The Ministry of Human Resources and Emiratisation has confirmed that there are five scenarios under which an employment agency’s license may be revoked. These include failing to meet the conditions upon which the license was granted, involvement in forced labor or human trafficking, failing to pay worker wages, violating any of the conditions set by the ministry, and breaching the regulations outlined in the law concerning employment agencies or in Ministerial Decision No. 51 of 2022 regarding the licensing and regulation of employment agencies.

The ministry clarified that employment agencies are responsible for facilitating the employment process by negotiating terms on behalf of both the employer and the employee, without becoming a party to the employment contract themselves. This also includes temporary employment and outsourcing; agencies licensed for these activities employ individuals to provide their services to a third party, establishing a direct relationship between the worker and the agency that outsourced their services.

To obtain a license for operating any employment agency work, certain conditions must be met: neither the individual in the sole proprietorship nor any partners in a corporate entity should have been convicted of crimes relating to dishonesty or integrity, including human trafficking or violations stated in the law governing labor relationships, unless their legal status has been reinstated. Additionally, the agency must present a bank guarantee of no less than 300,000 AED for recruitment offices and one million AED for those handling temporary employment or outsourcing. This guarantee should either be renewed automatically or replaced with an insurance scheme. The ministry may utilize part of the guarantee or insurance to cover any amounts the agency owes for breaching its obligations or failing to comply with issued instructions.

The ministry also emphasized that applicants must submit a credit report from the relevant authority and that neither the applicant nor their partners should be employees of the ministry.

5 Scenarios That Allow Cancellation of Employment Agency Licenses in UAE

Comments