New guidelines for recruitment agency licensing in the UAE

Abu Dhabi: The Ministry of Human Resources and Emiratisation (MOHRE) has announced six essential conditions for the licensing of recruitment agencies.

These agencies, which play a crucial role in both employment intermediation and temporary staffing, will now need to meet strict regulatory requirements to operate legally in the country.

The new guidelines aim to protect both workers and employers from potential exploitation or malpractice. Here’s what agencies need to know to comply with these new licensing conditions.

The recruitment agencies may offer services in employment intermediation, which involves facilitating job matches between employers and job seekers, or temporary employment and outsourcing, where the agency employs workers to provide services to third-party clients.

By implementing these stringent requirements, MOHRE aims to regulate the recruitment sector effectively, ensuring that only reputable and financially stable agencies can operate within the UAE. These steps are part of ongoing efforts to improve the transparency and fairness of recruitment practices, benefiting both employers and job seekers across the region.

To ensure the reliability and transparency of recruitment agencies, MOHRE has outlined six primary conditions that all applicants must meet before they can be licensed to operate in the UAE.

Licensing conditions

Criminal Record Check: The applicant (or any partners in the case of legal entities) must not have been convicted of crimes involving dishonesty, human trafficking, or labour-related offences. Applicants can be eligible if they have been legally rehabilitated or if one year has passed since a fine-based conviction.

Bank guarantee: A mandatory bank guarantee must be submitted. This varies by the type of license: Dh300,000 for employment intermediation agencies and Dh1,000,000 for temporary staffing or combined licenses.

Credit report: Applicants must submit a credit report from the relevant authority, ensuring financial reliability and sound business practices.

Conflict of interest declaration: The applicant (or any partner in a legal entity) must not be a Ministry employee or closely related to one (e.g., spouse or second-degree relative). A written declaration must be submitted to confirm this.

Business location: A clear and dedicated physical business address must be established. The location must be suitable for the agency’s operations.

Document accuracy: All documents submitted for licensing must be valid, accurate, and up-to-date.

Steps for licensing: