United Arab Emirates – Employer of Record

Hiring in the United Arab Emirates

The UAE is home to 45 free trade zones, over 30 of which are in Dubai; each of which is run by a separate free zone authority. Traditionally, businesses in the UAE would create a subsidiary or branch in Abu Dhabi, Dubai, or one of the free zones in order to sponsor or gain access to work visas and then hire personnel. Working with Connect Resources will give you access to talent in the UAE without establishing branch offices or subsidiaries.

Workers in the UAE must be sponsored for the appropriate visa, either by their company if they are employed on the mainland; or by the appropriate free trade zone authorities if they are employed by a company in a free zone.

To get a visa for its employees, employers must possess the necessary business licenses. Employees must not work without a visa, or they will be banned from the region and the employer will be banned from conducting business in the UAE. Our team can handle the processing of all visa requests for the expat employees working with our clients

On the UAE’s mainland, employment is governed by the UAE Labour Law. When an employee works in a free zone, the employee’s employment is governed by the employment legislation that the free zone authority there adopts. However, this law may differ from the UAE Labour Law. Consequently, employees must abide by the laws and restrictions of their local free zone authorities.

Employment Contracts in the UAE

A legal contract is necessary in order to file a sponsorship visa application. Consequently, businesses must set up a solid, written contract that outlines the conditions of the employee’s pay, benefits, and severance requirements in both Arabic and English.

Moreover, the contracts must specify the wage and any other remuneration in UAE Dirham (AED) rather than a foreign currency. We will provide strong employment contracts that comply with local laws and protect our customers’ intellectual property.

Working Hours in the UAE

The typical work week in the UAE is 40 hours from Monday through Friday. According to the demands and specifications of the job tasks, actual work hours may vary. In the UAE, the longest possible workday is eight hours, or 48 hours per week. A 4 and a half-day workweek is now the standard for the federal government of the UAE. Additionally, the set weekends are on Saturdays and Sundays.

Employees can request overtime in accordance with UAE labor law, subject to receiving prior authorization. The worker has the right to a substitute rest day or pay equal to the normal working hours’ compensation (which depends on basic salary); plus 50% of that pay, if the circumstances necessitate working on an off-day as defined in the labor contract or work laws.

Local laws mandate that working hours be cut by two hours each day during Ramadan.

Holidays in the UAE

There are 7 national holidays in the region and employers must provide full pay during these days.

Vacation Days in the UAE

According to the local laws, employees that have been working for a company for more than a year must obtain 30 days of vacation. If they do not use it, it carries forward to the next year.

Sick Leave in the UAE

Employees are eligible for up to 90 days of sick leave yearly if they have been working for over three continuous months. However, they will obtain the complete wage during the first two weeks; half wage during the following month and the remainder of the time would be without pay.

Parental Leave in the UAE

Pregnant employees must obtain 60 days of maternal leave; the first 45 days they will obtain their complete pay and during the last two weeks it would be without pay. On the other hand, fathers will obtain five days of paternity leave.

Insurance in the UAE

Insurance coverage is obligatory for foreign employees and optional but advisable for dependents. With us, companies can provide the right type of insurance for their employees.

Supplementary Benefits in the UAE

The Hajj is a yearly Islamic pilgrimage to Mecca, that Muslims must do at least once in their lives. Employees may obtain a one-time pilgrimage break of up to 30 days without compensation under UAE Labor Law.

Termination in the UAE

An employee who has completed one year or more of continuous service is eligible for severance or gratuity at the conclusion of their employment.

Taxes in the UAE

Since there are no company taxes in the UAE, we propose setting aside 8.3% of the employee’s pay as an End of Service Bonus or Gratuity.

Why choose us?

Opening a subsidiary in the UAE to hire a team can be time-consuming, costly, and difficult. It could also be unnecessary. Connect Resources can provide you with easy access to professionals in the UAE. Get in touch with us if you would like to explore how we can help your business in the UAE.