New classification system for firms

Saqr bin Gobash Saeed Gobash, Minister of Labour has issued a resolution dividing establishments based on compliance with labour legislations.

DUBAI – Saqr bin Gobash Saeed Gobash, Minister of Labour, has issued a resolution dividing establishments in groups based on their extent of compliance with labour legislations, systems and standards, cultural diversity approach and on-time payment of salaries, provision of accommodation and emiratisation quota.

Resolution No. 1187 of 2010 on Regulations and Criteria of Classification of Firms is issued in implementation of the Cabinet Resolution No. 26 of 2010 which was issued on August 11. Article 10 called for introducing practical and real mechanisms for voluntary emiratisation.

The minister said his ministry is keen to create a balanced working environment that stimulates projected economic growth and facilitates the process of productivity through a sound management of skillful human capital.

“Our ethical and legal mandate requires us to strive to explore and roll out mechanisms that embody the sincere commitment of the political leadership to put in place a safe and stable environment and to protect rights of all categories in the community.”

The new system replaces the current cultural diversity-focused classification policy which has been implemented since 2005.

“The new classification system was designed after consultation with prominent local labour market experts and embracing best practices from experiences of international community and neighbouring countries,” the minister added.

“While the old system revolved primarily on the cultural diversity mix in firms, the new one allows the firm to move higher on the classification scale giving them slew of rewards based on their commitment to certain standards like emiratisation, wages and housing,” he indicated.

He said the new resolution divides companies into three main categories; the first group which tops the scale, the second which includes the current three categories A, B and C and the third one which along with the first are the new comers.

The resolution ranks the firms if they meet the following conditions :

1)   The percentage of workforce should not be less than 20 from the professional levels (1-2-3) of the total manpower.

2)   The wage of a worker should not be less than Dh12,000 if he is in level one, Dh7000 in two and Dh5000 in level three.

3)   Emiratisation percentage should not be under 15 in these levels.

The creation of this first group aims at opening up new professional jobs for Emiratis and avoid mock emiratisation,” he affirmed.

For the second group, the resolution arranged firms to A, B and C according to cross-cultural policy.

A company is sorted in group A if it does not commit itself to this policy by at least 25 per cent. A non-compliance of 25 to 50 will place the company in grade B and C if the percentage crosses the 50 mark. The resolution grants firms time until the January 11, 2011 to correct their status and fall on line – KhaleejTimes