The United Arab Emirates (UAE) has established itself as a global hub for finance, technology, tourism, and innovation. Its cities — Dubai and Abu Dhabi in particular — attract multinational corporations and top-tier talent from across the world. With a workforce made up of more than 85% expatriates, the UAE offers access to diverse skills, multilingual professionals, and world-class expertise in sectors like banking, engineering, healthcare, and IT.

For global employers, the UAE provides an attractive environment with zero personal income tax, modern infrastructure, and progressive labor reforms that increasingly favor employee well-being. However, employment law remains heavily regulated, with requirements around visas, gratuity payments, and strict sponsorship rules under the UAE Labour Law (Federal Decree-Law No. 33 of 2021). Setting up a local entity can also be complex, particularly with distinctions between mainland companies, free zone companies, and offshore entities.

Many international businesses simplify entry into the UAE market by partnering with an Employer of Record (EOR). With Gloroots as your Employer of Record in the UAE, companies can hire talent compliantly without the administrative burden of establishing a local entity. Gloroots ensures visa compliance, payroll management, and statutory benefits, allowing you to focus on scaling your team in one of the world’s most dynamic business hubs.

Looking to hire in the UAE? Contact us to simplify your hiring process and enter the market quickly.

What are the key facts about UAE’s economy and workforce?

The UAE has one of the most diversified economies in the Gulf region. While oil and gas historically shaped its economic foundation, sectors such as finance, real estate, aviation, logistics, technology, and tourism now drive much of the country’s GDP. Dubai has positioned itself as a global tech and innovation hub, while Abu Dhabi continues to lead in energy, finance, and industrial development.

The workforce composition in the UAE is unique, with expatriates making up the vast majority — over 85% of the total population. This creates a highly multicultural professional environment, where English is widely used as the business language, alongside Arabic. Skilled professionals from South Asia, Europe, North America, and the wider Middle East form the backbone of industries such as construction, IT services, healthcare, and education.

Government initiatives such as Emiratization encourage the hiring of UAE nationals, particularly in public sector and strategic industries. Meanwhile, the private sector continues to rely on expatriate talent, offering businesses a wide pool of highly mobile, globally minded professionals.

With its zero personal income tax regime, robust infrastructure, and ongoing labor reforms, the UAE remains one of the most attractive markets for global employers. However, strict visa regulations, end-of-service gratuity rules, and sponsorship requirements make compliance essential for smooth operations.

Partnering with Gloroots as an Employer of Record in the UAE enables companies to tap into this diverse workforce while ensuring full compliance with local employment and immigration laws.

UAE Workforce Snapshot

What is the work culture and talent pool like in the UAE?

The UAE’s work culture reflects its multicultural workforce, blending traditional Middle Eastern values with international business practices. The workplace environment is typically hierarchical, with clear respect for authority and decision-making concentrated at the top. However, in multinational companies and startups, structures are often flatter, encouraging collaboration and innovation.

Cultural values such as respect, hospitality, and relationship-building play a key role in business interactions. Networking and trust-building are crucial, especially in local Emirati-owned businesses. At the same time, the presence of professionals from South Asia, Europe, and North America has introduced global business norms, making the UAE one of the most adaptable work environments in the region.

From a talent perspective, the UAE has become a magnet for finance specialists, IT engineers, healthcare professionals, architects, and logistics managers. Dubai leads in technology, fintech, and logistics, while Abu Dhabi attracts talent in energy, finance, and government sectors. Sharjah and other emirates contribute talent in education, manufacturing, and creative industries.

The government’s Emiratization program requires companies in certain sectors to hire a minimum number of UAE nationals, which impacts workforce planning. Employers must balance compliance with Emiratization quotas while also leveraging the expatriate talent pool that powers most private sector industries.

With Gloroots as your Employer of Record in the UAE, you gain access to HR expertise that helps you navigate both cultural nuances and evolving Emiratization requirements, ensuring smooth hiring and employee engagement.

Q. What is the process of setting up an entity in the UAE?

Setting up a business entity in the UAE requires careful consideration of jurisdiction, licensing, and regulatory compliance. Companies can establish themselves in either the mainland (onshore) or in one of the country’s many free zones, each with its own rules and benefits.

1. Choose Jurisdiction
   • Mainland (onshore companies): Can operate across the UAE market but may require a local service agent or compliance with Emiratization quotas.
   • Free Zone companies: Offer 100% foreign ownership, tax benefits, and simplified procedures but restrict operations mainly within the free zone or internationally (not directly in the UAE mainland without a distributor).
2. Select Business Structure
   • Common structures include Limited Liability Company (LLC), Branch Office, or Free Zone Entity.
3. Register Trade Name and Activities
   • Approval is required from the Department of Economic Development (DED) for mainland entities, or relevant free zone authority for free zone companies.
4. Obtain Initial Approvals and Licenses
   • Necessary licenses (e.g., commercial, professional, or industrial) must be obtained, along with relevant approvals for regulated activities like healthcare or finance.
5. Lease Office Space
   • Most registrations require proof of a physical office lease, even for small setups.
6. Visa & Immigration Registration
   • Employers must register with the Ministry of Human Resources & Emiratisation (MOHRE) and the General Directorate of Residency and Foreigners Affairs (GDRFA) to hire employees.
7. Bank Account & Tax Registration
   • Companies must open a corporate bank account and register for VAT if annual turnover exceeds the threshold (AED 375,000).

Entity setup in the UAE is resource-intensive, often requiring 2–3 months and local expertise. With Gloroots as your Employer of Record in the UAE, you can bypass this entire process and hire employees compliantly within days, without setting up a local entity.

Q. What are the main benefits of using Gloroots as an Employer of Record in the UAE vs setting up your own entity?

Hiring in the UAE offers access to a vast international workforce, but setting up and maintaining a local entity can be time-consuming, costly, and compliance-heavy. Employers must navigate immigration laws, Emiratization requirements, social insurance obligations, and free zone vs mainland rules — all of which demand significant resources and local expertise.

By working with Gloroots as your Employer of Record in the UAE, you can skip entity setup and still build a compliant workforce. Gloroots becomes the legal employer, managing visas, contracts, payroll, and benefits, while you retain full control over employees’ day-to-day work. This model enables faster market entry, reduced overhead, and stronger compliance assurance.

Benefits: Direct Entity vs. Gloroots EOR in the UAE

Q. What are the key employment laws in the UAE that employers should know?

The UAE operates under the Federal Decree-Law No. 33 of 2021 (UAE Labour Law), which governs employment relations in both mainland and free zones (with some free zones having additional regulations, such as DIFC and ADGM). Employers must be diligent in drafting contracts, managing working hours, and ensuring compliance with leave and benefits entitlements.

Here are the key areas employers should be aware of:

• Employment Contracts
  • All employees must have a written employment contract, specifying role, salary, working hours, and entitlements.
  • Fixed-term contracts (up to 3 years, renewable) are now standard across the UAE.
• Working Hours
  • The maximum working hours are 48 hours per week (8 hours/day, 6 days/week).
  • During Ramadan, working hours are reduced by 2 hours daily for all employees.
• Overtime
  • Overtime is capped at 2 hours per day and must be compensated at 125% of the basic wage, or 150% if performed between 10 pm and 4 am.
  • Senior management and certain exempt categories are not entitled to overtime.
• Minimum Wage
  • No national minimum wage is set, but wages must be “sufficient to meet employee basic needs.” Free zones and contracts often set competitive minimums in practice.
• Annual Leave
  • Employees are entitled to 30 calendar days of paid annual leave after completing one year of service.
  • Pro-rata leave accrues for employees with less than one year of service.
• Sick Leave
  • Employees are entitled to 90 days of sick leave per year, with:
    • First 15 days: full pay
    • Next 30 days: half pay
    • Final 45 days: unpaid
• Maternity & Paternity Leave
  • Female employees are entitled to 60 days of maternity leave (45 days fully paid, 15 days half pay).
  • Fathers are entitled to 5 working days of paid paternity leave, to be taken within 6 months of the child’s birth.

With Gloroots as your Employer of Record in the UAE, you don’t need to navigate these rules alone. We ensure all contracts, payroll, and leave entitlements are fully compliant with UAE law, while also helping you design competitive benefits packages for global talent.

Employment Law: Direct Entity vs. Gloroots EOR in the UAE

Q. What types of work visas are available in the UAE, and how can Gloroots help?

The UAE requires all foreign nationals to hold a valid work visa and residence permit to be employed legally. These visas are tied to employment contracts and typically require employer sponsorship through either a mainland entity or a free zone authority. With ongoing immigration reforms, professionals now have more flexible visa options.

Main Types of Work Visas in the UAE

1. Standard Work Visa (Employer-Sponsored)
   • The most common visa for employees hired by a UAE-based company (mainland or free zone).
   • Valid for 2 years (mainland) or 3 years (free zones), renewable.
   • Requires an offer letter, employment contract, labor card, and medical fitness certificate.
2. Green Visa (for Skilled Professionals & Freelancers)
   • Designed for highly skilled workers, freelancers, and self-employed professionals.
   • Does not require employer sponsorship.
   • Valid for 5 years, with flexible sponsorship of family members.
3. Golden Visa (Long-Term Residency)
   • Targeted at investors, entrepreneurs, exceptional talents, scientists, and outstanding students.
   • Valid for 10 years, renewable.
   • Provides long-term residency security, with eligibility extending to family members.
4. Mission Work Permit (Temporary)
   • Short-term visa (up to 6 months) issued for employees engaged in specific projects or temporary work.
   • Useful for project-based hiring, consultants, or short contracts.
5. Free Zone Employment Visa
   • Issued by specific free zone authorities (e.g., DIFC, JAFZA, ADGM).
   • Typically valid for 2–3 years.
   • Streamlined process but employees are restricted to working within the free zone unless otherwise approved.

How Gloroots Helps with UAE Work Visas

Navigating UAE visa laws can be complex, particularly with differences between mainland and free zones, as well as Emiratization quotas for certain roles. Employers sponsoring visas directly must set up an entity, register with immigration authorities, and handle renewals — all of which add significant administrative overhead.

With Gloroots as your Employer of Record in the UAE:

• We sponsor your employees’ work and residence visas under our local entity.
• We manage end-to-end immigration compliance, from application to renewal.
• We ensure adherence to evolving rules (such as Emiratization quotas and labor law changes).
• We help you choose the right visa type (e.g., standard work visa vs. Green Visa) based on your hiring needs.
• We support family visa sponsorship for expatriate employees where applicable.

This means you can focus on hiring the best talent in the UAE, while Gloroots ensures every employee is legally employed, compliant, and fully supported.

Q. What are the risks of misclassification in the UAE?

In the UAE, hiring workers as independent contractors instead of employees may seem attractive for cost and flexibility, but it carries significant compliance risks. Under UAE Labour Law (Federal Decree-Law No. 33 of 2021), the line between an “employee” and a “contractor” is strict. Misclassifying employees as contractors to avoid payroll, visa sponsorship, or benefits obligations can lead to penalties, fines, and reputational damage.

Criteria for Misclassification in the UAE

Authorities typically consider a worker an “employee” if:

• The company controls their working hours, location, and methods of work.
• The individual is financially dependent on the company (primary or sole income source).
• The worker uses company tools, systems, or offices to perform their duties.
• There is a continuing relationship resembling employment rather than a project-based contract.

If these conditions are met, the worker should be classified as an employee, not a contractor.

Penalties for Misclassification

• Fines: Companies can face monetary penalties from the Ministry of Human Resources & Emiratisation (MOHRE).
• Visa Violations: Contractors working without valid employment visas risk deportation, and employers may face immigration penalties.
• Back Payments: Employers may be liable for unpaid salaries, leave, and end-of-service gratuity.
• Reputational Risks: Misclassification disputes can affect employer branding in a competitive talent market like the UAE.

Gloroots helps you avoid these risks by offering compliant hiring solutions. Through our Employer of Record in the UAE, we ensure proper worker classification, issue compliant contracts, and manage payroll and benefits in full alignment with UAE labor law.

Misclassification Risk: Direct Entity vs. Gloroots EOR in the UAE

Q. How does an EOR help you run payroll in the UAE?

Running payroll in the UAE requires navigating a mix of wage protection rules, statutory contributions, and immigration-linked obligations. While the UAE does not impose personal income tax, employers must still comply with government reporting requirements, end-of-service gratuity laws, and the Wage Protection System (WPS) — an electronic salary transfer system mandated by the Ministry of Human Resources & Emiratisation (MOHRE).

Payroll Compliance Requirements in the UAE

• Salary Payments via WPS
  • All employee salaries must be processed through the Wage Protection System, ensuring timely and accurate payments in UAE dirhams (AED).
  • Non-compliance can result in fines, business license suspension, and visa issuance restrictions.
• Social Security & Pensions
  • Mandatory for UAE and GCC nationals (contributions between 12.5%–20% of salary, with employers paying the majority).
  • Expatriates are not covered under UAE social security, but employers must provide end-of-service gratuity.
• End-of-Service Gratuity
  • All employees (expatriate and local) are entitled to gratuity pay at the end of employment.
  • Calculated as 21 days’ basic salary per year for the first 5 years of service, and 30 days’ salary per year thereafter, capped at 2 years’ wages.
• Leave & Benefits
  • Employers must pay salaries during annual leave, maternity/paternity leave, and sick leave as per labor law.
• Taxation
  • While there is no personal income tax, companies must stay compliant with corporate tax (9% from 2023 onwards for profits above AED 375,000) and VAT if applicable.

How Gloroots Simplifies Payroll in the UAE

Managing these rules directly can be complex for foreign employers, particularly those without a registered entity. With Gloroots as your Employer of Record in the UAE:

• We process salaries through WPS to ensure full compliance with UAE law.
• We handle end-of-service gratuity calculations and ensure proper settlement at termination.
• We manage mandatory pension contributions for Emirati and GCC nationals.
• We integrate leave entitlements and benefits directly into payroll.
• We provide transparent payroll reporting to employers while ensuring confidentiality for employees.

This allows global companies to focus on operations while Gloroots ensures seamless, compliant payroll in the UAE.

Payroll in the UAE: Direct Entity vs. Gloroots EOR

Q. How does tax compliance work in the UAE?

The UAE is globally recognized for its zero personal income tax policy, making it an attractive destination for employers and employees alike. However, companies must still manage corporate tax, VAT, social security (for UAE/GCC nationals), and end-of-service gratuity obligations. Compliance with these requirements is essential for maintaining good standing with UAE authorities.

Key Tax Features in the UAE

• Personal Income Tax
  • No personal income tax for residents or expatriates.
  • Employees take home their full salary, making the UAE a competitive talent destination.
• Corporate Tax
  • Introduced in 2023, corporate tax applies to business profits above AED 375,000.
  • Tax rate: 9% for taxable income above the threshold; 0% for profits below AED 375,000.
  • Certain free zones offer tax exemptions for qualifying activities.
• Value-Added Tax (VAT)
  • VAT at 5% applies to most goods and services.
  • Businesses must register if annual turnover exceeds AED 375,000.
• Social Security Contributions
  • Mandatory only for UAE and GCC nationals.
  • Employer contribution: 12.5%–15% of gross salary (varies by emirate).
  • Employee contribution: 5% of gross salary.
  • Expatriates are exempt but entitled to end-of-service gratuity.
• End-of-Service Gratuity
  • Serves as a substitute for pensions for expatriates.
  • Employers must pay gratuity at termination:
    • 21 days’ basic salary per year of service (first 5 years).
    • 30 days’ salary per year of service thereafter (capped at 2 years’ wages).

UAE Tax Compliance: Direct Entity vs. Gloroots EOR

Q. What benefits and entitlements do employees in the UAE receive?

The UAE offers a comprehensive statutory benefits framework under the UAE Labour Law (Federal Decree-Law No. 33 of 2021). While expatriates and Emirati employees are subject to different benefit structures, all employees enjoy strong protections around leave, severance, and workplace rights. Many employers also go beyond statutory requirements by offering housing allowances, transportation benefits, and private health insurance to remain competitive in the UAE’s global talent market.

Core Statutory Benefits in the UAE

• Annual Leave
  • Employees are entitled to 30 calendar days of paid annual leave after completing one year of service.
  • Pro-rata entitlement applies if service is less than one year.
• Public Holidays
  • Employees are entitled to official public holidays, including National Day, Eid al-Fitr, Eid al-Adha, and other government-declared holidays.
• Sick Leave
  • Employees are entitled to 90 days per year, broken down as:
    • First 15 days: full pay
    • Next 30 days: half pay
    • Final 45 days: unpaid
• Maternity Leave
  • Female employees receive 60 days of maternity leave (45 days at full pay, 15 days at half pay).
  • Additional unpaid leave of up to 45 days is allowed if the mother falls ill due to pregnancy/childbirth.
• Paternity Leave
  • Fathers are entitled to 5 working days of paid paternity leave, to be taken within 6 months of the child’s birth.
• Health Insurance
  • Mandatory in Abu Dhabi and Dubai, where employers must provide private health insurance for employees and their dependents.
  • In other emirates, it is standard practice for employers to provide health coverage.
• End-of-Service Gratuity
  • Expatriate employees receive a lump sum upon termination:
    • 21 days’ basic wage per year (first 5 years).
    • 30 days per year thereafter (capped at 2 years’ wages).

Benefits & Entitlements: Direct Entity vs. Gloroots EOR in the UAE

Q. What’s involved in hiring and onboarding employees in the UAE?

Hiring and onboarding in the UAE is a compliance-driven process that integrates employment contracts, visa sponsorship, and labor law requirements. Both mainland and free zone authorities require strict documentation and approvals before an employee can legally begin work.

Key Steps in Hiring & Onboarding Employees in the UAE

1. Offer Letter & Employment Contract
   • Employers must issue a written employment contract approved by the Ministry of Human Resources & Emiratisation (MOHRE) for mainland hires, or the respective free zone authority for free zone hires.
   • Contracts must specify job title, compensation, benefits, and termination conditions.
2. Visa & Immigration Processing
   • Employees must have a valid work permit and residence visa before commencing employment.
   • This process requires medical checks, Emirates ID registration, and entry permits for expatriates.
3. Work Permits & Labor Cards
   • Employers must register employees with MOHRE or the free zone labor authority.
   • Labor cards and residency permits are linked to employment contracts.
4. Payroll & Benefits Setup
   • Employees must be registered under the Wage Protection System (WPS) to ensure timely salary payments.
   • Employers must also arrange health insurance (mandatory in Abu Dhabi and Dubai) and enroll eligible Emirati employees in the social security system.
5. Probation Period
   • Employees may be placed on a probation period of up to 6 months, during which either party may terminate employment with shorter notice periods.
6. Onboarding & Integration
   • Culturally, onboarding in the UAE emphasizes relationship-building and orientation, given the diverse workforce.
   • Employers often provide relocation support, housing allowances, and family sponsorship guidance to expatriates.

With Gloroots as your Employer of Record in the UAE, this entire process is simplified. We handle compliant contracts, visa sponsorship, payroll enrollment, and benefits setup — enabling you to focus on integrating employees into your teams rather than managing administrative tasks.

Hiring & Onboarding: Direct Entity vs. Gloroots EOR in the UAE

Q. How do you successfully manage a workforce in the UAE?

Managing a workforce in the UAE requires balancing cultural sensitivity, compliance with labor laws, and competitive employee engagement strategies. With a workforce composed of more than 85% expatriates, employers must navigate a multicultural environment while also adhering to Emiratization policies that mandate the hiring of UAE nationals in certain industries.

Key Considerations for Workforce Management in the UAE

• Cultural Sensitivity & Inclusivity
  • The UAE workplace is highly diverse, with employees from Asia, Europe, North America, and the Middle East.
  • Respect for religious and cultural practices (e.g., flexible working hours during Ramadan, cultural holidays) is critical to employee satisfaction.
• Compliance with Labor Laws
  • Employers must monitor working hours (48 hours per week), leave entitlements, and end-of-service gratuity obligations.
  • The Wage Protection System (WPS) requires timely payroll processing.
• Emiratization Policies
  • Certain sectors, especially finance and government, are subject to Emiratization quotas, requiring employers to maintain a minimum percentage of Emirati staff.
  • Compliance is strictly monitored, and non-adherence can lead to penalties or restrictions on visa issuance.
• Employee Engagement & Benefits
  • Competitive packages often include housing allowances, transport, education benefits for dependents, and health insurance.
  • Retention strategies should account for the highly mobile expat workforce, with many professionals relocating for better offers.
• Workplace Practices
  • While decision-making is often hierarchical, modern multinational companies encourage collaborative styles.
  • Building trust and strong relationships is essential for employee loyalty.

With Gloroots as your Employer of Record in the UAE, you gain a partner who manages compliance, payroll, and Emiratization requirements while helping you design globally competitive yet locally compliant employee engagement strategies.

Managing Workforce: Direct Entity vs. Gloroots EOR in the UAE

Q. What are the key steps and requirements in terminating employees in the UAE?

Termination of employment in the UAE must comply with the UAE Labour Law (Federal Decree-Law No. 33 of 2021), which sets out clear rules to protect both employees and employers. Unlike some jurisdictions where termination is “at will,” in the UAE, dismissals must be justified, documented, and compliant with contractual and statutory requirements.

Key Termination Requirements in the UAE

• Termination Process
  • Grounds for termination include poor performance, misconduct, redundancy, or expiry of a fixed-term contract.
  • Employers must provide written notice and settlement of all end-of-service entitlements.
• Notice Period
  • Standard notice is 30 to 90 days, depending on the employment contract.
  • During probation, notice can be 14 days if initiated by the employer.
• Severance Pay (End-of-Service Gratuity)
  • Employees are entitled to gratuity payments upon termination, unless dismissed for gross misconduct.
  • Calculation:
    • 21 days’ basic wage per year of service (first 5 years).
    • 30 days’ basic wage per year of service thereafter (capped at 2 years’ wages).
• Probationary Period
  • Employers may terminate with 14 days’ notice during probation, but reasons must be documented.
• Documentation
  • Employers must issue a service certificate, final settlement letter, and provide cancellation of the work visa and Emirates ID.
• Unlawful Termination Risks
  • Arbitrary dismissal claims can result in compensation awards of up to 3 months’ gross salary.

Gloroots helps employers navigate this sensitive process by ensuring lawful terminations, accurate gratuity settlements, and timely visa cancellations, reducing the risk of disputes or penalties.

Termination in the UAE: Direct Entity vs. Gloroots EOR

Q. What is the offboarding process in the UAE?

The offboarding process in the UAE involves more than just ending the employment relationship — it requires careful handling of legal, financial, and immigration-related obligations. Proper offboarding ensures employees receive their entitlements, visas are cancelled in compliance with UAE laws, and the employer maintains a positive reputation.

Key Steps in Offboarding Employees in the UAE

1. Final Payroll & Settlements
   • Employers must pay all outstanding wages, accrued leave, and end-of-service gratuity on or before the last working day.
   • Any deductions or adjustments must be documented and signed off by both parties.
2. Visa & Immigration Compliance
   • Employers must cancel the employee’s residence visa, work permit, and Emirates ID with MOHRE and the General Directorate of Residency and Foreigners Affairs (GDRFA).
   • Failure to cancel visas can result in penalties and prevent new visa applications.
3. Service Certificate & Documentation
   • Employees are entitled to a service certificate, which outlines their role, service period, and conduct.
   • Employers must also issue a final settlement letter for record-keeping.
4. Return of Company Property
   • Employees must return laptops, ID cards, access badges, and other company assets.
   • Access to company systems and accounts must be revoked.
5. Exit Interviews & Knowledge Transfer
   • Many employers conduct exit interviews to ensure a smooth knowledge transfer and gather feedback.
   • This is especially important in the UAE’s project-driven industries, where continuity matters.
6. Repatriation Support (Optional)
   • Some employers provide relocation support or airfare for expatriates returning to their home country, especially when included in contracts.

Gloroots streamlines the offboarding process by ensuring timely settlements, compliant visa cancellations, and employee entitlements, while also supporting employers in handling exit interviews and reputation management.

Offboarding in the UAE: Direct Entity vs. Gloroots EOR

Q. What costs and financial planning do you need with an Employer of Record in the UAE?

Hiring in the UAE requires employers to plan beyond base salaries. While employees enjoy a tax-free income, companies must budget for end-of-service gratuity, visa and immigration fees, health insurance, and Emiratization compliance costs. For companies setting up their own entity, additional expenses such as licensing, office rental, payroll systems, and compliance staff add to the financial burden.

Key Cost Considerations for Employers in the UAE

• Base Salary & Allowances
  • Compensation packages often include housing, transportation, and education allowances for expatriates.
  • Employers also typically provide biannual airfare allowances for expatriates to visit home.
• Visa & Immigration Costs
  • Employers cover the cost of work visas, residence permits, Emirates ID, and renewals.
  • Fines apply for delays in visa processing or cancellations.
• Health Insurance
  • Mandatory in Dubai and Abu Dhabi; employers must provide coverage for employees and, in some cases, dependents.
• End-of-Service Gratuity
  • Employers must budget for gratuity payouts (21–30 days’ salary per year, capped at 2 years’ wages).
• Social Security Contributions
  • Mandatory only for Emirati and GCC nationals (employer ~12.5%–15%, employee 5%).
• Administrative Overheads (Direct Entity only)
  • Licensing fees, office rental, payroll software, and compliance/legal costs.

With Gloroots as your Employer of Record in the UAE, these costs become predictable and transparent. Our EOR fees cover visa sponsorship, payroll compliance, and statutory benefits, enabling companies to plan budgets with certainty while avoiding hidden overhead.

Cost Planning: Direct Entity vs. Gloroots EOR in the UAE

Q. What challenges might you face, and how do you solve them using EOR in the UAE?

The UAE is an attractive market for global employers, but its legal, cultural, and operational environment presents unique challenges. From visa restrictions to Emiratization requirements, companies often face hurdles that slow down hiring or create compliance risks.

Common Challenges in Managing a Workforce in the UAE

1. Complex Immigration & Visa Rules
   • Employers must sponsor work visas and residence permits, and delays can lead to fines or restrictions.
2. Emiratization Quotas
   • Certain sectors (e.g., banking, insurance, government contracts) mandate minimum hiring levels of UAE nationals. Non-compliance can lead to penalties or limitations on new visas.
3. Wage Protection System (WPS) Compliance
   • Salaries must be processed through WPS in UAE dirhams. Delays or errors can result in suspended work permits or business licenses.
4. High Administrative Burden
   • Managing contracts, payroll, and benefits requires coordination with MOHRE, free zone authorities, and the Federal Tax Authority.
5. Retention of Expat Talent
   • With a highly mobile expatriate workforce, retention is challenging. Competitive packages, relocation support, and family benefits are key to employee loyalty.

How Gloroots EOR Solves These Challenges

Gloroots makes expansion into the UAE seamless by acting as your local Employer of Record. We:

• Manage visa sponsorship and immigration compliance, avoiding costly delays.
• Ensure adherence to Emiratization quotas, helping you meet legal obligations.
• Process payroll via the WPS and ensure accurate compliance with end-of-service gratuity rules.
• Provide global employee benefits like health insurance, allowances, and relocation support.
• Offer a scalable model that allows quick hiring without entity setup, while minimizing compliance risk.

Challenges in the UAE: Direct Entity vs. Gloroots EOR

Conclusion

The UAE offers global employers access to a world-class, multicultural workforce, zero personal income tax, and thriving industries ranging from finance and logistics to technology and renewable energy. However, employers face challenges such as complex visa rules, Emiratization quotas, WPS compliance, and end-of-service gratuity obligations.

With Gloroots as your Employer of Record in the UAE, you can hire top talent quickly and compliantly — without the costs and delays of setting up a local entity. We manage payroll, benefits, visas, and compliance, so you can focus on growing your business in one of the world’s most dynamic markets.

Gloroots makes global hiring in the UAE simple, compliant, and scalable.