United Arab Emirates EOR & PEO

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Hire in United Arab Emirates

The United Arab Emirates (UAE) is a Middle Eastern country bordering Oman and Saudi Arabia. Famous for the cities of Dubai and Abu Dhabi, the UAE this country was once controlled by the Portuguese and then the British, gaining independence in 1971. Since that time, it has grown into one of the wealthiest countries in the world based largely on its large oil and gas reserves. The country’s GDP has grown steadily for decades, reaching $504.17 billion in 2023, and is set to expand by another 3.5% in 2024. Working with an EOR is a great way to hire workers in the UAE and get them on your payroll quickly.

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hire employees in United Arab Emirates

What Is a United Arab Emirates EOR?

An EOR or employer of record in the United Arab Emirates is a service provider that specializes in hiring local workers on behalf of other companies. This arrangement allows foreign-based companies that do not own entities in the UAE to employ workers here legally. Client companies pay a fee for the EOR to hire and manage the human resources (HR) functions needed to manage UAE employees.

Save Money And Time with A United Arab Emirates EOR

What Are the Benefits of a United Arab Emirates EOR?

The many advantages of working with an EOR in the UAE include:

Not needing an entity: Foreign-based companies can hire employees through an EOR and, therefore, avoid having to register their own businesses in the UAE. This saves them lots of time, money, and effort by letting the EOR act as the legal employer of their employees in the UAE.
Language skills: The common language of communication in the UAE is English, making working with UAE employees smooth and easy. Most Emiratis also speak Emirati Arabic, which can also be very useful for employers looking to do business in the wider region.
Fast recruitment and onboarding: Many EORs offer recruitment services and are able to recruit top talent fast, thanks to their labor pools and knowledge of the local labor market. Once you agree to hire their candidates or those you’ve found on your own, the EOR can onboard them quickly, usually taking only a few days to get all of their paperwork in order.
Constant compliance: EORs in the UAE have legal experts who follow tax and labor laws precisely and help create fully legal contracts. They also handle tax and social security payments, ensuring that they’re correct and timely. This shields your company from any fines or other penalties you might otherwise accrue due to non-compliance.

Horizons is Best IN Class

Why Choose Horizons?

Horizons stands out as a UAE EOR through:

A strong regional presence in the Middle East, meaning senior management are on the ground to deal with any issues.
Client-focused infrastructure. Horizons won’t oversell you on products and services you don’t need. Horizons offers the easiest platform to compliantly hire and pay people worldwide.
Cost-effective solutions. At $299 per employee, per month, no EOR in UAE is more affordable. The cost is 100% transparent (onboarding, offboarding, deposit, no extra charges).
A customer-first culture. Horizons is an efficient bootstrapped company. It is not an externally-funded company burning investor cash to aggressively acquire new clients. Horizons is the only EOR that grows with its customer, reflecting the level of care and personal attention provided to each customer. Horizons will carefully advise on the best setup in each country: the type of contract needed, how to structure your benefits, and how to offboard a person while minimizing the risk of conflicts and extra cost
A long-term partnership. Horizons is the only EOR platform with a recruitment arm — a direct response to client demand. If any employee is leaving, or if our clients want to explore a new country, Horizons can recruit new candidates directly for the client. Horizons is:
- The only EOR doing this in-house — no subcontracting
- The only EOR doing this without a retainer — clients are only charged upon success
- The only EOR charging just a 2% fee per month.

Step-by-step United Arab Emirates EOR

How Does a United Arab Emirates EOR Work?

An EOR in the United Arab Emirates works as a partner that allows you to hire local workers in this country. An EOR will normally provide the following services:

Hiring your employees: You may recruit your own workers or ask the EOR to perform this function for you. You can express your recruitment needs, and the EOR will search its talent pool and local networks to find the talent that you require. If you accept the candidates it proposes, the EOR will hire them and become their sole legal employer in the UAE.
Managing employment contracts and onboarding: Most EORs will work with you to make offers of working conditions and compensation that are appropriate and attractive to UAE workers. These terms will be included in the contracts the EOR generates on your behalf. It will enter into these contracts directly with the employees while dictating that they will work exclusively for your company. The EOR will then onboard your employees, normally by collecting their documents through its online platform. It will register them with the local tax and social security authorities, and then they’ll be ready to start working for you.
Processing payroll and handling employment taxes: The EOR will handle payroll processing for all of your employees in the UAE. You’ll need to provide it with worked hours data, and the EOR will also need to invoice you regularly for the funds to run payroll. From that, the EOR will calculate each worker’s gross salary. It will then calculate and withhold taxes and social security contributions, which it will pay, along with your employer contributions, to the authorities. The remaining net salaries will be paid to your employees, who will also receive detailed payslips for their records. The EOR’s payroll activities will be complied for your records as well.
Administering benefits: Your employees’ mandatory benefits like annual leave and public holidays will be managed by the EOR long-term. You may also choose to offer additional benefits, and many EORs can provide these for you, including private pensions, employee stock ownership plans, and health insurance. The EOR can manage regular contributions to these programs on your behalf.
Taking care of exit procedures: As the legal employer of your UAE workers, it’s the duty of the EOR to terminate them if you require it. The EOR will examine the legality of your reasons for termination and calculate notice periods and severance payments as required.

stay compliant with United Arab Emirates labor laws

Labor Laws

Unions and the right to strike are not recognized in the UAE. At the same time, however, there is a significant body of law in place that protects the rights of both workers and employers. These statutes are spread across various legal instruments such as the Constitution of the United Arab Emirates 1971, the Federal Law for Pension and Social
Security (No. 7 of 1999), the Ministerial Resolution on defining work that is hazardous, tiresome, or harmful to health or morals, and where women should not be employed therein (No. 6/1 of 1981), and many other laws and decrees. While the EOR will manage compliance with these various laws, it’s useful to be aware of the main points that will let you know what your UAE workers will be entitled to.

Employment contract types

Both permanent (indefinite) and fixed-term (definite) contracts are allowed in the UAE. Fixed-term contracts can last a maximum of three years, though they can be renewed. All contracts must be in writing and include the name and address of the employer; name, nationality, birth date, and qualification of the worker; proof of the worker’s identity; job description; workplace; working hours and rest days; start date; probationary period; term of the contract; wage, benefits, and allowances, annual leave; and notice period and procedures for termination.

Project-based

Fixed-term

Indefinite

Working hours in United Arab Emirates

The standard working hours in the UAE are eight hours a day and six days a week for a total of 48 hours per week. These workdays are reduced by two hours per day during the month of Ramadan. Overtime is allowed to a maximum of three hours per day or not more than a total of 60 working hours in a week. However, in a three-week period, total working hours cannot exceed 144 hours.

Overtime must be compensated in the following way:

Holiday Schedule in United Arab Emirates [2024]

United Arab Emirates employees are entitled to at least 11 paid public holidays each year.

The United Arab Emirates public holiday schedule for 2024 is:

Date	Holiday name
1 Jan, 2024	International New Year’s Day
8 Apr to 12 Apr	Eid al Fitr
15 Jun, 2024	Arafat Day
16 Jun to 18 Jun	Eid al Adha
7 Jul, 2024	Hijri New Year’s Day
15 Sep, 2024	Birthday of the Prophet
30 Nov, 2024	Martyrs Day / Commemoration Day
2 Dec, 2024	National Day

Paid time off

Workers cannot work more than five hours without receiving a break or breaks totaling one hour in length. These breaks are not paid. Each week, the employee is entitled to one 24-hour period of rest. They can work on these rest days for a premium but cannot work on rest days two weeks in a row.

Sick leave in United Arab Emirates

After completing their probationary periods, workers are entitled to 90 days of sick leave per year. The first 15 days are fully paid, the next 30 days are paid at half wages, and the remaining 45 days are unpaid.

Less than 6 months of sick leave:

(percentage of regular wages owed to the employee)

Over 6 months of sick leave

In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.

Maternity leave in United Arab Emirates

Expecting mothers are entitled to a minimum of 60 days of maternity leave, 45 at full pay and 15 at half-pay (paid by the employer). Another 45 days of unpaid leave may be added in the case of complications. New fathers who have already worked for one year are allowed five days of paid paternity leave after the birth or adoption of a child.

Annual leave in United Arab Emirates

After working for six months, employees become eligible for 30 days of leave each year. Up to half of the annual leave allowance can be carried over to a maximum of two years.

Termination & severance in United Arab Emirates

Employers can terminate workers for gross misconduct without notice. Otherwise, terminated workers must receive 30 days’ notice if they have worked for less than five years for the employer, 60 days’ notice for five to ten years of service, and 90 days’ notice for service over 10 years. Any worker with over one year of service is entitled to severance pay of 21 calendar day’s wages for each of the first five years of service. They receive 30 calendar days’ pay per year for each year of service after that.

United Arab Emirates' compulsory social security contributions

Social security contributions are primarily relevant for UAE nationals and GCC (Gulf Cooperation Council) nationals. Expatriates from other countries typically do not participate in the UAE’s social security system and instead might have end-of-service benefits.

Social security contributions include 5% from the employee, 12.5% from the employer, and 2.5% from the government. As for GCC nationals, contribution vary based on the regulation of their home country.

United Arab Emirates social security for foreigners

The social security contributions do not apply to expatriates (foreigners) who are non-GCC nationals. Instead, expatriates are entitled to an end-of-service gratuity (EOSG) when their employment contract ends.

This gratuity is calculated based on the employee’s last drawn basic salary and is intended to provide a lump-sum payment at the end of employment.

Individual income tax

The UAE does not impose a federal income tax on individuals.

Health insurance

Health insurance is mandatory and is regulated at the emirate level, with specific requirements differing slightly between emirates.

Basic coverage typically includes inpatient and outpatient treatments, emergency services, surgeries, maternity care, and essential medications.

hassle-free Emiratis compensation & benefits

Compensation & Benefits

United Arab Emirates compensation laws

The federally mandated minimum wage is surprisingly low in the UAE, reflecting the trend to pay immigrant workers much lower wages than Emiratis. Unlike in other countries, the minimum wage is based on education. Workers with no high school certificate must be paid at least 300 AED (United Arab Emirates Dirham)/month (about 80 USD). High school graduates must receive at least 400 AED/month (about 110 USD), and degree holders 500 AED/month (about 135 USD). Average salaries for skilled workers are much higher at 10,000-15,000 AED/month (2,700-4,000 USD).

Overtime hours must be paid at the rate of at least 125% of normal wages, and at night (10:00 p.m. to 4:00 a.m.) workers must receive 150% of normal wages for overtime work. Work performed on rest days or public holidays must also be paid at 150% of normal wages.

13 month salary in United Arab Emirates

A 13th-month annual bonus is not mandatory in the United Arab Emirates. While not mandatory, some employers may choose to grant an annual bonus to incentivize their workers.

Social security for Emiratis nationals

Contributions in the UAE amount to a 26% contribution to the Federal Pension and Social Security Scheme. The employee is deducted 11% of their salary, and the employer pays an extra 15% on top of the salary for these contributions.

UAE

Navigation

Hire in United Arab Emirates

What Is a United Arab Emirates EOR?

What Are the Benefits of a United Arab Emirates EOR?

Why Choose Horizons?

How Does a United Arab Emirates EOR Work?

Labor Laws

Employment contract types

Working hours in United Arab Emirates

Compensation & Benefits

Frequently asked questions

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Frequently asked questions

How does an EOR in the UAE handle compliance with local labor laws?

As the sole legal employer of your workers in the UAE, the EOR has the duty to maintain constant compliance with all local tax and employment laws. It does this with the help of local legal experts, whose recommendations help define the contracts it enters into with the employees. The EOR also runs payroll and calculates salaries, tax withholdings, and social security contributions to ensure they are always correct and paid on time.

What are the key benefits of using an EOR in the UAE?

The most significant benefit you can gain from working with an EOR in the UAE is that it allows you to hire workers there without needing to own a registered business in the country. Many EORs can also assist with recruiting and can hire and onboard your workers extremely efficiently. They also manage your employees’ HR needs and maintain compliance with local laws, so you only need to focus on managing their work.

United Arab Emirates EOR & PEO

Start hiring in United Arab Emirates

Simple, compliant hiring with Horizons EOR & PEO

Hire in United Arab Emirates

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hire employees in United Arab Emirates

What Is a United Arab Emirates EOR?

Save Money And Time with A United Arab Emirates EOR

What Are the Benefits of a United Arab Emirates EOR?

Horizons is Best IN Class

Why Choose Horizons?

Step-by-step United Arab Emirates EOR

How Does a United Arab Emirates EOR Work?

stay compliant with United Arab Emirates labor laws

Labor Laws

Employment contract types

Project-based

Probationary period

Termination

Severance

Fixed-term

Probationary period

Termination notice period

Severance

Indefinite

Probationary period

Termination notice period

Severance

Working hours in United Arab Emirates

Overtime must be compensated in the following way:

For a regular workday:

For a rest day:

For a statutory holiday:

Paid time off

Under 1 year of employment

1-10 years of employment

10-20 years of employment

20+ years of employment

Sick leave in United Arab Emirates

Less than 6 months of sick leave:

Under 1 year of employment

1-10 years of employment

10-20 years of employment

20+ years of employment

Over 6 months of sick leave

Under 1 year of employment

1-3 years of employment

3+ years of employment

Maternity leave in United Arab Emirates

Annual leave in United Arab Emirates

Termination & severance in United Arab Emirates

United Arab Emirates' compulsory social security contributions

United Arab Emirates social security for foreigners

Individual income tax

Health insurance

hassle-free Emiratis compensation & benefits

Compensation & Benefits

United Arab Emirates compensation laws

13 month salary in United Arab Emirates

Social security for Emiratis nationals

Hire in United Arab Emirates in 24h without your own local entity.

Frequently asked questions

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