New rules on private labour agency ownership in the UAE will lead to a “greater level of transparency” in the entire recruitment process, according to John Hayes, a partner at law firm Irwin Mitchell.

Earlier this month, UAE minister of labour, Saqr Gobash, announced that all private labour agencies (the equivalent of recruitment firms) in the UAE must be owned by UAE nationals to be eligible for a licence to operate there. This stipulation on nationality extends to every partner and all signatories of such agencies.

Hayes told Recruiter: “Private recruitment agencies that are already operating will have six months to bring themselves in line with the measure.

“The ordinance setting out the new rules, issued from the Labour Ministry, splits labour agency activity into two groups; ‘mediation’ between employer and employee and ‘temporary employment activity’ which covers recruiting workers and supplying them to an employer. Both types of activity are caught by the rules.

“The move is designed to create greater rights and protection for both workers recruited through agencies and companies that rely on labour agencies to find workers.

“There will now be a greater level of transparency during the entire recruitment process including all steps from recruiting workers in their country of origin until the end of their employment and them returning home.

“The measures put in place include giving the worker the right to see their contract in their country of origin before they start their employment and agencies being responsible for returning workers to their country of origin at the end of the employment at the agency’s expense. Agencies must also provide a bank security cheque as part of obtaining their licence and commit not to change any partner without prior approval from the Labour Ministry.

“Recruiters who think that they will be affected by the above should seek professional advice on the implications the new measures will have for their business.”