The UAE is a business hub around the world due to its solid
infrastructure and stable business plan that has been in place for the last few
decades, one of the reasons why manpower supply in Dubai has been one of the
important business activities. There are manpower agencies that hire full-time
employees under their sponsorship and second them to third-party companies. For
example, if you own a construction business in Dubai and need a manpower supply
for a large project, then you will have an option to obtain them through one of
the manpower agencies without paying attention to all the formalities that
might delay your engagement in the specific project. Labor supply agency is one
of the effective forms of Company
Formation in Sharjah.
So how can one manpower supply
license in Dubai, UAE?
In order to
start a manpower supply in the UAE, one has to apply for manpower supply
license, which specifically comes under a commercial license. Obtaining this
license enables you to perform the activity of labor supply in Dubai, and
become a mediator between employers and employee.
Procedure to Obtain a Manpower License in Dubai, UAE
·
First of all, apply for name reservation for the company after
checking that the name you propose is not already present in the Register, and
subsequently, apply for registration
·
After name approval, apply for notarization of the company’s
Memorandum of Association (MOA) at Department of Economic Development (DED) for
your manpower supply license in the UAE
·
File company documents and apply for final approval
·
After getting a license, the next step is to apply for labor
card and the establishment card at the Ministry of Labor
·
Register the workers with the Ministry of Labor
·
Finally, register the workers with the General Authority for
Pension and Social Security
Documents Required Obtaining a Manpower License in Dubai, UAE
·
·
Copies of a valid passport(s) of the company’s shareholder(s)
·
Copy of the applicant’s family book
·
Copy of the ID card, for nationals
·
A statement of good conduct
·
Copy of the trade name application with the Trade Register
·
The shareholders’ written statements on the opening of the
company
·
A blueprint of the employment agency’s location
A Manpower
supply license in Dubai has to be renewed yearly.
Terms and Conditions while Applying for a Recruitment
License in UAE
·
All the shareholders must be of UAE nationality and their age
should be 21 years or above, having full capability.
·
The partners should not be convicted of any obscene crime,
dishonesty, breach of trust, human trafficking or any other offense punishable
by law. However, the case is different if he/she is rehabilitated after the
issuance of a judgment restricts his/her freedom or after the lapse of 1
year from the date of issuing a judgment imposing a fine on him/her.
·
Throughout the validity period of the license, the applicant
shall submit to the Ministry a bank guarantee which shall not be less than AED
300,000 in value (in case of brokerage activities), or AED 1,000,000 (in case
of temporary recruitment activities). The bank guarantee must be renewed
automatically. The Ministry may allocate all or some of this guarantee, to pay
any amounts that the agency shall pay due to its failure to perform the
obligations under the provisions of this law and to comply with instructions
and decrees issued there under.
·
The applicant should have a head office with a clear address, at
which the agency will carry on its activities. Such a head office must be
licensed for that purpose and shall satisfy the standards specified by the
executive instructions and procedures issued under this decree. The agency may
not practice its activity except through such a head office.
·
The applicant must submit a written undertaking that no change,
by either addition or withdrawal, will be made to partners, except after
obtaining a written consent from the Ministry.
·
The agency must hire an adequate number of administrative
employees and supervisors who have suitable experience in their field of work.
·
A Recruitment license in Dubai manager
must be of UAE nationality and with a high school degree at the least. An
individual applying for a license is an exception, as he/she can be the agency
manager as long as there is a high school degree and registered as a manager in
the Ministry of Labor and the General Pensions Authority or Abu Dhabi Pensions
Fund.
·
The agency authorized signatory must fulfill the same conditions
as those applicable to an agency manager.
·
The applicant shall pay the legally prescribed fees once the
license to practice the requested activity is initially approved.
Protection of Workers
Apart from the
deposit money, Dubai government is strict about protection of workers that are
recruited through manpower or any other labor recruitment agency. The agency is
required to deposit AED 2,000 for every employee brought in Dubai. The law on
Licensing and Regulation of Private Employee Agencies states that the
employment agency will be held accountable if they do not follow the obligation
towards their workers. The Labor Ministry has also set a maximum limit for the
agencies allowed to request as fees from possible clients. Before signing a
contract, it is mandatory for the agencies to mention all the terms and
conditions of the company and the duties of an employee towards the company.
Additionally, they also have to keep the records of the employees recruited
from the agency.
The new UAE law also states that agencies must inform the
Ministry about any variations made within the agency. The Government of Dubai
is determined to promote a transparent employment intermediary sector in the
UAE and ensure greater protection for the workers that are recruited through
agencies such as manpower supply, recruitment or labor agency. Increasing
businesses in Dubai hints towards an increase in manpower supply. For an
entrepreneur, starting such agency is the way to go forward.
