Employer of Record in United Arab Emirates

employer of Record Emirates

Hire employees in UAE

With Nomad Global Hire PEO / EOR services, you can easily hire employees in the United Arab Emirates, without having to set up your own entity. No risk and fully compliant with HR support included

What to know about the United Arab Emirates

UAE is made of 7 emirates

Employer Tax

Estimated at 0%

Currency

AED, Emirati Dirham

Available Employee Benefits

Medical insurance, Expatriation support package

Employee Tax

There is NO income tax

Payroll Frequency

Monthly over 12 payments

Capital

Abu Dhabi

Population

Circa 9.4 Millions

Available Contracts

Fixed Term Contract, Indefinite/Permanent

The United Arab Emirates (UAE) is a fantastic hub for business and startups with lots of innovation and investment opportunities. Crunchbase recounts almost 10,000 Startups implemented in the Emirates, with success stories such as Squatwolf and Beehive. NOMAD can help your company to settle in the UAE, and will manage the local employment for your new employees, including Payroll, Taxes, Visas and Compliance

Payroll, Benefits & Tax in the United Arab Emirates

  • Employer Tax in UAE is 12.56% for UAE nationals but for expatriates the costs is dependent on Visa Requirements and will include Medical Insurance costs, End of Service Benefit accruals, Visa costs and Compensation Insurance (0.06%)
  • Employee Tax in the UAE is none. There is no Income Tax in the UAE. The employee Gross and its Net are the same.
  • Overtime in the UAE has to be paid by law for non-managerial positions or can be transferred into days off. Overtime is limited to 2h a day, and can be compensated up to 150% of the standard hourly rate of the employee
  • Payroll Frequency in the United Arab Emirates is Monthly over 12 months
  • Termination can be done for any cause in UAE, see below
  • Notice period is minimum 1 month
  • Maternity Leave in the UAE is 45 days of Paid Leave which will be paid at 100% by the employer.
  • Paternity Leave is not covered by Emirati law.
  • Parental Leave is 5 working days during the first 6 months after the birth of the child. After this, it can be extended another 45 days (will then need a medical certificate).
  • Sick Leave is covered for up to 90 days per year, on the condition the employee has worked at least 3 months for the employer post probation period. The employer will pay the salary: at 100% during the first 15 days, then 50% between 16 and 45 days, then 0% between 46 and 90 days!
  • Statutory Leave is 30 days minimum per year. But in the first year of employment, employees can only use 2 days per month for 6 months after having worked at least 6 months, so in the first year the employee would only have 12 days, then 30 days from the second year.
  • Bank holidays: there are 15 national days in 2023 in UAE

Onboarding and Termination in the UAE

Hiring in UAE
  • Probation period are mandatory in the UAE
  • Probation period in the United Arab Emirates are usually of a maximum of 3 months to 6 months
  • You can hire through Fixed Term Contracts only. Permanent contract are not allowed in the UAE.
  • Employment Contracts are drafted in English
  • The visa process must have been requested and accepted before hiring through contract
Termination in UAE
  • Termination is the UAE is generally a straightforward process, although it still requires particular care. In order to be compliant, Termination can occur as such:
    • By mutual agreement
    • By resignation of the employee
    • By expiration of contract
    • By the employer unilaterally as long as notice and required compensation are respected
  • The minimum notice period in the UAE is 1 month and the maximum is 3 months, and will depend on the agreement between employer and employee.
  • Severance payments in UAE are mandatory and are 21 working days severance payment for each year of the first 5 years, then 30 working days per year of service, up to a maximum of 2 years based compensation.

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