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Impact of the Recent Cabinet Resolution on MOHRE Labour Fees
The UAE Ministry of Cabinet Affairs & The Future recently issued a new Cabinet Resolution regulating the work permit fees based on a new classification system for companies situated in the UAE. The changes are being enforced by the Ministry of Human Resources and Emiratisation (“MOHRE”) since 4 December 2017. The recent Cabinet Resolution has been issued in order to implement the Cabinet Resolution 25 of 2010 concerning Internal Work Permits.
This recent Cabinet Resolution changes labour and quota fees in connection with the new classification system for UAE-based company which consists of Category 1, 2A, 2B, 2C, 2D and 3, each with different labour fees for “inside country transfer” and “outside country applications”. The labour fees will depend on the skill level of the employees as well as on whether the employee will transfer from one UAE company to another UAE company (inside country transfer) or will be hired from abroad (outside country application). Labour fees will be higher for lower-skilled employees and higher overall in companies with lower diversity rates. Furthermore, fee exemptions for establishments employing GCC nationals have been implemented. The implemented changes in the labour fees will affect most UAE based companies as this will have an impact on the financial planning and HR recruitment process for the next financial year.
As per recent information received from the MOHRE the quota fees may increase up to a maximum of AED 833 and labour fees up to a maximum of AED 3,200 depending on the new classification of the respective UAE-based company, whereby labour fees for skilled employees will in general be lower than for low-skilled employees.
SCHLÜTER GRAF will monitor the implementation of this Cabinet Resolution and will inform about further details after the Cabinet Resolution has been published in the official gazette.