Employer of Record (EOR) services in Abu Dhabi offer a solution for companies looking to expand into the region without setting up a legal entity. Global EOR Services allows businesses to hire employees in Abu Dhabi while managing compliance with local employment laws, payroll, taxes, and benefits.

Here’s how Global EOR services in Abu Dhabi typically work:

Hiring and Onboarding: Global EOR hires employees on your behalf, handles contracts, and ensures compliance with UAE labor laws.
Payroll and Benefits Management: Global EOR manages the payroll, tax deductions, social contributions, and benefits like health insurance.
Legal Compliance: Global EOR Services ensure adherence to Abu Dhabi’s regulations regarding employment, taxes, and employee rights.
Termination and Exit Management: In case of termination, the Global EOR Services ensures the process follows legal guidelines and handles severance.
These services allow you to focus on operations and growth in Abu Dhabi while leaving the administrative and legal complexities to the Global EOR Services.

Key UAE Employment Laws to Know

The UAE Federal Law No. 33 of 2021, also known as the UAE Labor Law, governs employment in Abu Dhabi. When hiring through an EOR, these laws apply, and the EOR is responsible for ensuring compliance.

Employment Contracts
Contract Types: Employment contracts in the UAE are typically either limited-term (fixed-term) or unlimited-term. The Global EOR issue a legally compliant contract on behalf of the client company.
Contract Language: Contracts must be written in Arabic, but English translations are commonly provided.
Probation Period: The probation period is typically up to six months. During this time, either party can terminate the employment with short notice (often between 7 to 14 days).
Working Hours
Standard Hours: The standard workweek is 8 hours per day, 48 hours per week. During the holy month of Ramadan, working hours are reduced by two hours per day.
Overtime: Employees are entitled to overtime pay if they work beyond the standard hours. Overtime must be compensated at 125% of the regular pay rate (or 150% for night shifts or work on rest days).
Wages and Payroll
Minimum Wage: There is no nationwide minimum wage in the UAE. However, wages are subject to industry standards and negotiations.
Wage Protection System (WPS): Global EOR process payroll through the Wage Protection System (WPS), a system that ensures wages are paid to employees’ bank accounts through registered channels, guaranteeing timely payments.
Currency: Salaries are paid in AED (Dirham), and the Global EOR Services ensures compliance with exchange regulations if foreign currency payments are involved.

Leave Entitlements
Annual Leave: Employees are entitled to 30 calendar days of annual leave after one year of service. For employees with less than a year of service, they accrue leave at the rate of two days per month.
Sick Leave: After the probation period, employees are entitled to 90 days of sick leave per year. The first 15 days are paid, the next 30 days are at half pay, and the remaining 45 days are unpaid.
Maternity Leave: Female employees are entitled to 60 days of maternity leave (45 days with full pay and 15 days with half pay).
Public Holidays: Employees are entitled to paid leave on UAE public holidays, including New Year’s Day, Eid al-Fitr, Eid al-Adha, and National Day.

End of Service Gratuity
Gratuity Payments: End-of-service gratuity is a mandatory payment for employees who have completed at least one year of service. It is calculated as follows: 21 days’ basic salary for each year of service for the first five years.
30 days’ basic salary for each year after the fifth year.
Exemptions: If an employee is terminated for cause (as outlined in Article 120 of UAE Labor Law), they may forfeit their gratuity entitlement.

Termination of Employment
Notice Period: For most terminations, the minimum notice period is 30 days. This applies to both the employer and the employee unless both parties agree otherwise.
Unlawful Termination: Employees who are terminated without a valid reason can file a complaint with the UAE Ministry of Human Resources and Emiratisation (MOHRE), which could result in compensation.
Severance: Employees are entitled to end-of-service benefits, and the EOR handles all legal and financial aspects related to employee termination.
Health Insurance
Mandatory Health Insurance: The Abu Dhabi government mandates that all employers provide health insurance to their employees. The EOR is responsible for offering compliant health insurance coverage.
Immigration and Visas
Work Visa Sponsorship: The EOR sponsors the employees’ work visas and residency permits, ensuring compliance with UAE immigration laws. This includes handling visa applications, renewals, and cancellations as needed.
Visa Costs: The EOR generally bears the costs of visa processing, though the specifics may be outlined in the client’s agreement with the EOR.
Non-Compete and Confidentiality Agreements
Non-Compete Clauses: UAE labor law allows for non-compete clauses, provided they are reasonable in terms of time, geographic scope, and business activity.
Confidentiality: The EOR ensures that employment contracts include confidentiality provisions to protect the client’s intellectual property and trade secrets.

Hiring Process Through an Global EOR Services

Defining the Role and Candidate Search: The client company defines the roles, skills, and qualifications required for the position.
The EOR may assist in recruiting and vetting candidates or the client may provide the chosen candidate.
Issuing Employment Contracts: The EOR drafts a compliant employment contract, specifying salary, benefits, and conditions according to UAE law.
Both the employee and the EOR (on behalf of the client) sign the contract.
Onboarding and Visa Processing: The EOR handles the full onboarding process, including collecting necessary documentation for visa sponsorship.
The EOR arranges for the employee’s residency permit, work visa, and health insurance.
Managing Payroll and Compliance: The EOR takes responsibility for paying the employee’s salary and ensuring all statutory deductions (if applicable) are made.
The EOR manages ongoing compliance with local labor laws, including any updates in legislation.
Employee Support and Management: The EOR remains the legal employer for the duration of the employee’s contract and handles HR tasks such as performance reviews, benefits, and employee queries.
The client company manages the employee’s daily tasks, goals, and performance while the EOR handles all administrative aspects.
Termination and Exit Management: If the employment contract is terminated, the EOR ensures that the termination follows legal procedures. This includes paying out any due severance, gratuity, and final salary.
The EOR also manages visa cancellations and exit formalities, ensuring that all legal obligations are met.

Benefits of Hiring Through Global EOR Services in Abu Dhabi

No Need for a Legal Entity: Hiring through an EOR allows companies to hire employees in Abu Dhabi without the need to establish a subsidiary or legal entity, saving both time and money.
Local Expertise: The EOR has in-depth knowledge of UAE labor laws, ensuring full compliance with all legal and regulatory requirements.
Reduced Administrative Burden: The EOR handles all administrative tasks, from payroll to visa processing, allowing the client company to focus on business operations.
Flexibility: Ideal for companies looking to hire for short-term projects or test the market without committing to a long-term presence.

Online Services for Workers from Foreign Countries

The UAE offers a range of online services to support foreign workers, ensuring that their rights are protected, and their grievances are addressed efficiently. These services include:
Register a labour complaint (domestic workers)
Registration of labour complaints
Register free zone complaint
My salary complaint
Grievances raised by employees
Register collective labour complaint
You can access these services and more through the Ministry of Human Resources and Emiratisation (MoHRE) website.

Abu Dhabi – Country Overview

Abu Dhabi is the capital city of the United Arab Emirates (UAE) and the largest of the seven emirates that make up the country. Known for its vast oil reserves and rapid development, Abu Dhabi has become a global hub for business, finance, and tourism. Below is a comprehensive country overview:

Geography
Location: Abu Dhabi is located on the Arabian Peninsula, along the southeastern coast of the Persian Gulf.
Land Area: It covers approximately 67,340 square kilometers, making it the largest emirate in the UAE, occupying about 87% of the UAE’s total land area.
Climate: The region experiences a desert climate, with extremely hot summers (often exceeding 40°C) and mild winters. Rainfall is minimal and occurs mostly in the winter months.
Population
Total Population: Around 1.5 million people (as of recent estimates).
Demographics: Abu Dhabi is highly cosmopolitan, with a mix of Emirati nationals and expatriates. Expats form a significant majority, with people from South Asia, Southeast Asia, Europe, and the Middle East living and working in the city.
Official Language: Arabic, though English is widely spoken, especially in business settings.
Economy
Oil & Gas: Abu Dhabi holds one of the largest oil reserves in the world, accounting for approximately 90% of the UAE’s oil production. The oil and gas sector forms the backbone of the economy.
Diversification: In recent years, Abu Dhabi has made significant efforts to diversify its economy beyond oil. Key industries include: Finance: Abu Dhabi Global Market (ADGM) is a major international financial center.
Tourism: Attractions like the Sheikh Zayed Grand Mosque, Louvre Abu Dhabi, and Yas Island have made the city a prominent tourist destination.
Real Estate: Major construction projects and luxury developments have expanded the city’s skyline and urban infrastructure.
Renewable Energy: The city is investing in sustainability and renewable energy projects like Masdar City.
Business Environment
Ease of Doing Business: Abu Dhabi ranks high for its ease of doing business, with streamlined processes for company registration, particularly through its free zones.
Free Zones: Abu Dhabi has multiple free zones, including: Abu Dhabi Global Market (ADGM): Financial services free zone.
Khalifa Industrial Zone Abu Dhabi (KIZAD): Industrial and manufacturing free zone. These zones offer benefits like 100% foreign ownership, tax exemptions, and simplified visa and labor processes.
Taxation: There is no federal income tax in the UAE, and Abu Dhabi maintains a favorable tax environment for businesses. VAT is at 5%, applied across the UAE.
Infrastructure
Transportation: Abu Dhabi is well-connected through its international airport (Abu Dhabi International Airport) and a strong road network. The city is also developing its rail system and seaports.
Utilities: Modern utilities infrastructure supports both residents and businesses, with efforts to improve sustainability and reduce carbon footprints.
Telecommunications: High-quality telecommunications and internet services are widely available, with 5G networks in place.
Government & Regulations
Political System: Abu Dhabi is governed by a hereditary monarchy under the Al Nahyan family. Sheikh Mohammed bin Zayed Al Nahyan is the Crown Prince and the current ruler of Abu Dhabi.
Legal System: The UAE legal system is a mix of civil and Islamic (Sharia) law, though specific free zones, like ADGM, have their own legal frameworks modeled after international standards.
Key Sectors for Investment
Energy (Oil & Renewable): The city’s oil wealth is complemented by strong initiatives in solar and other renewable energy sources.
Tourism & Hospitality: Investments in luxury hotels, resorts, and cultural landmarks attract millions of tourists.
Healthcare: A growing sector, with large investments in hospitals, clinics, and medical research.
Technology & Innovation: Abu Dhabi is pushing to become a tech and innovation hub, with support for startups and large tech firms through investment funds and incubators.
Living Conditions
Quality of Life: Abu Dhabi offers a high standard of living, with modern infrastructure, healthcare, and education. Expats enjoy a good work-life balance, though the cost of living can be relatively high, especially in terms of housing.
Culture and Recreation: The city is a blend of traditional Emirati culture and modern amenities. It offers a variety of recreational activities, from desert safaris to shopping malls and world-class museums.
Challenges
Dependence on Oil: While diversification is underway, the economy is still somewhat reliant on oil prices.
Climate: The extreme heat can be a challenge for expatriates and businesses, particularly in outdoor industries.
Hiring employees in Abu Dhabi (or anywhere in the UAE) through an Global Employer of Record (EOR) Services allows companies to enter the market and build a workforce without setting up a legal entity. The EOR becomes the legal employer, ensuring compliance with UAE labor laws while enabling the client company to manage the employee’s daily tasks. Below is a guide to understanding employment law and how the process works when hiring through an EOR:

Know Your Rights Guide

The UAE government has released the Know Your Rights guide, highlighting seven key messages for foreign workers to ensure they understand their rights and obligations:

Signing Employment Contracts: You must sign your employment contract after arriving in the UAE.
Recruitment Costs: Recruitment, travel, and residency permit expenses are to be borne by your employer.
Job Offer Consistency: Your employment contract terms must match the job offer signed in your home country.
Keep a Copy of Your Job Offer: It’s vital to retain a copy of the signed job offer.
Contact MoHRE: If your job is not provided as agreed or if your salary is unpaid, contact MoHRE immediately.
Secure Identification Documents: Safeguard your identification documents.
Know Your Exit Rights: You can leave your job at any time but must be fully aware of your legal obligations.

Access the Know Your Rights guide in various languages:
Bengali
Chinese
English
Hindi
Malayalam
Urdu

Labour Complaints and Legal Support

For labour-related grievances, workers can contact MoHRE’s Labour Claims and Advisory Call Centre at 80084. The UAE has established offices within courts to provide legal support for workers in disputes. Legal services are free for cases where the claims are less than AED 100,000.

Significant amendments to the UAE labour law in 2024 introduced new legal processes for cases under AED 50,000, where the Ministry’s decisions are enforceable and can only be appealed in the Court of First Instance. Additionally, penalties for labour law violations have increased, ranging from AED 100,000 to AED 1 million for offenses such as fictitious hiring and unauthorized use of work permits.

MoHRE Online Labour Complaints
Register Labour Complaints: Workers can use this portal to file individual complaints directly to the Ministry of Human Resources and Emiratisation (MoHRE).

My Salary Complaint
Wage Protection System (WPS): For complaints related to non-payment of wages under the Wages Protection System (WPS), you can file your complaint here.

Register Free Zone Complaint
Free Zone Complaint Registration: This platform allows employees working in free zones to register their complaints.

Collective Labour Complaint
Collective Labour Dispute Resolution: Workers can raise collective complaints for disputes involving multiple employees.

Legal Advisory and Support
Labour Dispute Support – MoHRE: MoHRE provides legal support offices in courts to help workers in labour disputes, ensuring access to justice.

Labor Protection Initiatives

The UAE, a member of the International Labour Organization (ILO), continually improves working conditions for foreign labour. The country has enacted numerous laws and reforms, including:

Federal Decree Law No. 33 of 2021: Regulates labour relations and addresses harassment, bullying, and discrimination in the workplace.

Unemployment Insurance Scheme (2022): Protects workers’ benefits.

Wages Protection System (WPS): Ensures timely and full salary payments.

Temporary Worker Accommodation: Over USD 5 billion was allocated to enhance worker accommodations, ensuring they meet international standards.

The UAE has also taken steps to promote gender equality, combat human trafficking, and support people of determination in the workplace.

UAE Labour Law No. 33 of 2021
UAE Labour Law (Federal Decree Law No. 33 of 2021): This law governs labour relations in the private sector, addressing issues such as harassment, bullying, and discrimination, and defining the obligations of employers.

Unemployment Insurance Scheme
Unemployment Insurance Scheme – MoHRE: Learn about the scheme that provides unemployment benefits to workers in the UAE, implemented to ensure workers’ rights even after job loss.

Wages Protection System (WPS)
Wages Protection System (WPS) – MoHRE: This system ensures that salaries are paid on time and in full, and workers can raise wage-related grievances through this portal.

Worker Accommodation Standards
Temporary Worker Accommodation Standards: The UAE has allocated over USD 5 billion to ensure that temporary worker accommodations meet or exceed international standards.

Gender Equality and Labour Rights
Gender Equality in the Workplace – UAE Government Portal: This initiative promotes equal rights for men and women in the workplace.

Support for People of Determination
Rights of People of Determination – MoHRE: Learn how the UAE guarantees equal employment opportunities for people of determination by providing suitable working and health conditions.

Combatting Human Trafficking
National Committee to Combat Human Trafficking: The UAE’s efforts to combat human trafficking both regionally and internationally.

Resources for Workers

Explore more about labour rights in the UAE:
Labour rights in the UAE – Embassy of the UAE, Washington DC
MoHRE Labour Rights Overview

For a comprehensive report on labour market reforms, read the:
Workers’ Welfare Report 2017-2018 (PDF)

Additionally, learn about recent labour law changes, such as new legal processes for claims under AED 50,000 and stricter penalties for labour violations, through the UAE Labour Law Updates 2024