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Hiring Employees in the UAE: A Comprehensive Guide

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Written by Asma Makni
Updated this week

Table of Contents

  1. Introduction

  2. Key Considerations for Employing in the UAE

  3. Benefits

  4. Employment Contracts

  5. Onboarding

  6. Leaves

  7. Payroll & Taxes

  8. Termination Process

  9. Invoice Schedule

  10. Get Started with Omnipresent


1. Introduction

Hiring employees in the UAE involves strict immigration procedures, mandatory healthcare, and compliance with evolving labor regulations. Omnipresent’s Employer of Record (EOR) service supports smooth onboarding, compliant contracts, and full employment lifecycle management.


2. Key Considerations for Employing in the UAE

  • Currency: UAE Dirham (AED)

  • Language: Arabic

  • Employer Costs: Average (varies for nationals and expats)

  • Termination Complexity: Hard

  • Onboarding Timeline: ~15 calendar days

  • Payroll Frequency: Monthly


3. Benefits

What We Offer

  • Mandatory:

    • Basic healthcare (inpatient/outpatient, emergency, maternity)

    • Workers’ compensation

  • Supplementary:

    • Dental & vision

    • Enhanced health insurance

Health Insurance

  • Basic insurance is required for visa sponsorship and funded by the employer.

  • Omnipresent offers enhanced medical plans with options to include dependents.

Retirement

  • UAE Nationals: Covered by GPSSA (General Pension and Social Security Authority)

  • Expats: Entitled to an End of Service Gratuity based on service length


4. Employment Contracts

Requirements

  • Written contracts are mandatory.

  • Languages: Arabic & English (bilingual; Arabic prevails)

  • Signature: Electronic accepted; wet ink preferred

  • Backdating: Not permitted

Contract Types

  • Fixed-term contracts only

  • Part-time contracts allowed under certain conditions

Probation Period

  • Maximum 6 months

  • One probation period allowed per employee

  • Notice during probation:

    • 14 days by employer or employee

    • 30 days if employee moves to another employer

Customisation

  • Allowed: Unlimited PTO, extra-legal sick leave

  • Not allowed: Overtime, restrictive covenants, stylistic edits


5. Onboarding

Timeline

Typical onboarding takes ~15 days (excluding visa processing). Key steps:

  1. Platform Setup

  2. Right-to-Work Check

  3. Contract & Benefits Enrollment

Visa Sponsorship & Process

All expat employees are sponsored via Dubai Immigration visas. Omnipresent handles:

  • Offer Letter and Document Collection

  • E-Visa / Entry Permit

  • Status Change (for in-country transfers)

  • Medical Tests and Biometrics

  • Emirates ID issuance

  • Residence Visa Stamping

  • Medical Insurance Application

Timelines vary:

  • VIP Processing: 16–24 days

  • Standard Processing: 25–36 days

Employee Transfers

  • Seniority may be recognized if previously employed by client or via another EOR


6. Leaves

Annual Leave

  • 30 calendar days (equivalent to 22 working days)

Maternity Leave

  • 60 days total: 45 full pay + 15 half pay

Paternity Leave

  • 5 working days, used within 6 months of childbirth

Sick Leave

  • Up to 90 days/year post-probation:

    • First 15 days: Full pay

    • Next 30 days: Half pay

    • Final 45 days: Unpaid

Public Holidays

  • Typically 8 observed holidays, varying annually:

    • New Year’s Day, Eid al-Fitr, Eid al-Adha, Islamic New Year, National Day, etc.


7. Payroll & Taxes

Payroll Cycle

  • Monthly, running from 1st to last day of the month

  • Cut-off: 6th of each month

  • Payment: Last working day

Extra Payments

  • No mandatory bonuses

  • Salaries often include allowance components (e.g., housing)

Minimum Wage

  • No official minimum wage (subject to change under MOHRE)

Standard Work Schedule

  • 8 hours/day, 48 hours/week (6-day week) or 40 hours/week (5-day week)

Employer Costs

  • UAE nationals: ~12.5%

  • GCC nationals: Varies by origin country

  • Use the OmniCalculator for tailored cost breakdowns


8. Termination Process

Procedure

  • Contact Omnipresent before initiating termination discussions

  • Submit a termination request via the OmniPlatform for review

Notice Period

  • Standard: 30–90 days

  • During probation:

    • 14 days (employer)

    • 14–30 days (employee, depending on future employment plans)

Severance Pay

  • End-of-Service Gratuity applies after 1 year of service:

    • Calculated based on basic salary and years served

    • Different rules apply to limited vs. unlimited contracts


9. Invoice Schedule

Initial Fees

  • Setup Fees: Triggered upon contract signing

  • Deposit: Due when contract is ready for signature

  • Initial Salary Prepayment: Invoiced on employment start date

Ongoing Payments

  • Monthly in arrears, covering:

    • Payroll

    • Taxes and insurance

    • Omnipresent fees and applicable FX fees


10. Get Started with Omnipresent

We simplify global hiring, onboarding, and compliance. Let us handle the complexities of employment in the UAE so you can focus on growing your business.

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