What is Category 3 in MOHRE?
Category 3 companies are those that do not fully comply with UAE labour laws or Emiratisation policies. These businesses may have a higher number of unskilled workers, past violations, or non-compliance issues, leading to higher renewal fees and stricter inspections.
How Does Labour Contract Renewal Work for Category 3 Companies?
Category 3 companies must submit a renewal request through MOHRE’s online portal or a Tasheel center. The employer needs to upload an updated contract signed by both parties, ensure compliance with MOHRE regulations, and pay the necessary renewal fees.
What Documents Are Required for Labour Contract Renewal in Category 3?
To renew a labour contract in Category 3, the employer must provide the employee’s Emirates ID, a valid residency visa, an updated labour contract signed by both parties, and company trade license details registered with MOHRE.
Why Are Category 3 Companies Charged Higher Fees for Labour Contract Renewal?
Category 3 companies are charged higher fees because they have not met MOHRE’s compliance standards, including Emiratisation policies and proper workplace regulations. The higher fees act as a penalty and encourage businesses to improve their compliance.
Can a Category 3 Company Be Upgraded to Category 2 or 1?
Yes, a company can move to a higher category by following labour laws, implementing Emiratisation policies, offering proper employee benefits, and avoiding labour disputes or penalties.
How Long Does It Take to Process a Labour Contract Renewal for Category 3?
The renewal process may take longer than for higher-category companies due to additional compliance checks. On average, it takes around 5-10 working days for the contract to be approved.
What Happens If a Category 3 Company Fails to Renew a Labour Contract?
If a company fails to renew a labour contract on time, it may face fines from MOHRE, restrictions on hiring new employees, work permit cancellations, and possible downgrading of its classification.
Can an Employee Change Jobs If Their Company is in Category 3?
Employees can switch jobs if their contract expires or is not renewed. However, the new employer must meet MOHRE’s job transfer and work permit requirements before hiring the employee.
Where Can I Submit the Labour Contract Renewal for Category 3?
The labour contract renewal can be submitted through MOHRE’s online portal or at a Tasheel service center for processing and approval.
How Can GoodHand Help with Labour Contract Renewal for Category 3?
GoodHand simplifies the renewal process by handling MOHRE submissions, ensuring timely approvals, and assisting companies in improving compliance. This helps businesses upgrade their classification and avoid penalties.
