New guidelines for recruitment agency licensing

At a glance

• The UAE Ministry of Human Resources and Emiratisation (MOHRE) has outlined six conditions for licensing recruitment agencies.
• Agencies must meet requirements related to eligibility, bank guarantees, financial reliability, business address, and document validity.
• Applicants must also log in to the UAE Digital Identity system and submit a service request to obtain a license.

The UAE MOHRE has outlined six conditions for licensing recruitment agencies. These agencies can offer services in employment intermediation, which involves matching employers with job seekers, or in temporary employment and outsourcing, where the agency provides workers to third-party clients.

• Eligibility criteria: Applicants (or partners in the case of legal entities) must not have convictions for dishonesty, human trafficking, or labor-related offenses. Eligibility is possible if legally rehabilitated or if one year has passed since a fine-based conviction.
• Bank guarantee: A mandatory bank guarantee is required, varying by license type: AED300,000 for employment intermediation and AED1,000,000 for temporary staffing or combined licenses.
• Financial reliability: Submission of a credit report from the relevant authority is necessary to ensure financial reliability and sound business practices.
• Conflict of interest: Applicants (or partners) must not be Ministry employees or closely related to one (eg, spouse or second-degree relative). A written declaration confirming this must be submitted.
• Business address: A clear and dedicated physical business address suitable for the agency’s operations is required.
• Document validity: All documents submitted for licensing must be valid, accurate, and up-to-date.

To obtain a license, applicants must log in using the UAE Digital Identity system, submit a service request through the relevant channels, and provide all necessary supporting documents. Once all conditions are met, a license is issued, and the applicant must pay the fees and provide the required insurance or bank guarantee.