Employing Workers in the United Arab Emirates
Employing Workers in the United Arab Emirates
Country Snapshot
- Population: ~9.6 million (2024 est.)
- Expatriates: ~88%
- Emirati Nationals: ~12%
- Capital: Abu Dhabi
- Other Emirates: Dubai, Sharjah, Ajman, Ras Al Khaimah, Fujairah, Umm Al Quwain
- Currency: UAE Dirham (AED)
- Official Language: Arabic (English widely used in business)
The UAE is a federation of seven emirates, each governed by distinct licensing and immigration authorities. Abu Dhabi and Dubai are the commercial centers, while Dubai also hosts over 30 Free Zones with independent employment regimes.
Hiring & Compliance: Overview
MasdarEOR is a fully licensed, in-country Employer of Record (EOR) provider in the UAE. We manage all employment obligations on behalf of clients—ensuring full compliance with local labor and immigration laws.
- A valid UAE trade license is required to directly sponsor employees.
- Expatriates must be sponsored under a registered UAE entity—either a client’s own license or an EOR platform such as Masdar.
- Non-compliance with sponsorship and labor laws may result in fines, bans, or deportation.
Why Use an EOR in the UAE?
MasdarEOR offers a strategic alternative for companies that:
- Do not have a legal entity in the UAE.
- Face limitations with visa quota availability.
- Prefer to outsource local hiring, payroll, and compliance management.
- Seek to meet Emiratization obligations without direct headcount.
MasdarEOR can legally employ both expatriates and Emirati nationals on our license, giving clients immediate access to workforce deployment without establishing a local entity.
Emiratization Quotas & Support
The UAE mandates private sector companies to hire a minimum number of Emirati nationals under the federal Emiratization policy.
- Quota requirements vary by license type, location (mainland or free zone), and employee headcount.
- Penalties apply to non-compliance, especially for entities with 50+ staff.
MasdarEOR can manage Emiratization on the client’s behalf by:
- Employing eligible Emirati candidates on our EOR platform.
- Ensuring full MoHRE registration and pension compliance (GPSSA or ADPF).
- Providing local talent sourcing and quota tracking support.
Employment Contracts
- Dual language: English and Arabic
- Currency: Salary must be stated and paid in AED
- Contract Type: Fixed-term only (1–3 years, renewable)
- Job Titles: Subject to availability in MoHRE systems and tied to academic qualifications and Emiratization policies. Not all titles are available and changes can occur without prior notice.
- Must define: title, scope, salary, benefits, working hours, probation, and termination
Working Hours & Public Holidays
- Standard: 8 hours/day, 48 hours/week
- Workweek: Monday to Friday
- Ramadan: 2-hour daily reduction for Muslim employees
-
Overtime: 125% for regular overtime
150% for night/weekend/holiday work
Paid public holidays include:
- New Year’s Day
- Eid Al Fitr
- Islamic New Year
- Eid Al Adha
- Prophet’s Birthday
- Commemoration Day
- UAE National Day
Leave Entitlements
Annual Leave
30 calendar days (after 1 year), pro-rated in first year
Sick Leave
- 15 days full pay
- 30 days half pay
- 45 days unpaid
Maternity Leave
60 days (45 full pay + 15 half pay); up to 45 more unpaid if medically certified
Parental Leave
5 paid days for either parent (within 6 months of birth)
Hajj Leave
Up to 30 unpaid days for Muslim workers (once during employment)
Probation & Termination
Max 6 months
- 14 days’ notice if terminated
- 30 days’ notice if employee resigns and stays in UAE
- 14 days if exiting the UAE
Post-Probation Notice
30 to 90 days (as per contract)
End of Service (EOS) Gratuity
- <1 year: Not eligible
- 1–5 years: 21 days’ basic salary per year
- 5 years: 30 days/year from year six onward
- Max cap: 2 years’ total wage
Payroll Compliance
- Salary Payment: AED only
- WPS (Wage Protection System): Mandatory for all salaries
- Payslips: Issued monthly
- Frequency: Monthly salary cycle
- No income tax in the UAE
- Repatriation: Final air ticket to home country must be provided unless employee transfers locally
Health Insurance
- Mandatory for all expatriates
- Abu Dhabi: Employers must cover employee, spouse, and up to 3 children
- Dhabi: Only employee coverage is mandatory family can be added optionally
Why Choose MasdarEOR?
- MoHRE-licensed entity with authority to sponsor expatriate and national workers
- In-house visa, PRO, HR, legal and payroll infrastructure across UAE jurisdictions
- End-to-end onboarding, documentation, payroll, and offboarding
- Emiratization quota solutions via direct EOR employment of nationals
- No hidden third-party costs — all services managed by Masdar directly
