Employer of Record Dubai

Employer of Record Dubai
Employer of Record Dubai
Table of Contents

Employer of Record Dubai is a solution designed to help businesses expand into the UAE quickly and compliantly. Dubai has established itself as one of the world’s most attractive business hubs. With its strategic location, world-class infrastructure, and investor-friendly policies, the city continues to attract entrepreneurs and multinational corporations. However, setting up operations in Dubai often involves navigating complex employment laws, visa processes, and compliance requirements. This is where an Employer of Record (EOR) in Dubai becomes essential, providing companies with a faster and risk-free way to hire talent and operate without establishing a local legal entity.

Before we dive deeper into Employer of Record in Dubai, click on this video for a quick overview of how it can help you grow your company in the country without setting up a legal entity.

Employment Laws in Dubai

When hiring in Dubai, companies must comply with the fUAE Federal Decree-Law No. 33 of 2021, which regulates employment across the private sector, including Dubai’s mainland and free zones. For foreign businesses without a local entity, keeping up with these legal requirements can be challenging. This is where an Employer of Record Dubai becomes invaluable, ensuring compliance with labor laws while managing HR functions on your behalf.

Dubai Holidays

Employees in Dubai are entitled to enjoy several paid public holidays each year. These include:

New Year’s Day (Gregorian calendar)

Eid Al Fitr

Arafah Day and Eid Al Adha (Festival of Sacrifice)

Islamic New Year (Hijri New Year)

Birthday of Prophet Mohammed (PBUH)

Commemoration Day

UAE National Day

Note: The exact dates of Islamic holidays vary each year as they follow the lunar Hijri calendar.

Paid Holidays in Dubai

Employees in Dubai are entitled to holiday pay under the following conditions:

Leave Around Public Holidays:

If an employee’s approved leave (such as annual or medical leave) falls directly before or after a public holiday, they are still entitled to holiday pay.

Working on a Holiday:

If an employee is required to work during an official holiday, they must receive a substitute rest day plus an additional payment of 50% of their daily wage.

Medical Leave

Employees can take up to 90 days of sick leave per year. The pay structure is as follows:

First 15 days – Full salary.

Next 30 days – Half salary.

Final 45 days – No salary.

Sick leave is not granted during probation.

Maternity Leave

Women employees who have completed at least one year of service are entitled to 45 days of fully paid maternity leave.

Women with less than one year of service are entitled to the same period of leave, but at half pay.

After childbirth, mothers are allowed two paid breaks of up to 30 minutes each day to nurse their child for the first 18 months.

Fathers are currently not entitled to paternity leave under UAE law.

Annual Leave

Annual leave is based on the length of service:

Duration of Service Annual Leave Entitlement
6 months – 1 year 2 days per month
More than 1 year 30 days per year

Annual leave must be taken at least once within two consecutive years and If an employee resigns, they are entitled to payment for any unused annual leave days.

Employment Contracts in Dubai

Before 2018, companies in the UAE faced challenges in sponsoring and legally employing individuals under flexible contracts. To address this, the Ministry of Human Resources and Emiratisation (MoHRE) introduced new regulations in 2018, allowing part-time and contract-based work. This gave businesses and employees more flexibility in choosing work arrangements.
All employment contracts in Dubai should preferably be in writing and must clearly state:

Start date

Date of contract conclusion

Type of work

Work location

Salary/remuneration

Duration (for short-term contracts)

Aspect   Contractors (Part-time/Short-term) Full-time Employees
Flexibility Work can be defined temporarily; contracts can be adjusted as new needs arise. Bound by long-term schedules and set commitments.
Independence Contractors usually work independently and require little supervision. Full-time staff require closer integration with company processes.
Cost Higher hourly rates, but no benefits like bonuses, health insurance, or tax allowances—often cheaper overall. Salaries may be more cost-effective per hour, but additional benefits and allowances are mandatory.
Loyalty & Commitment Limited commitment since they work with multiple clients. More loyal and committed, as their growth depends on the company's performance.
Knowledge Retention Skills may leave with the contractor after contract completion. Knowledge and training remain within the organization.
Legal Clarity Flexible contracts can be beneficial, but they may risk misclassification if not structured correctly. Clear legal classification as employees with fixed entitlements.

Working Hours and Overtime

Employees in Dubai generally work a maximum of 8 hours per day or 48 hours per week, with shorter hours during Ramadan. Overtime pay is mandatory, ranging from 25% to 50% above the basic wage depending on timing. An EOR Dubai ensures payroll and overtime calculations are accurate, preventing compliance risks.

Prohibitions and Worker Protection in Dubai

The UAE labor law has strong measures in place to safeguard employees and ensure fair workplace practices. Key protections include:

Anti-Discrimination:

Employers cannot discriminate against workers based on race, gender, religion, color, or disability. Equal pay for men and women performing the same role is also legally enforced.

Harassment and Bullying:

Any form of workplace harassment, whether sexual, physical, or psychological, is strictly prohibited.

Ban on Forced Labor:

The law does not allow forced or involuntary labor under any circumstances.

Recruitment Fees:

Employees cannot be charged recruitment or employment fees; the employer must cover these costs.

Passport Confiscation:

It is illegal for employers to hold or confiscate an employee's passport. Partnering with an Employer of Record Dubai helps businesses stay compliant with these regulations, ensuring employees are protected while employers avoid legal risks.

Termination of Employment in Dubai

Termination of employment in Dubai is regulated by UAE Federal Decree-Law No. 33 of 2021, which applies across the private sector, including most free zones. The law clearly defines valid grounds for ending employment, required notice periods, employee entitlements, and what qualifies as unlawful dismissal.

Common Reasons for Termination

An employment contract in Dubai can be terminated in the following ways:

Mutual Agreement

Both employer and employee agree in writing to end the contract.

Contract Expiry

A fixed-term contract ends and is not renewed.

Legitimate Reason with Notice

Either party may end the contract with proper notice for valid reasons such as:

Performance Issues:

Continuous failure to meet job requirements despite warnings.

Redundancy:

Termination due to restructuring, financial challenges, or permanent closure.

Gross Misconduct

(immediate dismissal without notice), including:

Submitting forged documents or using a false identity.

Causing serious financial damage to the company.

Physical or verbal assault at the workplace.

Being under the influence of alcohol or drugs at work.

Absence without a valid reason for over 20 non-consecutive days or 7 consecutive days in a year.

Notice Periods

Notice periods vary based on the situation and contract type:

Standard Notice

Minimum of 30 days, extendable up to 90 days if stated in the contract.

Immediate Termination

No notice required in cases of gross misconduct.

During Probation (up to 6 months)

Employer termination – 14 days’ notice required.

Employee resignation (to another UAE employer) – 30 days’ notice.

Employee resignation (leaving the UAE) – 14 days’ notice.

Employee Entitlements After Termination

Employees are entitled to certain benefits and payments upon termination:

End-of-Service Gratuity

Payable after at least one year of continuous service.

Calculated on basic salary:

21 days' wages for each of the first 5 years.

30 days' wages for each year after that.

May be reduced if the employee resigns.

Unused Annual Leave

Compensation for any accrued leave not taken.

Repatriation Ticket

Cost of return ticket for expatriates (unless they transfer to another UAE employer).

Final Wages and Benefits

Any unpaid salary, bonuses, or allowances.

Compensation in Lieu of Notice

If either party fails to serve the full notice, they must pay the other an allowance equal to the salary for the remaining notice period.

Unlawful or Arbitrary Termination

A dismissal is considered unlawful or arbitrary if it is not linked to performance or conduct, such as:

Discrimination based on gender, race, religion, or disability.

Retaliation for filing a complaint with the Ministry of Human Resources and Emiratisation (MOHRE).

Termination during maternity leave or sick leave.

If unlawful termination is proven, the court may award compensation of up to three months’ salary, in addition to gratuity, notice pay, and other entitlements.

Payroll and Payroll Taxes in Dubai

For Dubai and the rest of the United Arab Emirates, both employers and employees contribute to social security. Employers contribute 12.5% of the employee’s salary (with a maximum limit of AED 50,000), while employees contribute 5%, which is deducted directly from their wages by the employer.

Steps for Hiring Employees with EOR Dubai

Hiring employees in the United Arab Emirates can feel complex due to local labor laws, payroll regulations, and compliance requirements. Partnering with a trusted employer of record Dubai simplifies the process, allowing you to focus on growing your business while the EOR manages HR, compliance, and employee experience.
Here are six simple steps to guide you through hiring using EOR Dubai:

Step 1: Evaluate the Services Offered by Each EOR

A reliable EOR in Dubai should provide a strong HR framework to make hiring seamless. Key services to look for include:

Payroll processing for employees and contractors

Benefits administration

Smooth onboarding support

Guidance on UAE labor laws and compliance

Intellectual property protection and data security

Use this list as a benchmark to compare different providers.

Step 2: Choose an EOR with a Local Entity in Dubai

Some EORs depend on third-party partners to deliver services, which can lead to higher costs and less control. For enhanced security, stable pricing, and superior customer support, choose an EOR that operates its local entity in Dubai. This ensures transparency and reliability.

Step 3: Research Reviews and Client Feedback

Before making a decision, check client testimonials, case studies, and independent reviews. This helps you understand the quality of service, client satisfaction, and how the provider handles challenges. A proven track record is a sign of a trustworthy EOR partner. Trust Afrisetup.

Step 4: Prioritize Employee Experience

Since the EOR is the legal employer, it represents your brand to your Dubai-based staff. Choose a provider that ensures employees are paid on time, queries are resolved quickly, and salary deductions are clearly explained. A positive employee experience will boost retention and engagement.

Step 5: Align on Compensation and Benefits

Your Employer of record Dubai partner should guide you in building competitive salary packages that reflect skills, experience, and cost of living in the country. Beyond salary, ensure the benefits package is modern, attractive, and compliant with UAE labor laws. This is crucial for attracting and retaining top talent.

Step 6: Safeguard Intellectual Property and Data

Before finalizing a contract, confirm that your EOR Dubai has strong systems for data protection and intellectual property security. The agreement should clearly transfer invention rights to your company.

Why Choose Afrisetup for Employer of Record Dubai

Afrisetup stands out as the go-to choice for entrepreneurs, SMEs, and multinational corporations looking to streamline their hiring and compliance processes in Dubai. Here’s why:

1. Deep Expertise in UAE Business Laws

Afrisetup has extensive experience navigating the complexities of UAE labor regulations, immigration rules, and employment compliance. With our expertise, you can rest assured that your workforce is fully compliant with local laws.

2. Faster Market Entry

Unlike the lengthy process of setting up a legal entity, Afrisetup enables you to start hiring within weeks. We provide an efficient route to establishing your presence in Dubai, ensuring your business doesn’t lose valuable time.

3. Comprehensive HR and Payroll Support

We handle all aspects of employment—including contracts, payroll, social contributions, and benefits management—so you can focus on scaling your business without administrative burdens.

4. Tailored Solutions for Foreign Investors

Whether you’re a startup testing the market or a multinational deploying project staff, Afrisetup customizes solutions to fit your specific needs. We ensure that you maintain operational flexibility while staying legally compliant.

5. Transparent and Cost-Effective Services

Afrisetup offers clear pricing models with no hidden charges. By choosing us, you avoid the heavy expenses associated with company incorporation, licensing, and office rentals.

6. Proven Track Record Across Industries

We have successfully partnered with companies in tech, energy, construction, and professional services sectors, helping them build strong teams in Dubai without the hassle of entity setup.

7. Dedicated Client Support

Our team provides personalized assistance throughout the hiring journey—from onboarding to exit management—ensuring that both you and your employees enjoy a smooth experience.

Services Offered Under Afrisetup Employer of Record Dubai

Choosing us as your Employer of Record (EOR) provider in Dubai gives your business the tools to grow and manage your workforce with ease. Here’s why we stand out as a trusted partner in the UAE:

1. Talent Acquisition and Seamless Onboarding

We make hiring in Dubai simple and fully compliant with UAE labor laws. From verifying work eligibility to preparing employment documentation, our team ensures a smooth and legal onboarding process for both employers and employees.

2. Accurate Payroll Management

Our payroll specialists handle everything—from salary calculations to deductions and statutory contributions. We ensure employees are paid on time and in full compliance with Dubai’s tax and labor regulations, eliminating the risk of errors or delays.

3. Tax Compliance and Reporting

We take care of all tax obligations, including filings, remittances, and compliance with UAE tax rules. Whether it’s income tax, social security contributions, or other requirements, Afrisetup ensures your business stays compliant at all times.

4. Employee Benefits Administration

Afrisetup provides access to a wide range of employee benefits, including health insurance, pension schemes, and other mandatory benefits under UAE law. We manage these programs to keep your workforce motivated and your company fully compliant.

5. Legal and Immigration Compliance

We handle all legal obligations related to employment in Dubai. From drafting compliant contracts to managing visas and immigration for expatriate staff, we make sure everything aligns with UAE labor laws. We also support workplace safety and compliance standards for a secure work environment.

Employer of Record Dubai FAQs

An Employer of Record (EOR) in the UAE is a service provider that officially employs your staff on your behalf. They ensure compliance with local labor laws, manage payroll, and handle all employment-related taxes and documentation.

In most cases, a Dubai tourist visa is processed within 5 working days.

Applicants must provide the following:

  • A recent color passport-sized photograph.
  • A color photocopy of a valid passport (minimum validity of six months).
  • A copy of your Emirates Airline ticket or a codeshare flight ticket starting with ‘EK’ and ticket number beginning with ‘176’.
  • A completed visa application form.

Yes, foreigners can obtain a single-entry Dubai visa to visit friends or relatives in the UAE without requiring a sponsor. The visa is typically valid for 30, 60, or 90 days, depending on the type issued.

EOR Dubai Conclusion

Expanding into Dubai offers immense opportunities, but the complexities of hiring and compliance can overwhelm even the most prepared businesses. Partnering with an Employer of Record Dubai provides a smooth, compliant, and cost-effective solution. Whether you’re a startup, multinational, or foreign investor, EOR services help you scale operations quickly while staying focused on growth.

Contact us today for professional assistance.