New Licensing Guidelines for Recruitment Agencies in the UAE

The Ministry of Human Resources and Emiratisation (MOHRE) has unveiled new guidelines that will regulate the licensing process for recruitment agencies operating in the UAE. These updated regulations aim to enhance transparency and ensure that only reputable agencies can operate in the country, thereby safeguarding both workers and employers from exploitation.

 

Key Licensing Requirements for Recruitment Agencies

 

As part of its ongoing efforts to improve recruitment practices, MOHRE has established six essential conditions that recruitment agencies must meet before obtaining a license. These guidelines are crucial for agencies engaged in employment intermediation or temporary staffing services.

 

1. Criminal Record Check
Applicants (or their partners in the case of legal entities) must pass a criminal background check to ensure they have no convictions related to dishonesty, human trafficking, or labor-related offenses. However, applicants who have been legally rehabilitated or those whose conviction dates back over a year may still be eligible.

2. Bank Guarantee Requirement
Agencies must provide a mandatory bank guarantee. For employment intermediation agencies, this is set at Dh300,000, while temporary staffing agencies or combined licenses require a guarantee of Dh1,000,000.

3. Credit Report Submission
A credit report from the relevant authority is necessary to demonstrate financial reliability and stable business practices, ensuring the agency’s sound financial standing.

4. Conflict of Interest Declaration
Applicants must submit a written declaration confirming that neither the applicant nor any partner has a close relationship with any MOHRE employee (such as a spouse or second-degree relative). This is crucial to avoid any potential conflicts of interest in the recruitment process.

5. Dedicated Business Location
A physical business address is required for all agencies. The location must be suitable for the agency’s operations and properly registered.

6. Document Accuracy and Validity
All documents submitted for the licensing application must be valid, accurate, and up-to-date to ensure compliance with the new regulations.

 

Steps for Obtaining a Recruitment Agency License

 

To streamline the licensing process, MOHRE has outlined the following steps for agencies seeking to operate legally within the UAE:

 

• Log In: Use the UAE Digital Identity system for authentication.

• Submit Request: Send a service request via the designated MOHRE service channels.

• Supporting Documents: Ensure all required documents are submitted with the application.

• Address Deficiencies: Respond to any notifications regarding missing or incomplete information.

• Payment: Once all conditions are met, make the necessary payment and provide the required insurance or bank guarantee based on the type of agency license.

 

MOHRE’s Role in Enhancing Recruitment Transparency

 

With these new licensing conditions, MOHRE is setting a higher standard for recruitment agencies operating in the UAE. These measures are designed to regulate the recruitment sector effectively and ensure that agencies engage in transparent, fair practices. By enforcing these guidelines, the ministry aims to protect both employers and job seekers from potential exploitation or malpractice.

 

These updates reflect MOHRE's ongoing commitment to improving the recruitment landscape in the UAE, making it safer and more reliable for all parties involved.

 

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