Hire talent in The UAE with EOR
Our Employer of Record (EOR) services in the UAE provide a tailored solution to your business needs without the need to establish a physical entity, while ensuring compliance with local regulations. With our professional support, you can confidently build, pay, and manage your remote team in the UAE, so you can focus on your business’s growth and success.
- Fully licensed and compliant
- Secure and transparant payments
- Fast and worry-free
Capital City
Abu Dhabi
Currency
Dirham/AED
Language
Arabic, English
Population Size
9,441,000
Facts & Stats
Capital City
Abu Dhabi
Currency
Dirham/AED
Language
Arabic, English
Ease of doing Business
Very Easy
Gross Domestic Product
507.1 Billion USD
Working Hours
48 hours per week
Average Wage
16,500 AED per month before taxes
Average Education Level
51.1% of 25–64-year-olds have tertiary attainment
Capital City
Abu Dhabi
Currency
Dirham/AED
Language
Arabic, English
Ease of doing Business
Very Easy
Gross Domestic Product
507,1 Billion USD
Working Hours
48 hours per week
Average Wage
16,500 AED per month before taxes(2024)
Average Education Level
51.1% of 25–64-year-olds have tertiary attainment
Why choose the United Arab Emirates
Choosing the UAE for your business offers numerous advantages. Its strategic position in the Middle East provides access to the expansive markets of Asia, Africa, and Europe. The UAE boasts a highly favorable business environment characterized by tax incentives, minimal bureaucracy, and a government that actively supports business growth.
Furthermore, the UAE is a hub for innovation in both traditional energy sources and renewable energy, supported by state-of-the-art infrastructure and a stable political climate. The nation is also home to a skilled, diverse workforce, enhancing its appeal as a dynamic place to do business. These attributes make the UAE an excellent choice for energy companies aiming to establish or expand their operations in a globally connected and economically diverse region.
How EOR works in the United Arab Emirates
In the UAE, employment contracts are legally binding agreements that outline the terms of employment between an employer and an employee, including details such as salary, working hours, job responsibilities, and termination notice periods. These contracts are essential for protecting both employer and employee rights.
Here are the UAE’s five main types of employment contracts:
Limited-term Contracts: All private sector employment must adhere to limited-term contracts that cannot exceed two years but can be renewed or extended. Existing unlimited-term contracts must be converted to limited-term within one year of the effective date.
Part-Time Contracts: These contracts are designed for employees working fewer hours compared to full-time employees, allowing work for one or more employers on a specified hourly or daily basis.
Temporary Contracts: Used for specific assignments, these contracts expire once the project is completed. They are prevalent in sectors like construction or event management that require project-based work.
Flexible Contracts: Suitable for those needing variable work hours, these contracts adapt to the employer’s business needs and are ideal for students or parents requiring work schedule flexibility.
Remote Contracts: Increasingly popular, these contracts enable employees to work remotely, fully or partially, facilitated by advancements in technology that support working from any location with internet access.
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Why businesses choose us
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What you can expect
No need to limit your growth
We can assure a compliant legal entity for your business to grow in the country of your choice.
Decide between a UAE EOR and a legal entity
Choose the best EOR for your business
Hire and onboard your employees
Run payroll
Cost of EOR in the UAE
Taxes and payroll
Employer taxes
In the UAE, employers must contribute to several mandatory costs, which may include:
Pension contributions: For Emirati employees, employers must contribute 12.5% of the employee’s salary to the General Pension and Social Security Authority (GPSSA).
Health insurance: Employers are required to provide health insurance coverage to their employees.
Gratuity payments: Employers must pay an end-of-service gratuity to employees, calculated based on the length of service. Employees who have completed at least one year of continuous service are entitled to gratuity pay.
Employee taxes
Employees in the UAE benefit from a tax-free salary as there is no personal income tax in the UAE. However, employees might be subject to the following:
Pension contributions: Emirati employees must contribute 5% of their salary to the GPSSA. In addition to the 12.5% paid by employers, the government also contributes 2.5% to this pension fund. Foreigners and expats are exempt from this
Types of payroll
No need to limit your growth
We can assure a compliant legal entity for your business to grow in the country of your choice.
Internal Payroll
Outsourced Payroll
Employer of Record (EOR)
Payroll via Professional Employer Organization (PEO)
Salary, compensation & benefits
The data below shows the most desirable job sectors in the UAE along with their average gross monthly salaries in AED. (According to Paylab)
Construction & Real Estate: 18,028 AED
Chemical Industry: 15,240 AED
Electrical & Power Engineering: 17,362 AED
Mechanical Engineering: 17,224 AED
Wind Energy engineering: 21,890 AED
Oil & Gas industry: 24,954 AED
There is no minimum salary stipulated in the UAE Labour Law, however it broadly mentions that salaries must cover basic needs of the employees.
In addition to basic salaries, which are typically higher in the UAE compared to surrounding countries, employees often receive a comprehensive package of additional compensations that enhance the overall attractiveness of job opportunities in the region.
Bonuses: Many UAE companies offer structured bonus systems designed to reward employees for outstanding performance. These bonuses can vary widely, generally ranging from 10% to 30% of the monthly salary, with certain positions potentially earning even higher bonuses based on annual performance outcomes or successful project completions.
Allowances: To offset the high cost of living, UAE employers frequently provide various allowances. Housing allowances are particularly significant, often comprising 20% to 30% of the monthly salary, which helps ensure that employees can afford comfortable accommodations. Additionally, transportation allowances are adjusted based on the distance and mode of commuting, typically ranging from 1,000 AED to 3,000 AED per month.
Long-Term Incentive Plans: For retaining critical talent, some organizations offer equity incentive plans. These plans allow employees to own shares in the company, aligning their personal interests with the company’s long-term success and fostering a deeper sense of loyalty and belonging.
Other employee benefits in the UAE include:
- Health Insurance For Employees
- Paid leaves
- Statutory leaves
- Maternity and Paternity leaves
- Allowances, for instance, transportation allowance
- Gratuity
- Reimbursement of mobile and Internet bills, etc.
In the UAE, registration with the General Pension and Social Security Authority (GPSSA) is obligatory for all Emirati employees working in public and private sectors, starting from the first month of their employment. This federal mandate is outlined under Federal Law No. 7 of 1999, as amended, which ensures that monthly contributions are made to provide pension and retirement benefits, end-of-service gratuity, and compensation in the event of a work-related disability or death.
The scope of the UAE’s pension law includes employers from the government sector—such as the federal government, local governments (excluding Abu Dhabi and Sharjah), public companies, and banks affiliated with the federal government. It also extends to the private sector across all emirates, excluding Abu Dhabi.
For the employer to contribute to the pension, the employee should:
- Be a UAE national
- Not be less than 18 years; nor should he/she be more than 60 years
- Be medically fit upon appointment according to a medical report provided by a medical authority and approved by GPSSA.
An Emirati national is entitled to a pension if he/she as an insured person reaches retirement age of 60 years and completes an insured service period of 15 years.
An Emirati national may be eligible for an early retirement pension if:
- An insured man reaches 55 years and completes 20 years of insured service
- An insured woman reaches 50 years and completes 20 years of insured service.
Check more information here.
Navigating the probation and termination processes in the UAE involves understanding the specific requirements and guidelines set by labor laws. This ensures both employers and employees are aware of their rights and obligations, promoting a fair and transparent working environment.
Period of probation
In the UAE, the probation period for employees is typically three to six months. During this time, either party can terminate the employment contract with one day’s notice.
Terminating and giving notice
The notice period must be mutually agreed upon by the employee and the employer, with a minimum duration of 1 month and a maximum duration of 3 months. Termination and notice requirements also depend on the type of contract and the reason for termination:
- Unlimited-term contracts: Require a minimum of 30 days’ notice.
- Limited-term contracts: Can be terminated according to the terms specified in the contract, usually with a minimum of 30 days’ notice.
- Immediate termination: Can occur in cases of gross misconduct or other justifiable reasons as outlined by UAE labor law.
UAE labor law governs the relationship between employers and employees, setting clear guidelines on employment terms, working conditions, and employee rights. The law ensures fair compensation, safe working environments, and equitable treatment. Recent amendments aim to modernize the workforce by introducing flexible work arrangements and strengthening protections.
Working hours
In the UAE, Private sector workers are required to work 8 hours per day or 48 hours per week. During the holy month of Ramadan, working hours are reduced by 2 hours, every day.
However, these hours may vary for specific economic sectors or worker categories as outlined in the Executive Regulations of the Labour Law.
Notably, commute time is generally excluded from working hours unless specified otherwise for certain worker categories. Employees working for multiple employers must not exceed the hours stated in their contracts unless agreed in writing. Remote workers must have clearly stipulated working hours.
Additionally, workers are entitled to breaks—after five continuous hours of work, they must receive a break of at least one hour, which does not count towards working hours.
Overtime Regulations
Employers can request up to two extra hours of work per day. Overtime pay equals the basic hourly rate plus 25%, increasing to 50% for hours worked between 10 pm and 4 am. Workers required to work on their off-day must be compensated with either a substitute rest day or additional pay of 50% above the normal rate.
These regulations do not apply to public sector employees, whose working hours are governed under separate guidelines.
Check more here.
Leave and holidays
In the UAE, private sector employees are legally entitled to a comprehensive range of leave options—including annual, sick, maternity, parental, and compassionate leave, as well as leave for Hajj—to ensure a healthy work-life balance and support various personal needs. Here’s what you should know:
- Annual leave: Employees are entitled to a fully paid annual leave of 30 days, if they have completed one year of service; or 2 days per month, if they have completed six months of service, but not one year.
- Sick leave: Employees are entitled to 90 days of sick leave per year after completing their probationary period. The leave can be taken intermittently or all at once, with compensation as follows: full salary for the first 15 days, half salary for the next 30 days, and no pay for the remaining 45 days.
- Parental leave: Employees of the private sector are entitled to a parental leave of 5 working days from the day of the birth of their child to six months. The parental leave is a paid leave that can be applied for by both mother and father of the baby.
- Maternity leave: Female employees are entitled to 60 days of maternity leave, comprising 45 days with full pay and 15 days with half pay. They can start this leave up to 30 days before the expected delivery date. Additionally, if a medical certificate confirms an illness resulting from pregnancy or childbirth prevents a return to work, they may extend their leave by 45 unpaid days, taken consecutively or intermittently.
- Hajj and Umrah leave: In the UAE, employees are eligible for a one-time Hajj leave during their tenure with a company. This leave is unpaid, may not exceed 30 days, and is granted only once. Regarding Umrah leave, the UAE Labour Law does not provide specific entitlements. Employees seeking Umrah leave must negotiate with their employer, who may choose to deduct the time from the employee’s annual leave or grant it as unpaid leave.
- Public holidays: There are 14 official public holidays workers can take, including some Islamic events. If an employee is required to work during holidays or leaves, he will be compensated with another rest day or be paid for that day, a wage as he would be paid on a normal day plus an addition of at least 50 per cent on his basic wage.
Employee rights
The UAE has prioritized the advancement and protection of workers’ rights, recognizing the crucial role of foreign labor in its economy. The employee rights includes:
International Commitments and Local Laws: The UAE has endorsed nine major International Labour Organization conventions related to workers’ rights and has adopted comprehensive laws covering recruitment, pay, housing, and health. It also engages in Memoranda of Understanding with workers’ home countries to enhance labor rights protection.
Protections for Overseas Domestic Workers: Introduced in 2017, Federal Law Number 10 ensures domestic workers’ rights to keep personal documents, change employers more freely, and receive essential benefits like paid leave and proper accommodation. It also improves job contract transparency and stipulates conditions for contract termination.
Legal Framework and Dispute Resolution: Workers’ rights to a fair resolution process are supported by the Ministry of Human Resources and Emiratization, which offers free legal services and a 24-hour hotline for complaints. Labor care units and court offices provide additional support and legal assistance for labor disputes.
Recruitment and Employment Practices: The UAE prohibits charging recruitment fees to employees and the confiscation of passports. Employers must provide comprehensive health insurance and proper accommodation, ensuring that workers do not need employer permission to exit the country.
Read more here.
Entry Permit
Before applying for a residence visa, employees need an entry permit, which allows them to enter the UAE legally. This permit is usually arranged by the employer and issued by the General Directorate of Residency and Foreigners Affairs (GDRFA).
Medical Fitness Test
Upon arrival in the UAE, employees must undergo a medical fitness test at an approved health center. This test includes screenings for communicable diseases such as HIV, tuberculosis, and hepatitis. The medical test is a mandatory step in the visa process.
Emirates ID Application
After passing the medical fitness test, employees must apply for an Emirates ID, which serves as the national identification card. The application can be submitted at authorized centers or through the Federal Authority for Identity and Citizenship (ICA) website.
Residence Visa Stamping
Once the medical fitness test and Emirates ID application are completed, the employee’s passport is submitted to the GDRFA for residence visa stamping. This visa allows the employee to reside and work legally in the UAE.
Work Permit
A work permit is issued by the Ministry of Human Resources and Emiratisation (MOHRE). The employer typically handles the work permit application as part of the employment process. This permit is necessary for legal employment in the UAE.
Health Insurance
Employers in the UAE are required to provide health insurance coverage to their employees. Proof of health insurance is a requirement for the residence visa application process.
Types of Residence Visas for Employment
- Standard Employment Visa: For employees working in private sector companies registered with the MOHRE.
- Free Zone Employment Visa: Issued to employees working in one of the UAE’s many free zones. Each free zone authority issues its own employment visas.
- Government Employment Visa: For employees working with federal or local government entities in the UAE.
Important Considerations:
- The validity of a residence visa typically ranges from one to three years and is renewable.
- Employees must adhere to the regulations set by both the MOHRE and the GDRFA during their stay in the UAE.
- Failure to comply with visa requirements can result in fines or deportation.
For more detailed information, please visit the official government website here.
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The benefits of global EOR
WTS Energy stands out for its industry expertise and global reach. Our professionals have extensive experience in the energy sector, making us uniquely equipped to handle the specific challenges of hiring and managing a global workforce. We provide:
Compliance with Local Regulations
Stay on the right side of local laws with EOR services that ensure compliance with labor laws, tax codes, and employment regulations, minimizing legal risks in the energy sector.
Cost Efficiency
Cut costs and hassle with EOR services, which eliminate the need for local entities and free up resources for your core business activities.
Lightning-Fast Market Entry
Beat the competition by rapidly onboarding skilled professionals with EOR services, ensuring you meet project deadlines and secure contracts quickly.
Tap into Global Talent
Hire the best from around the world! EOR services give you access to a global pool of specialized professionals for your complex energy projects.
Focus on What Matters
Let EOR handle the nitty-gritty of employment management, so you can concentrate on strategic planning, project execution, and driving innovation.
Enhanced Flexibility
Adapt to project needs with ease. EOR services offer the flexibility to scale your workforce up or down without the hassle of permanent local hires.
Reduce Your Risks
EOR services help you navigate regulatory changes and geopolitical challenges, ensuring your workforce management is compliant and robust.
Simplify Payroll & Benefits
Streamline payroll and benefits management across multiple jurisdictions with EOR services, boosting operational efficiency and employee satisfaction.
Get Ongoing HR Backup
Beat the competition by rapidly onboarding skilled professionals with EOR services, ensuring you meet project deadlines and secure contracts quickly.
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How to get started, step-by-step
At WTS Energy, we offer comprehensive Employer of Record (EOR) services designed to simplify international hiring and compliance for energy companies. Our tailored solutions ensure that you can efficiently and effectively manage your global workforce, allowing you to focus on your core business activities.
No need to limit your growth
We can assure a compliant legal entity for your business to grow in the country of your choice.
Consultation and Needs Assesments
We begin with a detailed consultation to understand your hiring needs and business objectives. Our team conducts a thorough assessment to identify compliance requirements and potential challenges in the target country.
Custom Solution Development
We develop a tailored EOR solution, including payroll, tax compliance, and benefits administration.
Implementation
Ongoing Management
Our team provides continuous support, handling payroll, compliance, and HR issues, ensuring smooth operations.
Feedback and Improvement
We actively seek feedback to refine and enhance our services, ensuring the best possible experience for both employers and employees.
Recruitment to help you grow
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