The employer’s responsibilities in Dubai Before a company in Dubai can hire foreign employees, it must obtain two types of documents – an establishment labor card and an establishment immigration card from the Ministry of Labor. The Employment Law sets forth the obligations of the employer in relation to the employees.
- Hiring foreign workers without setting up a company can be accomplished by using a GEO or professional employment organization as the local employer of record. Although the GEO is a third party to the primary employment contract with the worker, it handles all aspects of in country compliance with established local partners Pros
How do companies hire foreign workers?
First, employers must seek certification through the U.S. Department of Labor. Once the application is certified/approved, the employer must petition the U.S. Citizen and Immigration Services for a visa. Approval by the Department of Labor does not guarantee a visa issuance.
How do I recruit employees in Dubai?
Requirements to hire employees in the UAE After setting up your business and acquiring your license, you need to sponsor your employees. According to Article 13 of the UAE Labour Law, companies cannot employ non-nationals without taking prior consent of the Department of Labour and obtaining a work permit.
Why do companies hire foreign workers?
Hiring foreign employees brings people into your business who have different perspectives since they came from entirely different places. The blending of ideas and perspectives from various cultures is the best possible recipe for creativity and innovation that can take your company to new heights.
Does Dubai hire foreigners?
So long as the correct visa is in place, American expats can work in Dubai — and will need to continue to be employed in order to keep their visa, unless you’re in the country on a spouse visa. However, it can be a highly competitive place to seek employment.
How are foreign employees paid?
You can pay your foreign employees through any of these means:
- Outsourcing your HR responsibilities to a Professional Employer Organization(PEO)
- Working with a third-party employer such as a business partner or and affiliate in the target country.
- Setting up a legal entity or branch of your company in the foreign country.
Can I hire foreign workers?
DOL’s Foreign Labor Certification Program allows U.S. employers to hire foreign workers on a temporary or permanent basis to fill jobs essential to the U.S. economy. You can file a prevailing wage request with the U.S. Department of Labor.
How much does it cost to hire an employee in Dubai?
Dubai: The average total annual cost of labour is estimated at about Dh55,000, according to a paper presented at a workshop organised by the Ministry of Labour and Dubai Economic Council on Tuesday. The cost for a skilled worker is Dh144,000 and the cost of an unskilled worker is Dh33,000, said Dr.
How long is the hiring process in Dubai?
Process Duration The whole job search process, starting with market assessment, updating your CV, the application process to the final selection could take anywhere from 3 to 6 weeks if you are in the UAE and up to 4 to 6 months if you are living in abroad.
What is the process of recruitment?
Recruitment process is a process of identifying the jobs vacancy, analyzing the job requirements, reviewing applications, screening, shortlisting and selecting the right candidate. These five practices ensure successful recruitment without any interruptions.
What are the disadvantages of hiring foreign workers?
Disadvantages of hiring foreign workers
- Foreign workers may create insufficient employment opportunities among locals. Straightly speaking, foreign workers can take away jobs from locals.
- The employers lower wages for some jobs.
- Foreign workers may have high burnout rate.
What are the disadvantages of foreign employment?
Disadvantages of working abroad:
- A lot of money is required:
- International business does not stick with a person for long:
- The feeling of loneliness and no stability:
- Different cultures:
- Learning new languages in short span:
- Not able to enjoy the traditional holidays at homeland:
- Living conditions:
What companies hire immigrants?
Other well-known companies you may be familiar with that hire hundreds or thousands of foreign H-1B workers include: Aecom, American Airlines, American Express, AT&T, Best Buy, Bloomberg, Blue Cross Blue Shield, Boeing, Citibank, Comcast, Costco, CVS Pharmacy, Dell, FedEx, Ford Motor, General Electric, General Motors,
Can I work in UAE without a degree?
So, UAE really respect experienced and hard working people even they are not graduate. Of course you can. I have been living and working in Dubai for over 10 years. I have came across so many people who are very successful in their careers who initially never had degrees.
What is a good salary in Dubai for one person?
Dubai has a good average salary range, extending from a monthly salary of 4,810 AED (1,309.56 USD) to 99,000 AED (26,953.44 USD) per month. The average salary range only considers salaries that fall between the average minimum salary and the average maximum salary in Dubai.
Does Dubai pay you to live there?
Many people made strong fortunes in Dubai, and even to this day, it’s a centre of wealth and prosperity. Expats who relocate long-term to Dubai can legitimately earn their salary free from income tax.
Hiring in the United Arab Emirates: 5 Things You Need to Know
Employees engaged by local teams in the United Arab Emirates are mostly expatriates (expats), which means that they must be sponsored by a company to reside and work in the nation. If you want to hire expats in this part of the world, you need get aware with the local rules that govern this practice. To sponsor an employee’s work visa and do business in the United Arab Emirates (UAE), a firm must first get formal registration in the nation. This is frequently a difficult and time-consuming procedure, however there are several alternatives that we shall examine in this section.
1. You Need to Establish a Legal Entity
Establishing a legal corporation and getting the necessary trade permits can take 8-12 weeks, during which time a firm is unable to sponsor an employee’s visa through the company’s own channels.
2. Expats Will Need a Visa
Companies are required to sponsor employees for work visas and residency permits in the United Arab Emirates, which can be challenging depending on the geopolitical context of the country in question. Particularly noteworthy is the transfer of visa sponsorship of personnel from Egypt and Iran, which is now under progress. This is a predicament that many customers find themselves in, and it is important to handle it with prudence and appropriate care.
3. Financial Compensation Can Include More Than Salary
Compensation is often paid as a basic flat rate (gross income) or as a 60/40 split, with 60% of compensation consisting of base salary and 40% consisting of housing and car allowance. This figure does not include any variable compensation, such as commissions.
4. The Business Week is Different From the Western World
Simple flat rate (gross income) or a 60/40 split, with 60% of compensation being base salary and 40% being housing and car allowance, is typical in the compensation package for a construction worker. Compensation for variable remuneration, such as commissions, is not included in this figure.
5. End of Service Gratuity Needs to Be Considered in Overall Compensation
The End ofService Gratuity, which is required and earned as an employer-paid perk in the UAE, is often overlooked by customers when making a hiring decision in the country. In the event that an employee has completed one year or more of employment, he or she is entitled to an end of service gratuity equal to 21 days’ pay for each year during the first five years of service and 30 days’ pay for each year beyond those five years. The entire end-of-service gratuity is limited to the equivalent of two years’ pay, which is the maximum amount that may be received.
Process of Hiring an Employee to Work in the UAE
Having completed due diligence in terms of selecting and interviewing the most qualified candidates for your job, it is critical that your organization adhere to the stringent labor standards in the United Arab Emirates, as outlined below. Employers are required to adhere to certain legal standards when it comes to their duty toward their employees in some business fields, such as the construction industry. In addition, while it is true that certain commercial sectors in the country are only permitted to recruit a set quota of expats and are required to hire a certain number of UAE natives, the UAE as a whole fosters international investment and welcomes foreign workers.
So, what exactly is the procedure? The job offer is the first stage in the process.
Before any firm in the United Arab Emirates (UAE) may engage a foreign worker, it must first secure two particular papers from the UAE Ministry of Labor (MOL): an establishment Labor Card (work permit) and an establishment immigration card. Both of these documents must be obtained from the MOL. The procedure of acquiring these cards may be completed entirely online and is quite simple to follow. As previously stated, the United Arab Emirates has rigorous employment regulations. The recruiting business is responsible for providing a job contract as well as perks.
The employment legislation also specifies the maximum number of hours an employee can work per week, how much vacation time they are entitled to, and if they are entitled to any additional benefits, such as maternity or sick leave.
2. Receiving the Job Offer
To be considered for a position in the private sector, an applicant must first get a formal employment offer. This necessitates the execution of an employment contract, followed by the receipt of a work permit and a work visa. It is expected that the offer letter would include specifics about the post, as well as an appendix that covers significant components of the country’s labor laws and regulations. These documents must be signed by both parties. According to UAE law, after an offer letter has been signed by both parties, it is considered a legal agreement.
3. Making Changes
Unless both the employer and the employee agree, an employer is not permitted to amend or substitute any aspects of the offer letter once it has been signed by both parties.
4. Understanding the Offer
It is the employer’s obligation to ensure that their prospective employee has read and comprehended the letter and all of its terms and conditions. AED 20,000 (about $5,400 US) punishment from the Ministry of Human Resources and Emiratization (MoHRE) may be levied against the employer if it is later discovered that the employee did not read the contract’s annexes before signing the contract. Employers are also required to provide the MoHRE with information on the offer letter. These offer letters serve as the basis for the issuance of work permits by the ministry.
5. Signing the Contract
The offer letter must serve as the foundation for this labor contract. Both parties must sign the document and submit it to the Ministry of Human Resources and Employment within 14 days of the employee’s arrival in the nation. This is based on the date of the employment entrance permit or the date of the status change — read below for additional information on the status change. In addition to English and Arabic, the contract must also be written in one of nine additional languages, which include Chinese, Dari (Dari), Hindi (Nepali), Bengali (Bengali), Tamil (Tamil), and Urdu.
If a new employee comes to the UAE from another country, or if the employee already lives in the nation and works for a number of different UAE-based enterprises, the same rules apply to them.
Procedure for Obtaining a Work Permit in the UAE
After all of the preceding stages have been completed, the employment of a new employee necessitates the acquisition of an Entry Visa and subsequently a work permit, also known as a Labor Card, in order to proceed. For an employee to be granted a work visa in the UAE, certain processes must be completed before to their arrival in the country — such as those listed above — while other stages must be completed after they have arrived. Once an employee has been issued a work permit, the permit is typically valid for two years after that.
1. Getting Visa Quota Approval
Before an employee may get an entry visa, they must first obtain clearance from the Ministry of Labor’s visa quota. This approval is requested by the employer on behalf of the employee. Remember that if your organization files for an employee visa to operate in a free zone, the permission must be granted before your employee may go to the United Arab Emirates (UAE). This is due to the fact that free zone enterprises are required to maintain a quota of one expat worker for every 12.5 m2 of office space.
2. Work Permit
An employee’s work permit application must be granted even before an Entry Visa is made available to them. Specifically, the MOL will investigate if there is a UAE citizen available to fill the role and whether the company sponsoring the employee is a UAE-registered commercial organization, among other things. The MOL will approve the application if there are no issues with the criteria listed in the application.
3. Employment Entry Visa
The Ministry of Labor will issue an employment Entry Visa to the employee when it has approved the work permit. This visa will allow the employee to enter the nation lawfully. If the Entry Visa application was completed prior to the foreign employee’s arrival, the foreign employee will be able to pick it up at the airport when he or she arrives. If the new employee was already in the UAE on a separate visa when the Entry Visa was obtained, they will need to file for a “change of status” visa once the Entry Visa was issued.
A medical examination is required of all new foreign workers prior to the issuance of any work authorizations or visas.
5. ID Application and Biometrics
Having completed all of the necessary paperwork, the new employee proceeds to the Emirates ID service facility for identification. In order to apply for an ID, the employee will need to present a valid passport as well as an entrance permit for the company.
6. Submitting Labor Contract
When applying for a work visa, the labor contract must be included in the application. Once the findings of the medical examination have been received, the employee has 14 days to submit the form to the MOL.
This may be accomplished on the MOL’s website. At this stage, the employee will receive their work visa as well as a copy of their contract, which will include the formal start date for the position. The employee is now qualified to collect pay for his or her efforts.
7. Residence Visa in Passport
An expat worker and their family must obtain a resident visa stamped in their passport in order to be able to lawfully stay in the United Arab Emirates. It will be required in order for them to create a bank account, hire a car, and obtain postal delivery services.
8. Emirates ID Card
Following the completion of all of the preceding steps, the new expat employee will be issued an Emirates ID card. They should have this with them at all times because it eliminates the need to carry a passport around with them.
A Word About the Different Kinds Of Contracts In The UAE
Since 1980, there have been two primary forms of employment contracts in the private sector in the United Arab Emirates. The key distinction between the two types is the amount of gratuity received at the end of employment and the timing of termination. The following are the two most common forms of contracts:
1. Limited Contracts
A limited contract has a fixed period of time during which it is in existence, albeit it can be extended. Limited contracts can be renewed. As a result of recent revisions in the UAE, a limited contract can only be for a maximum of two years, when before it could be for up to four years. A notice of termination must be included in a limited contract, stating when the contract will expire and when the employee will be required to depart the UAE, among other things. In order for a limited contract to be valid, both the employer and the employee must be properly reimbursed in the event that the contract is terminated by the other party.
2. Unlimited Contracts
Despite the fact that it can be renewed, a limited contract only lasts for a certain period of time. Recently instituted UAE changes have reduced the length of a restricted contract from four years to no more than two years. Previously, the contract may be for up to four years. a notice of termination specifying when the contract will come to an end and when the employee will be required to depart the UAE; in the case of a limited contract An employer and an employee must be properly reimbursed if one of them ends the contract within the terms of a limited contract, according to the law.
Other Things to Know About Labor Laws in the UAE
Work is limited to a maximum of eight hours per day and no more than 48 hours per week in the UAE, according to labor regulations. A nine-hour day is common in various industries, such as restaurant staff, hotel personnel and security guards. As previously said, it is vital to note that in this location, compensation is only regarded to be a portion of the complete remuneration package, not the entire package. Travel expenses and a housing allowance are regarded to be regular expenditures to be covered by insurance.
Let Globalization Partners Help You Expand in the UAE
Putting together a team in the United Arab Emirates might be difficult, but it doesn’t have to be. The services of an International Professional Employment Organization (PEO) or Employer of Record business such as Globalization Partners may assist you in navigating the UAE work visa procedure, hiring the staff of your choice, and establishing a presence in the UAE as swiftly as possible. We provide Employer of Record services for businesses that desire to expand their workforce in a foreign nation without first establishing a branch office or a subsidiary in the country.
We adhere to all applicable labor regulations in the area, and we can assist you in preparing all of the essential papers and forms so that your team member may obtain an Entry Visa and work permit.
For more information on what we can do for your company in the United Arab Emirates, or any of a number of other worldwide locations, please visit ourcontact us page, where you can leave us your contact information as well as some specifics on how we might assist your company.
Obtain further information on selecting an overseas Professional Employment Organization (PEO) by downloading the free eBook. Not all professional services organizations (PEOs) are created equal: 20 Questions to Ask Before Choosing a Global PEOhere: Get the E-book.
How To Hire Employees In The United Arab Emirates
The UAE provides a robust enabling environment for enterprises, including stable political and macroeconomic conditions, a government that is focused on the future, solid general infrastructure, and ICT infrastructure. Furthermore, the country has made consistent and convincing changes to its regulatory environment, and it is consistently ranked as one of the best places to do business. According to the 2018 Arab Youth Survey, the United Arab Emirates is the best Arab country in terms of living conditions, safety and security, economic prospects, and establishing a company, and it serves as a model for other Arab countries to follow.
But what are some important things to know in order to prevent danger and decrease costs?
Requirements to hire employees in the UAE
Following the establishment of your company and the acquisition of your license, you must sponsor your employees. Employing non-nationals is prohibited under Article 13 of the UAE Labour Law, which states that enterprises cannot hire them unless they have obtained prior approval from the Department of Labour and a work visa. When granting a work visa, the Ministry of Human Resources and Emiratisation takes the following factors into consideration:
- He or she must hold the professional competence or academic credentials required by the nation in which they are working. The worker has legitimately entered the country and has met all of the requirements for residency in the United Arab Emirates. Unless the Department of Labour reviews its records and determines that there are no nationals registered in the employment section who are capable of doing the requisite work, it may refuse to agree to the hiring of non-nationals.
Overview of hiring options in the UAE
You have two options when it comes to forming a company: you may either launch a business on the mainland or start a business in a free zone. The following are important considerations to bear in mind before starting a company on the mainland:
- Bank account opening
- The Wages Protection System (WPS)
- Health insurance
- And legal considerations.
The following are important considerations to bear in mind when starting a business in a free zone:
- Constructing the office and providing it with all of the necessary facilities Marketing and promotion for the company’s products and services
- Carrying on international trade
- Doing business with the government
- Following the rules and regulations
- Associating with a multinational PEO/EOR firm
NNRoad, a global professional employer organization (PEO), enables you to engage qualified experts on your behalf. We ensure that all employees are hired in strict accordance with local labor regulations and that best practices are followed in the recruitment and onboarding of new employees. Utilizing NNRoad’s professional services, any firm may start operations in the United Arab Emirates without the need to make significant initial expenditures or to form a distinct legal corporation, which is a time-consuming and complicated procedure.
Hiring and employment practice in the UAE
According to UAE labor legislation, the maximum probationary term for any employee should be between three and six months in length. Employees can be terminated on day’s notice under certain circumstances if their performance does not meet established benchmarks. However, this is only possible if their probation period does not exceed the maximum six-month time allowed under the company’s performance measures.
Termination of contract without notice by the employer
If the following conditions are met, an employer may terminate an employee’s employment contract without warning and deprive the employee of his or her end-of-service gratuity:
- If an employee adopts a false identity or nationality, or if he submits forged documents or certificates
- If an employee is appointed to a probationary period and is terminated during or at the end of the period
- If an employee makes a mistake that causes the employer substantial material loss-provided that the employer notifies the labor department of the incident within 48 hours of becoming aware of the error
- If an employee violates instructions concerning the safety of the place of business-provided that the employer notifies
Termination of contract without notice by the employee
An employee has the right to end his or her employment contract without giving notice if the following conditions are met:
- A labor complaint filed with the labor court against an employer who has failed to secure employment of the worker (for example, in the case of a business shutdown or if the business has been inactive for more than two months)
- A favorable final ruling in a labor complaint referred to the labor court by the Ministry of Human Resources and Employment
- And a favorable final ruling in a labor complaint referred to the labor court by the Ministry of Human Resources and Employment
Employees are entitled to the following amount of yearly leave:
- If they have completed six months of service but not one year, they will be required to work two days each month. If they have completed one year of service, they will be given 30 days off.
All official holidays prescribed by law or agreed upon shall be included in the calculation of the duration of annual leave, along with any additional leaves taken due to illness if they come within the annual leave calculation.
- The Gregorian New Year is celebrated on January 1
- Eid Al Fitr is celebrated from the last day of the Islamic month of Ramadan to 3 Shawwal* (4 days)
- Arafah Day and Eid Al Adha (Feast of Sacrifice) are celebrated from 9 to 12 Dhu al Hijjah* (4 days)
- Hijri New Year is celebrated on 1 Muharram* in 2019 and on 23 August in 2020
- Prophet Mohammed’s birthday is celebrated on 9 November in 1 December (formerly known as Martyr’s Day and observed on 30 November)
- 2 and 3 December (2 days)
- 1 December (previously known as Martyr’s Day and observed on 30 November)
The UAE Labour Law does not specify a minimum pay; however, it does state that remuneration must be sufficient to meet the fundamental requirements of employees in general. According to Article 63 of the Labour Law, the minimum wage and cost of living index are defined either in general or for a specific region or profession by virtue of a decree and the assent of the Cabinet of Ministers.
UAE residents working in the public and commercial sectors are eligible for pensions and other retirement benefits after they reach the age of 49 or have served for a minimum of 20 years in the government or private sector. Employed GCC nationals in the UAE are eligible to a pension in line with the pension plans that have been created in their respective countries. End-of-service benefits, often known as gratuity or severance money, are available to expatriate employees who have completed their employment but are not eligible to a pension.
Individual income tax
Individuals in the United Arab Emirates are not subject to income tax. Oil corporations and foreign banks, on the other hand, are subject to a corporate tax. Taxes on certain items that are generally hazardous to human health or the environment are levied through excise taxes. Value Added Tax (VAT) is charged on the vast majority of products and services in the United Kingdom.
Employee termination/severance payment
If an employee leaves his or her position of his or her own free choice before one year has passed, he or she will not be entitled to any gratuity payments. If the employee completes one year of continuous service, he or she is entitled to a gratuity for the quarter of a year that has been served. The end-of-service gratuity is determined on the basis of the final wage to which the employee was entitled, which was the basic salary at the time of the termination of employment. As a result, it will not contain allowances for things like accommodation, transportation, utilities, furnishings, and so on.
How to hire employees in the UAE without a local entity (PEO/EOR)
NNRoad offers Professional Employment Solutions to its clients, allowing you to hire personnel in the United Arab Emirates on your behalf since we act as the employer of record on your behalf. We ensure that all employees are hired in strict accordance with local labor regulations and that best practices are followed in the recruitment and onboarding of new employees. Employing the PEO services of NNRoad in the United Arab Emirates, any firm may start a business without the need to make large initial expenditures or to form a distinct legal body, which is a time-consuming and difficult procedure.
- Sponsoring an expat employee and completing the necessary paperwork for visas, work permits, and labor contracts
- Involvement of employees through local labor contracts, which includes contract management and administration of the contract, engagement, renewal, termination, and conversion to a permanent hiring
- The process of bringing on and off-boarding personnel in accordance with local labor law practices (such as offering a letter and contracts, conducting a medical examination, issuing work permits, issuing Emirates IDs, issuing Visa stamps, and so on)
- Employees’ enrollment in health insurance coverage, if necessary
- Integrated payroll and obligatory benefit administration
- Comprehensive payroll solution
- Employment law compliance, including administration of employee records and timekeeping
- Bonus and allowance management
- Cost and claim management
- Leave employee database management
- And other legal compliance issues. Payment administration, which includes invoicing customers/clients and making wage payments. Dealing with human resource-related issues during one’s job tenure
For more information about our international services, please visit our website.
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UAE Immigration and Work Permits
According to UAE immigration regulations, foreign employees are needed to obtain the appropriate visas and work permits in order to work in the country. In order to hire staff, work permits must be obtained and sponsored by a locally licensed and incorporated organization, which can be a challenge for businesses that are just getting started in the UAE market. It is possible to utilize an outsourced management business or a GEO Employer of Record to sponsor an employee for the essential permissions if your company has not yet been incorporated.
Work permits for foreign nationals in the United Arab Emirates can be sponsored by a firm that has been legally registered. Once a firm has completed the appropriate requirements to register and incorporate in the United Arab Emirates, it may submit an application to become a sponsor. Companies registered in both the Free Zones and the mainland are eligible to sponsor, however a mainland firm must have a local sponsor that owns at least 51 percent of the company in order to qualify. This can be accomplished with the use of an agent, but it will cost roughly AED 50,000.
An organization is generally permitted to sponsor one foreign employee for every 12.5 square metres of office space that is leased.
Annual rentals in the Free Zone are around AED 1600-2600 per square metre, which is approximately twice the cost of renting in the rest of the country.
- Demonstrate your office lease agreement and submit an application for a trade license. It is important to note that the activities authorized by the Trade License will have an impact on the job titles and experience levels that the Ministry will allow the firm to sponsor. Make an appointment with the Ministry of Labor. It is important to note that the corporation may be needed to establish a bank guarantee prior to filing for an employment entrance visa. Fill out an application with the Department of Residency and Naturalization
- On the mainland, this will take roughly 3 months and cost approximately AED 20,000 to complete (plus AED 50,000 to the local sponsor). In a Free Zone, it will take 3-6 months and cost around AED 15,000 (plus the premium on office leasing)
- In a Free Zone, it will take 3-6 months and cost approximately AED 15,000
Although the organization will now be able to sponsor workers, it will still be required to follow the sponsorship procedures specified below for each individual employee. It is important to note that all paperwork must be completed in Arabic, hence it is advised that you hire an immigration consultant in your area. The actions that must be taken are as follows:
- When both the employee and the employer have provided their papers, the company submits an application to the Department of Labor for “quota approval.” The company next submits an application for an Employment Entry visa. The employee’s employment entry visa has been authorized and is being distributed to him or her. Employee flies to the United Arab Emirates
- Employee undergoes mandatory medical and biometric tests
- It takes 24 hours for the test results to be returned, and the Work Visa is processed and stamped into the employees’ passports
- Employee is legally authorized to begin working in the United Arab Emirates. The application for an Emirati ID card is submitted, and it typically takes 2-4 weeks for the card to be issued.
Documentation required (Employer):
- Rental agreement for an office space
- A copy of the business registration certificate
- A trade license
- An immigration card
- A letter of assurance
- Three copies of an Arabic-language employment contract signed
Documentation required (Employee):
- Educational and professional certificates that have been authenticated (notarized)
- A scanned copy of the employee’s personal page from his or her passport
- A photo of the employee’s passport
- Birth and marriage certificates that have been authenticated (notarized) for any dependents
Use the Shield GEO solution
Shield GEO can handle work permits in as little as 2-4 weeks, depending on the nationality of the individual. Please get in touch with us for a quote. The actions that must be taken are as follows:
- The company contracts with Shield GEO
- The employee provides their supporting papers. In order to obtain quota approval, Shield GEO submits an application
- In order to obtain an Employment Entry visa, Shield GEO submits an application. The employment entry visa is accepted, and the employee flies to the United Arab Emirates. The entry visa is deposited at Dubai International Airport for the employee to pick up upon arrival (a 72-hour notice is necessary)
- Shield GEO organizes for mandatory Medical and Biometrics Tests
- And Shield GEO arranges for mandatory Medical and Biometrics Tests. It takes 24 hours for the test results to be returned, and the Work Visa is processed and stamped into the employees’ passports
- Employee is legally authorized to begin working in the UAE
- An application for an Emirati ID card is then submitted, and it typically takes 2-4 weeks for the card to be issued.
Documentation required (Employee):
- Educational and professional certificates that have been authenticated (notarized)
- A scanned copy of the employee’s personal page from his or her passport
- A photo of the employee’s passport
- Birth and marriage certificates that have been authenticated (notarized) for any dependents
Types of visas in United Arab Emirates
|Category||Description of Visa|
|Employment Visa||This is the Emirati equivalent to a work permit. It can be obtained prior, or after entry to the UAE. All employment visas are issued by the Ministry of Labor. The employment permit must be acccompanied by a residence permit, however the employee has 60 days to obtain their residence permit after entering UAE.There are restrictions on people over 65 and for certain nationalities.|
|Business Visa / Multiple Entry Visit Visa||The applicant will need to show a relationship with a reputable local company or demonstrate they are a frequent visitor to the UAE. The Visa are valid for 6 months. Please contact us for a quote. Each stay is maximum 30 days in duration. The multiple entry visa is allocated in country after the applicant has entered on a normal visit visa.|
|Residence Permit||A residence permit is issued in two forms, either with or without employment. Residence permits are valid for up to 3 years. They can be cancelled if the holder is absent for more than 6 months.|
|Entry Service Permit||This visa can be sponsored by a UAE company and will allow the holder to enter the United Arab Emirates for up to 14 days. This visa is non-renewable and designed for urgent activities carried our by workers such as sales managers, auditors, managers, etc.|
|Tourist Visa (Visa on Arrival)||If your country of nationality appears on the list below, no advance visa arrangements are required to visit the UAE as a tourist. Simply disembark your flight at Dubai International Airport and proceed to Immigration, where your passport will be stamped with a 30-day visit visa free of charge. This can be extended for an additional 30 days at an additional charge.AndorraAustraliaAustriaBelgiumBruneiBulgariaCanadaCroatiaCyprusCzech RepublicDenmarkEstoniaFinlandFranceGermanyGreeceHong KongHungaryIcelandIrelandItalyJapanLatviaLiechtensteinLithuaniaLuxembourgMalaysiaMaltaMonacoNetherlandsNew ZealandNorway PolandPortugalRomaniaSan MarinoSingaporeSlovakiaSloveniaSouth KoreaSpainSwedenSwitzerlandUnited KingdomUnited States of AmericaVatican City|
Recruiting on the mainland – The Official Portal of the UAE Government
Who is responsible for the costs of employment? The expense of visa sponsorship is borne by the employer. No amount may be withheld from an employee’s compensation, nor may any visa fees or other expenses be deducted from an employee’s paycheck. A maximum of 45 days’ compensation will be deducted from any employee’s salary if he or she leaves their job before the conclusion of their limited contract, according to the Labor Law. Additionally, any employer that cancels a limited contract of an employee before to the contract’s expiration will be subject to a penalty of three months’ compensation.
Is it possible for an employee to begin working at the firm after receiving pre-approval from the Ministry of Human Resources and Emiratisation? He is unable to do so. He would be able to join only when his residency permission has been printed in his passport. Links that may be of assistance:
- The Ministry of Human Resources and Emiratisation issued resolutions and circulars. Employees’ rights to terminate their employment contracts can be found on the Abu Dhabi Government’s website
- The UAE Labour Law can be found on the Ministry of Human Resources and Emiratisation’s website
- And the Abu Dhabi Employment Law can be found on the Abu Dhabi Government’s website. Commercial Companies Act of 2015 (Ministry of Justice), Federal Law No. 2 of 2015 on Commercial Companies
- Ministry of Human Resources and Emiratisation
- International agreements- Ministry of Human Resources and Emiratisation
- Enquiry services- Ministry of Human Resources and Emiratisation
UAE Expat Hiring Basics for International Employers
While the United States is a melting pot of many wonderful people and cultures, the United Arab Emirates, where over 85 percent of the 9,000,000 citizens are expats, may well have it beat. The expansion of the United Arab Emirates as a worldwide economic centre has drawn thousands of highly educated and experienced individuals to the nation. If you are wanting to develop a global footprint in the Middle East, it is difficult to argue that there is a better place to do it than the United Arab Emirates, and notably Dubai.
The United Arab Emirates is one of the most straightforward places in the world to recruit an expat, yet there are still a few needs to meet in order to stay compliant, primarily obtaining a visa and purchasing health insurance for the employee.
When compared to the rest of the globe, the visa application procedure in the UAE is quite straightforward. The procedure takes only 7-10 business days, which is much less than the time it takes in practically every other country in the globe. Expats now have a 30-day grace period during which they can remain in the nation and even begin their new employment while their visa application is processed, according to a recent legislative reform. When compared to many other nations where ‘visa runs’ are required, this is a significant benefit for both companies and employees.
There is one additional piece of information to bear in mind if you are looking to recruit an expat in the United Arab Emirates. Employees who are currently employed in Dubai will be required to provide at least a 30-day notice period to their present employer before shifting to a new position. However, employing an employee through an international PEO and waiting 30 days is substantially faster than establishing a foreign subsidiary. It also avoids the legal repercussions that might emerge from the use of independent contractors in the first place.
Because to the absence of payments to social programs, the United Arab Emirates is one of the most cost-effective marketplaces in the world for employers. Aside from the end of service incentive or gratuity, employers make no further contributions to the employee’s financial well-being. Generally speaking, gratuity is computed according to a precise formula, although it equals around 4-5 percent of an employee’s monthly compensation. Upon the employee’s exit from the firm, the accumulated benefit is paid out to them in full.
While the absence of social contributions for companies in the United Arab Emirates is a significant cost-saving measure, it leaves employees without important coverages, particularly health insurance. Employers are now required to offer health insurance to everyone of their employees, and those who fail to do so will be subject to fines under a new amendment.
Aside from that, cost sharing is not permitted, and the employer is responsible for the whole cost of the coverage. Because many expatriates travel frequently, the following insurance companies are typically used: Allianz, Cigna, and Aetna.
As vital as it is to maintain compliance with the recruiting process, it is equally crucial to safeguard your firm from potential internal dangers. Preserving intellectual property and data privacy have become critical components for many businesses, and protecting that information is at the forefront of the thoughts of those businesses’ corporate legal teams as they grow globally. Fortunately, UAE law recognizes a comprehensive variety of national intellectual property rights that are structurally comparable to those recognized under the United Kingdom, European Union, and United States legal systems.
Essentially, an International PEO eliminates the need for excessive risk when employing employees from other countries, while also being quick and cost-effective.
UAE Employment Options for International Companies
With a strong economy and a rapidly rising population, employment in the United Arab Emirates is on the increase, and if your firm is in the midst of a worldwide expansion, this is a location to consider. It is the most prosperous area in the Middle East, and it includes the cities of Dubai and Abu Dhabi among its many attractions. Not only are there a large number of competent and willing applicants, but there is also a large number of new customers that are just waiting to be discovered. Learn more about the career opportunities in the United Arab Emirates (UAE) below to get a head start on planning your relocation to this market.
UAE employment using independent contractors
In the UAE, employment is on the rise as a result of its rising economy and growing population. If your firm is in the process of expanding internationally, this area is a good place to look for potential employees. It includes the cities of Dubai and Abu Dhabi, and is the most prosperous area in the Middle East. Non-stop availability of competent and motivated individuals is matched by an abundance of fresh consumers just waiting to be discovered. Take a look below at some of the career opportunities in the UAE to get a better idea of what you may expect should you decide to relocate to the country.
Establishing aforeign subsidiary
Establishing a foreign subsidiary is one method of hiring people, both full-time and part-time, in foreign countries. This may be important for some firms, such as those in the industrial or real estate industries. We recommend that you speak with an international specialist before making a final choice on the most effective manner to establish a taxable presence in your desired country of operation. One advantage of establishing a foreign subsidiary is the strong, long-term links that are established in your new market.
- In this specific location, personal ties and trust are extremely important when it comes to doing business.
- This cultural approach might help you establish a stronger market presence.
- It’s also a time-consuming endeavor.
- Foreign Subsidiary as a Service (FSaaS) is a more straightforward and cost-effective technique of creating a legal presence in a foreign nation (FSaaS).
Businesses may use this option to outsource their risks, compliance, payroll, and benefits to Velocity Worldwide, allowing them to concentrate on their global strategy. Arriving in the nation requires far less time and money, and it allows you to hire staff while remaining compliant.
Using an International PEO to hire in UAE
International PEO allows enterprises to create a legal presence in their target country without the need to establish a foreign subsidiary in that country. With this solution, you may hire people in the United Arab Emirates while still reaping the benefits of flexibility, enforceability, and compliance in your hiring process. An International PEO serves as the official employer of record for the employees of a client company in the target country. Human resource functions such as monthly withholdings, income tax to employer social security contributions, local employment contracts, payroll, and so on are often managed by them as well.
Because of the large number of possible legal repercussions associated with foreign growth, outsourcing employment obligations can be quite beneficial during this period.
After an employee’s probationary period has expired, labor law stipulates a 30-day minimum notice period, provided the employer has a “acceptable” basis for terminating the employee’s employment.
An international PEO takes care of everything from recruiting through firing, so you don’t have to worry about ambiguous requirements like termination for your company.
Should I hire foreign employees or local nationals in UAE?
During the process of establishing a firm in Dubai, entrepreneurs must decide the type of employment procedures they desire to use in their organization. At the moment, the majority of the population of the UAE is made up of foreigners. As part of its attempts to increase Emirati participation in the private sector, the government is attempting to address this disparity in the private sector. It is the goal of this Emiratisation program to incentivize the hiring of locals by giving different advantages to prospective businesses and enforcing certain restrictions on the hiring of expats.
- In order to launch a new firm in Dubai, entrepreneurs must pick between the tried-and-true approach of recruiting foreign workers and providing the same possibilities to local workers while taking advantage of the government incentives that come with hiring them.
- Discounts on transaction costs, which are applicable when processing employment permits, are among the perks.
- Entrepreneurs who are considering establishing a business in Dubai may find these incentives to be particularly beneficial.
- Having a larger pool of experience when employing foreigners is advantageous.
- It is noted by the recruitment firm Hays that there is a skills shortage among Emiratis, namely in technical engineering, digital marketing and communications, finance, and human resources.
- Entrepreneurs who have just established a firm in Dubai want high-quality output from their staff in order to build a name for themselves in the highly competitive local marketplace.
- It is frequently less expensive to recruit foreigners than it is to hire natives.
- An increase in interest in employing talent from India, Pakistan, the Philippines, and Sri Lanka was seen by the company.
- The use of this recruiting technique, according to some business advisers in the United Arab Emirates, can help new entrepreneurs reduce the high costs of starting a firm in Dubai.
- Some posts are allocated solely for natives of the United Arab Emirates.
- Additionally, every firm with more than 1,000 workers is required to engage two UAE residents to work as data entry operators.
Do you have any further questions concerning the prerequisites for establishing a business in Dubai? Our decision-making professionals at Decisive Zone have all of the answers. Make contact with us right away to schedule an appointment.
UAE Steps Up Enforcement of Preferential Hiring for Nationals
The Ministry of Human Resources and Emiratisation (MOHRE) of the United Arab Emirates (UAE) has began adopting a more strict application of its current UAE Labor Law market testing procedure, with the purpose of favoring the employment of nationals. Now that the initiative has been expanded to include all enterprises in the United Arab Emirates, businesses will need to make adjustments to their employment processes. Sinan Yurtsever, a highly qualified foreign consultant, began working for a multinational consulting firm in Dubai, United Arab Emirates, in 2018.
- Because of his worldwide experience, he is prospering in the company’s international environment.
- “My company’s diversity is greater when compared to that of other organizations.
- “It is possible to maintain a healthy work-life balance, and the work culture is becoming increasingly international, with English as the primary language.
- However, as a result of the widespread campaign for preferred employment of UAE nationals, a consultant like Yurtsever could now only be employed if there was no competent Emirati candidate competing for the role at the time.
Although “this test was not actively enforced by the Ministry of Human Resources and Emiratisation until fairly recently,” according to Anirban Chatterji, director of Middle East Immigration and Employment Leader at PwC in Dubai, “it was common practice to see expatriate employees dominate the private sector.” Policies, programs, and incentives have been put in place throughout the years to provide priority to UAE natives, however these activities alone have not been sufficient to achieve this goal.
- It was not especially difficult to enforce such labor-market testing, according to Chatterji, because of the lack of “teeth” associated to it.
- In order to reward and facilitate the prioritizing of Emiratis in the private-sector labor force, Tawteen Gate has developed an online portal.
- They must be between the ages of 18 and 60, and they must possess a number of fundamental qualities, such as a valid passport and a certificate of good behavior, among other things.
- Expats working in the United Arab Emirates are mainly employed on fixed-term contracts.
- “Your ID is associated with the organization as a whole.
- According to the Korn Ferry Institute, despite the drive for labor-market testing, the UAE is experiencing a scarcity of highly trained people.
- While the Dubai Statistics Center reports that the city has one of the world’s lowest unemployment rates at 0.5 percent, according to the center, Emiratis are seeing a steady increase in the number of unemployed people.
- Another screening step mandated by the Ministry of Human Resources and Employment (MOHRE) requires businesses to attend a “Available-Day Appointment” to interview UAE citizens for open positions, according to Chatterji.
- It is only when that procedure has been completed and no suitable applicant has been identified that a job offer can be offered to a qualified foreign citizen.
According to Chatterji, “a lot of organizations, notably multinational corporations, were uninformed of the expanded applicability of this labor-market testing program and, as a result, did not factor it in as part of their entire recruitment process.” Companies will have to adjust to a more stringently enforced legal environment.
A variety of tactics are employed; nevertheless, the end result is the same: employers are compelled to first consider candidates from their own country before considering those from elsewhere.
It is true that the benefits include guaranteeing fair and adequate UAE national representation throughout various industry sectors in the private sector, as well as a more balanced and culturally varied workforce, which in the long run helps enterprises.
“I’m not sure how powerful it can be in the UAE,” he stated, pointing out that the vast bulk of the population is not Emirati in origin.
“Over time,” Chatterji predicts, “the impact will diminish as enterprises incorporate the necessity to participate in this new labor-market testing program into their internal planning procedures.” Katie Nadworny is a freelance journalist based in Istanbul who specializes in travel and culture.