Global EOR Services in United Arab Emirates
Find, Hire & Pay Employees in United Arab Emirates
Global Employer of Record (EOR) services in United Arab Emirates offer a seamless solution for companies aiming to hire employees in the region without setting up a local legal entity. By managing compliance, payroll, taxation, and employee benefits in accordance with United Arab Emiratesregulations, Global EOR services enable businesses to focus on growth while navigating the complexities of local labor laws with ease.
An Employer of Record (EOR) in the UAE helps foreign companies hire and manage employees without needing to establish a legal entity. The EOR:
Why Use Global EOR Services in United Arab Emirates?
Acts as the legal employer for labor law compliance
Sponsors and manages work permits / residence visas (mandatory for foreign employees)
Drafts compliant employment contracts in English/Arabic
Runs payroll in AED
Handles end-of-service gratuity, social security (for GCC nationals), and benefits administration
Ensures compliance with UAE labor law (including free zone or mainland differences)
Manages terminations, settlements, and visa cancellations
🇦🇪 United Arab Emirates: Country Overview
The UAE is a leading economic hub in the Middle East, known for its world-class infrastructure, business-friendly environment, and diverse economy. Comprising seven emirates, including Dubai and Abu Dhabi, the UAE has transitioned from an oil-dependent economy to a global center for trade, finance, tourism, technology, and logistics. The country attracts a large expatriate workforce (over 85% of its population) and offers various free zones to promote foreign investment.
Capital: Abu Dhabi
Currency: UAE Dirham (AED)
Population: ~10 million (majority expatriates)
Official language: Arabic (English widely used in business)
Main industries: Oil & gas, finance, tourism, real estate, logistics, technology, manufacturing
Main exports: Crude oil, natural gas, aluminum, petrochemicals, re-exports
Main trading partners: China, India, Japan, Saudi Arabia, U.S., European Union
Employment Laws and Policies
The main legal frameworks include:
Federal Decree-Law No. 33 of 2021 (UAE Labor Law) — applies to private sector mainland employees
Free zone regulations — each free zone (e.g., DMCC, JAFZA, DIFC) may have its own employment rules
Ministerial decisions and executive regulations
📄 Employment Contracts
Must be in writing, in Arabic and/or English.
Contracts are typically fixed-term (up to 3 years, renewable). As of 2022, indefinite contracts are no longer allowed under the new labor law.
Must specify job title, salary, allowances, leave, notice period, and termination conditions.
🕰 Working Hours
Standard: 48 hours/week, 8 hours/day, 6-day workweek (or as per contract)
Friday-Saturday or Saturday-Sunday weekends depending on sector
Overtime: Max 2 hours/day; paid at 1.25x normal rate (1.5x at night or on holidays)
🌴 Leave Entitlements
Annual leave: 30 calendar days (after 1 year of service)
Sick leave: 90 days/year (first 15 days at full pay, next 30 at 50%, rest unpaid)
Maternity leave: 60 days (45 days full pay + 15 days half pay)
Paternity leave: 5 working days (within 6 months of child’s birth)
Public holidays: 10-14 paid public holidays (depending on calendar)
Payroll, Taxes & Contributions
No personal income tax in the UAE
Social security:
Only for UAE/GCC nationals: ~12.5% (5% employee + ~12.5% employer depending on emirate)
Expat employees: no mandatory social security
End-of-service gratuity: Mandatory lump-sum payment on termination/resignation after ≥1 year
21 days’ basic pay per year for first 5 years
30 days’ basic pay per year after 5 years
Payroll is processed in AED, and salaries must be paid through the Wage Protection System (WPS) for mainland companies.
🏥 Health & Safety
Employers must provide:
Medical insurance (mandatory in Abu Dhabi, Dubai, Sharjah — best practice nationwide)
A safe working environment (OSH standards apply)
Training on safety and emergency procedures
⚠ Termination & Severance
Notice period: Minimum 30 days (up to 90 days by contract)
Severance: End-of-service gratuity + any contractual payments
Termination must follow legal procedures (e.g., valid cause, notice)
⚖ Non-Discrimination
UAE labor law prohibits discrimination based on race, color, sex, religion, nationality, or disability.
Equal pay for equal work is mandated.
Opening a Legal Entity in UAE
Options include:
Mainland LLC (51% local sponsor requirement for some activities, unless 100% foreign ownership allowed in certain sectors)
Free zone company (100% foreign ownership, no customs duties inside zone)
Branch of foreign company
Setup steps:
Select structure and license type
Reserve trade name
Obtain initial and final license approvals
Register for VAT (if applicable)
Set up bank account
Register for WPS (for payroll compliance)
Timeline: 4-8 weeks (mainland); faster in some free zones
Popular Global EOR Providers Supporting United Arab Emirates
(They often partner with in-country firms for local compliance.)
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