Table of Contents
Introduction
Key Considerations for Employing in the UAE
Benefits
Employment Contracts
Onboarding
Leaves
Payroll & Taxes
Termination Process
Invoice Schedule
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
Work Visa : 7 working days provided all documents are in place.
Onboarding Timeline : 48 hours *
Payroll Frequency: Monthly
*Once we receive the relevant documents from the employee , Visa/work permit is issued, the contract is approved by all parties, and the deposit (if applicable) is paid, Omnipresent can onboard the employee within just 2 business days.
The visa must be issued before we sign the contract.
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 the legal requirement for visa sponsorship and has to be 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 and applicable after completing an year.
4. Employment Contracts
Requirements
Written contracts are mandatory.
Languages: Arabic & English (bilingual; Arabic prevails)
Signature: Electronic accepted.
Backdating: Not permitted under Omnipresent’s policy.
Contract Types
Fixed-term contracts only with maximum duration for 5 years.
No limitations on the number of renewal for contracts.
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, recognising seniority.
Not allowed: Overtime, restrictive covenants, stylistic edits
5. Onboarding
Timeline
Typical onboarding takes ~2 days (excluding visa processing). Key steps:
Platform Setup
Right-to-Work Check
Signing of offer letter and Visa process
Signing of 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 and also outstation Employees)
Medical Tests and Biometrics
Emirates ID issuance
Residence Visa Stamping
Medical Insurance Application
Timelines for visa process ( provided all required documents are in pace )
VIP Processing: 5 Working days
Standard Processing: 5 to 10 working days days
Documents Required for visa process
Passport
Highest Education Degree (Attested by UAE ministry)
Passport Size Photo with white background (for visa/work permit)
Residence Visa/ Emirates ID (if applicable)
Visa Cancellation Copy (if applicable)
Employee Transfers
Seniority may be recognized if previously employed by client or via another EOR. Gratuity can also be transferred likewise.
Key points
Its illegal for employee to pay for their own work visa.
The basic health insurance is Mandatory.
Employee with golden visa also needs to have work permit .
6. Leaves
Annual Leave
The minimum leave entitlement in the United Arab Emirates is 30 calendar days (22 working days) per year of service
Maternity Leave
An employee is entitled to 60 days maternity leave. The first 45 days are on full pay and the remaining 15 days on half pay.
Regulations vary according to region/zone, for example, different conditions for maternity leave apply in the Dubai International Financial Centre (DIFC), and the Abu Dhabi Global Market (ADGM).
There is no minimum term of service required. It needs to be noted that the benefit applies where the employee was pregnant for at least 6 month.
After 1 year of continuous service for the current employer, the employee is entitled to 65 days of paid leave (33 days full pay and 32 days half pay)
Paternity Leave
5 working days, used within 6 months of childbirth
Sick Leave
An employee who has completed at least 3 months following the probation period in the continuous service of the employer is entitled to sick leave not exceeding 90 days per year, which may be taken consecutively or otherwise.
Up to 90 days/year post-probation:
First 15 days: Full pay
Next 30 days: Half pay
Final 45 days: Unpaid
Public Holidays
Below is list of major public holidays, varying annually. Please note that number of days for each public holidays are announced by Ministry and around 10-11 in total.
New Year’s Day.
Eid al-Fitr.
Arafat day
Eid al-Adha.
Islamic New Year.
National Day.
7. Payroll & Taxes
Payroll Cycle
The payroll cycle in UAE is monthly.
Payroll runs from the 1st of the month to the end of the month.
Payroll cut-off date is 15th of the month (any changes to payroll or variables must be shared with Omnipresent by this date).
Payment date is the last working day of the month (this is when employees will receive their salary payment).
Employee onboarding needs to be finalised by the 18th of the month for the employee to be included in that month’s payroll.
Extra Payments
There's no mandatory extra payment in the United Arab Emirates. The employee is entitled to 12 months of salary payments.
Extra payments, such as bonuses, gratuity, overtime, and allowances, are governed by Federal Decree-Law No. 33 of 2021 and the employment contracts between employers and employees. These payments are not universally mandated but are structured based on certain legal and contractual provisions.
Allowances
Housing Allowance: Included as a percentage of the basic salary (e.g., 20-40%).
Transportation Allowance: May cover fuel costs, car maintenance, or public transport expenses.
Other Allowances: Education, food, and utility allowances are often negotiated in contracts, particularly for expatriates.
Minimum Wage
No official minimum wage (subject to change under MOHRE)
Wages must be agreed upon in the employment contract and must comply with fair labor practices
Standard Work Schedule
During Normal days of year : 8 hours/day, 48 hours/week (6-day week) or 40 hours/week (5-day week)
Ramadan* Month : Maximum of 36 hours per week and 6 hours per day during the month of Ramadan.
* Ramadan month : The holy month of Ramadan is the 9th month in the Islamic lunar calendar, the working hours are reduced every year in UAE during this time.
Employer Costs
In the UAE, employer costs are relatively straightforward, focusing primarily on social security contributions for UAE nationals and GCC citizens, as well as end-of-service gratuity for expatriate employees.
Social Security Contributions
Applicable to: UAE nationals and GCC citizens working in the UAE.
Employer Contribution Rate:
12.5% to 15% of gross salary (depending on the emirate).
This is mandatory and must be paid to the General Pension and Social Security Authority (GPSSA).
Expatriates: Not subject to social security contributions.
End-of-Service Gratuity (Mandatory for Expatriates)
Eligibility: Expatriates who complete at least 1 year of continuous service.
Calculation:
First 5 years of service: 21 days of basic salary per year.
Beyond 5 years: 30 days of basic salary per year.
Workmen’s Compensation Insurance
Purpose: Covers work-related injuries, illnesses, or death.
Employer Obligation:
Employers must maintain this insurance for all employees.
Cost depends on the workforce size, industry, and risk level, typically ranging from 0.5% to 2% of payroll costs.
Health Insurance (Mandatory)
Requirement: Employers must provide health insurance for all employees.
Cost: Varies based on coverage level and employee category.
Health insurance must meet the minimum requirements set by the respective emirate (e.g., Dubai Health Authority or Abu Dhabi Department of Health).
To get a more detailed estimate based on the employee salary use the OmniCalculator, or contact us for further information.
8. Termination Process
Before proceeding with a termination (including verbal discussion with the employee about the risk of termination) you must first get in touch with Omnipresent. We will then provide guidance on next steps. You can read our full guidance here.
To initiate a termination, you need to submit a termination request through the OmniPlatform after which our relevant teams will assess the case and plan a compliant termination process.We cannot process termination on the same day as requested.
Involuntary Termination
The employer can terminate a contract of employment for a 'valid' reason with 30 days prior written notice to the employee or any other such notice period as may be specified in the employment contract
Pursuant to the Labor Law, a contract of employment may terminate in any of the following ways:
Upon mutual agreement by the parties, provided that the employee’s agreement to such termination is made in writing
If the employment contract is for a fixed-term and the specified duration has expired, unless the contract has been expressly or implicitly extended by the parties
At the request of either party, provided that the provisions regarding termination and proper notice are adequately followed
Upon the death of the employer if the subject of the contract is related to the employer in person
Death or permanent total disability of the employee, as evidenced by a certificate issued by the 'Medical Entity' (Medical Entity is a UAE government entity responsible for health affairs)
If the employee is sentenced to jail for a minimum of 3 months
Permanent closure of the workplace establishment, in accordance with the legislation in force in the UAE
Bankruptcy or insolvency of the employer or any economic or exceptional reasons that prevent the continuation of the project, in accordance with the conditions, rules, and procedures which will be specified in Implementing regulations
Failure of the employee to meet the conditions for renewing the work permit for any reason beyond the control of the employer.
Notice Period
Probation period : During the probationary period, the notice period is as follows:
14 days written notice by the employer
14 days written notice by employee, save where joining another employer, in which case the employee is required to serve 30 days written notice. In such instance, the new employer is required to compensate the current employer for the recruitment costs (visa and flight)
Following probation period
After the probationary period, the standard notice period applies, which is min. 30 and max. 90 days.
It's worth mentioning that the employer not required to provide notice where terminating for gross misconduct under Article 44 of the Labor Law.
Severance Pay
The Labor Law provides for severance pay for employees who have completed a period of at least 1 year of continuous service
End-of-Service Gratuity applies after 1 year of service:
Calculated based on basic salary and years served
Repatriation tickets for employees leaving UAE.
9. Invoice Schedule
Setup Fees: Once Terms are signed, Omnipresent begins deploying resources for the setup process. Trigger [Employee Details Added]
Deposits: Payable when the local employment contract is ready for signature. The deposit enables Omnipresent to move forward securely to sign the local employment contract with the employee. Trigger [Employee Details Added]
Visa invoice : Once the offer letter is signed and before initiating visa process for employee and dependents(if applicable).
Initial Salary Prepayment: The first month’s estimated labour costs are invoiced on the first day of employment. Trigger [Employment Start Date]
Ongoing monthly Employment Costs and Fees: Thereafter, we invoice monthly in arrears for labour costs - once the final payroll, taxes, insurance, social security contributions, expenses and deductions have been calculated. Each monthly invoice will include our monthly service fee, deposit insurance (if applicable), and an FX fee (if applicable). Trigger [Payroll Date] Typically the last working day of the month, but varies by country.
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.