Cabinet Resolution No. (18) of 2022 Concerning the Classification of Private Sector Establishments Subject to the Provisions of the Law Regulating Labour Relations (labour, residency and leberal professions law)

Article (1)  
Classification Categories of Establishments  
The establishments subject to the provisio ns 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.  Cabinet Resolution of 20 22 Concerning the Classificat ion of Private Sector Establishments Subject to the Provisions of 
the Law Regulating Labour Relations  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 a nd 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. Cooper ating 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 lev el, 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).

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 iss ued 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.  
 Cabinet Resolution of 20 22 Concerning the Classificat ion of Private Sector Establishments Subject to the Provisions of 
the Law Regulating Labour Relations  3

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 plan ning 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.

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 Minis try, in coordination with the Ministry of Finance, determines the time frame for the 
end of the period transitional.

Article (6)  
Transferring Facilities from One Category to Another  
The Ministry of Human Resources and Emiratisation may transfer the facili ty 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.  
 Cabinet Resolution of 20 22 Concerning the Classificat ion of Private Sector Establishments Subject to the Provisions of 
the Law Regulating Labour Relations  4

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.

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 cla ssified 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.

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

Article (10)  
Repeals  
Cabinet Resolution No. (26) of 2010 Concerning th e 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.  
 Cabinet Resolution of 20 22 Concerning the Classificat ion of Private Sector Establishments Subject to the Provisions of 
the Law Regulating Labour Relations  5

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