Our vast global network and state-of-the-art automated human resource (HR) technologies enable us to efficiently manage payrolls, promptly enroll remote workers, and formalize contracts in full compliance with regional laws. If you decide to work with us, you may relax knowing that all HR-related processes linked to your development in a new country are handled. Our comprehensive HR solution will make things easy for your company. Leave the difficulties to Marzuna so you may focus on growing your business. To learn more about how we can ease your HR-related concerns in the country where you want to grow, get in contact with Marzuna.
The United Arab Emirates, composed of seven distinct federation states, boasts a diverse set of employment regulations, with the exception of certain categories such as agricultural laborers, domestic servants, and public sector employees, who fall outside the purview of the nation’s labor legislation.
Within the federation, the UAE comprises 35 free zones, each governed by its own set of regulations encompassing factors like capital requirements, foreign ownership, taxation, employment protocols, and profit distribution. Notably, employment laws in Abu Dhabi and Dubai diverge from one another. Fundamental employee entitlements, including salary, benefits, working hours, paid leave, and federal holidays, are outlined in the table below for reference.
In the context of remote working, employers in the UAE operate within a framework defined by the Ministry of Human Resources and Emiratisation (MoHRE). This framework affords employers the authority to establish working hours for remote employees and the prerogative to terminate the arrangement if any stipulated rules or regulations are violated. Employers bear the responsibility of selecting qualified candidates suitable for remote work and ensuring equitable treatment for both office-based and remote staff. Moreover, businesses must provide the essential infrastructure and resources conducive to remote work to ensure comfort and productivity. By adhering to these requirements, employers can create a supportive and legally compliant environment for remote work, upholding the rights and responsibilities of both parties involved.
| Entitlements | Explanations |
|---|---|
| Statutory working hours | The required number of hours per week is 48. |
| Overtime eligibility | The hourly rate for overtime is 125% during the working day and 150% on the weekends and during evening shifts (from 9:00 pm to 4:00 am). |
| Paid Public Holidays | Employees in the UAE are eligible for the following paid public holidays.
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| Holiday Pay | Holiday pay is given to an employee in the following situations:
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| Medical Leave | Employees are allowed a maximum of 90 days of sick leave, under the legislation.
For the first 15 days, they are paid in full; for the following 30 days, they are paid in half; and for the following 45 days, they are paid nothing. During the trial period, there is no provision for sick days. |
| Maternity Leave |
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| Annual Leave Accrual Entitlement | Depending on how long they have worked for the organization, workers receive yearly leave.
The following describes the length of service and leaves:
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| Leave Expiry | Only one annual leave may be granted every two years. |
| Accrued Leave At Termination | If an employee leaves their position, they could be compensated for any unused annual leave. |
| Employee Protection and Anti-discrimination Rights | The UAE has a number of legislations that seek to combat prejudice and discrimination based on race, religion, caste, and ethnicity. Additionally, legislation defining equal pay for women and safeguarding the rights of self-determined individuals have been established. |
Prior to this development, businesses encountered challenges when it came to sponsoring and legally hiring individuals for contracts offering competitive compensation and favorable working hours. However, in 2018, the UAE’s Ministry of Human Resources and Emiratisation (MoHRE) introduced a pivotal law that sanctioned contract or part-time employment, affording workers more flexibility in their choices. It is recommended that all employment contracts be documented in writing and include explicit terms such as commencement and termination dates, job type and location, compensation details, and, for short-term contracts, the anticipated duration of the employment.
The utilization of contractors yields several advantages. Foremost among them is the flexibility they provide, as the scope of their work can be determined on a case-by-case basis, accommodating potential future contracts to address new requirements. Contractors often work autonomously and necessitate less direct supervision, allowing resources to be redirected to other areas as needed. While the initial cost of hiring contractors may be higher due to the absence of employee benefits such as bonuses and tax incentives, the long-term cost may ultimately be lower.
Conversely, hiring someone on a full-time basis carries its own set of benefits. Full-time employees tend to exhibit loyalty and organizational commitment because they are dedicated exclusively to your company as their sole employer. Their success is closely tied to the company’s overall performance, motivating them to invest greater effort. Moreover, the knowledge and skills acquired through training for full-time employees become assets retained within the company. The legal flexibility associated with full-time hires reduces the risk of misclassification, as their employment status is explicitly defined in their contracts. The terms and benefits of full-time employment can be established upfront and typically remain unaltered unless both parties mutually agree to modifications.
The process of hiring in the UAE is governed by the Labor Law and various ministerial decisions, with certain regulations favouring UAE nationals. Companies in the UAE have the option to utilise online platforms for hiring, including well-known platforms such as linkedin ,indeed, bayt, and dubizzle . Additionally, companies can advertise job openings on their own websites or through licensed agencies. It is crucial for companies to verify the legitimacy of the platforms and agencies they use for hiring.
When hiring talent through online platforms, it is recommended to conduct personal interviews with candidates before finalising the hiring process. For candidates from outside the UAE, it is important to ensure that they possess the necessary qualifications and professional competence required for the position. It is also essential to adhere to the regulations that prioritise the employment of UAE citizens and ensure that the hiring of foreign candidates does not displace qualified unemployed citizens. By following these guidelines, companies can effectively navigate the hiring process in the UAE while maintaining compliance with the relevant regulations.
After the Covid-19 epidemic broke out, the MoHRE implemented restrictions mandating businesses in the nation to only allow 30% of the workforce to work in offices. The Remote Working System is to be followed by the remainder. These rules apply to all workers in sectors other than health, food, medicine, supply, infrastructure, telecommunications, cleaning, and finance.
To learn how we can hasten the recruiting and onboarding of both full-time and contract employees in the UAE, schedule a demo with us.
In the UAE, an employee’s probationary term lasts typically three to six months. When an employee is on probation, either the employer or the employee may decide to quit without giving notice.
The Labor Law in the UAE stipulates that 30 days’ notice is the bare minimum for termination of employment. However, the notice can be totally waived or extended with the consent of both the employer and the employee.
When it comes to establishing a thriving enterprise on foreign soil, the intricate maze of compliance policies can often appear as a formidable obstacle. This is precisely where the expertise of Employer of Record (EOR) services proves invaluable, effectively simplifying the intricate path of global business expansion. Armed with meticulous research and an in-depth understanding of local laws and HR policies, EOR services serve as accelerators for your business’s growth.
By forging a partnership with a proficient EOR service, you unlock a gateway to comprehensive management of the entire employee life cycle. They deftly navigate complex HR matters, allowing you to keep your focus firmly anchored to your core business goals. Our UAE EOR solution offers a seamless platform for expanding your business with minimal hassle. Moreover, our payroll services encompass indispensable features, including the management of employee and worker social security, exemption from tax returns, relief from legal contributions and social security obligations for foreign employees, freedom from corporate tax liabilities, and local employees enjoying a 12.5% pension contribution.
With our platform at your disposal, you can tap into a global talent pool and fortify your business prospects by establishing a globally distributed team. Our team of seasoned professionals takes the helm in managing global payroll, ensuring unwavering compliance, and deftly handling tax matters, effectively lifting the weight off your shoulders. Get in touch with us today and build a proficient global workforce that steers your business to new horizons.
Companies with aspirations to flourish in the UAE must prioritize transparency in their employment procedures. They have the option to either form an independent in-house team or engage an EOR to expertly oversee the process on their behalf.
| Visit Visa | Friends, family, or relatives may sponsor someone for a visit visa. They will have to submit an application for admission permission to the Ministry of Interior Affairs or the Department of Immigration.
Following is a list of Visit Types according to Validity:
You are not permitted to work in the UAE with this permission. When deboarding at the airport, this permission must be in your possession for inspection. |
| Tourist Visa | Any person or visitor, regardless of their nationality, may apply for a tourist visa to enter the nation. Typically, hotels, authorized travel agents, or airlines sponsor tourist visas.
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| Residency Visa | An individual must apply for a residence visa if they want to live in the UAE.
A resident visa is valid for two years on the mainland and three years in a free zone. Resident visas are not issued to anyone who tests positive for HIV or TB. |
| UAE work Visa | This visa is open to foreign nationals who are seeking work or have been chosen for an employment opportunity. For foreigners to be eligible for a work permit, they must possess any of the following credentials or abilities.
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| UAE Student Visa | A UAE Student Visa is available to any foreign national who is admitted into a UAE educational institution. The institution where you have been admitted will handle the processing of your entry permit and visa. You must have an entrance visa to enter the UAE.
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| UAE Family Visa | The family visa is available to the relatives of UAE nationals and foreigners. For your family members to be granted a visa, you must:
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| UAE Investment Visa | This visa, which is a form of long-term residency authorization, is available to foreign citizens who invest money in the United Arab Emirates. Investment visas come in two different varieties.
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| UAE Retirement Visa | Older foreign people with sufficient financial resources who want to retire in the UAE are eligible for this visa.
Speak with us to learn more about the different visa categories and UAE work visa requirements. We can take care of all of your visa needs while making sure the expansion process doesn’t get held up. |
| Can we sponsor Work Permits in the UAE? | Yes |
| Processing time | 5 Working days |
| Work permit process | Here is the procedure for obtaining a work permit.
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| Work Permit validity | 30 Days |
| When can an employee travel to the UAE? | when the company grants the immigrant an admission permit |
| What’s the cost of a Residence Visa? | AED 100 to AED 140. |
| Duration of Residence Visa processing | One to two months |
In the UAE, an Employer of Record (EOR) service offers an efficient and hassle-free solution for managing payroll and taxes, catering to the needs of both local and international employees. Numerous UAE-registered companies opt to delegate their payroll responsibilities to EOR services to ensure stringent compliance with tax regulations and immigration requisites.
By harnessing the proficiency of an EOR service, businesses can optimize their employment processes with an added layer of security and confidentiality. This proves especially beneficial for clients who prioritize the discreet handling of their payroll data within their organization. The comprehensive payroll management services provided by an EOR encompass a wide array of essential tasks, including but not limited to generating offer letters, facilitating the issuance of No Objection Certificates (NOCs), overseeing employee leave management (comprising paid holidays and sick leave), assisting in the selection and application of suitable Medical/Health Insurance, aiding in the establishment of the wage protection system, calculating statutory gratuity payments in accordance with UAE labor law, and furnishing salary certificates, payslips, and bank transfer letters for employees. Additionally, should the need arise for termination, whether during or after probation, the EOR service takes charge of calculating end-of-service settlements as per UAE labor law.
Employer Taxation
| Financial Year-End Date | No income tax is applied or collected. |
| Tax Documents | There are no documents that apply. |
| Corporate Tax | Only international banks and energy corporations are subject to this tax in the UAE.
Tax exemptions are available for a longer period of time in the UAE’s free zones. |
| Withholding Tax (For Non-Residents) | There is no withholding tax to be paid. |
| Payroll Tax | No payroll tax is owed. |
| Employers’ Social Security and statutory contributions | 17.5% is the social security rate. |
Employee Taxation
| Sales Tax | 50% |
| Income Tax | The income is not taxed. |
| Tax Returns | No tax returns must be filed because there is no individual tax in the UAE. |
| Employee Social Security and statutory contributions | The social security contribution rate for workers is 5%. |
The United Arab Emirates do not have any laws governing bonuses. But at the conclusion of a year of work, employees are routinely awarded 13th and 14th month bonuses.
Expanding your business in the UAE necessitates the creation of a subsidiary, as it is a legal requirement for businesses to operate in the country. The process of establishing a subsidiary in the UAE encompasses several essential steps.
The initial decision to make is the selection of the jurisdiction in which the holding company will be incorporated. Collaborating with a local partner is often recommended, as they can provide valuable insights and support in this regard.
The next crucial step involves choosing the appropriate entity type that aligns with your company’s specific needs. The options include a private corporation and a public limited company, and this choice is of paramount importance as each entity type is subject to distinct legal obligations.
Even though the subsidiary operates independently, the foreign business maintains its status as a shareholder and retains voting rights over the subsidiary. When a foreign company registers a subsidiary in the UAE, it operates within the legal framework and approved business structures of the UAE.
Creating a subsidiary in the United Arab Emirates is commonly done through public and private companies. Alternatively, international businesses can opt to establish free-zone companies as subsidiaries within the UAE’s free zones. Free zones offer a plethora of benefits and tax incentives. Setting up a subsidiary in a UAE Free Zone eliminates the need for a local partner or sponsor, and the process is swift and minimizes administrative overhead. The registration process for a subsidiary in the UAE is straightforward, mirroring the procedures applied to foreign businesses.
