Employer of record provides services in Dubai.
The moment a company hires an employee, it acquires the duty of work tasks, costs and commitments related to having said worker on its staff. Not all companies want to have that responsibility for managing a team of employees, and for that reason they hire an employer of record.
An employer of record (EOR) is another company that functions as an employer for tax purposes while your employee conducts work activities at a different company.
The employer of record is committed to the common tasks and duties of the job, including all functions of the staff staff. Next, we’ll talk about what are some of the services that employer of record provides in Dubai.
There’s the international PEO that has become an alternative for employers of record, and makes it possible for companies to hire personnel anywhere on the planet more quickly, and without the intervention of a legal body.
The employer of record hires staff and becomes your legal employer of record. Only, the company will maintain control of the daily activities of the workforce.
The company will be able to focus on the efficiency and management of the organization, while the employer of record takes care of payroll, benefits, risk reduction and regularly supports workers.
What characteristics does the employer of record have?
- It simply makes it possible to outsource workers internationally and regularly manage the human resource department in more than 185 countries.
- You can enter the market 90% faster and start working in just 48 hours.
- You’ll be more compliant to see that the work personnel function compatible and the labor laws are updated.
- There will be flexibility in new markets thanks to the alternatives provided that don’t require long-term responsibilities.
What does the employer of record need to know to hire in EAU?
Labor standards in the UAE are complex and confusing looking at it externally, although it does have some overlap with other countries. EAU citizens and foreign employees are under the country’s labor laws with certain exceptions for some categories, so it’s suggested to acquire professional services when recruiting staff in EAU.
What are the considerations to have when employing in the EAU?
Companies that have in mind to open a complete local office and a human resource department will be met with challenges that can be regulated by using a local payroll provider, and who’s knowledgeable of EAU laws and regulations for both local and foreign workers.
According to article 3 of Federal Law No. 8 of 1980 for labor relations, the Law applies to all workers living in the UAE, whether they are a citizen or an expatriate.
Who can be exempt from the Labor Relations Law?
§ Those employees who have been hired by the federal government and government departments of the EAU.
§ Public, federal and local agencies and institutions, municipalities, and employees hired in local federal government projects.
§ Members of the armed forces, police and security personnel.
§ Domestic service employees.Employees dedicated to agriculture and livestock.
Someone associated with a business is not considered a worker, and therefore isn’t obligated to obtain an EAU job card. At the same time, a foreign associate will deal with the immigration office instead of the employment office.
However, if the associate has a position of worker in addition to the status of his partner, he’ll be considered as a worker due to the function he exercises within the organization.
If any worker works by commission, he will be considered an employee, even if he is associated with the organization for which he works.
The official entity that legislates all work activity in the EAU is the Ministry of Labor.
What rights do workers of a employer of record in EAU have?
- Medical license; although you won’t have the right to any leave due to illness while you’re in the trial period.
- Those who have worked for at least a period of three months, after completing the trial period.
- Receive the salary in full in the first 15 days.
- Half the salary for the next 30 days.
- The period that follows will be unpaid.
- You can accumulate your annual vacation.
- For each year worked, someone who worked between 6 months and one year will be entitled to two days annual leave for each year worked.
- Workers will be paid their base salary plus the housing allowance, if applicable, and any other allowances they receive in their normal work month.
What do you need to know about maternity leave in the EAU?
Workers will be entitled to 45 days of paid maternity leave, even before and after childbirth, provided that she has worked for at least one year.
But if you worked less than a year, maternity leave will be given half the salary.
Upon expiration of maternity leave, the employee has the right to extend her leave for no more than 100 days without pay.
What does the trial period imply?
In the EAU it can be a maximum of six months, and once completed it’s considered as part of the term of global employment, and is taken into account when determining the tip and other benefits.
What GEO alternatives are there for the EAU?
Companies arriving in the EAU must decide to use their own resources, or use a global work organization, to manage payroll and employment duties.
A EAU employer of record alternative makes it quicker, easier and cheaper to mobilize workers without owning a stable payroll entity.
The DIY approach can be delayed until there’s a properly integrated company that is in a position to execute the payroll and thus include the cost of registered capital.
The Shield GEO alternative is properly integrated in the EAU, and has a functional payroll designed to sponsor employment permits. This considerably reduces implementation times. That’s why Shield GEO is responsible for all job related compliance issues.
What is Shield GEO?
Provides a fully outsourced job service in EAU. Companies growing there can hire Shield GEO to employ and pay their personal staff on their behalf.
Shield GEO makes the legal commitment of these workers, becoming the registry employee, supporting them with work permits, complying with the local labor law and executing their payroll every month.
How to use Shield GEO as employer of record in the EAU?
Companies may say use their resources or a global employment organization to manage job and payroll duties.
A GEO alternative is a benefit when the company wants to organize an office quickly at a comfortable price.
On the other hand, the complexity of the labor regulations in the UAE causes the use of a GEO to be recommended to ensure compliance with the labor regulations, including the drafting of contracts for employees’ work premises.
The growing EAU company has contracts with GEO to hire and pay its employees on their behalf. Subsequently, the GEO has the legal responsibility of these workers, supporting them with work permits if required, respecting labor laws and executing the payroll monthly.
Above all, it is useful for meeting specific retention requirements for pensions and benefits, and also for recording completion, trial periods, and managing licenses.
What does an employer of record include in payrolls?
§ Includes the cost of registration management for the employer and monthly payroll prices.
§ Doesn’t include payroll or income taxes.
§ Employers ‘and workers’ social security is only applied to local workers.
§ The current currency is the Emirate Dirham (AED).
§ No social security of employers or workers for foreigners in EAU.
§ Doesn’t require tax returns.
§ Corporate tax requirements aren’t applicable.
§ Social security employer and legal contribution is not available to foreigners.
§ 12.5% pension contribution for local employees
§ Provides $ 5 of the pension contributions of local employees.
What are the insurance requirements?
o Private medical insurance is recommended.
o You can provide private medical care.
o It’s possible to guarantee private health insurance.
o Attend to provide bank accounts.
What do you need to know about the work permit?
- It’s possible to sponsor the work permit. GE Shield GEO also sponsors foreign employees with work visas that allow them to work in the EAU.
- As a registered employer, Shield GEO manages all procedures and employment requirements.
- The clientele continues with the commitment to the daily management of its workers.
- The work permit is priced at $ 3,500.
- The work permit can be processed between 2-4 weeks, all depending on the origin of the employee.
How’s the work permit processed?
Shield Geo must show a request for quota approval. When approved, the job entry visa is applied for through the EAU immigration authorities.
Then the employee can enter the EAU, so that Shield GEO manages the required medical and biomedical tests. A day later, the medical evaluation will be ready with its stamp on the workers’ passport. It’s at this time that the workers have permission to work in the country.
To request the Emirati ID card, you must spend 2-4 weeks waiting and then it will be issued.
The required documents are: Title, Diploma, professional certificate, copy of the personal page of the passport and a photo of it.
Is it possible to process the work permit in the country?
Everything will depend on nationality, so it’s recommended that the process be completed long before entering the EAU.
Can the business visa be changed to the work permit?
The answer is no. However, some people of certain nationalities can change from a Visa to a work permit without leaving the EAU.
Is it possible for the spouse to work with a dependent visa?
The spouse doesn’t need to have a work authorization, but with a spouse visa you can change to a work permit without having to leave the UAE.
What’s required to know about the business visa?
§ It’s possible to obtain it.
§ The price is $ 450.
§ It takes between 5-10 days to process depending on the consulate.
How does the payroll and taxes work in the EAU?
There are very clear rules for payroll and taxes in the EAU that will depend on whether your company hires nationals or foreigners. In general, they have few corporate tax problems since there are no individual income taxes for personnel, nor social security for those who left the country, nor payroll taxes, nor legal pension contributions, nor withholdings.
What is a remote payroll?
This is when a foreign, non-resident company pays wages to employees residing in the EAU. To do this, they use a GEO service that will focus and pay the worker on their behalf.
How are payrolls administered locally by the employer of record?
Sometimes companies are registered in the EAU, but they prefer to have their payroll handled by another company and a payroll provider can do this. But the company that functions as the employer of record still has full responsibility for complying with employment, immigration, tax and payroll regulations. As for what has to do with payments, payroll calculations can be subcontracted by the payroll provider.
In conclusion, the services that a employer of record in Dubai can provide are truly multiple. This outsourcing can facilitate and optimize the workforce performance within any company. The pros and cons involved in decision making are worth considering to determine if outsourcing is the best alternative for the employing organization.