How to Hire Employees in UAE

The UAE presents one of the Middle East's most attractive hiring environments. Unemployment sits at 1.9%, among the world's lowest. Expatriates comprise 88.5% of the population, creating a multinational workforce of over 9.4 million workers spanning 200+ nationalities.

But market opportunity doesn't equal operational simplicity.

Early mistakes in visa sponsorship, employment contract structure, or Wage Protection System (WPS) compliance trigger penalties, work permit rejections, and Ministry of Human Resources and Emiratisation (MoHRE) sanctions that compound with scale.

 Hiring employees in the UAE requires: 

• Clarity on hiring models (mainland entity vs. free zone vs. EOR vs. contractor)
• Mandatory employer obligations under the UAE Labor Law
• Visa sponsorship requirements and quota systems
• End-of-service gratuity calculations
• Legal distinctions separating compliant employment from misclassification risk

This guide walks you through each step: choosing the right hiring model, understanding visa requirements, managing payroll and WPS compliance, navigating gratuity obligations, and avoiding compliance traps that catch unprepared employers off guard.

Core truth: Hiring employees in the UAE requires navigating visa sponsorship, labor law compliance, and emirate-specific regulations. One visa error or gratuity miscalculation costs more than doing ten hires correctly.

What Are Your Employment Options When Hiring in the UAE?

Before posting a job or sponsoring a visa, decide how you'll employ talent. Foreign companies typically choose between four models: establishing a mainland entity, setting up in a free zone, implications for visa sponsorship, compliance risk, cost structure, and operational control.

Local entity setup → means full legal presence in the UAE mainland. Register a local company partnering with an Employer of Record (EOR), or engaging contractors. Each has distinct (requires a UAE national sponsor for most activities), handles all employer obligations directly, including visa sponsorships, and bears complete liability.

EOR hiring → outsources employment compliance and visa sponsorship to a third-party legal employer while you retain operational control over daily work.

Contractor engagement → treats individuals as independent service providers, not employees. But only when the relationship genuinely reflects independence under UAE law.

The stakes extend beyond administrative burden. Misclassifying an employee as a contractor triggers back payments for gratuity, visa violations, and potential MoHRE bans. Setting up a mainland entity takes 4-8 weeks and costs AED 15,000-50,000+, depending on license type, office requirements, and sponsor arrangements. Free zones range from AED 10,000-25,000 with a faster 2-4 week setup, but carry ongoing renewal fees and visa quota limitations.

Choosing the wrong model doesn't just slow hiring. It creates legal exposure and operational bottlenecks that multiply with every visa application.

1. Hiring Through a Local Entity

Establishing a UAE mainland company gives you direct control over employment, visa sponsorship, payroll, and benefits administration. You become the legal employer and visa sponsor. Full responsibility for Labor Law compliance, WPS registration, visa processing, gratuity calculations, and MoHRE filings.

This model makes sense when:

• You're committing to long-term operations in the UAE
• You need to conduct business across all emirates without restrictions
• Hiring at scale (typically 15+ employees)
• You require physical office space for client-facing operations

The trade-off: mainland formation requires UAE national sponsorship for most activities (51% local ownership historically, though new rules allow 100% foreign ownership in certain sectors), ongoing PRO (Public Relations Officer) costs for visa processing, and substantial office lease commitments tied to visa quotas.

2. Hiring Through an Employer of Record (EOR)

An EOR becomes the legal employer and visa sponsor in the UAE while you direct the employee's day-to-day work. The EOR handles employment contracts, visa applications and renewals, Emirates ID processing, WPS registration, payroll processing, gratuity accrual, and MoHRE filings.

You maintain operational control. They absorb legal liability and sponsorship obligations.

EOR hiring suits:

• Companies testing the UAE market before committing to entity setup
• Scaling quickly (hires live in 3-4 weeks, including visa processing)
• Expanding into the UAE without establishing entities or managing visa quotas
• Hiring across multiple emirates without navigating jurisdiction differences

It's not a workaround. It's a legitimate employment model under UAE law, ideal when speed, compliance assurance, visa sponsorship capability, and low upfront cost matter more than direct entity ownership.

3. Hiring Independent Contractors

Contractors are appropriate for project-based work, specialized consulting, or genuinely independent engagements. UAE law distinguishes employees from contractors based on control, exclusivity, integration into business operations, and economic dependence. Not what the contract says.

Misclassification happens when companies treat contractors like employees:

• Setting their working hours and requiring office presence
• Providing equipment, workspace, and company email
• Directing how work is performed (not just deliverables)
• Maintaining exclusive working relationships
• Expecting ongoing availability beyond the defined project scope

Contractors cannot be sponsored on employment visas. They must hold their own residency (through family sponsorship, property ownership, or alternative visa routes). Using contractor agreements to avoid visa sponsorship while maintaining employee-like relationships creates significant legal exposure.

Local Entity Vs EOR Vs Independent Contractor: Side-by-Side Comparison

What Are The Legal Requirements for Hiring in the UAE?

UAE employment law is governed by Federal Decree-Law No. 33 of 2021 (UAE Labor Law), which came into force on February 2, 2022. This framework replaced the previous 1980 Labor Law and introduced significant changes, including unlimited contract types, flexible work arrangements, expanded anti-discrimination protections, and strengthened wage protection mechanisms.

The law applies to all private sector employees across the mainland UAE and most free zones (though some financial free zones like DIFC and ADGM maintain separate employment regulations with similar principles).

Key employer obligations:

• Obtain the appropriate trade license and the MoHRE establishment card
• Register employees with MoHRE before the employment start date
• Provide written contracts in Arabic (English translations acceptable alongside)
• Sponsor employment visas and residence permits
• Register with the Wage Protection System (WPS) for salary transfers
• Maintain accurate payroll records and employment files
• Withhold and remit applicable social security contributions (for UAE nationals)
• Comply with working time regulations (8 hours/day, 48 hours/week standard)
• Provide mandatory benefits, including annual leave, sick leave, and end-of-service gratuity

2026 updates expand flexible work options, enforce timely WPS salary payments, and extend labor claim timelines to two years. Employment is indefinite by default, with strict limits on probation periods based on contract type and duration.

MoHRE actively enforces compliance with inspections, online complaint filing, and penaltie,s including fines, permit suspensions, and hiring bans.

The presumption favors clear documentation and timely compliance, not employer discretion.

What Are the Employment Contract Rules in the UAE?

Written employment contracts are legally mandatory. Verbal agreements or unsigned documents carry no legal weight. The contract must be prepared in Arabic (bilingual Arabic-English contracts are standard practice) and registered with MoHRE before the employee begins work.

Contracts must clearly specify:

• Employer and employee details (full names, nationalities, passport information)
• Job title and detailed description of duties
• Employment start date
• Contract type (unlimited or limited-term)
• Workplace location and emirate
• Probation period (if applicable)
• Working hours and days
• Gross salary breakdown (basic salary + allowances)
• Benefits and entitlements
• Annual leave allocation
• Notice period for termination

Types of Employment Contracts

• Unlimited-term contracts are the default, and now the most common form following the 2021 Labor Law changes. They continue until lawfully terminated by either party with proper notice (typically 30 days minimum, up to 90 days maximum for senior roles).
• Limited-term contracts remain permitted for specific project-based work or temporary requirements. The maximum duration is two years, renewable by mutual agreement. If work continues beyond contract expiry without renewal, the contract automatically converts to unlimited-term status.
• Full-time employment follows standard 8-hour days, 48-hour weeks (reduced to 6 hours daily during Ramadan). Overtime is compensated at 125% of the hourly rate (normal hours) or 150% (night hours 9 pm-4 am).

Part-time and flexible work arrangements are now explicitly permitted under the 2021 Labor Law amendments, with proportional salary and benefits calculations.

Probationary clauses allow employers to assess new hires during the first three to six months, with simplified termination rules (shorter notice periods) during this window. Either party can terminate during probation with 14 days' notice (or one month if stipulated in the contract).

What to Include in an Offer Letter?

Employment offers must specify the job title, duties, reporting structure, work location (emirate and office address), and visa sponsorship commitment.

Essential contract elements:

• Gross monthly salary with a clear breakdown (basic salary minimum 50% of total for gratuity calculation purposes)
• Housing allowance (if provided)
• Transportation allowance (if applicable)
• Other allowances (education, mobile, performance bonuses)
• Working hours and weekly schedule
• Annual leave entitlement (minimum 30 calendar days per year after one year of service; 2 days per month during the first year)
• Sick leave provisions (90 days annually: first 15 days full pay, next 30 days half pay, remainder unpaid)
• Ticket allowance (economy class return ticket to home country annually for employee and eligible dependents)
• Medical insurance coverage details
• End-of-service gratuity calculation method
• Probation period terms
• Notice period requirements

Clarity matters. Ambiguous job descriptions, unclear salary breakdowns between basic and allowances, or vague benefit terms create disputes during performance reviews, gratuity calculations, or contract terminations. UAE courts and MoHRE mediations interpret contract ambiguities based on Labor Law standards and employee protection principles.

NDAs and Confidentiality Agreements

Confidentiality clauses are enforceable under UAE law, particularly when protecting trade secrets, client information, proprietary processes, or sensitive business data. Intellectual property (IP) created during employment typically belongs to the employer unless otherwise specified in the contract.

Post-employment non-compete clauses are valid but must be reasonable in scope, duration (typically 6-12 months, maximum 2 years for senior/specialized roles), and geography (usually limited to the UAE or specific emirates). Compensation during the restriction period is not legally required, but strengthens enforcement.

Overly broad non-competes risk being struck down as unenforceable. Courts assess reasonableness based on role seniority, access to confidential information, and potential business harm.

How Payroll Costs and Taxes Work in the UAE?

The UAE offers significant tax advantages compared to other global hiring markets. No personal income tax. No corporate tax on businesses earning below AED 375,000 (approximately USD 102,000) annually. Corporate tax rate of 9% on profits exceeding this threshold (effective June 2023).

However, "no income tax" doesn't mean zero employment costs beyond gross salary.

1. Payroll and Salary Structure in the UAE

Salaries are quoted and paid in UAE Dirham (AED). Compensation typically includes base salary, performance bonuses (if applicable), and mandatory benefits.

There is no general minimum wage in the UAE (except for UAE nationals in the private sector: AED 6,000/month effective January 2026). Market rates vary significantly by role, industry, and emirate:

• Entry-level administrative roles: AED 4,000-6,000/month
• Mid-level professionals: AED 10,000-20,000/month
• Senior managers/specialists: AED 25,000-50,000+/month
• Executive roles: AED 60,000-150,000+/month

Typical salary structure:

• Basic salary: 50-60% of total (minimum threshold for gratuity purposes)
• Housing allowance: 20-30%
• Transportation allowance: 5-10%
• Other allowances: remainder

2. Employer Payroll Obligations

For UAE Nationals: Employers contribute 12.5% of Emirati employees' gross salary toward pension and social security funds. UAE nationals also contribute 5% of their salary, with optional voluntary contributions up to 15%.

Total employer cost: 12.5% above gross salary for UAE national employees.

For Expatriate Employees: No mandatory social security contributions. However, employers in high-risk industries must provide workplace injury insurance (typically 1-2% of payroll) and end-of-service gratuity accrual.

3. Employee Tax Contributions

No personal income tax applies to employees in the UAE. Employees receive their gross salary minus any applicable social security contributions (UAE nationals only contribute approximately 5%).

Total employee deductions for expatriates: zero (full gross salary received).

4. Social Security Contributions

Both employer and employee contributions (for UAE nationals only) fund the UAE's pension and social security system through the General Pension and Social Security Authority (GPSSA).

Contributions are remitted monthly alongside gratuity accruals for expatriate employees.

5. Minimum Wage and Statutory Pay Requirements

Minimum wage for Emirati nationals in the private sector rises to AED 6,000 per month (about USD 1,633) effective January 2026, with compliance required by June 30.

No statutory minimum wage applies to expatriate employees. Employers cannot pay contracted amounts or delay payments beyond the month-end.

How Employers Pay Employees in the UAE?

1. Payment Methods

Salaries are paid via bank transfer to the employee's UAE bank account through the Wage Protection System (WPS). Cash payments are prohibited for WPS-registered employers.

Payslips must be provided electronically or in print, containing gross salary, deductions (if any), and net pay.

2. Salary Payment Frequency

Payroll runs monthly, with salaries due by the end of the month for work performed that month. The Wage Protection System (WPS) is a mandatory electronic salary payment system operated by the UAE Central Bank.

All employers must register with WPS and transfer employee salaries through WPS-registered banks or authorized exchange houses. Late payments beyond the grace period trigger penalties, including work permit suspensions and fines (AED 5,000-50,000 per violation).

Delays in payment breach labor law and give employees grounds for immediate contract termination without notice, plus filing complaints with MoHRE.

How To Onboard Employees in the UAE?

1. New Hire Onboarding Checklist

Register the employee with MoHRE before their first day. Process visa sponsorship (work permit, entry permit, medical fitness test, Emirates ID, residence visa). Provide signed employment contracts, company policies, role-specific training materials, and access to payroll/benefits systems.

Onboarding essentials:

• Submit the MoHRE work permit application
• Obtain work permit approval and entry permit
• Arrange employee travel to the UAE
• Complete medical fitness examination
• Apply for an Emirates ID
• Process residence visa stamping
• Open a UAE bank account
• Register the employee with the WPS system
• Sign and file the employment contract with MoHRE
• Provide company policies and role training
• Schedule workplace safety orientation
• Set up payroll and benefits access (medical insurance enrollment)
• Assign a direct manager and clarify expectations

Schedule orientation sessions covering workplace safety (mandatory under UAE occupational health regulations), data privacy policies, and reporting structures. Ensure the employee understands leave policies, overtime rules, and performance review timelines.

Total onboarding timeline: 3-4 weeks from offer acceptance to employee start date (including visa processing).

2. Required Employee Documentation

UAE labor and visa regulations require employers to collect specific employee documents at the time of onboarding. These records support visa processing, employment registration, payroll setup, and statutory compliance.

Documents you need from new hires:

• Valid passport (minimum 6 months validity) with an entry visa copy
• Recent passport-sized photographs (digital and physical)
• Educational certificates and transcripts (attested by the UAE Embassy in the issuing country and the MoFA in the UAE)
• Experience certificates from previous employers (attested if used for work permit qualification)
• Medical fitness certificate (obtained in the UAE after arrival)
• Emirates ID copy (upon issuance)
• UAE bank account details (for WPS salary transfers)
• Proof of UAE address (tenancy contract or hotel booking)
• Previous employment visa cancellation proof (if changing employers within the UAE)

Maintain signed copies of the employment contract, confidentiality agreements, acknowledgment of company policies, and visa documentation in the employee's personnel file. These documents become critical during MoHRE inspections or disputes.

What Are The Best Practices Of Interviewing and Hiring in the UAE?

UAE Labor Law prohibits discrimination based on race, color, gender, religion, national or social origin, disability, or any other form prohibited by law. Interview questions must focus on job-related qualifications, competencies, and work authorization status.

• Avoid questions about family planning, religious practices, ethnic origin (beyond work authorization confirmation), age (except minimum legal working age verification: 18 years), pregnancy plans, or disability (unless directly relevant to essential job functions).
• Data privacy matters. While the UAE doesn't have a comprehensive data protection legislation equivalent to the EU GDPR, Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) have GDPR-aligned data protection regimes. Candidate information must be collected with consent, stored securely, and deleted after the hiring process concludes (unless the candidate becomes an employee).
• UAE's workforce spans 200+ nationalities. Cultural intelligence matters in hiring processes. Communicate hiring timelines clearly (UAE hiring processes can be faster than Western markets: decisions often made within 1-2 weeks), provide prompt feedback after interviews, discuss compensation transparently, including salary breakdown and visa sponsorship terms, and respect religious observances (prayer times, Ramadan working hours) in interview scheduling.

With 72% of UAE professionals intending to seek new jobs in 2026 and 65% reporting harder job searches, candidate expectations are high despite a tight talent market. A sluggish or opaque hiring process signals organizational dysfunction.

Work Permits and Right to Work in the UAE

GCC nationals (citizens of Saudi Arabia, Kuwait, Bahrain, Oman, Qatar) do not require work permits or residence visas to work in the UAE. They register with MoHRE and receive immediate work authorization.

Non-GCC nationals need an employment visa sponsorship issued by the employer before starting work. The employer must sponsor the employee's residence visa, which includes work authorization.

Key considerations for non-GCC hires:

• Processing times: expect 3-4 weeks total (work permit approval 3-5 days, entry permit 2-3 days, medical and Emirates ID 1-2 weeks, residence visa stamping 3-5 days)
• Work permits and visas are tied to specific employers
• Changing jobs requires a new visa sponsorship from a new employer
• Employers must submit applications through the MoHRE portal
• Employee must maintain legal residence status
• Medical fitness test mandatory (screening for tuberculosis, HIV, hepatitis B/C)

Visa quotas apply: mainland companies receive allocations based on office size and business activity. Free zone companies face strict visa caps tied to office packages (flexi-desk: 1-3 visas, small office: 4-6 visas, etc.).

Hiring non-GCC nationals without valid work permits exposes employers to fines (AED 50,000 per violation) and reputational damage.

How Does Employment Termination Work in the UAE?

1. Lawful Grounds for Termination

Employers can terminate for cause (gross misconduct defined in Article 44 of Labor Law: assault, safety violations causing damage, fraud, disclosure of confidential information, conviction of crime involving dishonesty, excessive absenteeism, breach of contract) or without cause (for unlimited contracts with proper notice; for limited contracts only through mutual agreement, force majeure, or lawful grounds).

Termination for cause requires documented evidence and adherence to disciplinary procedures. Employees enjoy strong protections against unfair dismissal. Arbitrary terminations trigger severance claims and legal disputes.

2. Notice Periods

Notice periods depend on contract type and terms, typically 30-90 days for unlimited contracts. Limited contracts during probation require 14 days' notice minimum (or as specified, maximum 1 month). Limited contracts after probation cannot be terminated without cause except through mutual agreement or lawful grounds.

Both parties must provide written notice. Either party can waive notice by paying the salary instead of the notice period.

3. Severance Requirements

End-of-service gratuity is mandatory for all employees (except those terminated for gross misconduct). Calculation based on basic salary and length of service:

• First 5 years: 21 days of basic salary per year
• After 5 years: 30 days of basic salary per year
• Capped at 2 years' basic salary maximum

Employees completing less than 1 year receive no gratuity. Employees with 1-3 years of service receive one-third of the calculated amount. Employees with 3-5 years of service receive two-thirds. Employees with 5+ years of service receive the full calculated amount.

Unlawful termination compensation: If the court or MoHRE determines termination was unlawful, the employer must pay gratuity entitlement (full amount regardless of tenure), notice period wages (if not provided), compensation equal to 3 months' wages, and any outstanding wages or benefits.

Upon termination, the employer must provide final settlement within 14 days, including outstanding salary, accrued unused annual leave (encashed at basic salary rate), end-of-service gratuity (if eligible), notice period payment (if waived by the employer), and any other contractual entitlements.

Employer must cancel the employee's residence visa after employment ends. Employee has a 30-day grace period from visa cancellation to exit the UAE or change visa status. Overstaying after the grace period results in fines (AED 50 per day initially) and potential immigration bans.

Employee vs Contractor Classification in the UAE

UAE authorities assess classification based on control, integration, economic dependence, and contractual flexibility. Contracts labeled "independent contractor" or "freelance" mean nothing if the working relationship resembles employment.

Misclassification consequences include:

• Back payment of gratuity (full calculation from the start of the relationship)
• End-of-service benefits (all unpaid annual leave, ticket entitlements)
• Visa violations: fines for allowing work without proper sponsorship (AED 50,000 per person)
• Labor law violations: penalties up to AED 1 million for evading employer obligations
• Ministry bans: temporary or permanent prohibition from hiring new employees

The "one contractor won't attract attention" myth dies fast when an employee files a complaint with MoHRE claiming an employment relationship despite the contractor agreement.

What Compliance Risks Should Employers Know When Hiring in the UAE?

• Visa sponsorship violations (allowing employees to work without valid work authorization, hiring on visit visas, sponsoring for one role but assigning different work) result in AED 50,000 fines per violation, company bans from hiring, and potential criminal charges.
• WPS non-compliance (late salary payments, incorrect amounts not matching contract, failure to use the WPS system) triggers work permit suspensions, fines (AED 5,000-50,000 per violation), labor complaint investigations, and establishment card cancellation for repeat violations.
• Contract violations (unsigned contracts, Arabic-language requirement failures, missing mandatory clauses, terms violating Labor Law) create unenforceable employment relationships favoring employees in disputes.
• Gratuity miscalculation (underestimating liability, disputing legitimate claims, reducing basic salary percentage artificially, claiming misconduct without documentation, and refusing gratuity for employees with 1-5 years tenure) triggers employee complaints, MoHRE mediation, and court-ordered full payment plus interest and damages.
• Termination disputes arise when employers bypass proper procedures, fail to document performance issues, or miscalculate severance. UAE labor mediations and courts tilt toward employee protection. Weak documentation guarantees costly settlements.

With 48% of UAE companies planning to increase hiring in 2026, talent competition is intensifying. Compliance failures don't just cost money. They damage the employer brand in a tight labor market with unemployment at around 1.9%.

How an Employer of Record (EOR) Helps You Hire in the UAE?

An EOR eliminates entity formation delays, absorbs visa sponsorship complexity, and handles payroll, WPS registration, gratuity accrual, and benefits administration.

What you gain with an EOR:

• Speed: Hires go live in 3-4 weeks (including visa processing) instead of 4-8 months for entity setup
• Visa sponsorship: EOR handles work permit applications, entry permits, medical tests, Emirates ID, residence visa stamping (entire immigration lifecycle)
• Certainty: Labor Law adherence, contract compliance, WPS registration, and accurate gratuity calculations
• Control: Employee reports to you, performs work under your direction
• No office requirements: EOR provides a legal address for visa purposes; no mandatory office lease
• Scalability: Hire 1 employee or 50 without visa quota constraints

EORs don't replace strategic workforce planning. They enable it.

Testing the UAE market without committing to entity setup costs (AED 15,000-50,000+)? An EOR model makes sense.

Scaling from 2 to 20 employees within 6-12 months? An EOR enables rapid, compliant growth.

Hiring across multiple emirates without navigating jurisdiction differences? An EOR keeps expansion flexible and manageable.

The model works because it's legally recognized: the EOR is the statutory employer and visa sponsor, you're the operational employer directing daily work, and the employee receives full Labor Law protections, including gratuity accrual, medical insurance, and WPS-compliant salary payments.

How Gloroots Simplifies Hiring in the UAE?

When hiring in the UAE through Gloroots, the entire process is managed for you end-to-end. You do not need to coordinate PRO services, navigate visa applications, manage WPS registration, or handle MoHRE filings.

Gloroots runs the complete hiring workflow:

• Candidate sourcing, shortlisting, and background verification
• Initial screening to assess skills, experience, visa eligibility, and role fit
• Interview coordination for final selection
• Offer issuance with a compliant employment contract (Arabic-English bilingual)
• Visa sponsorship: work permit application, entry permit, medical fitness coordination, Emirates ID processing, residence visa stamping
• WPS registration and monthly payroll compliance
• Benefits enrollment: medical insurance, life insurance, flight ticket arrangements
• Gratuity accrual tracking with accurate monthly calculations
• Employee onboarding aligned with UAE Labor Law and MoHRE requirements
• Ongoing compliance management: contract renewals, visa renewals, labor card updates

This model removes operational overhead entirely, allowing you to focus on building and managing your team while Gloroots handles hiring execution, visa processing, compliance, and onboarding from start to finish.

Gloroots provides end-to-end EOR services in the UAE, handling employment contracts (Arabic-English bilingual, MoHRE-compliant), visa sponsorship (complete immigration lifecycle), payroll processing with WPS compliance, tax and social security compliance (for UAE national employees), benefits administration (medical insurance, flight tickets, life insurance), gratuity accrual and end-of-service settlement calculations, and MoHRE and statutory filings. Local compliance expertise ensures your hiring aligns with UAE Labor Law requirements, from contract drafting to termination procedures and visa cancellations.

The platform combines self-service functionality (contract management, onboarding workflows, payroll visibility, employee document storage) with dedicated customer success support (local UAE compliance experts, responsive issue resolution).

With Gloroots, you get:

• Audit-ready reporting for MoHRE inspections
• Transparent cost breakdowns (salary, gratuity accrual, visa fees, benefits)
• Finance-team-friendly invoicing with country-level detail
• GL mapping for multi-country payroll consolidation
• Real-time visibility into visa processing status

Gloroots scales with you: whether hiring your first UAE employee or expanding a distributed team across 140+ countries, the infrastructure supports growth without the complexity of multi-entity management, visa quota constraints, or PRO service coordination.

It's not a vendor relationship. It's workforce infrastructure that adapts to your expansion strategy.

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FAQs About Hiring Employees in the UAE

1. Can a foreign company hire employees in the UAE without setting up a local entity?

Yes. Foreign companies can hire through an Employer of Record (EOR) without establishing a UAE entity (mainland or free zone). The EOR becomes the legal employer and visa sponsor, handling compliance, payroll, WPS registration, and visa processing while you direct the employee's day-to-day work.

2. What are the legal requirements for hiring employees in the UAE?

Employers must provide written contracts in Arabic (bilingual Arabic-English standard), register employees with MoHRE before employment start date, sponsor employment visas and residence permits, register with Wage Protection System (WPS) for salary transfers, provide mandatory medical insurance, withhold applicable social security contributions (for UAE nationals), and comply with Labor Law provisions on working hours, leave, and end-of-service gratuity.

3. How much does it cost to hire an employee in the UAE?

Total employer costs average approximately 12% above gross salary for expatriate employees, covering gratuity accrual (21-30 days basic salary per year), medical insurance (AED 600-2,500 annually), visa and work permit fees (AED 3,500-6,000 first year), annual flight tickets (AED 1,000-5,000), and insurance. For UAE nationals, add 12.5% social security contribution. Example: A USD 100,000 salary role costs approximately USD 112,500 total annually, including all statutory costs.

4. How long does it take to hire and onboard an employee in the UAE?

Through an EOR, hiring and onboarding (including visa processing) are completed within 3-4 weeks from offer acceptance. Establishing a mainland entity first adds 4-8 weeks (free zones 2-4 weeks) for company registration before hiring can begin.

5. What is the easiest way to hire employees in the UAE compliantly?

Partnering with an EOR is the fastest, lowest-risk path. The EOR handles contracts (Arabic-English bilingual), complete visa sponsorship lifecycle, payroll with WPS compliance, gratuity accrual, medical insurance, and MoHRE filings while you maintain operational control. This eliminates entity formation costs (AED 15,000-50,000+), office lease requirements, visa quota constraints, and PRO service coordination, enabling compliant hiring within 3-4 weeks.

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