Dubai is quickly becoming one of the most popular places to start a business. With multiple free zones, not only does it function as a tax-free jurisdiction, but it also provides amazing facilities and possibilities for businesses to succeed in every industry. As a result, people from all over the world came to Dubai to start businesses. The Dubai market is attractive to both multinational corporations and start-ups.
Additional enterprises are establishing themselves in Dubai, and the city's growth has resulted in more job opportunities. Companies use recruitment services to help them find the right people for the job.
In 2011, the Ministry of Labour in that country released MR1283, which allows for the licencing and regulation of private employment agencies. This encourages a recruitment agency to work at full throttle and take advantage of the services available to businesses based in Dubai. The law permits the establishment of firms that execute foreign outsourcing, which benefits a recruitment agency's operations.
There are two ways to run a recruitment firm in UAE.
Let's take a closer look at the two categories.
Brokerage Agency and Recruitment Agency are essentially the same thing. The activity enables the agency to operate as a middleman between employees and employers, negotiating contractual and employment terms on their behalf. It entails assembling databases. Data on workers, potential job opportunities, job applications, and any other pertinent information about the employee and employer are all recorded in the database. The activities that are involved in this are critical;
This type of agency engages full-time staff under their sponsorship and then subcontracts them to a third party for short-term projects. Employee sponsorship and payroll remain in the hands of the agency.
Prior to opening a recruitment agency, you must first meet the Ministry's standards. You should also be aware that anyone from any country can operate a recruitment agency in Dubai. The prerequisites are as follows:
Other requirements include choosing a management who must meet specific requirements, such as registering with the Dubai Ministry of Labour.
The first step in starting a recruitment firm in Dubai, UAE is to obtain a Recruitment License. The license will allow you to act as a go-between for an employer and an employee. You can store and match the data of both the employee and the employer. In Dubai, a recruitment license is only valid for one year and can be renewed. The UAE additionally stipulates that agencies must notify the Ministry of any changes made inside their organisation. The licensee is permitted to assist the new expat in finding a stable job in Dubai.
When opening a recruitment firm in UAE Mainland & Freezones, you'll have to follow the emirate's tight requirements for worker protection. The following are some of the conditions:
The license applications are printed at the ‘Tas'heel' service centre or by businesses who participate in the Ministry's e-form initiative. The following are the stages to get a license:
In 15 working days, you will receive your license.
To receive a license and register the company, the following documents must be presented to the Ministry of Human Resource and Emiratisation.
The Dubai MR1283 sets strong standards for the protection of workers who seek employment through a company or a recruiting agency.
Employment businesses must also deposit 2,000 Dirhams for each employee brought into Dubai, in addition to the guarantee. The law on the Licensing and Regulation of Private Employment Agencies stipulates that employment enterprises would be held accountable for their commitments to employees for the sake of transparency.
Additionally, employment businesses and recruitment firms must hire skilled employees and employ an experienced management.
The Labour Ministry has also imposed restrictions on the fees that Dubai recruitment services can charge potential clients. Employment agencies in Dubai are required to explicitly describe the contract's terms and conditions, as well as the employee's responsibilities. Employee records from the previous three years must also be kept by recruitment agencies in Dubai.
In Dubai's free zones, expats can open recruitment companies. Foreign professionals must be approved by the Ministry, and foreign personnel must not have any criminal records.
According to the law known as MR 1283, which was published by the Ministry of Labour in 2011, the government enables licencing for a Private Employment Agency, which has allowed overseas outsourcing corporations to operate into Dubai. Expat recruitment is the main focus of a recruitment license holding company in Dubai. A recruitment license allows you to place individuals in permanent roles in businesses.
You can establish this business if you wish to act as a mediator between the employer and the employee, effectively becoming a job supplier. Are you still sceptical? Dhanguard is here to help you get rid of your doubts. Our consultants have extensive industry knowledge and can assist you in establishing a recruitment agency in Dubai. Please get in touch with us right away.
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The fee for applying for a brokerage license is AED 50,000 with a bank guarantee of AED 300,000, and the fee for applying for a temporary recruiting agency license is AED 100,000 with a bank guarantee of AED 1,000,000
Apart from SCA, there are several departments involved in license issuance: Economic Development Department, Ministry of Economy, Dubai Court, and so forth.
There are several different sorts of recruitment agencies: • Traditional Recruitment Firms - Concentrates on meeting a variety of generic skill requirements. • Executive Search Firms - Firms that specialise in filling executive positions in firms with higher-paying salaries and positions. • Specialist Agencies - From their database, they provide expertise in specific fields. • Large-Scale Labour Recruiters - Who provides employers with a large workforce? • Temporary Recruitment Agencies - Agencies that hire and place candidates on a temporary basis.
The agencies' job is to develop a connection between employers and employees. The agencies also assist employees in negotiating contracts on their behalf. The negotiations are conducted using a database that contains information about the employees. The database will also include information about the employees' qualifications and job prospects.
The recruitment license is valid for one year; however, it can be renewed.
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