Firms to face action for failure to comply with Labour policies

Private companies that fail to comply with the new policies introduced by the UAE government will face action and increased employee licence fees.

A new classification system is being introduced for private establishments in the UAE, based on their commitment to the country's labour regulations.

The system, which comes into effect on June 1, will see companies split into three distinct categories, depending on the extent to which they comply with policies related to the wage protection system, Emiratisation, promoting cultural and demographic diversity, and protecting workers' rights.

Firms that exceed government-mandated Emiratisation rates and meet certain criteria will be offered discounts on work permit fees and other incentives. 

However, those companies that fail to comply with the new regulations could face action. 

Speaking to Dubai Eye 103.8's Business Breakfast, Abdul Al Awar, Minister of Human Resources and Emiratisation, explained the charges.