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 business setup in Dubai.
So how can one manpower supply agency 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 to Obtain 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 Manpower License in Dubai, 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 offence 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 thereunder.
- 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.
- An agency 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 fulfil 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. For information and queries regarding starting a manpower agency in Dubai, you can contact us – we'd be happy help.