MOHRE establishment categories (1, 2, 3) and what they change

Since 1 June 2022 every mainland private-sector establishment registered with the Ministry of Human Resources and Emiratisation (MOHRE) is placed in one of three categories under Cabinet Resolution No. 18 of 2022. The category depends on compliance with labour laws, the Wage Protection System and the policy on cultural and demographic diversity.

First category: companies that comply with the law and also meet at least one extra criterion, such as raising their Emiratisation rate at least three times above the target, training at least 500 citizens a year with the Nafis programme, being a venture owned by a young citizen, or being a training and employment centre supporting the workforce policy.

Second category: compliant companies that do not meet a first-category criterion. A new company is normally placed here automatically.

Third category: companies that violate the labour law, labour-market decisions, worker-protection standards or the diversity policy, or commit violations listed in Ministerial Resolution No. 209 of 2022 (for example human trafficking, employing without a work permit, false documents, unpaid wages, poor housing or fake Emiratisation).

Why it matters: the category sets the work permit fee. MOHRE announced that two-year work permit and transfer fees do not exceed AED 250 for category 1, AED 1,200 for category 2 and AED 3,450 for category 3; UAE and GCC nationals are exempt. Better-rated companies may also receive incentives. The category can change automatically as compliance changes. Ask our staff to check your company's current category before budgeting for new staff.