those in the third category may face stricter enforcement and penalties for non-compliance. This classification system is an important part of the UAE's efforts to promote Emiratisation, workforce planning, and overall compliance with labour laws. (Cabinet Resolution Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations, 2022, Art. 1-11)
What is the scope and purpose of this law?
The scope of this Cabinet Resolution is to classify private sector establishments in the UAE that are subject to the provisions of Federal Decree-Law No. (33) of 2021 Regulating Labour Relations. The purpose is to establish a three-tier classification system that incentivizes and rewards establishments that comply with labour laws and policies, particularly related to Emiratisation and workforce planning. (Cabinet Resolution Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations, 2022, Art. 1)
What are the key definitions under this law?
The legislation does not provide any specific definitions. (Cabinet Resolution Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations, 2022)
What are the main obligations and requirements?
The main obligations and requirements under this Cabinet Resolution are: 1. Establishments must comply with all procedures related to Federal Decree-Law No. (33) of 2021 Regulating Labour Relations, its executive regulations, and all resolutions issued by the Ministry of Human Resources and Emiratisation regarding work permits, contracts, and the wage protection system. (Cabinet Resolution Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations, 2022, Art. 2-3) 2. Establishments in the first category must meet additional criteria such as raising Emiratisation rates, cooperating with the Emirati Talent Competitiveness Council, or being among certain targeted economic sectors or activities. (Cabinet Resolution Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations, 2022, Art. 2) 3. Establishments in the second category must commit to the workforce planning policy by promoting cultural and demographic diversity in the UAE labour market. (Cabinet Resolution Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations, 2022, Art. 3)
What licensing, registration, or approval requirements exist?
The legislation does not specify any licensing, registration, or approval requirements. (Cabinet Resolution Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations, 2022)
What rights and protections does this law provide?
The legislation does not explicitly provide any new rights or protections. However, it does state that establishments must pay a bank guarantee or insurance for each worker to protect their labour rights. (Cabinet Resolution Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations, 2022, Art. 8)
Which authorities or bodies are responsible for enforcement?
The Ministry of Human Resources and Emiratisation is responsible for the enforcement and implementation of this Cabinet Resolution. The ministry has the authority to: 1. Classify establishments into the three categories based on the criteria specified in the resolution. (Cabinet Resolution Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations, 2022, Art. 1, 6-7) 2. Issue the necessary resolutions to implement this Cabinet Resolution. (Cabinet Resolution Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations, 2022, Art. 9) 3. Transfer establishments from one category to another based on their compliance with the criteria. (Cabinet Resolution Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations, 2022, Art. 6)
What are the penalties for non-compliance?
The legislation does not specify any penalties for non-compliance. (Cabinet Resolution Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations, 2022)
What fees, charges, or financial provisions are specified?
The only financial provision specified in the legislation is that establishments subject to Federal Decree-Law No. (33) of 2021 Regulating Labour Relations must pay a bank guarantee of 3,000 dirhams for each worker or provide insurance for each worker, in accordance with the mechanisms approved by the Ministry of Human Resources and Emiratisation. (Cabinet Resolution Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations, 2022, Art. 8)
What exemptions or exceptions apply?
The legislation provides one exception, which is that establishments with 50 or more workers will be classified in the transitional period, and the Ministry of Human Resources and Emiratisation, in coordination with the Ministry of Finance, will determine the timeframe for the end of the transitional period. (Cabinet Resolution Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations, 2022, Art. 5)
How are disputes resolved under this law?
The legislation does not specify any dispute resolution mechanisms. (Cabinet Resolution Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations, 2022)
What are the key deadlines and time limits?
The only deadline specified in the legislation is that this Cabinet Resolution will come into force as of June 1, 2022. (Cabinet Resolution Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations, 2022, Art. 11)
How does this law interact with other UAE legislation?
This Cabinet Resolution is related to and references the following UAE legislation: 1. Federal Law No. (1) of 1972 Concerning the Jurisdictions of Ministries and the Powers of Ministers 2. Federal Decree-Law No. (33) of 2021 Regulating Labour Relations 3. Federal Decree-Law No. (27) of 2021 Establishing and Organizing the Emirati Cadres Competitiveness Council 4. Cabinet Resolution No. (26) of 2010 Concerning the Classification System for Establishments Subject to the Law on Regulating Labour Relations and Bank Guarantees Established therein (which is repealed by this resolution) 5. Cabinet Resolution No. (21) of 2020 Concerning the Service Fees and Fines at the Ministry of Human Resources and Emiratisation 6. Cabinet Resolution No. (52M/2C) of 2022 Concerning the Policy of Manpower Planning by Promoting Cultural and Demographic Diversity in the Labour Market in the State (Cabinet Resolution Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations, 2022, Preamble)
When did this law come into effect?
This Cabinet Resolution will come into force as of June 1, 2022. (Cabinet Resolution Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations, 2022, Art. 11)
Source Documents
This article analyses Cabinet Resolution Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.