Indicators of a Licensed and Authorized Manpower Supply Company in Dubai

Managing workforce requirements in Dubai has become more complex due to strict labour laws, compliance requirements, and the need for fast deployment of skilled workers. Businesses often rely on manpower supply companies to fill short-term, long-term, or project-based staffing needs. But not every company offering manpower services is legally allowed to do so.

This article comprises an awareness checklist to help employers identify whether a manpower supplier is licensed, MOHRE-approved, and fully authorized to operate in Dubai. 

What is Manpower Supply?

Manpower supply refers to the process in which a legally licensed company deploys workers to another business on a contractual or temporary basis. The workers remain under the manpower supplier’s sponsorship, but work at the client’s site according to the terms of the contract. 

The manpower firm handles the employment side, visa status, wages, accommodation, health checks, and administrative obligations while the client uses the workers as part of its active workforce. Most firms use this model when project workloads fluctuate, when staffing needs differ across sites, or when their internal HR team cannot manage additional administrative work.

Manpower Supply vs Recruitment – What’s the Difference?

Who is Allowed to Supply Manpower in Dubai?

Only companies licensed by the Ministry of Human Resources and Emiratisation (MOHRE) are permitted to supply manpower in Dubai. These businesses are permitted by law to sponsor employees, assign them to client locations, and oversee all associated employment responsibilities. MOHRE approval confirms that the company meets the ministry’s requirements for capital, accommodation standards, wage protection, and overall worker welfare. Any business providing labour without this licence is operating outside UAE law. 

A valid manpower supply company must have:

• A specific MOHRE-approved manpower supply licence.
• The required labour outsourcing activities on the trade license.
• Approval for worker sponsorship, payroll compliance, and WPS registration.
• Physical office requirements and financial guarantees mandated by MOHRE.

Any company lacking these mandatory approvals is considered unauthorized, even if it claims to provide manpower supply.

What is an Authorized/Approved Manpower Supply in the UAE?

In the UAE, manpower supply is considered authorized only when the provider holds the MOHRE licence that permits the deployment of its own sponsored workforce to external sites. The licence must carry the exact activity for labour supply, not general recruitment or HR services. Before approval is granted, MOHRE reviews the company’s capital strength, accommodation arrangements, WPS track record, and ability to manage a sponsored workforce. 

An authorized manpower supplier is one that is:

1. Licensed by MOHRE
2. Permitted under UAE law to outsource manpower
3. Fully compliant with:
   
   
   • Wage Protection System (WPS)
   • Valid labour contracts
   • Worke residency and visa regulations
   • Health, safety, and accommodation standards
   • Payroll and HR compliance policies

Required Trade License Activities

A legitimate manpower supply company must have one of the following activities stated on the trade license:

• On Demand Labour Supply
• Temporary Employment
• Upon Request Employees' Provision Services

Without these activities, the company is not legally permitted to outsource employees.

Read more: What UAE Companies Need to Know About the H1 Emiratisation Deadline Set by MoHRE

Why MOHRE Approval is Mandatory

MOHRE is the governing authority that authorizes which manpower supply companies can legally sponsor workers and defines the conditions under which those workers may be deployed to client sites. Any company supplying manpower must operate within this framework, as no alternative legal channel exists for deploying sponsored labour. When MOHRE grants approval, it is based on very specific criteria, whether the trade licence carries the correct activity, whether the firm has the required capital, and whether it can maintain worker welfare in line with ministry rules.

Field inspections, accommodation reviews, and wage-protection checks are part of the ministry’s routine oversight. If labour is deployed without the proper approval, both the supplier and the client may be held accountable during compliance reviews. MOHRE plays a major role in regulating labour outsourcing in the UAE. Its approval ensures:

1. Worker Rights & Protection

MOHRE ensures fair treatment of workers, valid contracts, and timely salary payments via WPS.

2. Legal Compliance

MOHRE-licensed manpower suppliers must follow strict regulations for:

• Visa sponsorship
• Labour contracts
• Health and safety
• Insurance coverage
• Accommodation standards

3. Prevention of Illegal Hiring

Unauthorized manpower supply leads to undocumented workers, wage disputes, and exploitation—issues MOHRE aims to prevent.

4. Reliable Workforce Delivery

MOHRE-approved agencies maintain verified worker databases and meet contract standards for timely deployment.

This framework protects both employers and employees, ensuring a transparent manpower supply process in Dubai.

Fines and Risks of Using Unauthorized Manpower Suppliers

Partnering with an unlicensed manpower supplier exposes businesses to serious legal consequences.

Key Penalties for Businesses

Hiring workers supplied by an unauthorized agency can result in:

• AED 50,000 to AED 200,000 fines, depending on violation severity.
• Additional penalties for repeat offenses.
• Licence suspension or business closure.
• Worker deportation.
• Legal claims or labour disputes.

In severe cases, companies may face criminal liability for engaging in illegal labour outsourcing.

Operational Risks

• Unverified workers may lack proper training or safety awareness.
• Possible project delays if workers face visa or labour violations.
• No legal protection in case of accidents or disputes.
• High attrition due to poor worker welfare standards.
• Reputational damage in the market.

Legal Awareness for Businesses

Companies in the UAE are expected to confirm that any manpower supplier they engage holds the correct MOHRE approvals. This verification is not a formality; it protects the business from penalties tied to illegal outsourcing, improper sponsorship, and wage-protection violations. Checking the trade licence activity and the supplier’s MOHRE registration at the outset prevents compliance issues later in the project.

Many businesses still assume that HR or recruitment firms are permitted to place workers on-site, but those activities require a separate labour-supply licence. Recruitment transfers an employee to the client, while manpower supply requires a separate licence allowing the provider to sponsor and deploy its own workforce. Misunderstanding this distinction is one of the main reasons businesses face compliance problems.

Also Read: The Legal Aspects Of Manpower Outsourcing in the UAE

How to Check if a Manpower Supply Company is Authorized

The simplest way to confirm a supplier’s status is to look at the activity listed on its trade licence. Companies that are genuinely allowed to supply workers always carry the specific labour-supply activity, and the details match the approvals issued by MOHRE. 

Before hiring, go through this simple verification checklist:

Quick Verification Steps

1. Ask for their MOHRE manpower supply licence: Verify activity type and expiry date.
2. Check the trade license activities: It must clearly list On-Demand labour supply, temporary employment, and upon request employees provision services to confirm the company is legally authorized for manpower supply in Dubai.
3. Confirm WPS registration: Ensures compliant salary payments to workers.
4. Verify worker sponsorship: All supplied workers must legally be under the supplier’s company visa.
5. Request sample labour contracts: Must comply with MOHRE’s standard formats.
6. Look for transparent pricing and documented agreements: Authorized suppliers never operate without proper contracts.

Red Flags to Avoid

• The company avoids showing its trade license.
• Workers are under “someone else’s visa.”
• Salaries are paid in cash instead of WPS.
• No written manpower supply contract.
• Very low pricing that seems unrealistic.
• They identify as a “recruitment agency” but offer manpower on their visa.

If any red flag appears, the supplier is likely unauthorized.

Conclusion

Selecting a licensed and authorized manpower supplier in Dubai is not just a best practice, it is a legal requirement. Businesses that partner with MOHRE-approved companies ensure compliance, safeguard worker welfare, reduce legal risks, and maintain smooth project operations. Authorized manpower supply protects your business from fines, strengthens operational efficiency, and ensures transparency in every workforce transaction. 

At Marmoom Manpower, we support businesses across diverse industries with reliable, compliant, and skilled workforce solutions. As a leading manpower supply company in the UAE, we ensure:

• Full MOHRE compliance
• Proper worker sponsorship
• WPS-based salary processing
• Legally standardized labour contracts
• Fast deployment across the UAE
• Industry-specific skilled manpower

We make workforce management seamless, safe, and fully compliant.