Everything You Need to Know about MOL in the UAE 

Whether you are an employee or an employer in the UAE, being aware of the nuances and intricacies of the regulations related to employment is crucial for sustaining employment. A major aspect of this involves the MOL or MOHRE. In this space, we are going to help you understand the functionality and operations of this governing body so that you have a better grasp of the labour landscape of the country.

This article will serve as a comprehensive guide for you on everything related to labour matters so that you can efficiently navigate the system while staying on the right side of the law. We are going to look into labour cards, skill level classifications, and how you can track the application status, along with other vital information. So, read along!

What is MOL in the UAE?

The Ministry of Labour (MOL), officially now known as the Ministry of Human Resources and Emiratisation (MOHRE), is the governing body that is tasked with overseeing the labour market of the UAE. It helps maintain a balanced and symbiotic relationship between the employer and employee by regulating labour laws, managing employment policies, and enforcing workforce programs.

This is the official body for regulating inquiry services for both the public and private sectors in the country and helps in executing the Emiratisation policy, which, in turn, ensures the increase in participation of UAE nationals in the workforce. MOHRE helps defend the rights of workers and provides dispute settlement services while also monitoring the recruitment as well as termination process at the workplace. 

With the help of its comprehensive framework, it aims to build an efficient, productive, and fair workforce ecosystem in the country. Its role in maintaining an equilibrium in the labour landscape of the country resonates with its ceaseless efforts in fostering a harmonious working environment. It is with the help of MOL that employees and employers learn to co-exist under a single umbrella of transparency and fairness.

MOL Services in the UAE 

MOL or MOHRE, provides an extensive range of services to oversee the labour market in the UAE. It protects the rights of the employees and also ensures employer compliance. By streamlining the employment network in the country, it not only serves as the backbone of the labour market but also helps maintain workforce harmony across the nation.

Let us take a deeper look into the varied services that MOL provides.

Wages Protection Systems

Timely salary payment is a pivotal aspect that every employee prioritizes. MOL ensures and monitors this through a safe and secure electronic system. Furthermore, it also takes care of any wage-related disputes and promotes transparency in employee-employer transactions. MOL also imposes penalties on organizations and companies that fail to comply with the regulations of salary disbursement. 

Work Permits and Visa Processing

MOL is tasked with issuing works permits for new employees. Additionally, it renews and cancels work permits for expatriates. It is also responsible for the facilitation of employment visa processing through official channels.

Labor Contract Verification

MOL offers online verification services that help validate terms and conditions while also making sure that the labour contracts comply with the labour laws of the UAE. In addition, it also sanctions employers and employees to approve and review their employment contracts digitally.

Complaint Resolution Mechanisms

When it comes to disputes between employers and employees, MOL handles them fairly through the various labour dispute centres across the nation. It provides mediation services to address and resolve different types of grievances. This may include disputes about violation of employment contracts, unfair dismissal, or delayed salaries, among others. 

MOL UAE Labour Card

The MOL labour card serves as a work permit for employees in the UAE. It is proof of the fact that the holder of the card is registered with the MOL and is a legally recognised employee. Furthermore, this card also entails pivotal information about the employee such as their personal details, job title, employment validity period, and employer information, among others.  It also helps in ensuring compliance with the UAE labour laws and regulations. 

MOL UAE Skill Level Classification

MOL, or MOHRE, classifies employment into nine separate levels of professions as per the International Standard Classification of Occupations (ISCO) issued by the International Labour Organization. These are as follows.

• Level 1 – Managers, legislators, and business executives
• Level 2 – Professionals in technical, human, and scientific fields
• Level 3 – Technicians in technical, humanitarian, and scientific fields
• Level 4 – Writing professionals
• Level 5 – Sales and service occupations
• Level 6 – Skilled workers in fisheries, agriculture, and animal husbandry
• Level 7 – Craftsmen in mining, construction, and other allied craftsmanship work
• Level 8 – Operators and assemblers of equipment and machinery
• Level 9 – Simple professions

It should be noted that labour is classified as skilled work as long as it fulfils a set of criteria. This includes making sure that the worker is at a professional level, which is considered to be one of the first five levels mentioned above. They must have a certificate attested by a competent authority and a certificate higher than the secondary certificate or an equivalent certificate. Last but not least, they must have a monthly salary of at least AED 4,000 (excluding commission).

Tracking MOL UAE Application Status

If you have applied for a work permit or work visa in the UAE, you need to stay on track of it. The process is a hassle-free one. Once you have sent in your application, you need to head to the official website of MOHRE. If you have already got an account, then log on to it. Otherwise, you have to create a new account. 

After this, you need to use your reference number from your application or your Emirates ID. Once you have put in the said detail, you will be able to view the status of your application and find out whether it is under process, if it has been approved, or if it requires any additional action from your end. 

Don’t be overwhelmed by the status report. If you are unable to understand the meaning of the status, we have got you covered. Here is a guide to what each status means.

Under Process

If your status shows ‘Under Process’, it means that your application is still being reviewed. Don’t panic! This is normal since MOHRE takes time to check everything is in order.

Pending

If you get a status of ‘Pending’, then this means that MOHRE requires more information either from you or your employer to approve your application. Check in what sort of information it is exactly looking for.

Approved

Evident by the name, if your status is ‘Approved’, then it means that your application is good to go and your work permit is ready to be issued. 

Cancelled

If your status shows ‘Cancelled’, then it means that your application has been cancelled because of some issues either arising from your employer’s end or documentation problems. Once you have fixed the source of the issue, you can submit a new application. 

Rejected

Nobody wants to see their application status to be ‘Rejected’. However, don’t be disheartened. You will be provided with a reason for the rejection which usually is either due to a typo or missing documentation. Fix your error and resubmit your application.

MOL and Wages Protection System (WPS)

As we have stated above, the Wages Protection System (WPS) is an integral service provided by MOL. It is essentially an electronic salary transfer system developed by MOHRE in collaboration with the UAE Central Bank. It has been put in place to make sure employers in the private sector of the UAE are paid their salaries in full and in due time.

Employers are required to transfer salaries to their employees through the WPS to the bank accounts of their employees or exchange houses.  The salaries are electronically tracked to make sure they comply with the UAE labour law and employment contractual agreements.

It should be noted that this applies to every company that is registered under MOHRE as well as those who are employing workers on valid labour contracts. All salary-related transactions are covered under the WPS which helps maintain transparency and in holding accountability. 

WPS helps in salary disbursements through automated monitoring. It does so by comparing payments against the employee contracts registered with MOHRE. If there are any delayed payments or non-payments, the system automatically triggers alerts and calls for potential investigations by MOHRE. In order to eliminate any discrepancies, employers are required to submit detailed monthly salary information through the WPS.

Let us take a closer look at the implications of WPS both for employees and employers and why it serves as a strong pillar for MOL.

Benefits for Employees

With the help of the WPS, employees can rest assured that they will receive timely payments according to their labour contracts. It also helps in enhancing transparency by facilitating clear documentation of salary payments, thereby protecting employees from harmful disputes. In addition, employees also get to have access to various banking services, encouraging financial and savings planning in the process. 

Penalties for Employers

WPS ensures that employers comply with the UAE labour laws and adhere to the employment contract. Delayed payments of salaries to employees can lead to employers incurring penalties, with increased penalties for repeated violations. Non-complaint employers are vulnerable to being suspended from work permits as well as MOHRE services. To maintain strict orders, repeated and persistent violations can even lead to severe legal consequences, including getting blacklisted. 

MOL's Role in Emiratisation

MOHRE also plays a vital role in enforcing and implementing Emiratisation policies in the country that encourage UAE nations to participate in the private sector, thereby maintaining a sustainable and balanced workforce. By setting employment quotas, MOHRE mandates a specific percentage of Emirati employees in the private sector. 

It regularly keeps a tab on private companies and audits them to make sure they are adhering to the Emiratisation targets. If failed to meet the required quotes, there are provisions for fines and other allied sanctions in place. 

The Emiratisation policies have helped in inducing a salary trend wherein companies offer competitive salaries and benefits, which helps in promoting overall compensation standards. Additionally, it has also led to an increase in job openings that are specifically kept for Emiratis. 

To Conclude

MOL, or MOHRE, is the backbone of the labour market in the UAE. It ensures timely payments of salary to the employees and also holds employers accountable if there are any malpractices or ill-treatment done to the employees. It makes sure that everyone adheres to the employment contractual agreement and the UAE labour law. 

By implementing automated services such as the WPS, it maintains transparency of employee-employer transactions. Furthermore, it also implements Emiratisation policies under which UAE nationals are encouraged to participate in private sectors, thereby promoting a balanced workforce in the country. 

FAQs

Know More about MOL in UAE

What does MOHRE do in the UAE?

MOHRE regulates the labour market in the UAE by implementing federal laws and managing the job market while also proposing labour policies. It also provides career advice to Emirati citizens and oversees the rights of workers and employees.

How long does it take to process MOL in the UAE?

It generally takes around 2-5 days to process MOL in the UAE. However, depending on the workload and the complexity of the application, it can extend to a couple of weeks at times.

What is the MOL number in the UAE?

The MOL number in the UAE refers to the number printed on an employee’s labour card. 

How to check labour contracts online in the UAE?

To check your labour contract online in the UAE, you need to head to the official MOHRE website and log in with your reference number or Emirates ID. Go to the ‘Labour Contract’ section and enter your personal details such as the work permit number and labour card number. You will then be able to download or view your labour contract.

How to calculate leave salary as per the UAE labour law?

To calculate leave salary, you need to divide your basic salary and allowances by 30 and multiply it by the number of leaves taken. Here is the formula you can use.

Leave Salary = (Basic salary+Allowances)/30 * Number of leave days

Please note that this is for paid annual leaves and not sick leaves, maternity leaves, parental leaves, Hajj And Umrah leaves, or any other specific leaves.

How is gratuity calculated in MOHRE?

If a worker has spent one or more than one year in continuous service, he shall be entitled to a gratuity payment which is an end-of-service benefits after the termination of the services.

If someone has worked for more than a year but less than five years, then he is entitled to full gratuity pay that is based on 21 days of basic salary for each year of work. If someone has worked for more than five years, he is entitled to full gratuity pay that is based on 30 days of basic salary for each year of work following the first five years. If someone has worked for less than one year, he is not entitled to any gratuity payment.

The formula for calculating gratuity for those who have worked for more than 1 year but less than 5 years is as follows:

Gratuity = (Last Basic Salary per day x 21 Days x Completed Years of Service) ÷ 30

The formula for calculating gratuity for those who have worked for more than 5 years is as follows:

Gratuity = (Last Basic Salary per day x 30 Days x Completed Years of Service from 6th Year) ÷ 30

If it seems complicated to you, visit here to calculate your gratuity.