GUIDE

Checking a Manpower Supplier Is Properly Licensed

Insights/Checking a Manpower Supplier Is Properly Licensed

2 October 2026

Why the licence matters to the contractor using the labour, not just the supplier providing it, and what to check before the first worker arrives on site.

Most buyers treat the licence as a box to tick in prequalification. It is worth more attention than that, because in an unlicensed arrangement the exposure sits with the party using the labour as much as the party supplying it.

What the Licence Permits

A MOHRE Employment Agency Licence, issued by the Ministry of Human Resources and Emiratisation, permits a company to employ workers and supply them to a third party. That is a distinct activity from recruitment, and a trade licence alone does not cover it.

Active Labors Supply operates under a 100% MOHRE Employment Agency Licence. It means the workers on your site are legitimately employed and legitimately supplied, rather than informally placed.

What It Means in Practice

  • Legitimate work visas. Every worker holds a valid UAE work visa sponsored by the supplier.
  • WPS payroll. Wages are paid through the Wage Protection System, which creates an auditable record that workers have actually been paid.
  • Medical insurance. Carried by the supplier as the employer.
  • Labour law compliance. The arrangement sits within UAE Labour Law, Federal Decree-Law No. 33 of 2021.
  • End of service. Gratuity and exit formalities remain the supplier's obligation.

Why It Matters to You, Not Just to Us

If workers on your site are not legitimately sponsored and paid, the problem does not stay with the supplier. Site access can be withdrawn, main contractors and clients increasingly audit the labour chain, and a stoppage at the wrong moment on a programme costs far more than any saving on rates.

This is the practical reason to verify the licence rather than assume it: the downside is not a fine, it is a halted work front.

What to Check Before the First Worker Arrives

  1. Ask to see the MOHRE Employment Agency Licence itself, not a general trade licence.
  2. Confirm the workers will be on the supplier's own visas, not transferred to yours.
  3. Confirm wages are paid through WPS.
  4. Confirm medical insurance is in place.
  5. Ask who handles accommodation, transport and PPE, and get it in writing.

Beyond the Licence

A licence is the minimum, not the differentiator. Active Labors Supply also holds ISO 9001:2015 for quality management, ISO 14001:2015 for environmental management and ISO 45001:2018 for occupational health and safety. On projects where the main contractor audits its supply chain, those certifications shorten the prequalification conversation considerably.

Our licence and certifications are set out on the compliance and certification page, with ownership and licence detail on the ownership and licence page.

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FREQUENTLY ASKED QUESTIONS

No. Supplying employed workers to a third party is a distinct activity requiring a MOHRE Employment Agency Licence. A general trade licence does not cover it.

No. They stay on the supplier's visas throughout. If a supplier proposes transferring workers to your sponsorship, that is a different arrangement with different obligations.

The Wage Protection System is the mechanism through which wages are paid, creating an auditable record that workers have been paid correctly and on time.

Beyond the MOHRE licence, ISO 9001, 14001 and 45001 cover quality, environmental and occupational health and safety management. Active Labors Supply holds all three.