Hire and pay employees in the United Arab Emirates quickly and compliantly

Complying with labor and employment laws in the United Arab Emirates

The UAE’s labor laws are centralized under Federal Decree-Law No. 33 of 2021 (the “New Labour Law”) for private-sector employees across the Emirates. The Ministry of Human Resources and Emiratisation (MOHRE) is the principal authority for matters in the mainland, while each free zone may have additional regulations complementing federal law.

Noncompliance with local laws can lead to fines, visa issues, reputational damage, or blacklisting from future operations. The UAE is a hub for global employers and expats, but it’s still important to adhere to Emirati labor norms and respect local cultural practices—doing so fosters strong business relationships, reflecting the region’s emphasis on respect and hospitality.

If you’re looking to hire employees in the UAE, you can streamline and simplify your compliance work by partnering with Rippling EOR. Rippling provides access to expert HR support on Emirati employment laws so your business is always up to date on the latest regulations.

Employment contracts in the United Arab Emirates

In the UAE, employment contracts must be in writing, outlining job details like the salary, rights, probation period, contract duration, and relevant statutory entitlements. Only fixed-term contracts, not indefinite-term contracts are permitted. Contracts must align with MOHRE guidelines if you’re operating on the mainland or free zone authorities if you’re in specialized zones like DIFC.

Employers must keep a copy of the employment contract for their records and provide one to the employee.

Here are some of the elements to consider including in an employment contract, but keep in mind that this isn’t an exhaustive list:

• Contract type: In 2022, the UAE introduced flexible, part-time, and temporary contracts under the New Labour Law.
• Wages and benefits: These must comply with the Wage Protection System (WPS) for mainland employees.
• Probation period: Probation periods can last a maximum of six months under the law, with specific termination notice requirements in line with new updates.

It’s customary—and legally mandated—to provide a bilingual contract (Arabic/English) for clarity. If disputes arise, the Arabic version typically prevails, so make sure it accurately mirrors the English text.

Labor unions in the United Arab Emirates

Labor unions, as known in Western countries, do not exist in the traditional sense within the UAE, and collective bargaining is not a standard practice. The law primarily addresses employer-employee relations through government oversight.

This means there are a few key differences between Western labor practices and the UAE that employers should know:

• Strikes or union-led actions are not legally recognized, and MOHRE mediates labor disputes.
• Expatriate workers can seek recourse via MOHRE or free zone authorities if they face disputes, wage delays, or unfair dismissal. Expats may also turn to embassies or community associations if they face severe grievances.

Given the absence of unions, direct employee engagement—like open-door policies or company-led committees—can help address grievances and maintain morale. Employers can set up internal committees, suggestion boxes, or “town hall” meetings to hear staff concerns, fostering transparency in a culturally diverse environment.

Mitigating permanent establishment risk in the United Arab Emirates

A permanent establishment (PE) is a concept in international tax law referring to a fixed location, such as an office, branch, or factory, where a business regularly conducts activities in a foreign country. By establishing PE, a business runs the risk of having to pay corporate income taxes on any money it earns in the jurisdiction where it has PE.

Foreign companies with significant operations in the UAE risk creating a PE, which can lead to corporate taxation in free zones or federal corporate tax. The UAE historically had no federal corporate tax (except in certain industries like oil and banking), but as of 2023, the country introduced a 9% corporate tax regime for profits above AED 375,000. This shift means understanding PE is increasingly important for foreign employers doing business in the country.

Under UAE Corporate Tax Law, the definition of a PE is aligned with the definition in the OECD Model Tax Convention, which means a non-resident is generally considered to have a PE if:

• They conduct business in the UAE through a fixed or permanent place
• Someone has the authority to habitually conduct business in the UAE on their behalf (including concluding contracts)

Companies expanding to the United Arab Emirates can mitigate their PE risk by avoiding having a fixed place of business or employing the strategies below:

• Limit local authority. If employees consistently sign major deals or manage local clients, you may inadvertently trigger PE status.
• Document your business activities. Keep clear records showing which tasks occur outside vs. inside the UAE.
• Consult a local tax expert. The UAE’s corporate tax regime is evolving; local tax professionals can clarify how new legislation affects your PE exposure, especially if your revenue or local presence grows.

Protecting company IP in the United Arab Emirates

Intellectual property (IP) refers to creations of the mind, which can include creative works, inventions, designs, branding materials, music, software, and written works. Around the world, laws allow creators to protect these types of works, and the United Arab Emirates is no exception—the UAE has robust intellectual property laws influenced by international treaties. Creators can file patents, trademarks, and copyrights with the Ministry of Economy (MoE). Free zones like Dubai Media City or Dubai Internet City also have additional rules protecting creative works.

In technology or creative roles, your employment contract or NDA should clearly state that creations made during employment belong to the employer, consistent with local IP laws.

Here are the main IP types you can protect under the law in the United Arab Emirates: 

• Trademarks: Trademarks are valid for 10 years and renewable indefinitely. They must not conflict with existing or protected marks.
• Patents: Patent-holders can apply for up to 20 years of protection. To qualify, a patent requires novelty and industrial applicability.
• Copyrights: Copyrights in the UAE are governed by Federal Law No. 11 of 2021 on Copyrights and Related Rights. Copyrights are granted automatic coverage upon creation for artistic and literary works for an initial term of the author’s life plus 50 years.

Local laws in the United Arab Emirates

UAE legislation extends beyond simple labor codes. Key local laws and policies can significantly impact how you recruit, compensate, and manage teams. There are a few major areas of local law that may catch employers off-guard if they aren’t familiar with them:

• Emiratisation policies: The UAE is pushing for greater inclusion of Emirati nationals in the private sector. MOHRE’s Nafis program and other initiatives set quotas in certain industries, requiring companies above specific workforce thresholds to hire or train Emiratis. Noncompliance can lead to fines or difficulty renewing labor quotas.
• Data protection laws: A new national data protection law (Federal Decree-Law No. 45 of 2021) introduces obligations on how businesses handle personal data—like storing employee records. This law complements emirate-level guidelines (e.g., Dubai’s Data Protection Law in DIFC). Mishandling employee or customer data can incur fines or criminal liabilities. Employers should obtain consent for data processing, keep records secure, and comply with potential cross-border data transfer rules.
• Sharia influences and cultural norms: Although the workforce is multinational, aspects of personal and commercial law may reflect Islamic principles—especially around moral conduct, decency regulations, or finance (like interest-free Islamic banking). Understanding Sharia-based norms can prevent unintentional legal or cultural missteps (e.g., respecting modest dress codes, especially in certain government buildings or conservative emirates like Sharjah).

Worker classification and misclassification in the United Arab Emirates: Contractors vs. employees

Before you start hiring workers in the UAE, you’ll need to determine the right working arrangement for your business needs. Do you need independent contractors or full-time employees? Which will better suit your business and your expansion needs in the UAE? Both have pros and cons and different legal and financial implications, so it’s important to understand the differences.

In the UAE, independent contractors, or freelancers, work under different types of visas or licenses than employees. Independent contractors must be independently licensed and self-sponsored, and they aren’t entitled to the same protections, rights, and benefits as employees under the Labour Law and other regulations. It’s important for employers to know how to properly classify their workers. Misclassifying employees as independent contractors means denying them the protections and benefits they’re entitled to, which could result in disputes, penalties, back payments, and legal action.

Worker classification in the United Arab Emirates: Key differences between contractors and employees

Consequences of misclassification in the United Arab Emirates

The MOHRE is the government agency that oversees employment rights in the UAE, including worker classification and visa issuance. MOHRE also proposes new federal laws to regulate employment in the UAE and supervises the implementation of employment laws, making it the primary agency responsible for enforcing worker classification rules.

The UAE’s residency system requires employers to sponsor foreign employees. If your “contractor” is on your company’s visa or acts like a full-time staffer, MOHRE authorities could reclassify them as an employee, leading to statutory entitlements.

Employers who incorrectly classify workers may also face consequences, such as:

• Fines and penalties: MOHRE or immigration authorities might impose fines or block your firm from issuing new visas.
• Back payments: The worker may claim end-of-service gratuity, overtime, or annual leave arrears.
• Reputational damage: Government agencies keep track of compliance records, and negative incidents can hamper your organization’s future expansion plans.

Wages and payroll in the United Arab Emirates

The UAE is unique when it comes to its wages, payroll, and hours laws. For example, many employees receive a basic salary from their employer, plus a number of allowances (for example, housing allowance, transportation allowance, utilities allowance, etc.). This is important because the employee’s end-of-service gratuity, a benefit payment they receive at the end of their tenure, is calculated based only on the basic salary.

Other key things for foreign employers to know:

• The UAE doesn’t have a universal minimum wage, but minimum wages exist for Emirati workers under certain circumstances.
• Mainland employers must pay staff via the Wage Protection System (WPS).

Learn more about wages and payroll in the United Arab Emirates below.

Minimum wage in the United Arab Emirates

The UAE doesn’t have a universal minimum wage—and no minimum wage exists at all for expat workers. MOHRE only requires that the agreed-upon wage be a living wage. Newer laws have set monthly minimum wages for UAE nationals based on their education levels:

• No high school education: 3,000 AED per month
• Certified high school education: 4,000 AED per month
• University degree or higher: 5,000 AED per month

MOHRE can also set skill-based wage guidelines, and certain free zones have their own standards (for example, professional categories in DIFC). Emiratis in private sector roles might be subject to specific minimums or subsidies under Emiratisation programs.

Market rates in Dubai or Abu Dhabi often outstrip the official guidelines, especially for high-skilled roles. To attract talent for specialized roles in tech or finance, you’ll likely need to surpass the baseline. Check industry salary surveys in Dubai or Abu Dhabi for realistic figures that will help your business attract and retain the best talent in a competitive job market.

Payroll frequency in the United Arab Emirates

In the UAE, most companies pay monthly, with payroll disbursed via bank transfers. Some free zones allow alternative schedules, but it’s common practice to credit salaries at least once a month.

Employers on the mainland are required to pay their workers via the WPS. This system ensures all workers receive their pay accurately and on time by transferring salary and wage payments via financial institutions approved by the Central Bank of the UAE. To comply with the WPS, employers need to:

1. Enroll with MOHRE. Mainland employers must register with an approved bank or exchange.
2. Process salaries on time each month. Each month, deposit net wages into the employee’s UAE bank account.
3. Keep electronic payslip records to show basic wages, allowances, and net amounts. Provide an itemized statement indicating basic salary, allowances, and deductions.

Upload payroll files to your assigned WPS agent (banks, exchange houses, or approved financial institutions). Keep employees updated on any partial or full allowances outside the basic wage for clarity and transparency.

Failure to comply with the WPS can freeze your ability to get new work permits or renew existing visas.

13th month pay in the United Arab Emirates

13th month pay is an additional payment given to employees, usually equivalent to one month’s salary. Unlike some countries, the UAE does not require a 13th salary or “bonus month,” but many employers offer discretionary or performance-based bonuses, especially during Ramadan or Eid festivities, as a goodwill gesture. While not mandatory, year-end or Eid-related gifts convey respect and can bond your staff to local traditions—like distributing dates or iftar meals during Ramadan.

Run payroll compliantly in the United Arab Emirates

Managing employees and payroll in foreign countries and jurisdictions can be complex, and given the multi-faceted regulations—mainland vs. free zone, WPS requirements, and potential Emiratisation targets—compliance is crucial when paying employees in the UAE. By working with an EOR, you can get all the help you need to handle deductions, adhere to local wage laws, and make accurate, on-time payments. Rippling EOR makes hiring and paying employees across the globe quicker and easier than ever.

Employer and employee taxes in the United Arab Emirates

In the UAE, taxation works differently than many other jurisdictions foreign employers might be familiar with. For many years, the UAE didn’t impose personal income tax on individuals, which remains the case for most workers. However, the UAE is introducing a federal corporate tax at 9% for profits exceeding AED 375,000 (except in free zones, where some corporate tax rates are still at 0% if businesses comply with relevant regulations, like not doing business directly with the mainland).

Employers typically don’t withhold personal tax from salaries (since it doesn’t exist), but they do need to watch out for the 5% VAT (Value Added Tax) on goods and services and the new corporate tax regime for independent contractors operating as businesses.

With a complex and unique tax structure, it’s important for employers to be diligent to ensure they make the right contributions and correctly calculate and withhold their employees’ taxes. Here are the top things to understand about employer and employee taxes in the United Arab Emirates.

Employer taxes in the United Arab Emirates

Employee taxes in the United Arab Emirates

Social security contributions in the UAE are mandatory only for UAE and GCC nationals. Expat employees are not subject to Emirati pensions or social security.

Note that employees in the UAE don’t pay individual income tax.

Penalties for not paying taxes in the United Arab Emirates

While personal income tax is non-existent, late filing or noncompliance with corporate tax or VAT can result in administrative penalties or blacklisting. The Federal Tax Authority (FTA) closely monitors compliance in the UAE.

To mitigate compliance issues, employers should keep impeccable records, file VAT returns (if applicable) on time, and monitor their corporate tax obligations. Taking a proactive stance prevents nasty surprises and fosters confidence among Emirati officials.

Another way to mitigate tax compliance concerns is by working with an EOR. Rippling EOR takes care of compliance responsibilities by handling payroll taxes on your behalf, making sure they’re paid correctly and on time. This allows you to focus on growing your business in the UAE and beyond.

Employee benefits in the United Arab Emirates

The UAE is a global hub that attracts top talent from around the world, making it a competitive place to hire employees, especially in advanced sectors like tech, IT, healthcare, and e-commerce. Offering robust employee benefits can help your organization attract and retain the best employees the market has to offer.

The UAE’s blend of modern commerce and tradition can influence employers' benefits packages. Expatriate packages often include housing allowances, medical coverage, and annual flight tickets home—while local staff might look for additional perks reflecting Emirati family values. There are also some mandatory benefits, meaning Emirati law requires employers to provide them to full-time employees. Knowing what’s required of you as an employer can help you avoid legal trouble when hiring in the UAE. Here’s an overview of statutory benefits and other optional perks that may help you attract top talent to your organization.

Mandatory benefits in the United Arab Emirates

Mandatory benefits are required by law, meaning employers must provide them to their employees (but not independent contractors) in order to stay compliant with the UAE’s employment laws.

Here are the statutory benefits employers must provide in the UAE. Note that some of these are only mandatory in certain parts of the country:

• Social security contributions: While there is no individual income tax in the UAE (for nationals or foreign employees), employers are required to make social security contributions for their employees. 
• Pensions: Employees with UAE citizenship are entitled to join the federal pension scheme.
• Health insurance: Employers must provide medical insurance policies for employees in all Emirates. They do not need to provide insurance for their employees’ dependents in most Emirates, except in Abu Dhabi, where employers are required to provide medical insurance coverage for the employee's family. This includes one spouse and up to three children. Failure to provide insurance can result in fines or restrictions on requesting new visas.

Optional benefits in the United Arab Emirates:

Considering how competitive the employment landscape can be in the UAE, offering optional and fringe benefits can help employers attract high-quality job candidates. It’s common for Emirati employers to offer supplementary benefits, but deciding which ones to include in your package can still be challenging. To stand out in a competitive market, especially in hubs like Dubai Internet City or Abu Dhabi’s financial sector, many employers offer:

• Housing or transportation allowances: Rental costs in prime areas can be steep, and commuting to work adds extra costs. Providing allowances for housing and transportation helps employees with the cost of living, especially in cities like Dubai.
• Education allowances: Expat families with children especially value this perk.
• Wellness and gym access: This perk is a nod to the region’s growing health consciousness.

Additionally, providing flexible leave or remote work during Ramadan or special family events resonates with local customs. Expats often appreciate perks like flight allowances for visiting home, which also aligns with standard Middle East employment norms. And office perks like qahwa (Arabic coffee) stations or occasional camel milk chocolate treats can also nurture a culturally rich environment, bridging expats and Emiratis alike.

Working hours, overtime, and leave in the United Arab Emirates

When hiring in a foreign jurisdiction, it’s crucial to understand the country’s legal working hours, overtime rules, break regulations, and leave laws. These types of regulations can vary significantly around the world, making it particularly important for global employers to stay on top of them.

The UAE has imposed structured labor rules to safeguard employees’ health and well-being in recent years. These rules receive frequent updates, making it even more crucial for employers to stay informed about the laws and their responsibilities.

Standard working hours in the United Arab Emirates

In the UAE, the standard working week often runs from Monday to Friday (introduced in the public sector in 2022). However, many private companies still operate on a Sunday-to-Thursday workweek. Officially, the typical cap is eight hours daily or 48 weekly, with daily rest and prayer breaks accounted for.

Ramadan hours for Muslim employees typically reduce the daily schedule by two hours. Non-Muslims often also benefit from shortened hours since respecting shorter hours for fasting employees during the holy month fosters good morale across the organization. Adopting flexible or remote policies during Ramadan can also show empathy while maintaining productivity.

Overtime laws in the United Arab Emirates

Overtime is allowed in the UAE with the employee’s permission, but only up to two hours per day (unless under exceptional circumstances). Employees receive 125% of their regular hourly wage, or 150% if it occurs between 10 p.m. and 4 a.m. or on an official rest day.

Rest period and break laws in the United Arab Emirates

Employees in the UAE are entitled to at least a one-hour meal break if they work more than five consecutive hours in a day. They’re also entitled to at least one weekly rest day—commonly Sunday for private companies or Saturday-Sunday in free zones.

While not mandated by law, many workplaces allow short breaks for prayer, reinforcing cultural sensitivity in a Muslim-majority environment.

Given the heat in summer months (regularly hitting 45°C/113°F or above), many construction or outdoor tasks shift to cooler times of the day. MOHRE midday break rules say that outdoor workers should not work during the hottest parts of the day in order to protect their health.

Leave laws in the United Arab Emirates

Full-time employees are entitled to several types of paid leave annually. Here’s what employees need to know about leave laws in the UAE:

• Annual leave: Employees who have worked for at least six months (but less than a year) are entitled to two days of leave per month. Employees who have worked for at least one year are entitled to 30 days of annual leave per year.
• Sick leave: Employees are entitled to 90 days of sick leave per year (15 days at full pay, 30 days at half pay, and the remaining 45 days without pay).
• Maternity leave: Women who give birth are entitled to 60 days of maternity leave—45 days with full pay and 15 days with half pay—regardless of her length of service. If the employee experiences complications related to maternity, she is eligible for an additional 45 days of unpaid leave. Additionally, if the infant is sick or has a disability, the employee is entitled to an extra 30 days of leave with full pay, followed by 30 more days of unpaid leave.
• Parental leave: Parents can take five days of parental leave at any time until their child is six months old. Parental leave can be used as additional maternity leave or as paternity leave.
• Bereavement leave: Bereavement leave (also called compassionate leave) allows an employee to take time off in the event of the death of a close family member. Employees are entitled to five days off for the death of a spouse or three days off for the death of a parent, child, sibling, grandchild, or grandparent.
• Study leave: Employees who have worked for at least two years and are studying in a certified educational institution in the UAE are entitled to up to 10 days of paid leave for examinations.
• Sabbatical leave: Employees who perform in national service are entitled to paid leave to do so.
• Pilgrimage leave: Pilgrimage leave, also known as Hajj leave, allows an employee up to 30 days of unpaid leave for a religious pilgrimage. This leave is job-protected and mandated by law but is only available once per employee during their tenure at an organization.
• Public holidays: Employees in the UAE observe 13 annual public holidays:
• New Year Day
• Eid Al Fitr (four days)
• Arafah Day and Eid Al Adha (four days)
• Hijri New Year
• Prophet Mohammed's birthday
• National Day (two days)

Granting flexible leave around Ramadan or Eid fosters an inclusive workplace. Employees appreciate schedules that respect Iftar times (fast-breaking meals) and Eid family gatherings.

Employee onboarding in the United Arab Emirates

Whether you hire new employees in your home country or a new, faraway jurisdiction, your onboarding process sets the tone for strong, long-term employer-employee relationships. And it’s important to remember that onboarding starts well before a new hire’s first day—you can begin background checks and paperwork in advance so they can hit the ground running on day one.

Beyond routine HR tasks, onboarding in the UAE is typically a bit more involved than in other countries due to the visa paperwork. A culturally attuned orientation can also help new hires navigate local norms—like modest dress in public offices or customary greetings like “As-salaam alaykum.”

A checklist can be a helpful tool for staying on track and managing a smooth, well-organized onboarding process, so we’ve included one below.

How to onboard employees in the United Arab Emirates: A simple checklist

Our new hire onboarding checklist can set your new employee up for success on their first day:

Running background checks in the United Arab Emirates

Are background checks legal in the United Arab Emirates??

Background checks are legal in the United Arab Emirates as long as they comply with privacy obligations and the new UAE Data Protection Law (Federal Decree-Law No. 45 of 2021). While the UAE doesn’t have a comprehensive privacy law equivalent to the GDPR in the European Union, respect for individual and personal privacy is part of the country’s culture, and a general right to privacy is enshrined in the UAE Constitution.

With that being said, employers can verify educational credentials, employment histories, and (in some sectors) criminal records, provided they respect privacy norms and obtain the candidate’s consent for each specific check.

Certain sensitive roles (finance, security, and healthcare) may mandate official police clearance certificates. Free zone authorities can also require attested academic documents or prior employment letters.

What types of background checks are illegal in the United Arab Emirates?

While the UAE doesn’t specifically prohibit any type of background checks by law, employers still have to follow certain rules to respect job applicants’ legal and employment rights. For example, it’s illegal for employers to:

• Conduct background checks without consent. Employers need to obtain explicit consent from the candidate for each background check before running it.
• Running background checks without a legitimate basis, especially if they contain sensitive information, like credit histories or medical records. Employers should only run background checks that are relevant to the job role.
• Using background checks to discriminate based on protected classes like race, gender, religion, political views, etc. This is always illegal in the UAE.

Focus on verifying credentials that directly relate to job duties. Overly broad screenings risk legal pushback or candidate reluctance, especially in a market flush with global talent.

[H4] Types of Emirati background checks

Offer letters in the United Arab Emirates

Writing an offer letter for a new hire isn’t a strict legal requirement in the UAE. However, an offer letter detailing the job title, compensation, and other key terms can still serve as a friendly introduction to your company, help clarify expectations before the contract is drafted, and help with negotiations during the hiring process.

Since there isn’t a legal framework that governs offer letters, employers can choose whether or not to send one and which information to include. Just make sure the offer letter aligns with the final contract to avoid confusion or legal disputes.

Including a note about relocation support or referencing local customs (for example, majlis gatherings and recommended schools) can give your prospective hire a window into your company culture and help them imagine their new life in the Emirates.

Here’s a brief list of details you may want to add to an offer letter (but keep in mind that this isn’t an exhaustive list):

• Job title, description, and company name 
• Start date 
• Working hours 
• Compensation and benefits (including the employee’s salary, equity, and other perks)
• Termination policy 
• Confidentiality and non-disclosure agreements 
• Contact information and phone number

NDAs and confidentiality agreements in the United Arab Emirates

Non-disclosure agreements can protect client lists, software code, proprietary designs, and other company and trade secrets, especially in free zones focusing on tech or media. In the UAE, courts have generally upheld NDAs if they’re precise and not indefinite, particularly under Federal Law No. 15 of 2020 on Consumer Protection and the Civil Code.

Employers can include non-disclosure or confidentiality clauses in an existing agreement with an employee—like their employment contract—or draft a standalone agreement. Just be sure to outline exactly what data is confidential, set a sensible duration, and specify the jurisdiction (mainland courts or free zone courts like DIFC Courts). Being as specific as possible will help avoid any disputes down the line—overly broad clauses risk unenforceability or friction with local courts.

Probationary period in the United Arab Emirates

Under the UAE’s New Labour Law, probation periods cannot exceed six months, though they commonly last three months. If an employer terminates during probation, they must provide 14 days’ notice. If the employee leaves to join another UAE employer, they must give one month’s notice.

When a new hire is on probation, employers should provide feedback and openly communicate their performance standards. Offer monthly check-ins or formal reviews to help new staff succeed under your policies—and ensure any termination is justified if needed. Close probation with a formal assessment to foster fairness and clarity in line with the UAE’s emphasis on professional standards.

Work permits in the United Arab Emirates

When you hire a new employee in the UAE, you’re responsible for ensuring they have everything they need to legally work there. The majority of foreign nationals in the UAE need an employer sponsor for a labor card (also called a work permit) and a residence visa—and under the New Labour Law, employers are responsible for covering the costs of their workers’ visas, including government fees, as well as renewing their employees’ documents before they expire.

MOHRE processes mainland work permits, while free zones have separate but parallel systems. Emiratis and GCC nationals generally don’t need a permit, only employer-sponsored labor cards, but exceptions exist. The UAE offers several different types of visas, which we’ll cover below. The type of visa a worker needs will depend on their job, industry, home country, and other circumstances.

Who needs a work visa in the United Arab Emirates?

Generally, all foreign nationals—except GCC citizens—require a work visa in order to earn income in the UAE. Even freelance permits and investor visas exist but come with specific conditions (for example, certain free zones allow freelance licenses for creative professionals instead of requiring them to get a freelancer visa like the mainland).

Most non-nationals who plan to work in the United Arab Emirates also need a sponsor—an employer or a free zone authority. Sponsors must follow certain requirements to be eligible to sponsor visas and for their employees to be eligible to receive visas: securing Entry Permits, conducting medical tests, maintaining residence visas, and obtaining Emirates IDs within 60 days of arrival, to name a few.

An employee’s visa category must match their job role and qualifications. The MOHRE database is skill-tiered (from unskilled labor to skilled professionals), so credentials might need attestation from the UAE Embassy in the candidate’s home country before their visa is issued. Unlawful sponsorship or “working on a tourist visa” can lead to deportation or heavy fines.

How long does it take to get a work visa in the United Arab Emirates?

The time it takes to apply for, process, and approve a visa for an employee in the UAE depends on many different factors. For mainland visas, plan on two to four weeks for the initial approval, followed by additional weeks for medical tests, and ID processing. Free zones might expedite or streamline processes if you meet their criteria.

The UAE is a hub for global employers and employees. Many companies recruit workers there from other parts of the world, so it may make sense to build extra time into your recruitment process for a new hire to relocate to the Emirates if needed. Offering relocation packages—airport pickup, temporary accommodation, a local SIM card—can help new hires feel settled, reflecting the generous hospitality the Emirates are famous for.

Types of work visas in the United Arab Emirates

The UAE offers a wide variety of work permits with different requirements, including skilled worker visas, domestic worker visas, and a new type of visa for self-employed workers and freelancers. The most common types of work permits for foreign nationals include:

• Standard work visa: Foreign employees with employer sponsors can apply for a standard work visa for two years at a time
• Domestic worker visa: For household staff, regulated by separate laws under MOHRE
• Free zone visa: Administered by each free zone authority, with distinct terms
• Golden visa: Long-term residency (five to 10 years) for investors, entrepreneurs, or specialized talents
• Green visa: Recently introduced for freelancers, self-employed workers, and skilled employees, offering self-sponsorship options

If you plan broad commercial operations, a standard MOHRE-based visa might suffice. For specialized free zone businesses (media, finance, etc.), free zone visas are more straightforward, often with 100% foreign ownership.

Termination and redundancy in the United Arab Emirates

As you prepare to hire your first employee in the UAE, terminations may be far from your mind. Still, it’s imperative for employers to understand the laws around letting employees go. Not knowing how to offboard compliantly could be setting yourself up for legal trouble down the road.

The New Labour Law explicitly defines the grounds for lawful termination in the UAE. Employers must demonstrate just cause, such as poor performance, misconduct, or business restructuring. Dismissing employees arbitrarily or without documented reasons can trigger “arbitrary dismissal” claims, leading to compensation for up to three months’ salary plus end-of-service benefits.

Here’s what to know about termination and redundancy rules in the United Arab Emirates.

Does at-will employment exist in the United Arab Emirates?

At-will employment is a legal principle common in the US that allows either an employer or employee to end their employment relationship at any time, for any reason (or even without a reason) as long as they don’t break any laws, such as firing an employee on a basis that amounts to discrimination.

The UAE does not recognize at-will employment. Every employee must be on a valid contract, and employers must show just cause (such as poor performance, misconduct, or legitimate business restructuring) in order to let an employee go. Termination must follow due notice unless it’s for serious disciplinary reasons.

Employers in the UAE should always use progressive discipline—for example, issuing written warnings and placing underperforming employees on performance plans—before final dismissal. Good record-keeping ensures you can prove legitimate grounds if the employee disputes a termination.

Notice periods in the United Arab Emirates

A notice period refers to the time an employee or employer needs to provide advance notice before ending an employment relationship. In the UAE, standard notice under the law is 30 days, extendable up to 90, depending on the employment contract terms. If the employee chooses to waive the notice period, the employer must compensate pay in lieu.

Failing to serve notice can lead to financial penalties or, when an employee doesn’t give the agreed-upon notice, withheld gratuity.

Severance pay in the United Arab Emirates

Non-GCC employees aren’t entitled to state pensions in the UAE. Instead, they receive an end-of-service gratuity if they leave a job after working for at least one year. This payment is mandatory and is also known as a severance payment. You can calculate gratuity as follows:

• 21 days’ basic wage for each year up to five years of service
• 30 days’ basic wage for each subsequent year of service

Allowances (housing, transport) usually don’t factor into gratuity. Employees must generally receive final settlements within 14 days of their last working day. Delays in payments put employers at risk of fines or employee complaints filed with MOHRE.

How to terminate employees compliantly in the United Arab Emirates

When terminating employees in the UAE, you must:

1. Establish valid grounds: This can include poor performance, misconduct, or genuine redundancy with evidence.
2. Issue a written notice: Follow contractual or statutory timelines when doing so.
3. Provide final settlement: Pay out unused leave, any unpaid wages, and end-of-service gratuity for non-GCC employees.
4. Document: Keep files for MOHRE or free zone audits if disputes arise.

A respectful exit approach (friendly departure emails, reference letters) is wise in a market that values personal connections and word-of-mouth. Your company’s rapport can be a major asset or a stumbling block in the Emirates.

When managing a global team, keeping track of termination regulations can be a challenge. Employers must contend with just-cause rules, varying notice and probation periods, and inconsistent severance laws across different jurisdictions. Instead, consider partnering with an EOR, which can help manage compliance on your company’s behalf, ensuring you stay on the right side of the law from onboarding to offboarding.

FAQs about United Arab Emirates hiring

Can I hire employees in the United Arab Emirates without my own legal entity?

Yes. An employer of record (EOR) or third-party sponsor can handle visas, payroll, and compliance. However, establishing a free zone entity or mainland subsidiary might be more practical long term if you plan significant local operations.

An EOR like Rippling can help you quickly tap into the UAE’s talent pool, grow your global workforce, and reduce both compliance risks and administrative workload.

What is the difference between an independent contractor and an employee in the United Arab Emirates?

Employees typically require a company-sponsored residence visa, receive statutory benefits (annual leave, end-of-service gratuity), and operate under the employer’s direction.

Contractors often hold their own license/visa (like a freelance permit in a free zone), assume financial risk, and control their schedule. Mislabeling can lead to MOHRE penalties or forced payment of back benefits.

What are the requirements for work permits in the United Arab Emirates?

Most foreign workers need an employer-sponsored or free zone-sponsored work permit. The process involves an entry permit, medical checks, Emirates ID, and residence visa stamping within 60 days of arrival.

What is always required when an employer terminates an employee in the United Arab Emirates?

A lawful reason (performance shortfall, misconduct, redundancy) and compliance with notice periods (30–90 days) are mandatory. Then, employers must finalize the employee’s end-of-service benefits: unpaid wages, unused leave, and gratuity. Arbitrary dismissal can trigger compensation of up to three months’ wages.

What benefits are required for employees hired in the United Arab Emirates?

Legally mandated benefits include annual leave, public holidays, sick leave allowance, medical insurance, and end-of-service gratuity. Additional perks—housing, transport, and flight tickets—are customary but not legally required.

How does a US company pay a foreign employee in the United Arab Emirates?

There are generally three ways a US company can pay a foreign employee in the UAE:

1. Incorporating locally (mainland or free zone) and using WPS for salary distribution
2. Engaging an EOR that manages payroll, compliance, and MOHRE registration
3. Using a global payroll service, which can integrate payroll for multiple countries

Disclaimer: Rippling and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.